MVPH-128880517

RATE FILING SUMMARY

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

Company is proposing an overall average annual rate increase of 5.7% (over 3Q2012 rates) for policyholders renewing in 3Q2013.  For fourth quarter 2013 renewals, the overall average annual rate increase being proposed is 3.1% (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 manual 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 manual premium rates for the current
quarter may be higher or lower than the previously filed manual 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 3rd quarter manual premium rates included in this rate filing reflect a 5.7% increase over the prior rates.  1.6% of the 5.7% 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 4.3% while the maximum rate change is 6.3%. There are 9,175 members in MVP’s Large Group AR42 block of business, and 557 of these members renew in Q3.

It’s worth noting this summary only reflects the change in the manual rates MVP is proposing for Q3 and Q4
2013. Group specific premium rates are calculated by blending the manual premium rate with the group’s
historical experience. As a result, group specific renewal rate modifications may fall outside of the minimum
and maximum range noted in the paragraph above.
 

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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.