CID: Health Insurance Rate Filing - Anthem Health Plans (Large Group)

Health Insurance Rate Filing - Anthem Health Plans (Large Group)

Rate request: 11 percent increase

Decision: Disapproved, approved lower increase of 9% October 28, 2015

On September 25, 2015, Anthem Health Plans filed a request to increase rates 11 percent on its large group health insurance policies.

There are no existing policyholders who would be affected by the change.

Anthem said the increase was needed to account for the impact of increasing medical and pharmacy costs and an increased demand for medical services, factors known as “trend.” The company projected the “trend” impact at 5.7 percent on medical and 19.2 percent on pharmacy benefits, with the largest impact attributed to the new Hepatitis C drug Sovaldi. The company also accounted for the impact of benefit changes and fees associated with the federal Affordable Care Act.

After an actuarial review, the Department determined that Anthem had overestimated the impact of medical inflation for both medical services and pharmacy costs. As a result, the Department disapproved the initial request and, instead, approved a lower increase of 9 percent on Oct. 28, 2015.

The rates take effect on January 1, 2016 for new business only.


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

Content Last Modified on 10/28/2015 10:51:45 AM