Several health insurance companies in Connecticut have requested an average increase of 12.4% on individual health plans and an average hike of 14.8% on small group policies for 2024. The filings collectively cover about 188,000 people who are enrolled in plans on and off the state’s Affordable Care Act Exchange.
The proposed rate hikes mark the second year in a row that insurers have sought substantial increases on their plans. Last year, the companies requested an average increase of 20.4% on individual plans and 14.8% on small group policies. The insurance department ultimately approved average increases of 12.9% on individual plans and 7.9% on small group.
The insurance companies have cited various reasons for the rate increases, such as rising medical costs, increased utilization of services, inflation, and uncertainty due to the COVID-19 pandemic and federal policy changes.
Residents and advocates demand rejection of rate hikes
On Monday, August 21, 2023, the state’s insurance department held a public hearing at the Legislative Office Building to listen to the testimony of residents, advocates, elected officials, and insurance executives regarding the proposed rate hikes.
Many residents and advocates expressed their frustration and anger over the unaffordable and unsustainable costs of health care and insurance in the state. They shared their personal stories of struggling to pay for medical bills, rationing medications, or dropping coverage altogether due to high premiums and deductibles.
They urged the insurance department to reject the rate hikes and protect the consumers from further financial hardship and health risks. They also called for more transparency and accountability from the insurance companies and the regulators.
Some of the speakers at the hearing included:
- Isabelle Barbour, who said she was stuck with a bill of more than $34,000 after her child needed inpatient care at Middlesex Hospital, despite having two types of insurance coverage.
- Tenaya Taylor of Hartford, who said she has a lot of out-of-pocket expenses due to her conditions that are not covered by state insured care, such as endometriosis and dental procedures.
- Arden Parrish, head of the #Insulin4all Connecticut chapter, who said they have relied on insulin since they were 7 years old and have seen the price of insulin skyrocket over the years.
- State Sen. Saud Anwar, who is also a physician, who said he has seen many patients suffer from lack of access to affordable health care and insurance.
- State Rep. Sean Scanlon, who is also the co-chair of the Insurance and Real Estate Committee, who said he has been working on legislation to address the issue of rising health care costs and improve affordability and quality for consumers.
Insurance executives defend rate requests
The insurance executives who testified at the hearing defended their rate requests as reasonable and necessary to cover the expected costs and risks of providing health care services to their members.
They said they have tried to keep their rates as low as possible while maintaining adequate reserves and complying with state and federal regulations. They also said they have invested in programs and initiatives to improve health outcomes, reduce waste, and lower costs for their customers.
Some of the insurance executives who testified at the hearing included:
- James Michel, president and CEO of ConnectiCare, who said his company has requested an average increase of 13.5% on individual plans and 15.2% on small group plans.
- Jill Hummel, president and general manager of Anthem Blue Cross Blue Shield in Connecticut, who said her company has requested an average increase of 12.5% on individual plans and 14.1% on small group plans.
- Eric Galvin, president and COO of Cigna Healthcare in Connecticut, who said his company has requested an average increase of 11.8% on individual plans and 15.5% on small group plans.
Insurance department to make final decision by September
The insurance department will review the rate filings and the public comments before making a final decision by September 1, 2023. The department has the authority to approve, modify, or reject the rate requests based on actuarial standards and state laws.
The department’s commissioner, Andrew Mais, said he understands the concerns of the consumers and will carefully evaluate the rate requests to ensure they are fair and justified.
He also said he hopes that the federal government will provide more clarity and stability on health care policy issues that affect the insurance market, such as subsidies, reinsurance, risk adjustment, and public options.
He encouraged consumers to shop around for the best plan that suits their needs and budget during the open enrollment period that starts on November 1, 2023.