Highmark, Aetna Request Substantial Health Insurance Rate Increases for 2017

Commissioner Stewart Announces Public Information Sessions

Dover, DE – Commissioner Karen Weldin Stewart announced today that she has received rate request filings from Highmark Blue Cross Blue Shield of Delaware, Aetna, Inc. and Aetna Life for individual and small group plans to be offered on Delaware’s Health Insurance Marketplace in 2017. Highmark is asking for a 32.5% increase in the individual market, while Aetna, Inc. requests 25.0% and Aetna Life 23.9%. In the small group market, Highmark seeks a 2.7% increase, Aetna, Inc. asks for 23.2%, and Aetna Life requests 18.6%.

“These large rate increase requests are occurring in many states across the country, and I know they will be a burden for many Delawareans,” said Stewart. “The proposed increases are substantial and I’m going to do my best to reduce them. As is the case with every rate request I receive, I am instructing my actuaries to aggressively examine Highmark’s and Aetna’s supporting data for their requests.”

“I remind consumers that these are proposed rates, not final rates,” added Commissioner Stewart, who also announced that the Insurance Department will conduct public information sessions to receive comment on the proposed increases. The sessions will take place at the following locations in the three counties:

Monday, June 20th at 6:00 p.m. Carvel State Office Building
Auditorium/Mezzanine Level
820 N. French Street
Wilmington, DE 19801

Tuesday, June 21st at 11:00 a.m. Delaware Tech Owens Campus
College Theater, Arts & Science Center
21179 College Drive
Georgetown, DE 19947

Tuesday, June 21st at 6:30 p.m. Delaware Department of Insurance
Sussex Conference Room, First Floor
841 Silver Lake Boulevard Dover, DE 19904

Representatives from Highmark and Aetna will be present at each session. Consumers and interested parties may also submit written comments to the Department at ratedivision@delaware.gov until July 15, 2016. Comments may also be submitted in writing to:

Delaware Department of Insurance

Attn: Health Insurance Rate Comments

841 Silver Lake Blvd.

Dover, DE 19904

According to Title 18 of the Delaware Code, insurance companies may not charge rates that are “excessive, inadequate or unfairly discriminatory.” The staff at DOI reviews rate filings and independent actuaries retained by DOI review the supporting data to see if the rate changes are justified by the circumstances as presented by the insurance companies. The rate requests and the insurers’ justifications will be posted at www.delawareinsurance.gov during the comment period. The Commissioner reviews the actuaries’ findings and the public comment and works with the insurers to arrive at a rate. That rate is submitted to the Centers for Medicare & Medicaid Services (CMS) for subsequent review. CMS must follow its own regulations and Delaware law before finally approving or denying the requests.

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View the Health Insurance Rate Filings webpage: http://www.delawareinsurance.gov/departments/rates/ratefilings.shtml

www.delawareinsruance.gov | Main Office: 302-674-7300

 Health Care, Flood Insurance among Topics for Discussion with Federal Delegation       

DOVER, DE – Insurance Commissioner Karen Weldin Stewart and fellow members of the National Association of Insurance Commissioners (NAIC) were in Washington, D.C. this week to discuss insurance issues with members of Congress. Key topics included retirement security, flood insurance, cybersecurity and health reform.

Nearly 40 chief state insurance regulators and senior staff gathered for the 2016 Commissioner Washington, DC Fly-In. Before meeting their congressional delegations, the regulators were briefed by Senator Susan Collins from Maine and Congressman Sean Duffy from Wisconsin. Political analyst Stu Rothenberg also gave a presentation on the impact that the 2016 elections may have on states.

“My department is in regular contact with Representative Carney and Senators Carper and Coons on the important matters that face Delawareans,” said Commissioner Stewart. “The Fly-In is a great opportunity to sit one-on-one with our federal delegation and find ways to collaborate on issues such as health care, captive insurance companies and flood insurance.”

NAIC members spent two days meeting with their respective congressional representatives to highlight the NAIC’s legislative agenda, discuss the impact of policy initiatives in the states and brief lawmakers on international insurance regulatory developments.

