Oxford Health Plans - Large Group
Rate Request: 7.2 percent average increase
Decision: Disapproved, approved average increase of 5.3 percent
On October 1, 2018, Oxford Health Plans filed a request to increase premium rates an average of 7.2 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.” The company said the rate calculation also takes into account a previously approved 3 percent decrease on the base rate.
After an actuarial review, the Department determined the company’s calculation of a 9 percent impact from trend was excessive and that the more appropriate impact is 5 percent. As a result, the Department disapproved the initial rate request and instead approved an average increase of 5.3 percent.
If approved the new rates would take effect January 1, 2019 for approximately 2,500 policyholders in Connecticut that provide health coverage for about 4,200 employees and their dependents.