A request from health insurers for another year of double-digit premium increases for certain state-regulated plans is drawing outrage from residents, state lawmakers and others.
Carriers – including Anthem, ConnectiCare and UnitedHealthcare – are seeking more than a 16% average rate increase for individual policies and more than 17% for small group plans. The plans affect roughly 220,000 residents. They exclude federally-regulated large-group and self-insured plans, public plans like Medicaid, and health plans that are withdrawn by insurers from specific markets.
At a public hearing held Wednesday in Hartford and in submitted public comments, residents and healthcare workers sounded off about the requested hikes.
“An increase of this magnitude to healthcare premiums” would undoubtedly result in detrimental personal outcomes for a great many consumers, Rabbi Michael S. Friedman of Temple Israel of Westport wrote.
“The affordability of insurance is directly tied to health outcomes,” Paige Woodruff, a longtime nurse, wrote. “For many families and small business employees, these increases are not simply budget adjustments — they can be the deciding factor in whether coverage remains affordable or is ultimately dropped. From a clinical perspective, the consequences of losing coverage are profound.”
Woodruff said she has seen patients delay care, skip medications and avoid preventive services when cost becomes a barrier.
“When individuals go without insurance, health conditions often worsen, leading to more complex, costly, and preventable complications,” she said.
Insurers attributed the rate increases to the rising cost of prescription drugs and the increased demand for medical services, and the expiration of federal subsidies. In order for the requested rates to be approved, the department must determine under state law that the requests are not “excessive, inadequate, or unfairly discriminatory.”
“Our actuarial team carefully examines the data behind each request, including trends in medical costs, healthcare utilization, and prescription drug spending,” Josh Hershman, insurance commissioner, said in a statement earlier this year. “These filings reflect rising costs across the healthcare system.”
State lawmakers said a deeper analysis is needed on what’s driving up the costs.
“We need to set the bar higher,” said State Sen. Dr. Jeff Gordon, a Republican representing Ashford. “We need to say that if you're going to want a rate increase, you really have to prove it almost as if it were beyond reasonable doubt. So I've had concerns for many years about the process.”
Last year, the insurance department approved a nearly 17% rate hike for individual premiums, as well as an increase of more than 10% for employer-sponsored plans. Both approvals were less than what the insurers had requested, and the department said its ruling saved consumers $125 million.
But that’s not adequate, Gordon said.
“The Department of Insurance rubber stamps rate hikes after dropping them a bit and saying, "Look what we did,” he said.
Gordon was not alone in urging the department to further look into why insurers say healthcare costs are rising, necessitating a premium hike.
Attorney General William Tong wrote to Hershman, wondering why a procedure’s cost varies at different hospitals.
“I would once again urge the department to drill down on what insurers are doing to ensure that hospital reimbursement rates more closely reflect the actual costs of providing services,” Tong wrote.
The department expects to make final rulings on the proposals in early September. Open enrollment for the next coverage year is scheduled to begin Oct. 23.
