A health insurance subsidiary of Aetna Inc. is asking the Connecticut Insurance Department for permission to cut rates on 9,745 existing individual health policies by an average of 10%.
Aetna Life Insurance Company, a unit of Aetna, Hartford (NYSE:AET), says it has filed for the rate decrease in an effort to comply with the Patient Protection and Affordable Care (PPACA) minimum medical loss ratio (MLR) requirements.
The minimum MLR provision requires carriers to spend 80% of individual health policy premium revenue on health care and quality improvement efforts.
Aetna Life’s assumption of medical claim trend in Connecticut is consistent with a previously filed assumption of about 8.5%, the company says in a rate filing.
The proposed rate decreases could range from 5% to 19.5%, the company says.
The rates are set to take effect Sept. 1.