Medical Coverage Premiums Set to Rise Sharply
October 2010
Anthem Blue Cross and Blue Shield of Connecticut has been asked by the White House this week to reconsider upcoming hikes to their
medical coverage that can be as high as 47% in some cases.
The rates were approved last month by the state's insurance department, and could lead to astronomical prices for
Connecticut health insurance for those who purchase their coverage on the individual market. State residents who get their medical coverage from an employer or another group will be exempt from the premiums hikes, as will those men and women who already have individual health insurance plans.
The U.S. Department of Health and Human Services (HHS) has jumped on the case, requesting a trial to reveal exactly what has led to such an increase and how the new costs will be allocated. This issue is of particular importance to the White House, since Connecticut was recently awarded $1 million dollars in grant money designed to "improve oversight" of insurance company rates and to determine whether those rate increases were "excessive."
Apparently, that $1 million didn't do much to control Connecticut health insurance costs.
The Insurance Department Commissioner defended the rate hikes and insisted that they were caused by the new Healthcare Bill, which requires more services be offered to consumers.
Facts on:
Connecticut Health Insurance
Did you know...
Medical coverage prices are set to rise 47% for some buyers on the individual insurance market.
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However, since the other insurance companies in Connecticut aren't raising their medical coverage premiums so high, this argument appears unfounded.Cigna requested rate increases of no more than 14.5% , while Oxford Health Plans predicted that the bill would only lead to a 1% increase in their premiums.
The HHS has asked that Connecticut health insurance price hikes be tabled for now until public hearings and tests to validate the requests are held. New stipulations in the
Healthcare Bill require that medical coverage increases be addressed by state regulators and that greater transparency be relied upon to reveal how and why such rate increases are requested.
Several other agencies are also asking for reviews of the rate hikes, including the Connecticut State Medical Society and the HealthCare Foundation of Connecticut.
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