CID: Health Insurance Rate Filing - HPHC Insurance Company, Inc. (Small Group)

Health Insurance Rate Filing - HPHC Insurance Company, Inc. (Small Group)

Rate Request: 22.6 percent increase

Decision: Approved April 17, 2018

On March 1, 2018, HPHC Insurance Company, Inc. filed a request to increase rates an average of 22.6 percent for a block of small group health plans, policies for employers with 50 or fewer workers.

There are approximately 12,000 people covered under these policies currently in force in Connecticut.

The company stated it requested the increase to account for a 9.7 percent impact from “trend,” a pricing factor reflecting medical inflation and an increased demand for medical services. The pricing also takes into account changes in benefit design and taxes and fees associated with the federal Affordable Care Act.

After an actuarial review, the Department determined that the company’s pricing assumptions for the impact of medical inflammation, taxes, fees and changes in benefit design were appropriate. Department also determined that the pricing would meet the federally mandated 80 percent threshold for claims costs for small group business, meaning the company is expected to spend 80 cents of every $1 of premium on medical services. As a result the Department approved the rate request on April 17, 2018, noting that the rates were appropriate for the benefits provided.

The new rates take effect in the second quarter of 2018.


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

Content Last Modified on 4/18/2018 9:31:14 AM