Rate request: 11 percent increase
Decision: Disapproved September 26, 2014, approved average increase of 8.5%
On September 3, 2014, ConnectiCare Inc. filed a request to raise premium rates an average of 11percent for large employer group medical policies for 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 calculations for the impact of trend were excessive and deemed a more appropriate impact of 8.5 percent for medical and 9 percent for pharmacy. As a result, the Department disapproved the request as submitted and instead approved an average increase of 8.5 percent on September 26, 2014.
The new rates apply to all groups with rate effective renewal dates on or after October 1, 2014, but no later than September 30, 2015.