Rate request: 18 percent average increase
Decision: Under Review
Public Comment Period: July 10, 2013 through July 30, 2013
On July 5, 2013, ConnectiCare Insurance Company filed a request to increase rates an average of 18 percent on POS (Point of Service) Individual health insurance indemnity policies sold between October 2009 and December 2011.
If approved, the rate change would affect about 630 policies in Connecticut beginning October 1, 2013.
The company said it is requesting the increase to account for increasing medical and pharmacy costs and greater demand for medical services, known as “trend.” Because some of these are policies that were sold before the federal Patient Protection and Affordable Care Act (PPACA) took effect, the company said its increase request reflects the impact of some new mandates and fees.
The company said “trend” would account for a base rate increase of about 11.3%. Federal taxes and regulatory fees associated with federal health care reform (Transitional Reinsurance Program, Health Insurer Fee, Patient Centered Outcomes Research Fee) that go into effect in 2014 when these policies would be in force would cost about $15 per member per month. The company also cited new federal guidance issues in February 2013 that added more no-cost share services to the Women’s Preventive Health Care Mandate, such as testing for a breast cancer gene and other contraceptive options.