Rate request - 14.9 percent average increase
Decision – Disapproved as submitted, reduced to 13.2 percent
On October 8, 2012, ConnectiCare Inc., filed a request to increase premium rates an average of 14 percent beginning January 1, 2013.
The company said it sought the new rate because of an increase in demand for medical services and the rising cost of those services. The company’s calculations showed a 3 percent increase in demand by its members for medical services, a 2.1 percent increase in demand for prescription drugs, a 5.9 percent increase in medical costs and a 6 percent rise in pharmacy costs.
ConnectiCare also cited the expected impacts of the following fees and mandates associated with federal health care reform: Patient Centered Outcomes Research Fee - $2 per covered life; Transitional Reinsurance Program - $7 per member per month; Women’s Preventive Health Mandate - $2.50 per member per month.
After an actuarial review, the Department determined the company’s impact of trend on rates was appropriate. Department, however, determined that the $7 per-member-per-month impact from federal reinsurance fees was premature and should be pro-rated depending upon the renewal date. As a result, the Department approved a reduced average increase of 13.2 percent on December 3, 2012.
The new rates apply to non-grandfathered new business and renewals. There are approximately 100 individuals covered under these policies in Connecticut.