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October 19, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

CT approves smaller-than-proposed health insurance rate increases

Health insurance rates for those covered under the state’s health insurance exchange Access Health CT are going up – but by significantly less than insurance carriers Anthem and ConnectiCare had sought.

Connecticut Insurance Department Commissioner Andrew N. Mais announced that for 2020 the department approved an average increase for individual plans of 3.65%, down from the average request of 7.78%. The average increase for small group plans is 9.19%, down from the requested average of just over 11.98%.

This is despite the reinstatement of the federally mandated health insurer tax that added an average of 3%, or approximately $53 million in additional premiums. As a result of its decisions, the Insurance Department said, Connecticut consumers are projected to save approximately $54 million.

Despite the good news for consumers, Mais said, “There is still work to be done. I will continue to work collaboratively with all stakeholders in Connecticut’s health care system to find ways to achieve meaningful savings while continuing to promote access to some of the best health care services in the nation.”

Mais noted that medical trend – a factor that includes rising health care costs such as the costs of prescription drugs and the increased demand for medical services – is rising at approximately 8.2%. Other factors contributing to the final decisions included the results of the Centers for Medicare & Medicaid Services Risk Adjustment Data Validation Audit, which varied by carrier.

Open enrollment for the 2020 coverage year begins Nov. 1.