MVPHIC’s 1Q2014 and 2Q2014 Small Group PPO Rate Filing - GRANDFATHERED
The company is proposing an average annual rate increase of 10.4% (over 1Q2013 rates) for policyholders renewing in 1Q2014. For second quarter 2014 renewals, the average annual rate increase being proposed is 10.3% (over 2Q2013 rates).
Q1 and Q2 2014 Small Group PPO Rate Filing – Grandfathered
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 1st and 2nd quarter 2014 grandfathered premium rates (effective dates of coverage beginning between January 1, 2014 and June 30, 2014).
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 10.4% increase over the prior rates. 3.5% of the 10.4% proposed increase is due to new federal government assessments which were not in effect the last time these groups renewed. The minimum proposed rate change for members renewing is 9.8% while the maximum rate change is 11.2%. There are 4,943 members in MVP’s Grandfathered Small Group AR42 block of business, and 3,756 of these members renew in Q1 or Q2.
Click here to make a comment.
Click attachment to view entire filing.
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.