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Health insurance industry asks for 12.9% hike in 2022 small group rates - Hartford Business

The 10 health insurers planning to offer group and individual health plans in Connecticut in 2022 are asking for bigger increases than they did a year ago.

The annual crop of rate filings for traditional fully insured plans, which cover 222,700 people in the state, contained an average requested increase of 12.9% for the small group market (employers with under 50 workers) and 8.6% for the individual market.

The annual requests, which are subject to the approval of (and potential modification by) the Connecticut Insurance Department, were 11.3% and 6.3%, respectively, last year.

CID ultimately decided the 2021 increases were not justified, and reduced them to an average of 4.1% for small groups and 0.01% for individuals.

The newly requested increases for small group policies taking effect Jan. 1, 2022 range from 7.4% to 15.8%, while the proposed hikes for individual plans range from 5.1% to 12.3%, CID said.

The filings cover policies both off and on the state’s insurance exchange, Access Health CT.

CID said that carriers attributed the increases to a number of factors, including rising healthcare costs and demand for medical services, the impact of new laws mandating coverage for various conditions and the impacts of COVID-19.

The pandemic, carriers told CID, is expected to lead to higher morbidity and severity of claims due to delays in received medical care. A wave of pent-up demand for health care is expected to hit in the coming year, as is an anticipated increase in behavioral health disease.

CID Commissioner Andrew N. Mais will make final rulings on the request in September.

“Working within the authority granted to this department, we will closely examine these filings to make sure the requested rates are consistent with state law,” Mais said in a statement.