The declining number of health insurers participating in the state’s Obamacare exchange was front and center at a public hearing Wednesday regarding the nearly 27 percent rate hike Anthem has requested for its individual plans in 2017.
Following public comments from more than a dozen Connecticut residents – all concerned about the rising cost of health care – Anthem officials told Connecticut insurance regulators that its requested increase is actuarially sound and takes into account rising drug costs, increases in medical trend, the scheduled elimination of Obamacare’s reinsurance program, and what Anthem has now determined were inadequate 2016 rates.
In testimony, James Augur, regional vice president of sales for Anthem, referred to the recent losses of two of the four insurers that had offered plans on the Access Health exchange. Only Anthem and Connecticare remain for 2017.
The Connecticut Insurance Department ordered nonprofit insurer HealthyCT into runoff last month due to concerns over its solvency. That order came three months after UnitedHealthcare indicated it would exit most state exchanges, including Connecticut, following heavy losses on that business.
Augur said that Anthem’s requested increase is “higher than we would like” but said it will allow the company to keep its commitment to the individual market in Connecticut and ensure the exchange “remains a viable marketplace.”
“To be clear, at this time in this climate, it is imperative that the adequacy of the 2017 rates for the individual market be ensured by the department,” Augur said.
Brokers: Loss of commissions will hurt exchange
Following a trend that began with UnitedHealthcare late last year, Anthem’s rate request includes the elimination of commissioner for private brokers selling its on-exchange plans.
It’s unclear what impact such a move would have on Anthem’s market share on the exchange, but it may be significant. Brokers have sold 30 percent or more of exchange plans in recent years.
Several brokers expressed concerns about the proposal, both in person and in written comments.
Mark Russo of Hartford’s Main Street Insurance, which is one of the exchange’s higher-volume brokers, said Access Health would be undermined if brokers stop selling Anthem plans.
“If the brokers are no longer commissioned, it makes it difficult for us to have any employees and brokers to do any of this,” Russo said.
Residents, including the approximately 40,000 HealthyCT customers looking for a new insurer, may be on their own sorting through a complex and varied list of plan offerings, and may end up dissatisfied down the road, he said.
Bridgeport-based broker Dwayne Paul echoed those concerns in written testimony.
“Many consumers lack the time required and knowledge of how to appropriately work with insurance companies to solve important problems and will potentially be faced with adverse actions by the insurance company,” he wrote. “Additionally, I fear that this action by Anthem will result in some brokers steering consumers to options that may not be as beneficial as others.”
ConnectiCare, which has proposed an average rate increase of 14.3 percent for its on-exchange products, will have its own public hearing Thursday morning.
