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On November 8, 2012, Aetna Life Insurance Company submitted a rate filing to the Department that would reduce base rates by 10.7 percent for already filed December 2012 through June 2013 rates. The average annual rate change for this time period ranges from -18.5 percent to 7.3 percent. The new rates, which apply to renewals as well as new businesses, would affect, on average, about 425 members – workers and their dependents.

 

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. The Department noted in its review that revisions reflect the combined impact of updated experience results, the most recent provider contractual changes, the application of Affordable Care Act taxes and fees and new benefit plan offerings through Aetna’s Managed Choice product.

 

The Department also noted in its review, which was completed December 5, 2012, that with the new rates Aetna is expected to exceed the required 80 percent medical loss ratio, a required provision of the federal health care reform law.