BCVT-128478440

 

Fourth Quarter 2012 TVHP Merit Manual Large Group Rate Filing

• TVHP is proposing an average increase of 7.4 percent in the manual rates for
fourth quarter-renewing large groups.1

• The additional costs of the new Vermont mandates (effective October 1, 2012)
and the PPACA Expansion of women’s preventive benefits (effective August 1,
2012) are included in this 7.4 percent manual rate increase.

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 7.4 percent manual rate increase is based primarily on TVHP estimates of
medical costs that the covered members will incur in the 12-month period beginning
October 1, 2012. Actual claims costs for the experience period were about 1.7 percent
higher than projected in last year’s rate filing, and claims costs (excluding the mandate
costs) are expected to rise by 4.2 percent in the new rating period.

2.2 percent of the 7.4 percent manual rate increase (about 29 percent of the total) is
due to state and federal assessments and mandates. Most (83 percent) of the 2.2
percent increase is due to the mandates in Vermont Act 171 and Act 158 (effective
October 1, 2012).

The percent increase associated with administrative expense requirements, including a
2 percent contribution to reserve, is negative (-0.5 percent). TVHP reduced the
administrative charges by approximately 0.5 percent.

1 Actual rates for TVHP large groups are based on their experience as well as the manual rates.

---

Click here to make a comment.

Click attachment to view entire filing.

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.  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.