State leaders and insurance providers discuss anticipated rate increases

“It felt like Deja vu all over again with these rate increases,” said State Sen. Tony Hwang (R-Fairfield).

On Monday, representatives from several insurance companies, including Anthem, Cigna and ConnectiCare, participated in a public hearing with the Connecticut Insurance Department and other state leaders to discuss the proposed insurance rate increases for individual and small group plans in 2024.

“It happens year after year after year,” Attorney General William Tong (D) said. “People get hurt year after year after year for something that’s not optional.”

Across nine health insurers, including Anthem, Cigna and ConnectiCare, the proposed average rate request for individual plans is a 12.4% increase, compared to the 20.4% increase requested in 2023.

For small group rates, the proposed average rate request is a 14.8% increase.

“These are not people who are putting patients above profits in the way that they are meant to do,” said Arden Parrish of Connecticut Insulin for All. “They are more worried about their own bottom line.”

The insurance companies say rising rates coincide with increased hospital reimbursements, among other factors.

“There are new drugs, there are new technologies that are coming to market every single year, so when you look at trend and utilization, you have to understand that those also play into the new costs and the new premiums that are coming out,” CT Association of Health Plans Executive Director Susan Halpin said.

In a statement, the Connecticut Hospital Association said the hospitals work with policymakers to improve affordability.

They also said that “addressing the rise in commercial health insurance cost growth also requires state partners to address the significant underpayment by Medicaid for healthcare services, which puts significant pressure on commercial health insurance costs.”

At Monday’s public hearing, Tong pressed the Connecticut Insurance Department to reject the requests and leverage the insurers to break the rising trend when negotiating hospital rates.

“If we approve these artificially high and inflated and unjustified trend rates and we do it year after year, then everyone knows that’s going to happen,” Tong said.

Tong, and other state leaders, suggested a more rigorous process for reviewing insurance rates in the future, even through new legislation, to increase the transparency of operating costs for insurance companies and hospitals.

The proposed rate hikes will not be finalized until September, though Tong said some sort of increase is likely.