Small-group health insurance premiums will rise 4.1% next year, down from Connecticut health insurer’s requested increase of 11.28%, according to the Connecticut Insurance Department.
Insurance Commissioner Andrew N. Mais on Friday also said the average increase for individual plans will be just 0.1%, down from the average requested increase of 6.29%.
The approved rates were impacted by medical trends, which include rising healthcare costs such as the costs of prescription drugs and the increased demand for medical services, the insurance department said. Carriers project medical and prescription drug costs will grow at approximately 8.8% a year for 2020 and 2021.
The new health insurance rate filings for the 2021 coverage year means approximately 214,600 Connecticut consumers are projected to save $96 million.
“Working on behalf of consumers, the Department was able to reduce the health insurance rate increase requests thanks to the hard work of our actuaries and professional staff,” Mais said in a statement. “I will continue to work collaboratively with all stakeholders to find long-term solutions while continuing to promote access and eliminate barriers to coverage here in Connecticut.”
In all, 10 health insurers submitted the rate filings, for fully insured plans covering approximately 214,600 people. They do not impact large group companies, nor those who self-insure their health benefit plans.
Some brokers had been hoping that a sharp decrease in utilization of healthcare services during the COVID-19 pandemic would translate to lower rates next year.
CID said that insurers are citing rising costs of prescription drugs and an increased demand for medical services, and that most did not include a rate impact related to COVID-19 due to “significant uncertainty.” Only Anthem and ConnectiCare did so, building in COVID-19 rate impacts of 2.3% and 1.7%, respectively.
Insurers a year ago requested a 12% rate increase for 2020 on their so-called small group policies (companies with 50 or fewer employees), which CID ultimately reduced to 9.2%.
