Rate Filing: Initial rate Filing
Decision: Approved 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 rate filing for individual health insurance plans it intends to market both in and out of Access Health CT, the state’s health insurance marketplace.
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.
After a thorough actuarial review, the Insurance Department approved the rate filing as submitted, on August 5, 2013. The Department determined, based on historical data from the Milliman Health Cost Guidelines™ (HCGs), that the 7.5 percent annual trend assumption is appropriate and that the resulting rates are neither excessive, inadequate, nor unfairly discriminatory.
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.