CT health insurance costs are out of control, commissioners say as insurers seek increases again
During a heated public hearing, the
Representatives from
If approved by the department, the proposed hikes would raise rates for 199,789 residents covered under individual and small group plans, according to filing data from the department.
Commissioner
"We are an agency that follows the law to the letter, and the only standard under law that we can use to evaluate the rate requests are that these requests must not be excessive, inadequate, or unfairly discriminatory," Mais said.
Last year, Mais said the department approved a 12.4% average increase in individual rates and a 14.8% average increase in small group rates. In 2025, insurance carriers are requesting rate increases ranging from 2.9% to 18.8% for small group coverage, and 4.3% to 18% for individual plans on and off the state's health insurance exchange, according to rate filings.
"The (
"The (Affordable Care Act) contains a provision that the state general fund will pay for any mandates that are not contained in the essential health plan," Rousseau added. "
State Sen.
"I've been coming to these meetings for the past 10 years, and every single year it is a rate increase," Hwang said.
Hwang criticized the insurance carriers for setting rates that focused on the "cost of health care delivery, not the profits (carriers) make in other parts of (their) business."
"I struggle with that straight passthrough to the consumer in regards to health care costs when other parts of your business benefit," Hwang said. "(
While insurance carriers, on average, are requesting an 8.3% rate increase for the individual market, Gifford said
"These increases are between three and four times what the state has set as a target for per-person growth in 2025," Gifford said.
Gifford said the growth in health care costs is driven by price, namely increases in pharmacy spending and hospital price growth paid by insurance carriers.
"Health care prices in
Gifford explained that in
Assistant Attorney General
"We call it medical cost but really what it is is a negotiated medical cost," Ryan said. "(Insurance carriers) are the only entities in the room other than the providers that negotiate these rates...It's remarkable I guess, under those circumstances, that we haven't seen a change."
During the hearing, officials pressed insurance representatives on whether carriers would be open to state intervention in negotiations with the hospital systems.
"Do you need the state to put a cap in place? Do you need the state to oversee those negotiations?" Ryan asked. "You guys are telling me that you're not able to negotiate lower costs. ... I've been here since 2009 and we've been talking about it every year, so what needs to change?"
"Commissioner Mais is asking it, everybody's asking it. Everybody wants to know and we have to do something because it is unsustainable," Ryan added. "The cost shifting that happens in these plans is making them unaffordable except in the marketplace, maybe where there are tax credits, but for people in the middle, they're getting slammed. So what's the answer?"
ConnectiCare President
"I don't want people to leave this room thinking that we're not negotiating as tough as we can with these hospital systems and the pharmaceutical (companies)," Meador said. "To really address some of these issues, we got to go beyond the insurance carriers. We got to really get all the players in the ecosystem involved. We got to deal with the hospitals directly, not just through the insurance company. We have to deal with the pharmaceutical companies who are charging significant costs and prices because of their power, their patent power."
Mais said the health care costs in
"We have a fabulous health care system, but...the prices for health care in
In a statement after the hearing, the
"The effects of historic inflation on families and caregivers alike, Medicaid rates not covering the cost of care, and burdensome insurance practices like prior authorization that add cost and delay care remain significant and force caregivers toward higher commercial payments," CHA said. "Addressing rising commercial health care costs will require action to eliminate national health insurance company administrative practices that raise costs and ensuring that the state Medicaid program pays rates that actually cover the cost of care."
According to a 2022 survey, Gifford said 78% of
Gifford said she keeps the latter statistic on a sticky note attached to her computer monitor.
" Most of my work is still informed by the days of me sitting in the exam room with patients, and one of the hardest things that a doctor ever has to do is to sit down with a patient and try to help her understand what things she can forego because she can't afford them, what things that the professional thinks would be important for her health that she can put off, and what is essential," Gifford said.
"The fact that 46% of people in
Dauphinais said the high rates keep her from accessing healthcare if she is "sick or in pain."
"I have no access to affordable healthcare for myself or for my employees," Dauphinais said in her comments before the
"It is not a success to give them less than they asked for," Dauphinais added. "It is only a success if you give them no increase at all. I ask you to say 100%, 'No.'"
(C)2024 Hartford Courant. Visit courant.com. Distributed by Tribune Content Agency, LLC.
Fires making home insurance unaffordable, impossible, NM lawmakers say
Stocks Mixed As Traders Pause Fed-fuelled Rally
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News