Rates for individual health plans sold through Connecticut’s Affordable Care Act exchanges and those sold elsewhere will increase by an average of 9.4% next year, the state Department of Insurance announced Friday. did.
Small group plans will increase in price by an average of 7.4%.
Insurers were seeking higher increases, averaging 12.4% for individual policies and 14.8% for small groups. The plan targets approximately 188,000 people.
“Our focus is on the consumer. Our dedicated team of actuaries and other professionals successfully reduced the requested health insurance premium increases,” said Andrew Meis Insurance. the director said. “However, the ongoing challenge is to address the underlying issues that cause insurance premium increases. Our goal is very clear: to help Connecticut consumers effectively manage their insurance costs. while providing access to a robust and competitive health insurance market.
“The rates introduced today demonstrate that a safety net is in place to prevent unwarranted price increases. We will continue to work on making it easier to use.”
Three insurance companies sell insurance policies on the exchange: Anthem Health Plans, CTCare Benefits Inc., and ConnectiCare Insurance Company Inc.
CT Care benefits sought an average increase of 12.7% for individual plans covering 64,482 people. A 10.3% price increase was approved. Increases range from 7.9% to 13% depending on plan.
ConnectiCare Insurance Company asked for an average increase of 17.5% on individual policies covering 11,954 people. The Department of Health approved a 15.3% increase. Increases range from 8.2% to 20% depending on the plan.
And Anthem requested an average increase of 9.8% for individual insurance covering 33,939 people. The ministry approved it at 5.6%. The rate hike range is 1.1-11.3%.
The company also asked for an average increase of 14.9% for small group insurance. 5.1% were approved.
Attorney General William Tong said the rate hike was “too high.”
“Insurers asked for high premiums based on vague and unsubstantiated assumptions that were inconsistent with nationally supported data. “We were right to introduce affordability as a question for the first time in the process,” Tong said on Friday. “But these rate hikes are still too high and extremely burdensome. Currently, insurance companies have little incentive to lower health care costs and premiums, and Connecticut families and small businesses are being crushed. It needs to change.”
Senate Minority Leader Kevin Kelly, R-Stratford, and Sen. Tony Huang, R-Fairfield, said the rate hikes have made it harder to buy health insurance.
“The Lamont administration’s approval of these significant rate increases comes on the heels of last year’s outrageous double-digit rate hikes. It falls on deaf ears for thousands of Connecticut ratepayers whose household budgets are being squeezed by inflation. We will not lend it to you,” they said in a joint statement. “Paying for health care continues to become increasingly difficult in Connecticut.”
At a public hearing last month, frustrated residents, advocates and lawmakers called on the Department of Insurance to reject double-digit rate hikes recommended by insurers.
“I have a lot of out-of-pocket costs because I suffer from multiple medical conditions that are not covered by state health insurance,” said Tenaya Taylor of Hartford. “Raising rates, along with rising rent and cost of living, is just too much for me to bear. There are people who live in the mountains, and further hiking is not sustainable for their overall health.”
Sen. Jorge Cabrera (D-Hampden), co-chair of the Insurance and Real Estate Committee, said residents cannot afford another rate increase.
“Sometimes our families have to make decisions between taking life-saving medicine and putting food on the table. I’ve talked to many of these people,” he said. Ta. “We have taken several steps over the years to address the rising costs of health care and prescription drugs, but people cannot tolerate these increased costs.”
insurance company leader Attributed These changes include proposed increases in prescription drug prices, increased demand for health care services, and the impact of Medicaid repeal.
“For an insurance company to be sustainable, rates must be sufficient to pay claims and cover the cost of operating the program,” Mark Medall, president of ConnecCare, said at an August hearing. Stated. “Over the past two years, we have experienced significant losses. …As we move into 2024, our plan premium levels will be sufficient to meet the health care needs of our members who rely on us. must be.”
Following the recommendation of another large rate hike this year, legislative leaders will overhaul Connecticut’s rate hike review process this session and require the state to consider affordability when considering future rate hikes. He announced that he would submit a bill that would require the authorities to do so.
Insurers last year requested an average increase of 20.4% for individual policies and 14.8% for small group policies. The insurance department ultimately approved him 12.9% for individual plans and 7.9% for small groups.
Part of the review will include holding wide-ranging public hearings where state authorities can gather evidence and conduct broader questioning of airlines.
“The concern is how the insurance companies will arrive at their proposed rate hikes,” Cabrera said. “We haven’t heard too many details from them. We need to be able to dig deeper.”
Mr Tong also called for changes to the interest rate review process.
“Connecticut’s review process is too condensed and too opaque to meaningfully challenge the insurance industry’s unwarranted and unsubstantiated assumptions,” he said Friday. “Legal changes are needed to force insurance companies to use their bargaining power to reduce ballooning health care costs, and to allow these claims and actuarial assumptions to be challenged and scrutinized. , we need a robust and transparent review process.”
Open enrollment for the 2024 coverage year begins November 1st.
