HPHC Insurance Company, Inc. - Small Group

Rate Request: removal of provider fee, 1.0%-2.6% decrease

Decision: Approved

On January 17, 2020 HPHC filed a request to decrease second, third and fourth quarter rates for a block of off exchange small group health plans, policies for employers with 50 or fewer workers. 

The revised average increase of 2020 rates over 2019 is 7.8% for quarter two, 2.3% for quarter three and 1.0% for quarter four, which is a decrease of 1.0%, 1.8% and 2.6% for quarter two, three and four respectively. The rates would take effect in the second quarter of 2020.

There are approximately 10,000 people covered under these policies currently in force in Connecticut.

The company stated it requested the decrease to account for the removal of the health insurance provider fee for the portion of the plan year in 2021 that the fee was included as part of the 2020 premium. The collection of the Affordable Care Act provider fee was repealed for calendar years beginning after December 31, 2020, and State of Connecticut Bulletin No. HC-127 communicated the requirement that all group carriers with impacted 2020 rates refile second, third and fourth quarter rates.

Upon actuarial review, the Department approved the proposed decrease on January 29, 2020.