Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance > Your Practice

ConnectiCare denied premium decrease

Your article was successfully shared with the contacts you provided.

The Connecticut Insurance Department denied a request by ConnectiCare Insurance Company, Inc. to decrease rates an average 0.91 percent starting October 2012 on policies sold from Oct. 1, 2009 through March 1, 2010 and April 1, 2010 through Dec. 1, 2011.

Requesting a decrease in rates is not the kind of rate request insurers usually make. Connecticut turned down Mutual of Omaha’s 18.7 percent LTCI rate increase proposal just last month. From Sept. 1, 2011 through March 10, 2012, there were 186 double-digit rate increase announcements, according to a report.

The Department of Health and Human Services reviewed 28 rate increase proposals from that same period and concluded 71% were unreasonable. 

In its July 18 request, ConnectiCare said the new rate reflects its members’ drop in use of medical services over the two previous years, especially with hospitalization costs.

Following an actuarial review, the Insurance Department determined the rates could be lowered further, and denied the request as submitted by ConnectiCare. The department then approved a 3.4 decrease for policies sold from Oct. 1, 2009 through March 1, 2010 and a 2.2 percent decrease on policies sold from April 1, 2010 through Dec. 1, 2011, deciding the new rates were in relation to the benefits offered.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.