TVHP Small Group rate filing for the Fourth Quarter of 2012.
• Based on the experience of the total block of TVHP small group business, the
average annual TVHP small group rate change is +7.3 percent.
The Vermont Health Plan (TVHP) is the HMO subsidiary of Blue Cross and Blue Shield of Vermont (BCBSVT). Like BCBSVT, it is a Vermont company that exists to provide health benefits and financing to Vermonters.The average annual 7.3 percent increase that is reflected in this filing is based primarily on our estimates of the medical costs that the covered members will incur in the 12-month period beginning October 1, 2012. Actual claims costs were slightly (.63 percent) higher than were projected for the current experience year, and claims costs are expected to rise by 3.9 percent in the new coverage period. Together, the adjustments for these claims expenses account for approximately 54 percent of the filed rate increase.
Almost 40 percent of the required increase— or 2.9 percent of the 7.3 percent increase — is the result of state and federal assessments and mandates. About 88 percent of this is due to the mandates in Vermont Act 171 and Act 158.The percent increase associated with administrative expense requirements, which includes a 2 percent contribution to reserve, is 0.4 percent.
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Once the actuarial opinion has been received by the Department and the Commissioner’s recommendation concerning this filing has been made, these documents will be found at the Green Mountain Care Board’s rate review website: http://gmcboard.vermont.gov/rate_review. You can search the Board’s website using the SERFF tracking number at the top of this page. Once the decision has been issued by the Board we will update the status of the filing on our website. Please note there is a time lapse between when the filing is submitted to our Department and when the Board issues the decision.