State Regulators Told to Reject Double-Digit Health Insurance Rate Hikes At Hearing

June 14--Health insurance policyholders called on state regulators Wednesday to reject a double-digit rate increase sought for next year by Anthem Health Plans, calling it excessive and unaffordable.

Anthem countered at the state Insurance Department hearing in Hartford that failings in the Affordable Care Act, or Obamacare, are driving up costs.

Garry Malone, who said he has a pre-existing condition, asked regulators to turn down the average 33.8 percent rate increase proposed for 2018.

"I don't know of anyone in this room who's had a 33.8 percent raise," said Malone, 58. "I'd like you think about everybody. Even the little guy."

Brenda Shipley, who said she is self-employed and has a pre-existing health condition, sharply criticized Anthem. She told the panel of three officials -- a hearing officer, a lawyer and an insurance actuary -- that the health insurer is "actively sabotaging" Access Health, Connecticut's health insurance exchange, by making coverage unaffordable.

Jennifer Lovett, president of Crystal Financial Insurance Services in South Windsor, said Anthem's request for 2018 would increase rates by more than 80 percent over two years following a previous large increase.

"People cannot afford it," she said. "I'm begging you, please help these people. We get the calls. Not you."

Other critics said the large increases are particularly painful because economic growth in Connecticut is slow and public services are being cut by the state as it struggles with reduced revenue.

Stephen Hunt, an insurance agent, said the issue is the rising cost of medical care, such as tests and prescriptions. He asked regulators to keep health insurance rate increases "reasonable."

James Augur, regional vice president for sales at Anthem, told regulators that the industry faces an "uncertain environment."

House Republicans last month narrowly passed legislation to repeal and replace President Barack Obama's signature domestic health care program. The bill faces a rewrite and strong opposition from minority Democrats in the Senate.

Anthem said its proposed cost increase, which would affect about 35,000 policyholders, reflects a preference among healthier people to pay the penalty required by the federal law to avoid buying insurance. The result is a greater number of less healthy people using insurance, driving up costs.

Augur also cited uncertainty about the federal government's decision to continue to fund a subsidy, known as a cost sharing reduction. It's important to insurers because it helps promote a "more balanced risk pool," he said.

Anthem's request assumes full funding of the subsidy, but if funding is not confirmed Anthem will resubmit its proposal, he said.

ConnectiCare Benefits Inc. also is seeking an average 17.5 percent more for policies sold on the exchange. A separate hearing is for later Wednesday.

Insurance Commissioner Katharine Wade is expected to make a decision on the rate increase proposals later this summer or fall.

Ten health insurers are seeking rate increases for next year averaging 15.2 percent to 33.8 percent for individual plans. The increases for premium plans range from 19 percent to 52 percent.

For small group insurance -- employers with 50 or fewer workers -- average rate requests are up 3.6 percent to 31.6 percent.

The increases would affect 270,000 insured customers, state officials said.

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