Health Insurance Rate Filing - Oxford Health Plans (Large Group)
On February 1, 2018, Oxford Health Plans filed a semi-annual request to increase premium rates an average of 5.4 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 9 percent impact from the increasing cost of medical services and a greater demand for those services, a factor known as “trend.”
After an actuarial review, the Department determined the company’s assumptions for the impact of trend, or medical inflation, was appropriate. Department also determined that the pricing would meet the federally mandated 85 percent threshold for claims costs for large group business, meaning the company is expected to spend 85 cents of every $1 of premium on medical costs. As a result, the Department approved the increase on March 6, 2018.
The new rates take effect July 1, 2018 for approximately 1,800 policyholders in Connecticut that provide health coverage for about 3,000 employees and their dependents.