CT regulators scale back health insurers’ 2023 rate hike requests. Most increases still in double digits. [Hartford Courant]

The Connecticut Insurance Department said Friday it reduced 2023 health insurance rate increase requests, but authorized prices that are still higher by double digits for more than 120,000 plan members and others.

Requests by carriers in the individual market were reduced to an average increase of 12.9% from 20.4%. In the small group market, premium increases were pared to an average 7.9% from 14.8% sought by insurers.

Criticism was swift, but Insurance Commissioner Andrew Mais said the rate reductions and actions holding insurers’ profit to 0.5% would save more than 200,000 members about $138 million in 2023.

Medical costs have increased about 8% to 10%, while prescription costs have risen about 10% to 12%, he said.

“Consumers can rest assured that health insurance companies in Connecticut are not profiting at the expense of their policyholders,” Mais said.

Connecticut Attorney General William Tong said health care costs and insurance premiums were already unaffordable for many Connecticut families and small businesses.

“These double-digit rate hikes — among the highest in the country — will only make that worse,” he said.

State Healthcare Advocate Ted Doolittle said increases of 15% and higher “remain outrageous and unsustainable and leave Connecticut families once again paying massive medical costs that hamper our state’s economic competitiveness.”

Health care prices in Connecticut are abnormal, while consumers in other nations pay half the price for care of “equal or better quality,” he said in an emailed statement.

Nearly 121,000 covered lives — health insurance subscribers, beneficiaries and plan members — on eight of 13 insurance plans on and off Connecticut’s Affordable Care Act Exchange face average double-digit increases next year in markets for individuals and employers with 50 or fewer workers.

About 66,000 people in three insurance plans will pay rates higher than last year, but short of double-digit increases. And health insurance costs will remain flat or were cut for about 20,000 subscribers, beneficiaries and others on two plans.

Insurers blamed rising medical and pharmaceutical costs and delayed care due to the pandemic.

ConnectiCare, for example, cited losses of more than $65 million in the individual market over the last year because it said rate increases have not kept up with higher use of medical services, the cost of prescription drugs and other expenses.

Anthem Health Plans, CTCare Benefits Inc., Aetna Life Insurance Co., Cigna Health and Life Insurance Co., Oxford Health Plans Inc. and United HealthCare Insurance Co. are among the insurers that won increased rates.

Insurers sought increases that were substantially higher than last year for 2022 health policies. Carriers in 2021 asked for an average increase of 8.6% on individual plans and 12.9% on small group plans.

Representatives of several insurance carriers did not immediately respond to requests for comment.

Insurance increase requests that were pared back include ConnectiCare’s average of 25.2% more for individual coverage that regulators reduced to 15%, CTCare Benefits’ average increase of 22.9%, also reduced to 15% and a 13.4% increase in small group plans sought by Oxford Health Insurance that was cut to 7.9%.

Anthem Health Plans’ request to raise its 2023 small group rate by 3.6% was reduced by state insurance regulators to an average rate that will be 1.2% less than this year’s rate. More than 19,000 plan participants and others will benefit.

Stephen Singer can be reached at [email protected].

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