Health Insurance Rate Filing - Aetna Health Inc. (CT) - Large Group HMO
Rate Request: 14.8 percent average increase
Decision: Disapproved, limited to a 13.9% average increase
On September 25, 2018, Aetna Health, Inc. filed a request to increase premium rates by an average of 14.8 percent next year on its large group health insurance policies for employers with 51 or more workers.
There are 475 covered lives under this block of business.
The company stated it requested the increase to account for an average 11.9 percent change in the “trend”, a pricing factor reflecting medical and pharmacy inflation and an increased demand for medical services. The pricing also takes into account taxes and fees associated with the federal Affordable Care Act.
After an actuarial review, the Department determined that the company calculation of a 13.5 percent impact due to pharmacy trend was excessive and that a more appropriate impact should be 10.0 percent. The medical trend of 11.4 percent was considered appropriate.
As a result, the Department disapproved the initial average rate request of 14.8 percent and instead approved an average increase of 13.9 percent on November 2, 2018.
The new rates take effect for policies issued or renewed on or after January 1, 2019.