Understanding Health Insurance - Rate Increases

How do we review rates? We understand consumers' growing concerns over the cost of care. We continually try to balance the consumer’s desire for lower rates against the long-term solvency of insurance companies. The department enforces insurance laws to ensure that rates are not excessive, inadequate or unfairly discriminatory and insurance companies remain financially sound. If a health insurance company wants to increase individual or small group health insurance rates, those rate increase requests generally must be filed with the department.

In the small group market, the department has the authority to review and disapprove all rate increases in the small group market that are greater than 10 percent. When the filing request is submitted, the department will perform an independent actuarial review of the company’s rate filing request. Before we approve any rate increase, we take into consideration things like: