Rate Request: 9.4 percent average increase
Decision: Disapproved October 7, 2014, approved lower increase of 4.6 percent
On August 22, 2014, Aetna Life Insurance Company filed a request to increase rates an average of 9.4 percent on individual health insurance policies that are marketed outside Access Health CT, the state-sponsored health insurance exchange.
There are approximately 3,700 individuals in Connecticut covered under these policies.
The company said it requested the increase to account for an 8 percent change in the “trend,” a pricing factor reflecting medical inflation and an increased demand for medical services. Aetna said it has also factored in the affect of fees and taxes associated with the Affordable Care Act.
After an actuarial review, the Department determined that Aetna’s calculation for trend was appropriate.
The Department also concluded that because all Connecticut plans with the exception of grandfathered plans (those issued before March 23, 2010) will be ACA compliant on January 1, 2015, the plans are eligible for the federal temporary reinsurance program. Because other states have delayed the transition to fully ACA compliant plans until 2016, the Department believes that there should be excess federal funds available in the temporary reinsurance program that Connecticut carriers can apply to lower their pricing.
As a result, the Department disapproved the rate filing on October 7 and instead approved a lower increase of 4.6 percent.
The rate change will take effect January 1, 2015.