Connecticut Insurance Department modifies some proposals, rejects others
The Connecticut Insurance Department has modified rate proposals from health insurance companies for policies that will offer coverage in 2015. The agency has modified rate proposals from some of the state’s largest insurers, including Aetna and UnitedHealthcare. Some rate proposals were rejected, while insurers were required by the agency to change their proposals in order to reduce the financial pressure that consumers experience from the coverage. Some of the rate proposals that the agency has modified have to do with policies that will be sold through the Connecticut insurance exchange.
Aetna seeks to increase rates by 9.4%, but receives approval to only increase rates by 4.6%
The Insurance Department has rejected a proposal for a 9.4% rate increase on individual policies coming from Aetna. This rate proposal was for policies that would be sold through the state’s insurance exchange and the rate increase would have affected an estimated 3,7000 people. The Insurance Department has approved a 4.6% rate increase from the insurer for these policies, however. The agency noted that the insurer can take advantage of a temporary federal reinsurance program in order to offset the expenses it will see in the coming year.
Health insurance policies that will e sold through the state’s exchange are expected to see their rates drop by 9.2%
The state agency has also modified the rate proposals for policies that will be sold through the exchanger. Overall, rates for new policies that will be sold through the exchange have been decreased by 9.2%. The agency suggests that some insurance companies have overestimated the costs they will face in terms of medical care and pharmaceuticals. As such, higher rates are not needed.
Insurance Department continues to review rate proposals from other insurance companies
The Insurance Department is still reviewing rate proposals from several other insurance companies. ConnectiCare Insurance has proposed a 13.5% increase for the policies that were sold before the Affordable Care Act was enacted in 2010. The insurer is citing increased medical costs and federal fees as the justification for higher rates.