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Despite Bailout, Troubled State-Run Healthcare Plan Hikes Premiums

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Connecticut’s financially troubled state-run healthcare plan for municipalities is hiking premiums 10.5%, despite a $40 million bailout last year.

The comptroller’s office, which administers the plan, shared the news with alarmed stakeholders last month.

A letter from Segal , the plan’s actuarial consultant, detailed the rate increase, which takes effect July 1.

“There has been an increase in claims, including increases in COVID-related experience and for elective procedures due to pent-up demand, especially during the recent months of the period,” the letter noted.

“This spike, with an expectation of a continued effect on claims during the renewal period, is causing a needed increase for the active medical and pharmacy claim rate.”

That announcement came just months after cities and towns were told to expect an 8% premium increase and has created havoc for those municipalities that adopted budgets based on that projection. $40 Million Bailout Impacted municipalities will now be forced to adopt supplemental budgets—with a potential for service cuts and tax hikes—or leave the plan, known as the State Partnership Plan 2.0.The premium hike is also higher than the average increases the Department of Insurance approved for the fully-insured market last year: 5.6% in the individual market and 6.5% in the […]

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