Rate request: 10 percent annual increase
Decision: Approved on October 10, 2013
On July 18, 2013, Golden Rule Insurance Company requested an average annual increase of 10 percent on individual health plans that it is no longer marketing in the state.
The company stated it was seeking the increase based on its projections that the medical and pharmacy costs and demand for those services – a factor known as “trend” – will increase approximately 10 percent over the next year.
The company said the new rates would meet the 80 percent benchmark for the federal medical loss ratio, meaning it would spend at least 80 cents from every dollar of premium on medical claims cost.
The Department received one public comment urging rejection of this request.
After an actuarial review, the Department determined that the company’s methods for projecting the rise in medical costs were appropriate and actuarially sound. The Department concurred with evidence that cost increases and an uptick for demand of health care services “are accelerating from previous filings.” As a result, the Department approved the 10 percent increase on October 10, 2013.
The new rates will take effect on January 1, 2014 on approximately 9,000 policies in Connecticut.