Rate Filing: Initial rate filing
Decision: Review completed on August 5, 2013
On May 8, 2013, HealthyCT, Inc., a licensed Consumer Operated and Oriented Plan, established under the federal health care reform law, filed its initial small employer rate filing for plans it intends to market both in and out of Access Health CT, the state’s health insurance marketplace. The filings are for plans for small employer group policies (between 1-50 employees), which take effect on and after January 1, 2014.
Since HealthyCT is new to the market and has no prior claim experience, it developed this initial rate filing based on 2012 Health Cost Guidelines™ (HCGs), from consulting firm Milliman. As a result, the underlying data are on a 2012 basis and this rate filing is for calendar year 2014. HealthyCT applied an annual trend factor of 7.5 percent to adjust the claim cost projections to 2014. This means that HealthyCT looked at the cost of medical services in 2012 and projected that they would increase at an annual rate of about 7.5 percent by 2014.
In its filing, HealthyCT explained that the set of benefits offered in the plans in this rate filing matches the benefits offered by the Essential Health Benefit (EHB) benchmark selected by the state of Connecticut.
The Department does not have statutory authority to approve or deny rates for small group indemnity business and conducted an actuarial review in accordance with federal health care reform guidelines and Connecticut Insurance Department Bulletin HC-81-2. As a result of that review, HealthyCT removed the risk adjustment in the original filing, resulting in a reduced standard rate.
The Department completed its actuarial review on August 5, 2013.
The monthly base rate for each standard metal plan in the exchange, prior to making adjustments for age and geographic area, is in the table below:
These amounts are also prior to any federal premium subsidy, if applicable.