Connecticut Regulators Approve ‘Essentially Flat’ Health Insurance Rates

Connecticut Insurance Commissioner Andrew N. Mais today announced final health insurance rates for the 2021 coverage year.

Rates for individual plans were held essentially flat, with an average increase of 0.01%, down from the average requested increase of 6.29%. The average increase approved for small group plans is 4.1%, down from the requested average increase of more than 11.28%.

As a result of these decisions, approximately 214,600 Connecticut consumers are projected to save $96 million.

“Working on behalf of consumers, the Department was able to reduce the health insurance rate increase requests thanks to the hard work of our actuaries and professional staff,” Commissioner Mais said in a news release. “I will continue to work collaboratively with all stakeholders to find long-term solutions while continuing to promote access and eliminate barriers to coverage here in Connecticut.”

Among the factors contributing to the approved rates is medical trend, which reflects rising health care costs such as the costs of prescription drugs and the increased demand for medical services. This is projected by the carriers to grow at approximately 8.8 percent per year for 2020 and 2021.

The Department reduced the trend proposed by the carriers to reflect lower utilization of services, including elective procedures, the release said, in the first half of this year due to the pandemic and the projected impact of COVID-19 in 2021.

This report compiled by InsuranceNewsNet staff.