Rate request - 7.8 percent increase
Decision - Disapproved as submitted, reduced to 6.4 percent
On October 8, 2012, ConnectiCare Insurance Company filed a request to increase premium rates an average of 7.8 percent beginning January 1, 2013.
The company said it sought the new rate because of increases in the demand for medical services and the cost of those services. The company’s calculations showed a 3 percent increase in demand by its members for medical services, a 2.1 percent increase in demand for prescription drugs, a 5.9 percent increase in medical costs and a 5 percent rise in pharmacy costs.
In its filing to the Department, the company also included the expected impacts of the following fees associated with federal health care reform: Patient Centered Outcomes Research Fee - $2 per covered life; Transitional Reinsurance Program Fee - $7 per member per month.
After an actuarial review, the Department determined that the company’s projected impact on rates from trend was appropriate but that impact from federal reinsurance fees was premature and cannot be applied to new rates. As a result, the Department approved a reduced average increase of 6.4 percent on December 3, 2012.
The new rates affect approximately 1,500 policyholders in Connecticut.