Health Insurance Rate Increase - Oxford Health Plans (small group)
Rate request – 8.7% average increase
Decision – Reduced to 7.4% to 8.4% on Aug. 28, 2012
On August 7, 2012, Oxford Health Plans filed a request to raise rates an average of 8.7 percent on its Oxford Health Plans (CT), Inc. used by small employers – businesses with fewer than 50 workers. There are 13,355 policyholders in these plans that cover approximately 21,000 employees and their dependents. The company sought the new rates because it said medical costs had risen about 12 percent and prescription drug costs had risen just under 11 percent. Additionally, the company said it expects minimal impact from state and federal mandates for this contract period. The company said the requested increase will also generate the expected 80 percent small group medical loss ratio (MLR), for rebate purposes under the federal health care reform law.
An actuarial review performed by the Department determined the Oxford’s projected costs were not in line with what the company is currently experiencing and disapproved the request as submitted. The Department, instead, limited the increase to a range of 7.4% to 8.4% on Aug. 28, 2012.
Content Last Modified on 8/28/2012 3:36:43 PM