State Representative Peggy Reeves (D-Wilton/Norwalk) joined Attorney General Richard Blumenthal, AARP and other lawmakers to call for legislation that will hold insurance companies accountable for premium rate hikes. Representative Reeves signed on to sponsor legislation after hearing from many constituents about Anthem’s attempt to increase rates 32% on individual policies last summer. Under public pressure, the Insurance Department held a public hearing and approved a rate hike of 16-20%—costing residents thousands of additional dollars in insurance premiums.
“I heard from a Wilton woman who is 41, in good health and has no pre-existing conditions whose insurance premiums went from $436.34 to $765.30 per month—an increase of 75%,” Representative Reeves told the state legislature’s Insurance Committee at a public hearing yesterday.
“I am also appearing on behalf of small business owners in my district. The recent increases on individual policies disproportionately affected small businesses that are locked out of larger pools,” added Representative Reeves. “If we want to keep jobs in Connecticut and attract more jobs, we need to lower the cost of doing business in this state. Our small businesses are being squeezed by skyrocketing health insurance costs. I urge this committee to pass legislation that will help reign in these increases.”
Currently, Connecticut law allows insurance company requests for premium increases to go into effect after 30 days if no action is taken by the state Insurance Department. There is no requirement for a public hearing or approval of these requests by the Insurance Department.
An Act Concerning Rate Approvals for Individual Health Insurance Policies (SB 194) eliminates the Insurance Department’s ability to allow rate hikes to take effect without a public hearing. The bill also requires insurance companies to disclose documentation in support of rate increases for public scrutiny, limits reasons for a rate increases, and puts burden of proving that an increase is “reasonable” on the insurer. The legislation will also empower the Attorney General and the state Healthcare Advocate to intervene in rate cases and appeal rate decisions to the Superior Court.
