Connecticut: PRELIMINARY avg. 2020 #ACA exchange premiums: 7.8% increase
Health Insurance Rate filings for 2020
The Connecticut Insurance Department has posted the initial proposed health insurance rate filings for the 2020 individual and small group markets. There are 14 filings made by 10 health insurers for plans that currently cover about 242,000 people.
Two carriers – Anthem and ConnectiCare Benefits Inc. (CBI) – have filed rates for both individual and small group plans that will be marketed through Access Health CT, the state-sponsored health insurance exchange.
The 2020 rate proposals for the individual market are on average lower than last year while the small group market is on average slightly higher than last year.
The reinstatement of the Federally Mandated Health Insurer Tax for 2020: There was a moratorium on the federally mandated health insurer tax in 2019, but it has been reinstated for 2020. The reinstatement of this federally mandated tax accounts for approximately 3 percentage points of each carrier’s rate increase request. This means that the average requested increases below would be approximately 3 percentage points lower if this tax was not reinstated.
The proposed average individual rate request is 7.8 percent increase, compared to 12.3 percent in 2019 and ranges from -9.8 percent to 25.7 percent.
The proposed average small group rate request is an 11.98 percent increase, compared to 10.22 percent in 2019 and ranges from -12.4 percent to 28.5 percent.
In addition, carriers have attributed the proposed increases to:
Trend: Trend is a factor that accounts for rising health care costs, including the cost of prescription drugs, and the increased demand for medical services.
The Insurance Department will conduct actuarial reviews on each filing to determine if they are justified and will either approve, reject or modify the request. The 30-day public comment period on all filings begins today (July 12) and comments can be filed online through the link that accompanies every filing or can be delivered to the Connecticut Insurance Department at P.O. 816, Hartford, CT 06142-0816.
The Department expects to make final rulings on the proposals in September. Open enrollment for the 2020 coverage year begins November 1, 2019.
An informational rate hearing will be held on Wednesday September 4, 2019 at 9:00 AM for both individual and small group products marketed on the Connecticut Health Exchange, commonly referred to as Access Health CT.