Requested health insurance hikes criticized at state hearing [The Day, New London, Conn.]

Aug. 16--HARTFORD -- Patients, doctors and elected officials on both sides of the aisle came together Monday to slam health insurers' proposed rate increases for 2023 and ask the Connecticut Insurance Department not to approve the requests, calling them "appalling" and "ludicrous."

An emergency physician practicing for 40 years, Dr. Phil Brewer said he is strongly opposed to the increases.

"I've said many times I that I love what I do, but unfortunately as a result of what I do many of my patients end up going into bankruptcy, " he said.

The pleas came during an insurance department public hearing which began with explanations of the increase from insurers Cigna and ConnectiCare.

Among insurance companies, the proposed average individual rate request is 20.4%, and the proposed average small group rate request for employers with 50 or fewer workers is 14.8%. For small group plans off the state exchange, the requested increases from ConnectiCare and Cigna are 29.3% and 19.6%, respectively. Attorney General William Tong noted the other four small group insurance providers were not represented Monday: Aetna, Anthem, Oxford and UnitedHealthcare.

Insurance department spokesperson Jim Carson said in an email ConnectiCare and Cigna had the largest rate requests and were the only ones invited to the hearing.

Tong testified the current process is "insufficient for getting to the bottom of these requested rate increases." He instead wants to see a Uniform Administrative Procedures Act hearing, which he said "would give us the opportunity to examine witnesses, and hopefully witnesses from more than the two companies that are here today."

Insurance Commissioner Andrew Mais said an informational hearing, such as the one held Monday, is easier for public involvement.

Mais said the insurance department is conducting actuarial reviews on each filing to determine if the requests are justified, and it will decide in September whether to approve, reject or modify the requests.

The insurance department and Office of the Healthcare Advocate have another hearing scheduled for Oct. 3. But Sen. Tony Hwang, R-Fairfield, called this "too little too late."

Hwang questioned why insurers cited inflationary pressures when they had increases in past years without citing inflation, and noted that while they have cited COVID-19 as an additional cost, there have been government subsidies for health care during the pandemic.

Tong also pushed back on the requested increases by noting that other states aren't seeing requests this high. Compared to 24.8% in Connecticut, the highest rate requests for individual plans are 9.7% in Rhode Island and 15.4% in Massachusetts.

Insurers explain requests, politicians and public push back

The insurance department has seen a rebound in utilization of health care services, Mais said.

For example, if people weren't screened for cancer two years ago when it would've been caught early, it's more difficult and more expensive to treat now.

Sarah Souza, actuarial director at Cigna, said the largest driver of its 19.6% average increase is health care trends, with 2021 claims higher than expected. Cigna began participating in the small group market on July 1 of last year, and Souza said that "entering a new state is challenging and complex."

For ConnectiCare, President Karen Moran said for the past year, "the total insurance premium that we have received is far less than the cost of care we have actually funded," and that the company's losses for the individual market are more than $65 million.

Moran said utilization of medical and pharmacy services in 2022 exceeded pre-pandemic levels, and as members seek care they put off during the pandemic, ConnectiCare expects that to continue.

Neil Kelsey, chief actuary for ConnectiCare, said the insurer projects a 6.3% increase in utilization of health care services this year and 5.4% increase next year. That doesn't include an additional increase in the cost of care.

Rep. Kerry Wood, D-Rocky Hill, commented, "There's mixed messaging coming from the health carriers. On the one hand, you're reporting significant profits, and on the other you're asking for double-digit increases." Speakers at the hearing noted that Cigna CEO David Cordani took home more than $91 million in compensation in 2021.

Wendy Sherry, vice president of U.S. commercial markets at Cigna, said the profits being discussed "are coming from our broader company. We are a global health services company, so those profits are generated from a multitude of products."

Kathy Flaherty, executive director of Connecticut Legal Rights Project, noted that doctors have recommended treatment for her long COVID that that her insurance will not cover. She questioned, "If you're denying people's care, how can you also at the same time claim that your cost for providing care has gone up?"

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