Rate request: Overall average decrease of 0.10 percent
Decision: Decision: Reduced to an average decrease of 0.65 percent on October 29, 2014
On September 29, 2014, Oxford Health Plans filed a request to decrease premium rates an average of 0.10 percent over the course of the next year on some large group health insurance plans. These are medical policies for employers with 51 or more workers.
The rate change reflects changes in benefit design and claims experience.
The Department’s actuarial review determined that the company over-estimated the projected impact of a medical inflation factor known as “trend,” which accounts for the increased cost of medical services and demand for those services. The company calculated trend impact at 11.8 percent, while the Department determined that a 9 percent impact is more appropriate.
As a result, the Department disapproved the request as submitted but did approve an even steeper average decrease of 0.65 percent on October 29, 2014.
The new rates will take effect January 1, 2015 for approximately 890 policyholders in Connecticut that provide health coverage for about 2,600 employees and their dependents.