CT insurance regulators reject Anthem rate request

The Connecticut Insurance Department has rejected a 20 percent rate hike proposed by Anthem Blue Cross and Blue Shield.

Insurance regulators said they would not grant the rate increase on premiums for Anthem’s existing individual customers because the insurers’ projected medical and prescription drug premium rates were deemed “excessive.”

The rate increase request, first reported by the Hartford Business Journal, would affect about 48,000 Connecticut customers who buy individual health insurance plans from Anthem such as Direct Pay BlueCare HMO, Century Preferred, Lumenos, and Tonik.

Anthem said health care costs and utilization are the two main drivers of the increasing health insurance premiums.

In a written statement Anthem said, “We are currently in review of today’s ruling by the Connecticut Department of Insurance. As we review the Order, it is important to note that we understand and share strongly the concerns of our members over the rising cost and rate of utilization of health care services and the corresponding adverse impact on insurance premiums.  The increasing demand for medical services, including the use of new, expensive prescription drugs, and demand for advanced technologies are driving up the cost of health care at an unprecedented rate. Anthem remains committed to our individual market segment customers and to finding ways to manage health care costs.”  

Health insurers, including Anthem, and insurance regulators have come under fire recently for proposing and approving double-digit rate hikes.

Connecticut Insurance Commissioner Thomas Sullivan felt the brunt of that criticism before he resigned Nov. 12. His replacement, acting Insurance Commissioner Barbara C. Spear rejected Anthem’s rate increase.

Attorney General Richard Blumenthal, a chief critic of Sullivan, applauded the insurance department’s decision.

“This rate hike rejection is virtually unprecedented — a flat total denial. This decision is an early holiday gift for policyholders struggling with unemployment and a stalled economy,” Blumenthal said. “The new commissioner apparently tossed the rubber stamp. This decision hopefully marks the dawn of a new era for the Insurance Department, real scrutiny and service to consumers. The department did what it’s supposed to do, but often has not: set rates based on facts.”