On February
27, 2013, ConnectiCare Insurance Co., Inc., filed notice with the
Insurance Department that it plans to apply an average increase of 14.9
percent for small group health care indemnity plans used by employers,
who have 50 or fewer workers.
The new rates, which apply to renewals as well as new
business, would affect, on average, about 15,000 members – workers and
their dependents covered on 1,400 policies. The new rates would take
effect July 1, 2013.
In its filing to the Department, the company cited the
impact of “trend,” which reflects rising medical and pharmacy costs and
an increase demand for medical services. The company said “trend” would
account for a base rate increase of about 12.6%, while fees and
assessments associated with federal health care reform (Transitional
Reinsurance Program, Health Insurer Fee, Patient Centered Outcomes
Research Fee) account for approximately 2.3 percent increase.
The Department does not have statutory authority to
approve or deny rates for small group indemnity business and will
conduct a review only of the filing in accordance with the federal
health care reform guidelines as an unreasonable rate increase request.
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