CID: Health Insurance Rate Filing - Aetna Life Insurance Company (Large Group, Grandfathered Plans)

Health Insurance Rate Filing - Aetna Life Insurance Company (Large Group, Grandfathered Plans)



Rate request: 12 percent average increase

Decision: Approved September 11, 2014


On July 9, 2014, Aetna Life Insurance Company filed a rate increase request of 12 percent on its Essential premier Health Insurance plans. The plan is only available to members of the American Association of Retired Persons (AARP) as part of a group association trust.

These plans are grandfathered under the federal Affordable Care Act, meaning they were marketed before March 23, 2010, the date the ACA was enacted, and do not have to comply with the ACA mandates if there have been no major changes to coverage or benefits since then.

The company said the proposed rate increase reflects an increase in the cost of medical services and demand for those services. Aetna calculates “trend” – the impact of those factors – to be about a 12 percent increase on premium rates.

After an actuarial review, the Department determined that that the company had been experiencing increasing claims costs beginning in 2012 with a marked increase in the first three months of 2014. During that time, for every $1 of premium taken in, the company was spending $1.42 on medical costs. The Department also agreed that Aetna’s calculation on the projected impact of trend was appropriate.

As a result, the Department approved the requested increase on September 11, 2014. The new rates will take effect on January 1, 2015 for 218 policyholders in Connecticut.


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Find the filing, brief summary and public comment section here at Health Insurance Rate Filings


Content Last Modified on 9/11/2014 3:31:39 PM