CID: Health Insurance Rate Filing - Celtic Insurance Company (Individual)

Health Insurance Rate Filing - Celtic Insurance Company (Individual)

Rate request: No Rate Change

Decision: Disapproved, reduced to a 6.5 percent decrease on September 9, 2014

On June 27, 2014, Celtic Insurance Company made a rate filing with the Department that proposed to keep rates level for individual health insurance plans sold in the open market and not through the state-sponsored exchange. There is currently 1 policy in force in this block of business in Connecticut.

After an actuarial review, the Department disagreed with Celticís calculations regarding the impact of a temporary and cost-saving federal reinsurance program provided under the Affordable Care Act (ACA). The Department concluded that because all Connecticut plans with the exception of grandfathered plans (those issued before March 23, 2010) will be ACA compliant on January 1, 2015, the plans are eligible for the federal temporary reinsurance program.

Because other states have delayed the transition to fully ACA compliant plans until 2016, the Department believes that there should be excess federal funds available in the temporary reinsurance program that Connecticut carriers can apply toward their calculation to lower some of their pricing. With that new calculation, the Department, on September 9, 2014, approved the revised Celtic rates that resulted in an average decrease of 6.5 percent.

The new rates will take effect January 1, 2015.


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

Content Last Modified on 9/9/2014 2:48:15 PM