Rate Filing: 2.5 percent rate increase
Decision: Review Completed July 29, 2014
On May 30, 2014, United Healthcare Insurance Company submitted a rate filing to the Department that would increase base rates by 2.5 percent on its small group indemnity plans used by employers with one to 50 workers. There are currently 86 policies in effect in Connecticut.
The company stated in its rate filing that the increase “is primarily being driven by increased health care expenses.” United Healthcare has also projected that the new rates will satisfy the 80 percent Medical Loss Ratio (MLR) required by the federal care reform law.
After an actuarial review, the Department believes that the company is overestimating the impact of “trend,” a pricing factor that takes into account the increased costs of medical services and increased demands for those services. The Department believes that United Healthcare’s assumed 10.2 percent trend impact is excessive and that a 9 percent impact is more appropriate. However, the Department does not have statutory authority to approve or deny rates for small group indemnity businesses. This type of filing is subject to review only as part of requirements of the federal health care reform law.
The new rates will take effect January 1, 2015.
Find the filing, brief summary and public comment section here at Health Insurance Rate Filings