Rate Filing: Initial rate filing
Decision: Under Review
Public Comment Period: May 21 to June 9, 2013
On May 17, 2013, CIGNA Health & Life Insurance Co. (CHLIC) filed an initial rate filing for new individual health insurance plans it intends to market in Connecticut beginning January 1, 2014. This is the first year that individual health coverage will be offered by CHLIC in Connecticut.
Until recently, CIGNA sold all its individual and health insurance plans through Connecticut General Life Insurance Company. Now CIGNA is moving all existing and new business to CIGNA Health & Life Insurance, a subsidiary of Connecticut General Life Insurance Company. Since this filing is for a new product there is no rate increase associated with it because there are no current policyholders.
The company says the plans will meet all the Essential Health Benefits criteria mandated under the federal health care reform law. The plans will not be marketed in Access Health CT, the state’s health insurance marketplace. Instead, the company will market the plans outside the exchange through brokers, agents and directly to consumers.
The company is projecting that the base rate for the plans – before making adjustments for age, tobacco use and other variables – will be about $414 per month. In developing the rate, the company applied an annual trend factor of 11 percent, meaning that it anticipates that the cost of medical services and the demand for them will increase by about 11 percent by 2014 when the plans will be in force.