Insurance Companies Proposing Significant Rate Increases for 2023
The Connecticut Insurance Department will soon be reviewing proposed rate hikes for individual and small group medical insurance plans renewing in 2023.
ConnectiCare, which covers more than 75,000 folks through Access Health CT, has requested a 24.1% increase on average for the upcoming year. Anthem, which covers more than 27,000 individuals through Connecticut's State Exchange, is requesting an average increase of 8.6%. Last year, ConnectiCare (7.4%) and Anthem (12.3%) had their requested increases for plans renewing in 2022 reduced to between 5% and 6% on average.
“We remain extremely mindful of the impact that rate increases have on our members and strive to keep our plans as fairly priced as possible within the reality of today’s health care environment,” Kimberly Kan, a spokesperson for ConnectiCare, said in a statement via the CT Mirror. “Our proposed rates are based on several factors, including medical and pharmacy cost trends, along with the continued impacts of COVID-19 on our members’ utilization of services, including obtaining delayed care."
Small businesses, defined as having 50 or fewer employees, purchasing fully-insured medical benefits for their staff are also bound for increased premiums in 2023. ConnectiCare has requested an average increase of 29.3%. The other carriers offering fully-insured coverage are all under 20% on average: Anthem (3.6%), Oxford (13.4%), and Cigna + Oscar (19.6%). Last year, the DOI approved increases of 10.1% or less. Rates vary by age, county, plan, and date.
Needless to say, the cost of health insurance in Connecticut continues to rise at a rapid pace. While the premiums are a major concern, the number of options available and the level of coverage provided by these plans are also factors to keep an eye on.
Harvard Pilgrim, which started selling to small businesses in CT just a few years ago, opted to stop selling coverage as of July 1st and will not renew business in 2023. Policies renewing in 2022 are able to be renewed for another 12 months. Cigna + Oscar began offering coverage last July 1st and has already increased their premiums for 2022 by double digits on average. The newest option, as noted above, is seeking nearly a 20% increase in 2023.
Public comments about the proposed increases can be made on the DOI's website. Decisions are typically made in September, with Open Enrollment for AHCT starting on November 1st. The small group rates will likely be released in the late fall for policies renewing in 1Q23.