Proposed health insurance rate increases for individual and small group plans in Connecticut were sharply criticized by health care advocates Monday.
“The industry spent boatloads of money to oppose health care reform, and they didn’t even leave six weeks to file these rates that are going to continue to take advantage of Connecticut residents,” Comptroller Kevin J. Lembo said. “I certainly hope regulators see through that.”
Health insurers, who provide coverage through individual and small group plans in Connecticut, are seeking approval to raise rates for 2022, citing expected rising health care costs, partly tied to the COVID-19 pandemic.
In filings with the state Insurance Department, 11 health insurers — including Anthem, Cigna, Aetna and UnitedHealthcare — filed for increases in plans that currently cover about 222,700 people in Connecticut.
The proposed average individual rate request for 2022 is an 8.6% increase, compared with 6.3% in 2021. The proposed increases range from 5.1% to 12.3%.
The insurers are seeking steeper increases in small group rates that typically cover employers with 50 or fewer employees. The proposed rate request represents a 12.9% increase, compared with 11.3% in 2021. The proposed hikes range from 7.4% to 15.8%.
The state insurance department will conduct actuarial reviews on the filings to determine if the requests are justified. The agency will approve, reject or modify the requests and expects to make final rulings in September. Open enrollment for the 2022 coverage year begins on Nov. 1.
Last month, Democrats who control the General Assembly advanced a top priority of broadening access to health care even as their plan for a greater state role in providing insurance ran aground in the face of stiff business opposition.
Lembo said he hoped regulators would use the state’s new Connecticut Health Affordability Index, which helps gauge what percentage of income should be spent on health care, in their review. He also urged Connecticut residents affected by proposed hikes to provide comment and “demand action.”
State Sen. Matt Lesser, a Middletown Democrat and co-chairman of the legislature’s insurance committee, said Monday he expected regulators would “scrutinize” the rate requests.
“If the department weren’t — and I have every confidence in the department — but if they weren’t for whatever reason doing enough to rein in proposed rate increases, I think that would light a fire for even further legislative action to bring down the cost of health insurance,” said Lesser, a strong proponent of health care reform.
The health insurance carriers pointed to a variety of factors to justify their rate requests, which included proposals for both off and on Access Health CT, the state-sponsored health insurance exchange.
According to a posting from the insurance department, the insurers said they expect an increase in severity of projected claims because medical care was delayed in the pandemic.
In addition, the insurers forecast an increase in behavioral health treatment in 2022. Behavioral health includes mental health, psychiatric, marriage and family counseling and addiction treatment.
The carriers also pointed to rising health care costs, including the cost of prescription drugs and stepped-up demand for medical services.
They also point to legislation in Connecticut that has increased costs. For instance, Gov. Ned Lamont last year signed into law copay caps of $25 for insulin and other diabetes medications for each 30-day supply. The law pertains to people with state-regulated health insurance.
In 2020, the insurance department cut requested increases for 2021. In the individual plans, the average rate increase of 6.3% was cut to “essentially flat,” while the average approved increase for small group plans was 4.1%, far less than the 11.3% requested on average.
Insurance regulators justified those decisions, in part, because of the reduced use of health care services in the pandemic.
Other health plan submitting rate requests include Oxford Health, ConnectiCare, HPHC Insurance and Harvard Pilgrim.
Contact Kenneth R. Gosselin at kgosselin@courant.com.