CID: Health Insurance Rate Filing - ConnectiCare Inc. (Large Group HMO)

Health Insurance Rate Filing - ConnectiCare Inc. (Large Group HMO)

Rate request: 6.9 percent increase

Decision: Disapproved, limited to 5.9% increase on November 9, 2016

On September 30, 2016, ConnectiCare Inc. filed a request to raise premium rates an average of 6.9 percent for large employer group medical policies it sells to employers with 51 or more workers.

The company said the increase was needed to account for the impact of increasing medical and pharmacy costs and an increased demand for medical services, factors known as “trend.” The company projected the “trend” impact at 10 percent on medical and 13.5 percent on pharmacy benefits.

After an actuarial review, the Department determined that the company’s calculation of a 9 percent impact medical trend was excessive and should be 8.1 percent. As a result, the Department disapproved the original rate increase request and instead approved an increase of 5.9 percent on November 9, 2016.

The new rates take effect January 1, 2017.


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

Content Last Modified on 11/9/2016 3:16:16 PM