2017 Rate Adjustment Notification

CareConnect has submitted a request to the New York State Department of Financial Services (DFS) for an adjustment in premium rates. If DFS approves the request,

  • New rates for individual policyholders will take effect on January 1, 2017.
  • New rates for group policyholders and group members will take effect as of the policy’s renewal date in 2017.

Click on the links below for a list of our proposed new rates by benefit plan and more detail about the reasons for our requested rate adjustment. Once rates have been approved by DFS, we will notify members in writing 60 days before their new rates take effect.


Proposed 2017 Premium Rate Adjustments for CareConnect

Proposed Individual Rate Adjustments for Region 4* and Region 8** We have requested approval from the New York State Department of Financial Services (DFS) for our 2017 premium rates. If DFS approves these premiums, they will apply to all individuals who renew or enroll in a CareConnect plan for 2017. A number of factors have led CareConnect to seek a rate increase for individual plans. Like other insurance companies, we have experienced an increase in the cost of providing health care services, due to factors like advances in technology and higher pharmacy costs, particularly for specialty drugs. In addition, there is a growing consensus that, across the country, the individual market has been under-priced since health care reform took effect in 2014. The population is sicker than anticipated and using health care at a higher rate than was expected, factors that have created the need for a market correction. A number of federal programs were intended to compensate for the risk that people who had previously been uninsured would have a pent-up need for medical care. However, funding for one of these programs, the Risk Corridor program, fell short, leading to a payout of 12 cents on the dollar for 2014 and zero payout for 2015 and 2016; a second program, the Reinsurance program, terminates at the end of 2016. As a consequence, for the first time since its inception, CareConnect is seeking more than modest rate increases. It is our expectation that even after these rate increases, CareConnect will remain one of the most affordable options for consumers in the New York metropolitan area who are seeking individual coverage.

View Proposed Individual Rate Adjustments by Benefit Plan
View a Sample Individual Member Letter

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Proposed Group Rate Adjustments for Region 4* and Region 8** We have requested approval from the New York State Department of Financial Services (DFS) for our 2017 premium rates. If DFS approves these premiums, they will apply to all groups that renew or enroll in a CareConnect benefit plan for 2017. A number of factors have led CareConnect to seek a rate increase for group plans. Like other insurance companies, we have experienced an increase in the cost of providing health care services, due to factors like advances in technology and higher pharmacy costs, particularly for specialty drugs. However, it is the unintended impact of the federal “Risk Adjuster” program that is driving the largest component of our increase. This program was designed to protect insurance companies that happen to enroll a higher-risk population; however, in practice, it penalizes small, start-up companies that lack historical data for their members. CareConnect’s 2015 liability under this program amounts to nearly one-third of the entire premium revenue we collected that year. Sustainability requires that we raise our rates as a consequence. However, it is our expectation that even after these rate increases, CareConnect will remain one of the most affordable options for consumers in the New York metropolitan area who are seeking small group coverage.

View Proposed Group Rate Adjustments by Benefit Plan
View a Sample Group Member Letter
View a Sample Benefit Administrator Letter

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Plain English Summary of Rate Adjustment.  We have prepared a plain-English Narrative Summary that provides a more detailed explanation of the reasons CareConnect has requested a premium rate adjustment for 2017.

View the Narrative Summary of Proposed 2017 Premium Rate Adjustments for CareConnect

 

* Region 4 consists of Queens, Richmond, Kings, New York, Bronx and Westchester Counties.
** Region 8 is comprised of Nassau and Suffolk Counties.