CID: Health Insurance Rate Filing - CIGNA Healthcare Of Connecticut (Large Group HMO)

Health Insurance Rate Filing - CIGNA Healthcare Of Connecticut (Large Group HMO)



Rate request: Average increase of 4.0% for medical and pharmacy plans

Decision: Approved January 13, 2016


On December 17, 2015, CIGNA Healthcare of Connecticut filed a requested average rate increase of 4.0 percent on large employer group HMO policies for employers with 51 or more workers.

In its filing, the company cited projected increases in medical and pharmacy costs and increased demand for medical services in a factor known as “trend.” The company expects that “trend” in 2016 will have about a 10 percent impact on what it expects to pay in claims. The company also calculated the impact of fees and taxes associated with the Affordable Care Act (ACA).

CIGNA projected that the new rate would meet the federal medical loss ratio threshold of 85 percent, meaning it expects to spend at least 85 cents of every premium dollar on medical services.

After an actuarial review, the Department determined that the proposed rates adequately account for the impact in medical inflation and that the company will meet the 85 percent medical loss ratio set by the ACA.

As a result, the Department approved the request on January 13, 2016.


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


Content Last Modified on 1/13/2016 12:40:32 PM