There is difficult news coming out for many Connecticut residents, who will soon be seeing near double digit increases to their regularly paid health insurance plans. The changes could affect tens of thousands of consumers in the coming year, which comes for several reasons.
Among the causes of this rise cited by the state’s Department of Insurance include rising medical costs and the loss of federal payment into the program during the first few years that the Affordable Care Act was in existence. Those payments had been a temporary measure intended to stabilize rates for the years it was in effect.
While the changes may be hard for consumers, they are certainly not restricted to Connecticut alone. Many other states have had similar difficulties, with rising costs to health care, more services demanded and rising prescription drugs. Insurance Commissioner Katharine L. Wade has stated that for these reasons she believes the rate increase has been justified. However, some providers have been a bit too greedy with their requests for rate increases. Wade recently rejected requests by Anthem Health Care and ConnectiCare Insurance Co as excessive, which were looking for 26.8% and 24.3% increases, respectively.
According to Governor Malloy, the rate increases are a disappointment that needs to be quickly stabilized lest the consumers lose out greatly in the process. Governor Malloy stated as much in a recent letter to Health and Human Services Secretary Sylvia Matthews Burwell, noting that their failure to take action would have long-lasting impacts on the state and national level.
On the other side of the aisle, Republican legislators have stated that the state lawmakers will need to address the problems that the ACA has caused to the fluctuating health insurance rates. In January, the new legislative session will begin and some solutions will theoretically be proposed.
A statement by Senator Kevin Kelly, a Republican from Stratford deplores the idea that rate increases are being posited as the only solution to this problem. Kelly heads the legislature’s Insurance and Real Estate Committee, and has proposed digging deeper into overall issues with the healthcare industry, and how to improve the environment overall for both insurance companies and consumers. In Rhode Island, there is an affordability standard in place that can be considered when dealing with rate increase applications.
If you are concerned about possible increases to your health insurance rates, you should have a serious conversation with your health care insurance provider and consider finding one that works best for your current needs and financial capabilities in paying your premium. For a quote on our services here at Berliner-Gelfand & Co., Inc., give us a call today at 203-367-7704.