Rate Request: Average increase of 5.9 percent
Decision: Review completed November 21, 2014
On October 24, 2014, Aetna Life Insurance Co. submitted a rate filing for small group indemnity plans that provide major medical and prescription drug coverage for employers with 50 or fewer workers.
Aetna markets these plans outside of Access Health CT, the state-sponsored health exchange, but said the plans conform to all applicable state laws and those of the federal Affordable Care Act (ACA). There are about 44,000 people in Connecticut covered under these Aetna plans.
The company stated the increase is necessary because of the rising cost of medical services and a projected increase in demand for those services – a factor known as “trend.” In calculating rates for 2015, Aetna projects a trend impact of about 8 percent. The company said the new pricing also takes into account all applicable taxes and fees associated with the ACA.
The Department does not have statutory authority to approve or deny rates for small group indemnity businesses and conducted an actuarial review only of the filing as part of the federal health care reform requirements. The Department completed its review Nov. 21, 2014.
The new rates take effect January 1, 2015.