MVPH-128129148

MVP Health Care is a non-profit health care payer operating in Vermont, New York, and New Hampshire.  

MVP’s mission is to provide high quality and affordable health care with a focus on wellness to 

our members.
 

MVP must obtain approval from BISCHA of the health insurance premium rates charged to Catamount 

members.  Catamount Premium Rates are filed once a year and are effective the 12 month period beginning 

July 1st

This rate filing seeks approval of MVP’s Catamount premium rates for the coverage period between 

July 1, 2012 and June 30, 2013. 

  

The premium rates filed for approval reflect MVP's current estimate of the cost of providing health insurance 

for that coverage period for the membership enrolled with MVP.  The filed premium rates for the new rate 

period may be higher or lower than the previously filed premium rates.  However, premium rates generally 

increase over time.  Increases in premium rates are  driven by many factors including increases in use of 

medical services by the insured population, increases in hospital and physician required charges for medical 

care and the exit of healthier individuals from the insurance market place as the cost of insurance increases.   

The premium rates included in this rate filing reflect a 12.8% increase over the prior period rates.  Almost all 

of this increase is due to the inadequacy of the current premium rates with a small amount to reflect 

anticipated medical inflation.  The premium received by MVP from the membership enrolled in Catamount 

does not cover the health care expenses paid out for this insured population.  MVP Health Care is estimating 

that for the full year 2011, the medical expenses associated with its’ Catamount members will be in excess of 

105% of the premium received.  MVPs target loss ratio for this product is 89% to have a sustainable product 

that covers the cost of providing insurance and contributes to the non medical expenses associated with 

providing coverage.  These non medical expenses include state mandated taxes and surcharges, general 

administration expense to operate a  Plan and pay claims, and broker fees paid to sell the product.  The 

requested 12.8% rate increase, however, is likely not going to be enough for MVP to achieve the target loss 

ratio of 89% for this new rating period as the emerging trends through the end of the year are greater than 

assumed in the rate development.  None the less, MVP is requesting this rate increase in the interest of the 

policy holders and in light of the volatility of such a small block of business.

 

Filings for increase requests of 10% or more are also required to file with the Department of Health and Human Services.  Information on this filing can be found here: http://companyprofiles.healthcare.gov/states/VT/companies/92802/products/92802VT002/rate_reviews/426?search_method=rate_reviews