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August 22, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

CT Insurance Department rejects insurers’ rate increase proposals

The Connecticut Insurance Department has rejected revised premium increase requests by Anthem and ConnectiCare, the only two health insurers that sell plans on the state’s insurance exchange.

Insurance Department Commissioner Katharine Wade has ordered the insurers to revise their rate filings again and resubmit them this week. ConnectiCare had proposed to increase average premiums for its mid-level “silver” plans by 34.1 percent, while Anthem proposed a 13.5 percent increase. Those rate hikes would have been on top of previously filed double-digit rate requests for next year.

The Insurance Department’s revised rate requests were made in response to what it called “market uncertainty” over whether the federal government will discontinue cost-sharing reduction payments, which provide financial assistance for consumers via lower co-payments and deductibles.

In another development, Wade has sent a letter to Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander asking Congress to continue a moratorium on the Affordable Care Act’s health insurance tax, which otherwise will go into effect next year.

Wade also asked the Tennessee Republican to add a new metal class to the “gold,” “silver” and “bronze” plans now offered on ACA exchanges like Access Health CT. The new “copper” plans would offer the same essential health benefits as the other plans, but have fewer or no additional benefits and carry higher co-payments and deductibles.