ConnectiCare Inc. - Large Group
Rate Request: Overall average 3.3 percent
Decision: Disapproved, limited to a 2.9% average increase
On October 4, 2018, ConnectiCare, Inc. filed a request to increase premium rates an average of 3.3 percent next year on some large group health insurance plans. These are medical policies for employers with 51 or more workers
The company states the increase is necessary to account for a 10.1 percent impact from the increasing cost of medical services and a greater demand for those services, a factor known as “trend.” The company also is making adjustments for fees associated with the federal Affordable Care Act.
After an actuarial review, the Department determined that the company calculation of a 15.6 percent impact due to pharmacy trend was excessive and that a more appropriate impact should be 12.1 percent. As a result, the Department disapproved the initial rate request and instead approved an average increase of 2.9 percent on October 31, 2018.
The new rates take effect January 1, 2019 for plans that cover about 29,000 employees and their dependents in Connecticut.