The following information was submitted by Sen. Crisco’s office Aug. 3.State Senator Joseph J. Crisco, Jr. (D‑Woodbridge), who is Senate Chairman of the legislature’s Insurance and Real Estate Committee, testified last week before the state Insurance Department in opposition to proposed health insurance rate increases as requested by Anthem, ConnectiCare and Aetna.
While noting that the Connecticut legislature has done much in recent years to support both Connecticut’s insurance industry and its insurance consumers Sen. Crisco was unequivocal in his opposition to the proposed rate hikes.
“I come to oppose any increase in these requests, and I base my opposition on the net income of these insurance companies,” Sen. Crisco testified, noting Anthem – which is seeking a 27% rate increase — reported that its second-quarter 2016 net income was more than three-quarters of a billion dollars. “I think it is time we consider the net income of these insurance companies, so I ask the department to reject any rate increases whatsoever.”
Anthem is seeking an average 26.8% increase for the 56,700 people covered under individual plans in Connecticut, and is also seeking an average 14.3% increase for the 42,200 people it covers in its “small group” plan for employers with 50 or fewer employees. ConnectiCare is seeking an average 14.3% rate increase on the 47,595 people it covers in Connecticut under individual plans.
According to published news reports, the proposed rate increases are higher than the 9.6 percent impact of medical cost inflation and increased demand for those services.
The state Insurance Department has the authority to reject or modify rates requests, based on its review of the filings.
