Rate request - 8.3 percent increase
Decision - Approved On March 27, 2013
On February 6, 2013, the Mega Life and Health Insurance Company filed a request to increase rates an average of 8.3 percent on individual policies.
The company said it requested the increase to account for an increase in medical and pharmacy costs and an increased demand for those services.
The company is no longer marketing these plans in Connecticut but will renew them for existing members. The plans include coverage for basic hospital, surgical and medical services as well catastrophic expenses.
After an actuarial review, the Department agreed with the company’s cost assumptions. The Department determined that the medical loss ratio for the past two years increased dramatically, with the most recent nine months in 2012 exceeding 100 percent. For every $1 of premium the company was spending more than $1 to pay claims cost. As a result, the Department approved the company’s rate increase of 8.3 percent, ruling that the increase was neither excessive, inadequate nor unfairly discriminatory.
The new rate takes effect on April 1, 2013 on about 300 policies in Connecticut.