CID: Health Insurance Rate Filing - CIGNA Health & Life Insurance Co. (Individual)

Health Insurance Rate Filing - CIGNA Health & Life Insurance Co. (Individual)



Rate request: 15.23 percent average increase

Decision: Under Review

Public Comment Period: July 31, 2014 to August 19, 2014


On June 30, 2014, CIGNA Health & Life Insurance Co. (CHLIC) filed a rate increase request averaging 15.23 percent for individual health insurance plans sold in the open market through brokers, agents and directly to consumers and not through the state-sponsored exchange. There are currently 327 policies in force in this block of business.

The company reported that the plans meet all the Essential Health Benefits criteria mandated under the Affordable Care Act (ACA). Because this only the second year these plans have been sold in Connecticut, the company has no credible historical experience from this block of business. As a result the company calculated claims costs based on experience from its established large group market.

In developing the rate, CHLIC applied a medical inflation or “trend” factor of 7.8 percent, meaning that it anticipates that the cost of medical services and the demand for them will increase by about 7.8 percent over the next year.

The company also factored in “morbidity” – a reflection of the overall health of its members and anticipated that previously uninsured people who now have insurance as a result of the ACA will result in more claims costs. Other potential factors contributing to the rate increase are changes in claims costs based on geographical area and an increase in the ACA’s Health Insurer Fee.

If approved the new rates would take effect January 1, 2015.



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Find the filing, brief summary and public comment section here at Health Insurance Rate Filings


Content Last Modified on 7/30/2014 1:44:43 PM