Rate request: 13.5 percent increase
Decision: Under Review
Public Comment Period: October 7, 2014 to October 27, 2014
On September 30, 2014, ConnectiCare Insurance Company, Inc. filed a request to increase rates approximately 13.5 percent on certain individual HMO insurance policies, which were sold before March 23, 2010 when the federal health insurance law was enacted. As a result, these policies are considered “grandfathered” and exempt from many of the benefit mandates associated with the federal law.
There are approximately 370 individuals covered under these plans in Connecticut.
ConnectiCare said the requested increase accounts for inflation of the cost of medical services and heightened demand for those services, a factor known as “trend.” The company is estimating the impact of “trend” at 10.96 percent for medical and 13.5 percent for pharmacy benefits.
The company also is calculating the impact of charges and fees associated with the federal law. ConnectiCare estimates it will have to pay nearly $15 per member per month.
If approved, the new rates would take effect on policies renewing on January 1, 2015.