MVPHP’s 3Q2013 and 4Q2013 Large Group HMO Rate Filing.
Company is proposing an average annual rate increase of 7.6% (over 3Q2012 rates) for policyholders renewing in 3Q2013. If there were any fourth quarter 2013 renewals, the proposed average annual rate increase being proposed would be about 7.4% (over 4Q2012 rates).
MVP Health Plan, Inc. is a non-profit 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
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 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 manual premium rates included in this rate filing reflect a 7.6% increase over the prior rates. 0.9% of
the 7.6% proposed manual rate increase is due to new government mandates (at both the state and federal
level) which were not in effect the last time these groups renewed. All of the members renewing this quarter
will experience a 7.6% increase in the manual rate.
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 not equal 7.6%.
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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.