Health Insurance Rate Filing - Aetna Life Ins. Co. (Small Group Indemnity)
Rate Notice - Average decrease of 4.12 percent
On February 15, 2013, Aetna Life Insurance Company filed notice with the Insurance Department that it plans to apply an average decrease of 4.12 percent for small group health care indemnity plans used by employers, who have 50 or fewer workers. This request ranges from a 16.1 percent decrease to a 4.1 percent increase. Also, included in this filing was a request to reduce base rates by 5.0 percent.
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. Based on that actuarial review, the Department determined, on April 10, 2013, that with these reduced rates, Aetna would be able meet the required 80 percent medical loss ratio mandated by the federal law.
The new rates, which apply to renewals as well as new businesses, would affect, on average, about 400 members – workers and their dependents covered on 62 policies. The new rates take effect May 1, 2013.
Content Last Modified on 4/10/2013 2:47:55 PM