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

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

Rate request: 5.5 percent increase

Decision: Disapproved, limited to a 3.6% increase

On September 27, 2016, Anthem Health Plans filed a request to increase rates an average of 5.5 percent on its large group HMO health insurance policies that it will market in 2017.

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 overall “trend” impact at 10 percent. 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’s overstated the impact of trend on the medical service side, calling it “excessive.” The Department found that the impact from rising prescription drug costs was appropriate, however. As a result, the Department disapproved the original rate increase request and instead approved a 3.6 percent increase on October 27, 2016.

The new rates will effect on January 1, 2017.


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

Content Last Modified on 10/28/2016 10:42:09 AM