Rate request: New Product Filing
Decision: Review Complete September 18, 2013 - Rates Reduced by 17 percent
On June 20, 2013, Celtic Insurance Company submitted a rate filing for a new individual health plan that will provide major medical and prescription drug coverage.
The company intends to market the plan outside of Access Health CT, the state-sponsored health exchange but said it will conform to all applicable state laws and those of the federal Affordable Care Act.
Because this is a new product with no market experience, the company calculated the rates based on the claims cost experience from its other individual plans issued in Connecticut and nationwide experience. In building the rate for this product, Celtic looked at the cost of medical services and demand for those services in 2012 and projected they would increase at an annual rate of about 7.0 percent.
During the actuarial review, the Department disagreed with Celticís projection of the difference in morbidity, the level of health of an individual, between the currently insured and the new purchasers of individual insurance in Connecticut and nationwide in 2014. The Department required the company to reduce these calculations and this resulted in a net reduction of 17 percent from the rates originally filed with the Department. The company revised the rates based on the Departmentís review, which was completed on September 18, 2013.