Health insurance premiums for about 200,000 Connecticut residents with state-managed health insurance could rise again.
The Connecticut Department of Insurance is expected to decide soon whether to approve rate increases in the individual and small group markets proposed by seven health insurers, including Anthem, Connecticare and UnitedHealthcare.
According to the department, the proposed average individual rate request represents an 8.3% increase compared to 12.4% in 2024, and ranges from 7.4% to 12.5%. The proposed average small group rate request represents an 11.9% increase compared to 14.8% in 2024, and ranges from 5.1% to 13.6%.
Companies cite rising healthcare costs, including hospital and drug costs, as well as increased demand for their services as reasons.
“There are many factors driving premium requests. Both medical and pharmacy costs have been trending higher this year compared to previous years,” said Brandon Rousseau with Blue Cross.
“The amount you pay hospitals, drug companies and other health care providers determines your premiums, and premiums are rising because hospitals, drug companies and other providers are demanding higher reimbursements for the medical services and supplies they provide,” said Mark Meader of Connecticare Health Insurance.
An information meeting was held Tuesday where representatives from several companies discussed the proposal, which council members opposed.
“Rates continue to go up. We've never seen rates go down,” said Republican Sen. Tony Hwang. “This is nothing compared to the rising electricity prices people are enduring and the increased auto insurance costs. Connecticut is in an unaffordable, completely unsustainable state.”
Sen. Jorge Cabrera, a Democrat who chairs the Senate Insurance and Real Estate Committee, said in a statement that the state needs a public option.
“We've introduced several public option bills over the last few years, but they've all been met with fierce opposition from Republicans. (Consumers) need another option for high-quality, affordable health insurance, and that option is a public option. This should be a priority for the 2025 Legislature,” Cabrera said.
Wyatt Bosworth of the Connecticut Chamber of Commerce said most Connecticut businesses have 50 or fewer employees and rely on group rates, but as costs rise they find it increasingly difficult to compete.
“As small businesses try to compete with larger businesses, it's becoming increasingly important for them to offer competitive and valuable employee benefits, especially with inflationary pressures. And unfortunately, some of those employee benefits and health insurance are making it increasingly costly for businesses to offer those valuable benefits,” Bosworth said.
The association conducted a survey of its members to find out how much they were paying into these benefits.
“Around 26% of our members expect their premiums to rise by 11-15% this year, a further 37% expect their premiums to rise by 6-10% and around 10% expect their premiums to increase by as much as 20%,” Bosworth explained. “This is putting huge pressure on small businesses that are currently struggling to survive.”
The ministry is expected to make a final decision on the proposal in early September. Enrollment for the 2025 policy year opens Nov. 1, 2024.
