Rate Request: 6.1 percent increase
Decision: Disapproved as submitted, reduced to 4.7 percent
On August 28, 2013, Anthem Health Plans filed a request to increase rates 6.1 percent on its large group health insurance policies for employers with 51 or more workers.
If approved, the new rates would take effect on January 1, 2014 for new business only. The request to raise rates follows a 2 percent decrease in rates on the same plan in 2013.
The company said the new rates reflect changes in benefits to conform to federal health care reform laws. Anthem stated the requested increase also accounts for a projected increase in the cost of medical services and demand for those services. Anthem calculates “trend” – the impact of those factors – to be about an annual 8.6 percent increase on premium rates.
After an actuarial review, the Department determined that the company was overstating the impact of “trend” in its rate calculation and therefore disapproved the request as submitted. Instead, the Department approved a smaller average increase of 4.7 percent on September 17, 2013.