Decision – Reduced initial request, issued final approval on August 5, 2013
On June 3, 2013, Anthem Health Plans, Inc. made an initial rate filing for individual health plans it intends to market through Access Health CT, the state’s health insurance marketplace, beginning January 1, 2014. The rate filing also is for plans that Anthem intends to market outside Access Health CT.
Anthem stated that its claims costs are fully based on existing data from its claims experience of its small group plans currently marketed in Connecticut. The company explained the new plans marketed through Access Health CT will meet all the Essential Health Benefits criteria mandated under the federal health care reform law. Anthem also said the rates take into account other mandates related to the federal law such as guaranteed issue and new ratings rules, minimum actuarial value of 60 percent and taxes and fees. In addition, the company is projecting that costs of medical services will increase 8.6 percent over the next year.
Anthem said it intends to comply with all current laws and guidance.
After a thorough actuarial review, the Connecticut Insurance Department made a number of reductions and revisions in the company’s filing. Specifically, the Department:
- Reduced the annual trend from 8.57% to 6.5%
- Reduced the exchange fee from 1.48% to 1.35%
- Removed the grace period adjustment of 0.375%
- Disallowed the 0.76% adjustment for the impact of selection due to renewal timing changes
As a result of the aforementioned adjustments, the Department determined that the resulting rates are neither excessive, inadequate, nor unfairly discriminatory and on Aug. 5, 2013, approved the filing.
The monthly base rate for each standard metal plan in the exchange, prior to making adjustments for age and geographic area, is in the table below:
These amounts are also prior to any federal premium subsidy, if applicable.