Rate request - 1.79 percent increase for medical & pharmacy plans
Decision - Approved October 17, 2012
On September 24, 2012, CIGNA Healthcare of Connecticut filed a requested rate increase of 1.79 percent on large employer group medical policies for employers with 51 or more workers.
CIGNA sought the new rates, citing an impact of more than 9 percent in combined increase in medical costs and use of medical services, also known as “trend.”
An actuarial review by Insurance Department substantiated the company’s calculations in regards to the impact of increased medical costs and greater use of medical services by members. Further, the Department found that the company’s actual costs in claims over the life of these plans have resulted in a medical loss ratio of above 85 percent, the threshold required under the federal health care reform law. As a result, the Department, on October 17, 2012, approved the request as submitted.
The new rate will take effect on January 1, 2013 on plans currently held by 13 policyholders in Connecticut.