State Insurance department trims Aetna AARP policy hike to 4 percent
Aetna Life Insurance Co. was looking for a 7.5 percent increase on its Essential premier Health Insurance plans provided solely to AARP members in Connecticut, but the State Insurance Department trimmed the increase to 4 percent.
There are about 1,200 Connecticut AARP members who will be affected, the department said in its decision.
Many other policies in the state are looking for similar hikes heading into 2013 but the department has continued to show a reluctance to provide the full requests of late.
Here’s the department’s official announcement on the decision as posted on it:
Decision – Disapproved as submitted, reduced to 4 percent increase
On August 15, 2012, Aetna Life Insurance Company filed a rate review with the Department on its Essential premier Health Insurance plans. The plan is only available to members of the American Association of Retired Persons (AARP) as part of a group association trust. There are approximately 1,200 AARP members in Connecticut covered under this plan. Aetna sought the new rates, citing a 12 percent in combined increase in medical costs and use of medical services, also known as “trend.”
Although an actuarial review by Insurance Department found the company’s impact of trend on the requested rate was appropriate, the review further found that Aetna over estimated large claims. As a result, the Department rejected the request as submitted on October 10, 2013 and instead lowered the increase to 4 percent. The new rates will take effect January 1, 2013.
This is the first time that Aetna has filed rates for this particular plan in Connecticut. The 2012 rates were previously filed and approved with the District of Columbia, where the association trust is located.