Health insurance rates for approximately 200,000 Connecticut residents covered by state-regulated health plans could be on the rise once again, as the Connecticut Insurance Department reviews proposed rate increases from seven major insurers, including Anthem, ConnectiCare, and United Healthcare.
These insurers have requested an average increase of 8.3% in individual market rates for 2025, slightly down from a 12.4% hike in 2024. Proposed increases range from 7.4% to 12.5%. For small group plans, insurers are seeking an average rise of 11.9%, compared to 14.8% in 2024, with specific increases spanning from 5.1% to 13.6%.
The insurance companies attribute these proposed hikes to escalating healthcare costs, driven by rising expenses at hospitals, increased pharmaceutical prices, and greater demand for medical services.
“There are many factors that drive our premium request. Year to date, both medical and pharmacy costs are trending up as compared to the prior year,” said Brandon Rousseau of Blue Cross.
Mark Meador from ConnectiCare echoed these concerns, stating, “The amounts we pay to hospitals, pharmaceutical companies, and other healthcare providers determine the costs of premiums to our members. These costs are increasing as hospitals, pharm companies, and other providers demand higher reimbursement for the healthcare services and supplies they provide.”
A public informational meeting was held on Tuesday where representatives from several insurers presented their proposals, facing pushback from lawmakers.
“There has never been an incidence where costs have gone down,” said Republican Senator Tony Hwang, drawing parallels to other rising expenses in the state, such as electrical utilities and auto insurance. “Connecticut has become unaffordable and absolutely unsustainable.”
Democratic Senator Jorge Cabrera, Senate Chair of the Insurance and Real Estate Committee, advocated for the introduction of a public health insurance option, which he believes would provide a more affordable alternative for consumers. “We’ve raised several public option bills in recent years, and they’ve all received vehement opposition from Republicans. [Consumers] need another high-quality, affordable health insurance option. And that option is the public option. This should be a priority for the General Assembly in 2025,” Cabrera stated.
The Connecticut Business and Industry Association also expressed concerns, highlighting the challenges faced by small businesses in the state. “A majority of businesses in Connecticut have under 50 employees and rely on group rates, but it’s becoming increasingly difficult to compete as costs rise,” said Wyatt Bosworth, a representative of the association.
Bosworth emphasized the pressure on small employers to offer competitive benefits in the face of inflationary pressures. “Around 26% of our members expect to see 11 to 15% in premium increases this year, another 37% plan to see 6 to 10%, and almost 10% will see their premiums go up as much as 20%,” he explained, adding that the escalating costs are putting significant strain on small businesses struggling to survive.
The Connecticut Insurance Department is expected to make final decisions on the proposed rate increases by early September. Open enrollment for the 2025 coverage year begins on November 1, 2024.