Insurance Commissioner Andrew N. Mais today announced the Department has made final decisions on health insurance rate filings for the 2020 coverage year. As a result of these decisions, Connecticut consumers are projected to save approximately $54 million.

The Department approved an average increase for individual plans of 3.65 percent, down from the average request of 7.78 percent. The average increase for small group plans is 9.19 percent, down from the requested average of just over 11.98 percent. This is despite the reinstatement of the federally mandated health insurer tax which added an average of 3.0 percent, or approximately $53 million in additional premium.

“Through the hard work of the Department’s actuaries and professional staff, the Department was able to reduce the health insurance rate increase requests for Connecticut consumers. However, there is still work to be done. I will continue to work collaboratively with all stakeholders in Connecticut’s health care system to find ways to achieve meaningful savings while continuing to promote access to some of the best health care services in the nation,” Commissioner Mais said.

Medical trend, a factor that includes rising health care costs such as the costs of prescription drugs and the increased demand for medical services, is rising at approximately 8.2 percent. Other factors contributing to the final decisions include the reinstatement of the federally mandated health insurer tax which accounted for an average of 3.0 percent, equal to approximately $53 million in additional premium, and the results of the Centers for Medicare & Medicaid Services (“CMS”) Risk Adjustment Data Validation Audit which varied by carrier.

Click here to view the 2020 rate filings information

Click here to view the Final 2020 Rate Chart

BACKGROUND

On September 13, 2019, the Connecticut Insurance Department issued its final rulings on 14 health insurance rate filings for the 2020 individual and small group markets. The filings were made by 10 health insurers for plans that currently cover about 242,000 people.

• The average increase for individual plans is 3.65 percent, reduced from average request of 7.78 percent.
• The average increase for small group plans is 9.19 percent, reduced from average request of 11.98 percent.

Pricing Factors for 2020:

• Federally Mandated Health Insurer Tax: There was a moratorium on the federally mandated health insurer tax in 2019, but it has been reinstated for 2020. The reinstatement of this federally mandated tax accounts for approximately 3 percentage points of each carrier’s rate increase request and approved rate changes. This means that the average requested and approved increases from above would be approximately 3 percentage points lower if this tax was not reinstated.
• Trend: Trend is a factor that accounts for rising health care costs, including the cost of prescription drugs, and the increased demand for medical services.
• RADV Audit: CMS completed its 2017 benefit year Risk Adjustment Data Validation (RADV) audit. The impact of this audit varied by carrier in both the individual and small group markets.

What's Next

Open enrollment for the 2020 coverage year begins November 1, 2019.

Public Comment and Video of Informational Hearing

On September 4, 2019, the Department held an informational hearing for individual and small group exchange plans marketed by Anthem Health, Inc. and ConnectiCare Benefits, Inc. (CBI).

• Public comment
• Video broadcast of September 4^th hearing