Hwang, Officials Speak Out About Proposed Health Insurance Rate Hikes

HARTFORD — Senator Tony Hwang, a member of the Newtown legislative delegation and ranking member of the Insurance Committee, along with Senate Republican Leader Kevin Kelly (R-Stratford), released the following statement in response to double digit health insurance rate hike requests averaging over 20% submitted to the Insurance Department for individual and small business health insurance plans that start in 2023:

“These proposed rate increases are staggering and infuriating. They show not only the growing damage of inflation, but also the damage of CT Democrats’ repeated refusal to address rising health care costs. We knew this day was coming, we warned it was coming, and that’s why CT Republicans offered solutions to prevent it — solutions Democrats repeatedly rejected.

“Year after year Connecticut Republicans offer comprehensive plans to bring down the costs of health care and provide real health insurance premium relief. And year after year CT Democrats refuse to act. We absolutely need accessible public hearings on these rate increases, but more than that we need action,” the statement continues. “Families are already being crushed by historic inflation, tax increases, and a state that is growing more unaffordable by the day. Affordability is a crisis in our state, and Democrats are blocking relief — whether it be at the grocery store or at your doctor’s office.

“This year, Senate Republicans once again proposed a plan to rein in out-of-control health care costs. Access Health CT’s own estimates show our plan reduces premiums by $6,475 per year, or $540 per month for the average family. But leading Democrats on the state’s Insurance Committee refused to even hold a vote on that plan,” concluded Kelly and Hwang. “In fact, they outright admit to blocking this plan for affordable healthcare. The same Democratic lawmakers who say they are outraged today said there was no need for state action earlier this year because of federal subsidies. Now the subsidies are going away, and families are about to suffer because of their inaction.”

The lawmakers were joined by Ted Doolittle, State Healthcare Advocate, who said he was “shocked to learn that the health insurance carriers of Connecticut are seeking premium rate increases of more than 20% and in some cases more than 30% for next year.”

“These unbelievable hikes will fuel inflation and harm access to any healthcare — let alone affordable healthcare — for many Connecticut families,” said Doolittle.

Doolittle said the high premium rate requests are driven by one thing: this state’s internationally abnormal hospital and drug prices.

“The Connecticut Insurance Department has the statutory authority to determine whether or not healthcare premium rate requests are ‘excessive.’ The Office of the Healthcare Advocate believes that any premium rate request based on excessive medical costs is itself by definition excessive,” Doolittle continued. “That is why I am calling on the Insurance Department to hold formal administrative hearings — not the informal listening sessions that have been the practice in recent years — including calling specific high-cost providers such as hospitals and pharmaceutical manufacturers to explain and justify the internationally abnormal, inflation-fueling prices underlying these massive rate requests.

“The Insurance Department in 2015 committed to hold formal administrative hearings at the request of the Healthcare Advocate on up to four plans when rate requests exceed 10%. Today, this office, in partnership with Attorney General Tong and his team, is invoking this authority. OHA will participate as a party intervenor, represented by the Attorney General’s Office,” Doolittle concluded. “I look forward to working with the Department, the Attorney General, and OHA’s legal team in coming days to determine which plan or plans should be subject to a formal Uniform Administrative Procedures Act hearing process this summer.

Attorney General William Tong is also calling for a full public hearing before the Department of Insurance to scrutinize a series of 13 rate filings from nine health insurers seeking average rate hikes of 20.4% for the individual market and 14.8% for small groups.

“Healthcare costs and insurance premiums are already unaffordable for many Connecticut families, businesses and individuals, and these double-digit rate hikes demand rigorous scrutiny,” said Attorney General Tong. “The Department of Insurance has previously agreed to hold public rate hearings on any rate increase exceeding 10%, and that transparency is certainly needed now. We cannot simply allow insurers to assert costs and claims without our own independent analysis and review.”

Insurance Commissioner Andrew N. Mais also spoke out on the Health Insurance Rate Request Filings for 2023, saying, “The Connecticut Insurance Department has received 13 rate filings from nine health insurers for plans that will be offered on the individual and small group market, both on and off the state-sponsored exchange, Access Health CT. Working within the authority granted to this Department, we will closely examine these filings to make sure the requested rates are consistent with state law.”

Readers can review the 2023 Requested Rate Chart by visiting portal.ct.gov/-/media/CID/1_RateFilings/2023-Initial-Rate-Filings-Chart.pdf.

The public can submit comments for each individual filing online. Choose the “Select” button and then submit comments.

The Department will hold an Informational Hearing on requested rate increases in early August.

More information on the date and time will be shared as it becomes available. The public will be invited to attend and submit comments.