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COMPTROLLER LEMBO ISSUES OFFICIAL COMMENTS OPPOSING PROPOSED INSURANCE CARRIER RATE INCREASESComptroller Lembo on Wednesday filed an official comment with the Connecticut Department of Insurance opposing requested health insurance rate increases in the individual and small group markets.
Eleven insurers are seeking increases on average of 8.6 percent for individual plans and 12.9 percent for small group plans, including those for small businesses.
“After an elaborate lobbying and advertising campaign to successfully kill legislation aimed at making health care more affordable, it only took six weeks for the insurance industry to come back and ask for more money from Connecticut residents and small businesses,” said Lembo. “These requested rate hikes are also coming during a time of historic profits for insurers where executive compensation and bonuses have exploded. This is further evidence of what almost everyone knows to be true: the current health care options available to individuals, small businesses and nonprofits are not intended to keep people healthy. They are intended only to make a few corporations, and their executives, extraordinary amounts of money.”
The insurers listed several reasons for their proposed increases. They cite pent up demand for medical services due to COVID-19, an increase in behavioral health services and the impact of recently passed legislation. In the state health plan and Connecticut Partnership Plan, both administered by Lembo, none of these concerns are projected to significantly affect costs.
“The rationale for these rate increases appears to be completely unfounded,” said Lembo. “The only conclusion to draw is that these plans are being poorly managed, or these companies are price gouging Connecticut consumers. Either option is unacceptable.”
Lembo encouraged the public to issue comments opposing the rate increases by visiting the Department of Insurance website.
“This endless cycle of threats and price increases will continue until lawmakers take bold, courageous action to end it,” said Lembo. “Until that happens, it’s up to the hardworking people of Connecticut to take a stand and speak out against these rate increases that would increase the cost of living in our state and jeopardize the health of our families, friends and neighbors.”
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