FOR IMMEDIATE RELEASE
September 6, 2024

(Hartford, CT) – In a significant move to protect Connecticut consumers against unsupported health insurance cost increases, Connecticut Insurance Commissioner Andrew N. Mais announced today that the Connecticut Insurance Department (CID) continues to protect consumers by reducing health insurers’ 2025 requested rates, despite ongoing increases in underlying health care costs. These 2025 rates are for individual and small group plans offered on and off the state exchange Access Health CT. The Connecticut Insurance Department does not regulate self-funded plans which fall under the authority of the U.S. Department of Labor.

For individual insurance market rate increase requests, the original average rate increase of 8.3% has been reduced by an average of 29% resulting in an average increase of 5.9%. Similarly, the small group insurance market will receive a 35% reduction of the requested premium increases, resulting in an average increase of 7.8% rather than the requested average increase of 11.9%.

Health insurance premiums are affected by several key factors. Medical costs have surged by 8-9%, and prescription expenses have risen by approximately 12-19%. These increases are primarily driven by higher healthcare utilization and greater disease severity, which lead to advanced-stage treatments and an overall increase in healthcare spending.

The CID received eight filings made by seven health insurers for fully insured individual and small group plans that currently cover approximately 200,000 people. Following the completion of a thorough actuarial review and the resulting reductions in the originally requested rate increases, the projected savings to Connecticut insureds for the 2025 benefit plan year is approximately $59.8 million. This included holding Connecticut insurers’ profit provisions to 0.75%.

Over the last six years, the CID’s efforts have led to a savings of nearly $520 million for Connecticut insureds in the individual and small group markets.

"Our priority is always the consumer. Our team of actuaries and professionals has carefully reviewed and appropriately reduced the requested health insurance rate increases for 2025,” said Commissioner Mais. “While we’ve made progress in mitigating these increases, the challenge remains in addressing the root causes driving healthcare costs upward. Our objective is clear: to ensure that Connecticut consumers have access to a competitive health insurance market while managing costs effectively. The rates announced today reflect our commitment to protecting consumers from unsupported increases and ensuring that health insurance remains both fair and accessible in Connecticut.”

View the 2025 Health Insurance Rates

• Trend: Trend is a factor that accounts for rising healthcare costs, including the cost of prescription drugs and the increased demand for medical services.
• Experience: Experience adjustment is necessary to reflect deteriorating claim experience from the prior rating period to the current rating period.
• Medicaid Unwinding: The impact to the current commercial market due to Medicaid unwinding.

Public Comment and Video of Informational Meeting:  

On August 20, 2024, the CID held a public informational meeting for individual and small-group plans marketed by Anthem, United Healthcare, and ConnectiCare.

Watch the Meeting on Demand here

What’s Next?

Open enrollment for the 2025 coverage year begins November 1, 2024.

BACKGROUND

Read the Health Insurance Rate Review Process Fact Sheet

On September 6, 2024, the Connecticut Insurance Department issued its final decisions on 8 health insurance rate filings for the 2025 individual and small group health insurance markets. The filings were made by seven health insurers for plans that currently cover approximately 200,000 people (142,000 individual and 58,000 small group).

• The proposed weighted average individual rate request is 8.3 percent, compared to 12.4 percent in 2024, and ranges from 7.4 percent to 12.5 percent.
• The proposed weighted average small group rate request is a 11.9 percent increase, compared to 14.8 percent in 2024 and ranges from 5.1 percent to 13.6 percent.

Contact: Mary Quinn
Communications Director
Mary.Quinn@ct.gov
Cell: (959) 529-4904