Connecticut Health Insurers Seek Higher Rates, But Pace Of Increase Slows
Jul. 13--For the second consecutive year, health insurers in Connecticut are proposing rate increases for individuals that are rising faster than inflation, but more slowly than in the previous year, the state Insurance Department said Friday.
The proposed average individual rate request for 2020 is 7.8 percent higher than this year, compared with a 12.3 percent jump from 2018 to 2019, the agency said. The requests range from -9.8 percent to 25.7 percent.
However, the proposed average small group rate request is up about 12 percent, higher than the 10.2 percent for 2019. Those requests range from -12.4 percent to 28.5 percent.
Ten health insurers submitted 14 filings for plans that cover about 242,000 people.
A moratorium on the federally mandated health insurer tax in 2019 has been reinstated for 2020, accounting for about 3 percentage points of each carrier's rate increase request, the Insurance Department said.
Oliver Wyman, a management consulting firm, said the tax, which is intended to help fund the federal and state marketplace exchanges, would require insurers to pay as much as $16 billion in fees next year. To recoup the cost of the tax, insurers are expected to increase premiums, Oliver Wyman said.
Congress approved a one-year moratorium on collecting insurer taxes for 2019.
The Insurance Department said the rising rates follow a trend that accounts for rising health care costs, including the cost of prescription drugs, and rising demand for medical services.
The agency will conduct actuarial reviews on the filings to determine if the requests are justified. The agency will approve, reject or modify the requests and expects to make final rulings in September. Open enrollment for the 2020 coverage year begins Nov. 1.
Filings were submitted by Aetna Life Insurance Co., Anthem Health Plans Inc., ConnectiCare Inc., ConnectiCare Benefits Inc., ConnecticutCare Insurance Co. Inc., Harvard Pilgrim Health Care of Connecticut Inc., HPHC Insurance Co. Inc., Oxford Health Insurance Inc., Oxford Health Plans (CT) Inc. and UnitedHealthcare Insurance Co.
Anthem and ConnectiCare Benefits Inc. have filed rates for individual and small group plans that will be marketed through Access Health CT, the state-sponsored health insurance exchange.
Stephen Singer can be reached at [email protected].
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