Hartford Life Insurance Company, Group Medicare Supplement - Standard Plans 2010
The Company is proposing a 10.25% rate increase for all plans.
Since the requested rate increase is higher than 5%, a “Plain Language Summary” is being submitted in order to be compliant with Vermont law. The summary is comprised of five (5) sections, detailed below:
a. SERFF Tracking #: HARL-129141379
b. Quarter(s) and year: the rates to be effective on 01/01/2014 (Quarter 1, 2014).
c. Minimum, maximum and average % increase: a 10.25% rate increase is requested for all Plans and all rate cells. Therefore, minimum, maximum and average % increase is 10.25%.
d. Explanation/Justification for increase: the main reason for requesting a high rate increase is because the current rates are significantly underpriced. The fact that the current rates are insufficient can be observed from CY 2012 loss ratio and projected loss ratio for CY 2013. The CY 2012 loss ratio for Vermont is 148.2%. However, this loss ratio does not reflect the current rates that were approved on 04/16/2012, but implemented on 01/01/2013. After adjusting the CY 2012 premium to current rates level, the CY 2012 loss ratio would be 120.2%. The expected loss ratio for CY 2013, based on the current rates, is 126.2%. These loss ratios prove that the current rates are not even sufficient to cover the benefit expense. We also compared the current rates to the rates offered by other companies in Vermont. The average rates offered by other companies are more than 60% greater than the Hartford rates. Both the actual experience and the comparison to the market level rates suggest that the rate increase required to generate a permissible loss ratio of 75% is in excess of 60%. However, we are only requesting a 10.25% rate increase. The effective date of the rate increase is 01/01/2014.
e. Number of people the increase will affect: This filing will affect 254 # of current enrollees in addition to any new enrollees.
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