Connecticut Insurance Department (CID) Commissioner Andrew N. Mais announced today that the Department continues to protect consumers by reducing health insurers’ 2022 requested rates, despite ongoing increases in underlying health care costs. Rate increase requests in the individual market were reduced by 35% from the requested 8.6%, resulting in an average increase of 5.6%. In the small group market, the insurers’ requested premium increases were reduced 48% from a requested average of 12.9% to 6.7%.

Medical costs have increased about 8-9%, while prescription costs have risen about 10-11%.

The 222,700 members enrolled in individual and small group plans are projected to save approximately $76 million next year due to the rate request reductions. Over two years, the Insurance Department’s rate reductions have saved Connecticut consumers approximately $173 million.

“Working on behalf of consumers, the Department was able to reduce the health insurance rate increase requests thanks to the hard work of our actuaries and professional staff, but we need to work to address the skyrocketing health care costs these premiums cover,” Commissioner Mais said. “The unit cost of hospital inpatient and outpatient care has historically risen about 9% per year. Prescription drug prices have risen even higher. I will continue to work collaboratively with all stakeholders to find long-term solutions that promote access and eliminate barriers to coverage here in Connecticut. The health care cost changes make the work we have been doing with the Office of Health Strategy and the Governor’s office to create viable solutions to this crisis even more essential.”

Commissioner Mais also urged consumers to visit the state’s Affordable Care Act (ACA) Exchange, Access Health Connecticut: “Whether or not you now have an Access Health plan, you may be able to find significant savings on a top-notch product by shopping there.”

Enhanced federal subsidies under the American Rescue Plan Act of 2021 (ARPA) lowers the cost of coverage available through Access Health CT to the lowest it has been in recent years. The amount of these tax credits depends on your income and where you live. Many individuals on the exchange who already receive subsidies will experience even larger ones in 2022 and those above 400% of the Federal Poverty Level who may not have received subsidies previously will see a reduction in premiums as the maximum premium they can pay under ARPA is 8.5% of household income.

For example, a 45-year-old single person in Fairfield County earning $38,000 annually will see the cost of one plan drop from $306/month now to $193 per month, a savings of more than a third. That same person who now makes $64,000 per year will see costs drop under that plan from $633 per month to $456 per month in 2022.

Medical and prescription drug trends which reflect rising health care costs including hospital inpatient and outpatient and prescription drug costs are among the major factors contributing to the approved rates. These factors continue to outpace the trend in professional provider unit costs.

The Connecticut Insurance Department received 15 rate filings from 11 health insurers for plans that will be offered on the individual and small group market, both on and off the state-sponsored exchange, Access Health CT. Those plans cover approximately 222,700 residents.

View the 2022 rate filings information final Rate Chart

Pricing Factors for 2022:

• Trend (8-9% for medical, 10-11% for Rx): Trend is a factor that accounts for rising health care costs, including the cost of prescription drugs, and the increased demand for medical services.
• Experience Adjustments: Adjustments made to the current premium rates to account for better or worse experience.
• COVID-19: The potential impact on future claims to account for the COVID-19 pandemic.
• Deteriorating Morbidity: As the small group market continues to contract, the potential for deteriorating experience exists.

2022 Public Informational Health Insurance Rate Meeting

• Comptroller Kevin Lembo Testimony
• Office of The Healthcate Advocate Testimony
• Public comment
• Representative Anne Meiman Hughes Testimony
• Senators Kelly and Hwang Testimony
• Video broadcast of August 31, 2021 meeting

BACKGROUND

On September 11, 2020 the Connecticut Insurance Department issued its final rulings on 14 health insurance rate filings for the 2021 individual and small group markets. The filings were made by 10 health insurers for plans that currently cover about 214,600 people.

Rates for individual plans were held essentially flat, with an average increase of 0.01%, down from the average requested increase of 6.29%. The average increase approved for small group plans is 4.1%, down from the requested average increase of more than 11.28%.

As a result of these decisions, approximately 214,600 Connecticut consumers saved approximately $96 million.

Historical Approved Increases:

• The 2-year approved average increase in the individual market is 5.6% which equates to 2.8% per year over the last two years.
• The 3-year approved average increase in the individual market is 9.4% which equates to 3.0% per year over the last three years.
• The 2-year approved average increase in the small group market is 11.0% which equates to 5.3% per year over the last two years.
• The 3-year approved average increase in the small group market is 21.0% which equates to 6.6% per year over the last three years.

What’s Next

Open enrollment for the 2022 coverage year begins November 1, 2021.

Public Comment and Video of Informational Meeting

On August 31, 2021, the Department held an informational public meeting for individual and small group plans marketed by Aetna/CVS, Anthem Health, Inc., CIGNA, ConnectiCare, Harvard Pilgrim and United/Oxford.