MVPH-128879614

RATE FILING SUMMARY

MVPHIC’s 3Q2013 and 4Q2013 Small Group PPO Rate Filing.

Company is proposing an overall average annual rate increase of 13.5% (over 3Q2012 rates) for policyholders renewing in 3Q2013.  For fourth quarter 2013 renewals, the overall average annual rate increase being proposed is 13.0% (over 4Q2012 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 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 3rd and 4th quarter 2013 premium rates (effective dates of coverage beginning between July 1, 2013 and December 31, 2013).

The premium rates filed for approval each quarter reflect MVP's current estimate of the cost to provide 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, expanded covered services due to government mandates, fees and assessments charged by the government to insurers, 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 13.3% increase over the prior rates. 3.7% of the 13.3% proposed increase is due to new government mandates and assessments (at both the state and federal level) which were not in effect the last time these groups renewed. The minimum proposed rate change for members renewing is 8.7% while the maximum rate change is 16.1%. There are 15,566 members in MVP’s Small Group AR42 block of business, and 4,025 of these members renew in Q3 or Q4.
 

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Filings for increase requests of 10% or more are also required to be filed with the Department of Health and Human Services.  Information on this filing can be found here: http://companyprofiles.healthcare.gov/states/VT/rate_reviews?search_meth....

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.