CT health plan lowers coverage cost

Gov. Dannel P. Malloy said Tuesday that the state has received federal approval to begin charging a flat $381 monthly premium in the Connecticut Pre-Existing Condition Insurance Plan, which will likely boost enrollment in the year-old program by slashing premium costs for older beneficiaries.

The insurance plan was created as a result of the federal health care reform law with the goal of establishing more affordable insurance coverage for residents with pre-existing conditions. But the program has been slow to get off the ground with only 75 Connecticut residents currently enrolled in the program.

Malloy said the few people have signed up largely because premiums are to expensive.

The new, uniform “community rate” premium of $381 will be significantly less expensive for most enrollees aged 50 and older, Malloy said.

“Currently, the top premium amount is $893 for the 65-and-older age group,” Malloy said.  “While most people in this age group have Medicare and don’t need this program, the fact remained that people in the 60-to-64 age range were paying $776.  This cost put the program out of reach for many potential enrollees with pre-existing conditions.  Beginning September 1, costs will go down for most of the 75 current enrollees, and the lower rate of $381 should go a long way to attract new applicants.”

Since its August 2010 launch, the Connecticut Pre-Existing Condition Insurance Plan had based premium rates on age range. Rates for younger people begin at $243 and increase incrementally per ten years of age.  For example, the cost is $413 at age 45, $507 at age 50, $628 at age 55, $777 at age 60 and $893 at age 65.

The Department of Social Services, administering agency for the federally-funded program, appealed to federal authorities in late June to collapse the premium schedule into one rate of $381.  The state’s proposal was approved last Friday by federal officials.

The new rate represents a reduction in premium for about two-thirds of the 75 current members, and is expected to pave the way for enrollment increases in the age groups with the most serious health problems.  While current adult enrollees younger than 45 will see premium increases between $23 and $96, depending on age group, the primary market for this program — older adults — will benefit significantly.