MVPH-128442883

RATE FILING SUMMARY

MVPHIC’s 4Q12 Small Group PPO Rate Filing.
Company is proposing an increase of 13.4% over 3Q11 rates.

MVP Health Insurance Co. is a health care payer operating in Vermont and New York.  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 the Department of Financial Regulation and Green Mountain Care Board for the health insurance premium rates charged.  MVP files quarterly premium rates which are guaranteed for 12 months. This rate filing seeks approval of MVP's 4th quarter 2012 premium rates (effective dates of coverage beginning between October 1, 2012 and December 31, 2012). 

The premium rates filed for approval each quarter reflect MVP's current estimate of the cost of providing health insurance for that coverage period.  The filed premium rates for the current quarter 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 14.4% increase over the prior rates.  Nearly 80% of this increase is due to claim costs increasing from the prior period.  The minimum proposed rate change for members renewing is -1.8% while the maximum rate change is 25.8%.  2,302 members will be impacted by the proposed rate changes.

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....

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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.