CID: Health Insurance Rate Filing - Golden Rule Insurance Company (Individual)

Health Insurance Rate Filing - Golden Rule Insurance Company (Individual)

Rate request: 9.9 percent average increase

Decision: Disapproved, limited increase to 8.9 percent.

On March 1, 2017, Golden Rule Insurance Co. requested an average rate increase of 9.9 percent on individual major medical plans that are grandfathered under the federal Affordable Care Act (ACA).

Grandfathered status means the plans were marketed before March 23, 2010, the date the ACA was enacted, and do not have to comply with the ACA mandates if there have been no major changes to coverage or benefits since then.

There are approximately 1,100 of these grandfathered Golden Rule policies currently in effect in Connecticut. These policies are a closed block of business and are no longer being marketed.

In its filing, Golden Rule cited rising medical costs and an increased demand for medical services, a factor known as “trend,” as the main driver of increasing rates. The company calculated an 8.9 percent impact on rates due to the trend factor. The company said it also factored in the effects of taxes and fees associated with the ACA.

After an actuarial review, the Department determined that the company correctly calculated the impact of medical inflation, but overstated an experience adjustment, as the experience was progressively getting better over the last 18 months. As a result, the Department disapproved the initial increase request and limited the increase to 8.9 percent on April 12, 2017.

The new rates take effect June 15, 2017.


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

Content Last Modified on 4/12/2017 11:18:45 AM