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Judicial Watch • State Records Reveal Health Insurance Cancellations in CT

State Records Reveal Health Insurance Cancellations in CT

State Records Reveal Health Insurance Cancellations in CT

Page 1: State Records Reveal Health Insurance Cancellations in CT

Category:Investigation

Number of Pages:4

Date Created:November 22, 2013

Date Uploaded to the Library:December 16, 2013

Tags:CT, ACA, SRRHIC, obamacare


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STATE CONNECTICUT 
INSURANCE DEPARTMENT
To: Mark Ojakian and Bettye Pakulis From: Connecticut Department Insurance
Subject: Analysis Presidents Administrative Option
The Governor asked the Connecticut Department Insurance for analysis the impact
implementing the Presidents administrative option for the discontinued non-compliant individual
health policies.
Here are our findings
Analysis Subscriber Population
There are 66,437 Connecticut subscribers with individual policies. these, 27,876 (42 have chosen
maintain their policies. Connecticuts individual marketplace would not have been impacted the Presidents
administrative option. These policies were ACA exempt, they had been effect prior March 23, 2010.
Historically, those exempted policies are routinely replaced consistent with the long standing business
judgment practices the issuing companies. aside, these changes are made improve adjust
policy. This not new practice. Health insurance policies are issued for year time and 35% the
people receiving replacement letters are not receiving them due the ACA but rather, any number
business reasons. The individual health insurance policy market rolls over 100% three year period.
put fine point it, third the market moves new policies every year.
The remaining policies that are ACA Non-exempt, and theoretically could impacted the
administrative option, had not been repriced for 2014 they were all anticipated replaced ACA
compliant policies prior the Presidents armouncement. Where that option was made available the
companies the policyholders, had already chosen renew their current policies. Even the
administrative option were made available those policyholders who were either not offered the option chose not elect the option when offered, those renewals would not the 2013 rate, but would
reflect the 2014 pricing which factors changes medical costs, experience and trends.
Those policies would need have their rates submitted the Department Insurance for rate review.
These policies could experience rates that rise range 15-25 possibly higher, depending upon
age, gender and geography. number cases, policy owner keeping his her current policy would
experience higher premium costs well much higher cost sharing for fewer benefits. Further, these
policy owners, eligible due income, would not able take advantage the Federal price subsidies
that are available through policies offered Access Health CT, Connecticuts public health insurance
marketplace.
www.ct. gov/ciJ 
P.O. Box 816 Haliford, 06142-0816 Equal Opportunity Employer clear, everything stated above, relating ACA non-exempt policies would only apply such
policies were renewed carriers. know, the Presidents admmishative option would just that, option. Carriers would not required renew these plans even given the option.
Feedback from Carriers have contacted number the carriers learn they would take advantage the Presidents
administrative option offered them Connecticut. The simple answer that they would not. Each
carrier has addressed the issue renewal differently. Some automatically renewed entire blocks
business is, and others mapped these policy-owners into ACA compliant plans and advised them that
they could look Access Health learn their policy options and potential premium subsidies. additional option that carriers have offered was permit individuals buy renew noncompliant
plans before January. These individuals would have plans that are ACA non-exempt, but are also not fully
compliant because they were issued prior the January 2014 date when the additional ACA
requirements become mandatory. stated above, the ACA non-exempt plans, where option was given renew, 72% renewed these
plans. many cases, there are still few days for individuals take advantage this even without the
Presidents administrative option.
While delaying the impact moving the ACA compliant plans, there are issues with this early renewal
option well. First, the plans are likely cost more and have increased cost sharing above what the
ACA would permit. And, individuals will lose all credit for deductible accumulation/ satisfaction their
old policies and December 1,2013, will required restart the deductible accumulation. This
means they may not able receive some benefits until the deductible satisfied again.
Feedback from State Legislative Leaders
The Commissioner reached out the Connecticut legislative leaders share with them the
information that have gathered. These conversations have gone very well and served clarify
many the questions around this very complicated situation.
Access Health know that Access Health has had excellent launch and leads the country its results. has
97% approval rating with people saying they would recommend Access Health their friends and
neighbors. the Insurance Capital the country, are very proud these results. Regardless
whether Connecticut adopts the Presidents administrative
option, believe should continue remmd everyone Connecticut that our choice build state
based exchange helped avoid the seemingly unending issues with the Federal
Exchange. When deals with insurance issues, get right. should also continue encourage
individuals visit the Access Health website one the new storefronts New Britain Hartford learn what health insurance choices they have.
Conclusion: closing, would remiss did not express our view that imperative continue our stable,
professional and consistent regulatory environment encourage competition and choice carrier for
Connecticut citizens.
Connecticut Individual Health Insurance Plans
Connecticut Individual Subscribers
Company
Total
Individual
Policies
ACA Exempt Plans
(not impacted Presidents proposal)
Migrating ACA
Retaining
ACA Non-Exempt Plans
(potentially impacted Presidents proposal)
Early 12/1/13 Renewal
Migrating ACA
compliant plans
21,300
Plans
Offerec:t:
Accepted
1/1/14 -12/1/14
2,943
5,000
13,300
(Mem5ers with
Aetna
Grandfathered
1/1/14 12/1/14
(Members
required opt-in)
compliant plans
I~~re~
otes
Anthem
27,318
15,000
17,300
7,300
5,018 utomatically
enro lled)
ConnectiCare
7,778
2,292
300
5,186
(Subscriber
requested)
Golden Rule
10,041
3,390
Total
6,651
(Au tamatica lly
enro lled)
(United
Healthcare)
66,437
15,057
8,625
26,45
19,251
23,504
Connecticut Membership (Subscribers Dependents)
Company
Total
Individual
ACA Exempt Plans
(not impacted Presidents proposal)
ACA Non-Exempt Plans
(potentially impacted Presidents proposal)
Members
Early 12/1/13 Renewal
Migrating ACA
compliant plans
1/1/14 12/1/14
31,900
Plans
Offered
Accepted
1/1/14 -12/1/14
4,403
l!hlQQ
7,480
19,920
(Memb
Aetna
Retaining
Grandfathered
(Members
required opt-in)
111/-14 renewa
Anthem
45,940
25,000
ootes
~0/ 700
10,700
Migrating ACA
compliant plans
10,240
(Automatically
enrolled)
ConnectiCare
12,687
3,736
510
8,441
(Subscriber
reques ted)
Golden Rule
(United
Healthcare)
17,760
5,991
11,769
11,769 utomatically
enrolled)
38,601
41,169
30,459
14,130
108,287
25,097
Based data provided the Insurance Department 99% Connecticut Individ. health plans 10:00 11-21-13
Total



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