Anthem Health Plans, Inc. - Large Group
Rate Request: 6.3 percent average increase
Decision: Disapproved, reduced to 4.7% average increase
On September 19, 2018, Anthem Health Plans filed a request to increase rates 6.3 percent on its large group health insurance policies for employers with 51 or more workers.
The filing is for prospective business. The new rates are for plans that will be marketed for coverage beginning Jan. 1, 2019.
In calculating the rates, the company noted it was factoring in impact of medical inflation, known as “trend,” which takes in to account the increase in medical and pharmacy costs and the demand for those services. The company calculated a trend impact of 9.6 percent.
Following an actuarial review, the Department determined the company overstated the impact medical trend and that a medical trend factor of 7.5 percent is more appropriate. As a result, the Department disapproved the initial rate increase request and instead approved an average increase of 4.7 percent on October 31, 2018.
The new rates would take effect for policies issued or renewed on or after January 1, 2019.