STATE OF CONNECTICUT
Insurance Department
Thomas B. Leonardi
Commissioner
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FOR IMMEDIATE RELEASE
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CONTACT:
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Donna Tommelleo
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860-297-3958
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April 05th, 2012
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Insurance Commissioner: Consumers To Receive
Timely Notice of Health Carriers’ Rate Filing
Connecticut Insurance Commissioner Thomas B. Leonardi today
announced that health insurance companies and HMOs will begin notifying
their individual and small group policyholders each time they submit a
rate request to the Insurance Department for review along with guidance
on where to access the filing and submit comments.
"Consumers have a right to know when their health carrier has
filed for a new rate and the Department has worked closely with
carriers to develop a letter on rate notification. Together with the
Department’s postings, this letter is another important outreach
resource that we can use to help educate policyholders about insurance
rate procedures in Connecticut," Commissioner Leonardi said. "I
appreciate the efforts and cooperation of the carriers to keep their
customers well-informed every step of the rate process."
The Commissioner said companies have agreed to mail out the
notification letters at the same time they submit a rate filing to the
Department. The letters will go out consumers who have individual
policies and, in the case of small group, will be mailed to the
employer. The letter will direct consumers to the Health Insurance Rate Filing
link on the Department’s Web site. The site includes the company’s rate
request, correspondence with the Department, a section for public
comment and a brief easy-to-understand summary of the entire filing. The
letter also directs the policyholder to the Department’s e-Alert
section.
The Insurance Department uses several ways to notify the public each time a carrier files for rate change. Subscribers to e-Alerts
get an e-mail with a link to the rate filing section. The Department
also posts news of the filing on the cover of its Web site, on Facebook
and on Twitter.
The agreement drew praise from advocates, the industry and key state lawmakers:
"I appreciate the Commissioner's efforts to secure this agreement with insurers, in lieu of legislation," said State Healthcare Advocate Victoria Veltri.
"OHA has advocated for years for meaningful, advanced notice to
consumers of proposed rate increases to allow consumers the option to
shop for a new plan, prepare for a rate increase and/or provide comment
to the Insurance Department on the insurer’s justification for the rate
increase."
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"This provision for direct notification of rate increase
requests is an important part of the transparency and accountability
we’ve been working toward in the state’s rate approval process – it’s
gratifying to know consumers will now have more information available to
them so they can participate more knowledgably in the proceedings," Senator Joseph J. Crisco, Jr. (D-Woodbridge), Senate chair of the legislature’s Insurance and Real Estate Committee, said.
"As a regulated industry in the state of Connecticut it only
follows the affected residents of the state ought to play a role in that
regulation if they so desire. I commend Commissioner Leonardi for his
responsiveness on this notification issue and remain grateful to my
legislative colleagues and all those who helped revise our insurance
rate review procedures," Senator Crisco added.
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"For the sake of consumers, I am very happy with this announcement," said Rep. Robert Megna (D-New Haven),
House chair of the legislature’s Insurance and Real Estate
Committee."Informing consumers ahead of time of any potential rate
increase will allow them flexibility in their financial planning."
---
"The process initiated by Commissioner Leonardi worked
because everyone - the Department, legislators, interest groups and
payers - have had the same goal in mind: putting the best possible
information in the hands of consumers and encouraging them to
participate in the Department's robust rate review process," said Keith Stover, spokesman for the Connecticut Association of Health Plans.
"We applaud the Commissioner's work and the Department's willingness to
develop a sound, practical approach to a vital consumer issue."
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