Health Insurance Rate Filing - ConnectiCare Inc. (Individual Conversion)
Rate request - 9.9 percent increase
Decision - Approved
On November 2, 2012, ConnectiCare Inc. filed a request to raise premium rates 9.9 percent beginning January 1, 2013 on small block of individual health insurance plans – 7 policyholders – that are no longer being marketed in Connecticut. The company said it sought the rate change due to a 3 percent increase in the use of medical services and the 5.9 percent increase in the cost of those medical services. The company also cited similar increases in pharmacy use (2.1 percent) and prescription drug costs (5.0 percent).
ConnectiCare noted in its filing that an increase of 12.1 percent would be justified to cover the cost of the anticipated claims but that it sought the lower request of 9.9 percent to mitigate the effects on the small number of policyholders. With the lower rate the company expects that 98 cents of every dollar of premium will go toward claims costs.
After and actuarial review, the Department determined that the rates were appropriate for the benefit provided and approved the request as submitted on December 13, 2012.
Content Last Modified on 12/13/2012 3:14:12 PM