What to know about significant insurance rate hikes in Conn.
Insurance companies that sell policies on and off Connecticut's Affordable Care Act exchange stunned advocates in July when they asked for an average increase of 20.4% on next year's individual health plans.
The proposed rate hikes, published by the state's insurance department last month, also include a recommended increase of 14.8% on small group health plans.
The requests are substantially higher than what insurers sought last year for 2022 health policies. Carriers in 2021 asked for an average hike of 8.6% on individual plans and 12.9% on small group plans.
“It's jaw dropping,” Lynne Ide, program lead for communications outreach and engagement at the Universal Health Care Foundation of Connecticut, said last month. “Looking at these rate requests, the ranges are off the charts.
“Our big concern right now is, coupled with inflation and the fallout from COVID, these proposed increases spell trouble. Our concern is that people will take a look at this and decide to go without health coverage, because they just can't afford it.”
The insurance department is weighing the requests and is expected to issue a decision in September. Before that happens, the public will have a chance to make comments on the suggested rate hikes.
The insurance department has scheduled a public hearing for Aug. 15, beginning at 9 a.m. at the Legislative Office Building (300 Capital Ave. in Hartford).
The public can testify in person or virtually. Sign up for in-person testimony opens at 8:30 a.m. at the Legislative Office Building on the day of the hearing.
The cutoff to sign up for virtual testimony is today (Aug. 12). Anyone who wants to testify virtually can sign up by sending an email to cid.RateFilings@ct.gov with their name and written remarks by noon.
Representatives of the insurance companies will be allotted time to explain their rate hike requests, and officials from the insurance department can ask questions. The hearing will be broadcast on CT-N.
Here's what to know about proposals.
What are insurance companies asking for?
Three insurers are selling policies on Connecticut's exchange: Anthem Health Plans, CTCare Benefits Inc., and ConnectiCare Insurance Company Inc.
Anthem requested an average increase of 8.6% for individual policies that cover 27,698 people. The proposed changes range from a decrease of 1.8% to an increase of 16.1%, depending on the plan.
The company also sought an average hike of 3.6% on small group policies that cover 19,271 residents. The suggested changes range from a decrease of 1.2% to an increase of 26.3%.
CTCare Benefits asked for an average hike of 24.1% on individual plans that cover 75,003 people. Proposed changes range from an increase of 18.7% to 33.2%, depending on the policy.
It also sought an average hike of 22.9% on small group plans that cover 3,476 residents (increases range from 20% to 28.9%).
ConnectiCare, which only sells individual policies on the exchange, requested an average increase of 25.2% for plans that cover 8,782 people. Suggested hikes range from 17.1% to 32.2%.
A complete list of plans on and off the exchange, along with rate hike requests, can be found here.
Why are insurers seeking higher rates?
Kimberly Kann, a spokeswoman for ConnectiCare, said medical and pharmaceutical costs were two of the factors driving the company's requested rate increase.
“Our proposed rates are based on several factors, including medical and pharmacy cost trends, along with the continued impacts of COVID-19 on our members' utilization of services, including obtaining delayed care,” she said.
“Also, the legislative and regulatory environments continue to present market challenges outside of the company's control, including the loss of the enhanced Advanced Premium Tax Credits provided through the American Rescue Plan Act set to expire in 2022, and state-mandated benefits.”
Alessandra Simkin, a spokeswoman for Anthem, said: “Our filing reflects our experience and ability to deliver on behalf of consumers in this market and we look forward to working with the state as we continue the regulatory process.”
The insurers will send representatives from their companies to a public hearing in August, where they will be questioned about the proposed increases in greater detail.