Health insurance companies propose cost hikes

Four health insurance companies are proposing double-digit rate increases for individual and small-group plans that currently cover around 220,000 people statewide, both on and off the Connecticut-sponsored marketplace, according to Insurance Department officials.

Although proposals vary by insurer, if approved, the proposed increases would average 16.2% for those on individual plans and 17.8% for small-group plans.

"These filings reflect a broader challenge facing Connecticut's healthcare system. Connecticut families are under increasing pressure from rising healthcare costs, and the current trajectory is unsustainable. As always, the Department's experienced actuarial team will thoroughly review every filing to ensure requested rates are justified under state law," said Connecticut Insurance Commissioner Josh Hershman in a press release Friday. "Lasting progress will require action across the healthcare system. Providers, hospital networks, pharmaceutical manufacturers, pharmacy benefit managers, insurers, and policymakers all have a responsibility to help address the factors driving costs."

The proposals, filed on June 1, include:

Anthem Blue Cross Blue Shield is looking for an average increase of 12.8% for individual plans, on and off Access Health. In the small-group market, they requested an average 17.4% for employers with 50 employees or less.

UnitedHealthcare Insurance Company filed a proposal for small-group plans that would be offered exclusively off the exchange, seeking an average increase of 18.9%.

The ConnectiCare Insurance Company, Inc. filed a proposal for individual plans to be offered exclusively off-exchange in 2027, compared with on-exchange-only coverage in 2026.

An affiliated subsidiary, ConnectiCare Benefits Inc. is looking for an average increase of 22.7% for individual health plans, both on and off the insurance exchange.

Compared with last year, state officials said the overall proposed average rate increase for individual plans is 16.2%, down from 23.3% in 2026. At the same time, however, the average increase in the small-group market rose from 13.1% to 17.8%.

The number of rate filings is lower than in previous years, state officials noted, because UnitedHealthcare and ConnectiCare are planning their own internal consolidations. Both companies have said they plan to remain active in Connecticut, with coverage options available for 2027, despite the ongoing changes.

In their publicly available filings, the companies provide several reasons for the increases - from rising health care costs to inflation and increased demand for services, among others.

"Our submitted rates are based on the healthcare services we expect members to access next year, along with the anticipated costs associated with that care," said an Anthem spokesperson in a statement to CT Insider. "Additionally, a growing number of legislative mandates and restrictions on carriers' ability to manage rising healthcare costs continue to add pressure. We look forward to continuing to work with the state on the regulatory process."

One of the factors behind the increase in individual plans was the end of enhanced federal tax subsidies that were helping millions pay their monthly insurance premiums. Connecticut officials helped offset some of the increasing premiums through its own state-sponsored tax credit in 2026. The proposed filings assume that the subsidies won't be reinstated nor the state program continued into 2027, however, would be revised if legislation is passed.

UnitedHealthcare and ConnectiCare did not respond to requests for comment.

The proposals have some way to go before they reach Connecticut consumers. Each filing is reviewed by the insurance department to ensure compliance with state laws and regulations. This includes a 30-day public comment period and requires insurers to justify proposals with supporting evidence.

In August, the state plans to hold public information sessions and hearings on the proposals, providing more opportunities for the public and stakeholders to speak. Final rulings are expected in early September, ahead of the open enrollment season.

The proposed double-digit increases quickly drew bipartisan concern and pushback from state leaders.

"Once again the insurance industry is coming before us with unsustainable rate requests," said state Sen. Matt Lesser in a press release. "It underscores the need for Connecticut to consider a true public option as we work to make health insurance affordable for all."

Attorney General William Tong said they plan to "scrutinize every page of these applications," describing the proposals as "unaffordable, excessive and unacceptable."

"Year after year, insurers pad these rates with fuzzy math, double-counted costs, and unsupported assumptions," said Tong in a press release. "They need to come before the Connecticut Insurance Department prepared to justify every analysis, and they are going to need to explain why they remain utterly unwilling and unable to use their leverage to negotiate with healthcare providers and drive down these runaway healthcare costs."

The proposed increase also comes just days after the Connecticut Business & Industry Association announced plans to close an expanded insurance options program for small businesses and their employees, said state Rep. Tony Hwang in a press release on Friday. He encouraged those directly impacted by continued rate increases to testify at the upcoming hearing and share their story.

"For more than a decade, Connecticut residents have faced annual rate hikes that consistently add to our healthcare affordability crisis. The cumulative effect has become unaffordable and unsustainable," said Hwang, who is the ranking member on the Insurance and Real Estate Committee. "These increases are forcing families to make difficult decisions about household budgets, delaying preventive care, reducing access to healthcare services, and placing enormous financial pressure on employers who want to continue providing quality health coverage to their employees."