Crisco displeased with health insurance rate hikes

HARTFORD - State Sen. Joseph J. Crisco, Jr., D-Woodbridge, Senate Chairman of the legislature’s Insurance and Real Estate Committee, today expressed his displeasure with the size and scope of the various private health insurance rate hikes approved last week by the state Insurance Department, though Crisco also noted the good news that some large insurance companies covering more than 136,000 state residents were told to go back to the drawing board and re-submit their rate requests.

State Sen. Joseph J. Crisco

Late last Friday, state Insurance Commissioner Katherine L. Wade announced the state Insurance Department made rulings on 17 rate filings from 12 companies selling individual and small group plans that cover approximately 300,000 people in Connecticut. 

Rate hikes averaging 2.6 to 27.9 percent were approved for individual and small group plans covering more than 146,000 people, while rate hikes covering 136,000 people were disapproved; insurers have until tomorrow to re-submit new, proposed rates.

On Aug. 3, when the Insurance Department held its public hearing on the proposed private insurance company rate hikes, Crisco testified against any rate increases.

“Anthem had first-quarter profits of three-quarters of a billion dollars, and their stock price went up $2.63 a share. Aetna’s second quarter earnings were $783 million, or $2.21 per share. They are making money hand over fist and claiming they need double-digit rate hikes just to keep their heads above water,” Crisco said today. 

“I’m familiar with the concepts of profit and medical inflation, but I’m also familiar with the necessity of health insurance and the average person’s ability to pay. Health care profits should be used as a factor in determining health insurance rate hikes; if they are not, we are only headed toward a two-tier system of health insurance in this country, and that is not good for America or for any family’s health.”

Wade noted in her Friday decision that the state Insurance Department conducted thorough actuarial reviews on each rate request and made its decisions based on several factors, including rising health care costs, increased demand for services, and significantly higher prescription drug costs.

This is a press release from Crisco's office.