Rate Notice: Average increase of 6.3 percent
Decision: Under Review
Public Comment Period: April 18 through May 7, 2013
On April 12, 2013, Oxford Health Insurance Inc. filed notice with the Insurance Department that it plans to apply an average increase of 6.3 percent for small group health care indemnity plans used by employers, who have 50 or fewer workers.
The Department does not have statutory authority to approve or deny rates for small group indemnity business and will conduct a review only of the filing in accordance with the federal health care reform guidelines as an unreasonable rate increase request.
The company cited rising medical costs and the increase demand for medical services. Oxford also said the increase will allow it to meet the required 80 percent medical loss ratio threshold for rebate purposes as mandated under the federal health care reform law.
The new rates, which apply to renewals as well as new businesses, would affect, on average, about 30,000 members – workers and their dependents covered on 16,000 policies. The new rates will take effect July 1, 2013.