Health insurance rates could go up for nearly 200k Connecticut residents

Health insurance rates for the roughly 200,000 Connecticut residents who are enrolled in state-regulated health plans could be going up again.

The Connecticut Insurance Department will soon decide whether to approve rate hikes in the individual and small group markets proposed by seven health insurers including Anthem, ConnectiCare and United Healthcare.

The proposed average individual rate request is an 8.3% increase, compared to 12.4% in 2024, and ranges from 7.4% to 12.5%, according to the department. The proposed average small group rate request is an 11.9% increase, compared to 14.8% in 2024, and ranges from 5.1% to 13.6%.

The companies blame rising healthcare costs, like the cost of hospitals and pharmaceuticals, and the increased demand for services.

“There are many factors that drive our premium request. Year to date, both medical and pharmacy costs are trending up as compared to the prior year,” Brandon Rousseau from Blue Cross said.

“The amounts we pay to hospitals and pharmaceutical companies and other healthcare providers determine the costs of premiums to our members. These costs are increasing as hospitals, pharm companies and other providers demand higher reimbursement for the healthcare services and supplies they provide,” Mark Meador from ConnectiCare Health Insurance said.

An informational meeting was held on Tuesday where representatives from several companies discussed their proposals and lawmakers pushed back.

“It continues to increase. There has never been an incidence where costs have gone down,” Republican Sen. Tony Hwang said. “It’s not much different than many of the skyrocketing electrical utility costs that people are enduring, combined with the fact of increased auto insurance. Connecticut has become unaffordable and absolutely unsustainable.”

Democratic Sen. Jorge Cabrera, senate chair of the Insurance and Real Estate Committee, said in a statement that a public option is needed in the state.

“We've raised several public option bills in recent years, and they've all received vehement opposition from Republicans. [Consumers] need another high-quality, affordable health insurance option. And that option is the public option. This should be a priority for the General Assembly in 2025,” Cabrera said.

Wyatt Bosworth with the Connecticut Business and Industry Association said a majority of businesses in Connecticut have under 50 employees and rely on the group rates, but it’s becoming more and more difficult to compete as costs rise.

“As these small employers try to compete with larger employers, it's becoming more and more important, especially with inflationary pressures that they provide competitive valuable employee benefits. And part of those employee benefits or health benefits and unfortunately, it's becoming more and more expensive for them to provide those valuable benefits,” Bosworth said.

The association polled their membership to see just how much they’re paying for these benefits.

“Around 26% of our members expect to see 11 to 15% in premium increases this year, and another 37% plan to see 6 to 10% and almost 10% will see their premiums go up as much as 20%,” Bosworth explained. “This is just putting so much pressure on small businesses that are really struggling to survive right now.”

The department expects to make final rulings on the proposals in early September. Open enrollment for the 2025 coverage year begins Nov. 1, 2024.