I posted this only beause it illustrates popular misconceptions about health insurance. Simply not allowing a premium increase does not keep costs flat as claimed in the headline. Nobody is getting a break.
Premiums being set for all of 2021 are intended to reflect the cost of health care provided through all of next year (when it’s quite likely costs for care delayed in 2020 will be incurred).
Lower spending in the first half of 2020 is hardly a reflection of costs a year and more hence. Consumers will not save a penny that does not actually occur over the next sixteen months…but it makes good press.
Connecticut health insurance policyholders, reeling in a recession caused by the coronavirus, are getting a break in 2021 rates, due partly to reduced use of health care services in the pandemic.
The state Insurance Department announced Friday it cut requested rate increases for individual plans marketed on the state’s health insurance exchange, keeping costs “essentially flat,” with an average rise of 0.01%. That was down from the average requested increase of 6.3%. For small group plans, or employers with 50 or fewer workers, the average approved increase is 4.1%, down from more than 11.3% requested on average.
About 214,600 consumers could expect to save $96 million, the Insurance Department said. Regulators said they reduced the upward trend in health care costs that insurers project at 8.8% this year and in 2021 as prescription drug costs rise and demand increases.
The Insurance Department said it blunted the rise to reflect reduced use of services, including elective procedures, in the first half of this year due to the pandemic and the projected impact of COVID-19 in 2021.