“The process is broken.” – Sen. Hwang on double-digit health insurance rate hikes

Consumers and a state legislator on Wednesday urged Connecticut insurance regulators to reject double-digit rate increases sought by two health insurers.

Anthem Health Plans is seeking an average 33.8 percent increase for policies, including those sold under Access Health CT, the state health insurance exchange under the Affordable Care Act. ConnectiCare Benefits Inc. is looking to boost its rate by an average 17.5 percent for policies sold on the exchange. Both defended their proposals at a Connecticut Insurance Department hearing in Hartford.

The two insurers said they have little choice but to seek the higher rates for 2018. Younger and healthier people are shunning the Affordable Care Act, or Obamacare, leaving a risk pool of sicker people whose reliance on health care is driving up costs, they said.

The insurers also say federal health insurance policy is unsettled as President Trump and the Republican-led Congress have yet to agree on health care legislation that can pass the House and Senate.

Garry Malone of Berlin compared Anthem’s request unfavorably to stagnant wages and asked regulators to turn it down.

“I don’t know of anyone in this room who’s had a 33.8 percent raise,” said Malone, 58. “I’d like you think about everybody. Even the little guy.”

Brenda Shipley of Branford sharply criticized Anthem. She told the panel of three officials – a hearing officer, lawyer and insurance actuary – that the health insurer is “actively sabotaging” Access Health, Connecticut’s health insurance exchange, by making coverage unaffordable.

“Unfortunately, the process is broken,” he said.

Donna Tommelleo, spokeswoman for the Insurance Department, said officials have accommodated the pubic by moving hearings up from late summer, a popular vacation time, to late spring and extended the online comment period to two weeks after the hearing.

Jennifer Lovett, of Health Agents for America Inc., said Anthem’s request for 2018 would increase rates by more than 80 percent over two years following a previous increase.

“People cannot afford it,” she said. “I’m begging you, please help these people. We get the calls. Not you.”

Other critics said the increases are particularly painful because economic growth in Connecticut is slow and public services are being cut by the state as it struggles with reduced revenue.

Stephen Hunt, an Avon insurance agent, said the issue is the rising cost of medical care, such as tests and prescriptions. He asked regulators to keep health insurance rate increases “reasonable.”

James Augur, regional vice president for sales at Anthem, told regulators that the industry faces an “uncertain environment.”

House Republicans last month narrowly passed legislation to repeal and replace President Barack Obama’s signature domestic health care program. The bill faces a rewrite and strong opposition from minority Democrats in the Senate.

Anthem said its proposed cost increase, which would affect about 35,000 policyholders, reflects the preference of younger, healthier people to pay the penalty required by the federal law to avoid buying Obamacare insurance. Higher costs have followed, with a greater number of less healthy people using insurance.

Another source of uncertainty that Augur cited is whether the federal government will continue to fund a subsidy known as a cost sharing reduction that lowers the amount paid for deductibles, copayments, and coinsurance.

Wachtelhausen, too, took aim at growing uncertainty in the market as Congress considers changes to Obamacare. “The rules of 2016 and beyond need to be known,” she said.

Hospital consolidations and pricey prescription drugs also are contributing to higher insurance costs, ConnectiCare said. Its policy rate increase would affect nearly 51,000 people.

Insurance Commissioner Katharine Wade is expected to make a decision on the rate increase proposals later this summer or fall.

In all, 10 health insurers are seeking rate increases for next year averaging 15.2 percent to 33.8 percent for individual plans. The increases for premium plans range from 19 percent to 52 percent.

For small group insurance – employers with 50 or fewer workers – average rate requests are up 3.6 percent to 31.6 percent.

The increases would affect 270,000 insured customers, state insurance officials said.