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DOI Will Publish Names of Companies Who Violate State Insurance Regulations

​Dover, DE – The Delaware Department of Insurance now publishes fines imposed by Commissioner Karen Weldin Stewart against insurance companies who violate state insurance regulations.

Commissioner Stewart fined the following companies a total of $83,300 during the first quarter of 2016:

Name                                                        Fine                              Date

21st Century                                          $27,500.00                 1/21/2016

Teachers Insurance Co.                       $25,000.00                  2/04/2016

Homesite Insurance Co.                      $15,000.00                  3/17/2016

Jackson National Life Ins. Co.                $3,800.00                  3/22/2016

Progressive Direct                                  $5,000.00                  3/03/2016

Progressive Northern                            $7,000.00                  3/04/2016

The Department previously announced that penalties assessed against Aetna and Highmark Blue Cross Blue Shield Delaware earlier in January totaled $483,000.

Fines generally result from a “market conduct” examination of a company’s practices performed by the Department, or from DOI’s participation in a multi-state examination conducted by several jurisdictions.  Details of the companies’ particular violations may be found in the Stipulation and Consent Order entered into by the parties and listed under “Consent Decrees” in the Enforcement Actions & Fines section of the Department website at http://www.delawareinsurance.gov/departments/documents/enforcement/actions.shtml.

Click on the PDF link in the right-hand column to read the consent decree in its entirety.

For more information, call the Department at 1-800-282-8611.

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Dover, DE – National Retirement Planning Week runs from April 11 to 15, and Insurance Commissioner Karen Weldin Stewart joins with the National Retirement Planning Coalition to recommend that Delawareans of all ages take time to review their existing retirement strategy, or to formulate a plan if they don’t already have one. It’s important to have a plan for financial stability in retirement besides relying on Social Security alone. While there’s no right or wrong way to plan for retirement, taking no action could be a recipe for disaster.

The Government Accountability Office’s May 2015 report, Retirement Security: Most Households Approaching Retirement Have Low Savings, found that more than half of people age 55 and up don’t have any money saved for retirement. And about half of that group won’t be getting a pension, leaving them with little to no retirement income outside of Social Security benefits. The report states, “[C]ompared to current retirees, workers age 55 and older expect to retire later and a higher percentage plan to work during retirement. However, one survey found that about half of retirees said they retired earlier than planned due to health problems, changes at their workplace, or other factors, suggesting that many workers may be overestimating their future retirement income and savings.”

Commissioner Stewart says, “Planning for retirement can seem like a daunting task but the earlier you start saving, the easier it will be to actually reach your goals. National Retirement Planning Week serves as a great reminder for people to see if their retirement planning strategies are going to provide the best benefits for their future needs. After completing a self-analysis or working with a professional, consumers should redefine their goals and take action to make necessary changes. Consulting with your life insurance agent or broker should be part of this analysis.”

The National Retirement Planning Coalition is a group of prominent education, consumer advocacy and financial services organizations. The goal of the initiative is to demonstrate that it is possible to “Retire On Your Terms” if comprehensive retirement plans are properly developed and managed. To support these education efforts, the coalition has collected the latest resources to help consumers and financial professionals focus on long-term financial goals. These tools are available year-round at www.retireonyourterms.org, which features life-stage specific resources to help Americans focus on their long-term financial goals.

For more information on topics related to retirement planning, consumers are also encouraged to visit the Delaware Department of Insurance website, www.delawareinsurance.gov, and the National Association of Insurance Commissioners’ consumer website, www.InsureUonline.org.

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For more information:

Jerry Grant 302-674-7303

Commissioner Stewart Says Aetna Letter Is Legitimate

DOVER, DE –Several consumers have recently contacted the Consumer Services Division of the Department of Insurance regarding a letter they received in the mail from “Aetna, Treasury Services – Unclaimed Property”. The letter states that the consumer may be owed unclaimed funds from Coventry Health Care of Delaware, which was acquired by Aetna in 2013. The letter requires a response before Aetna makes any payment.

Commissioner Karen Weldin Stewart announced today that Aetna has confirmed the legitimacy of the letter, which has been sent to more than 1,900 former members of Coventry.

“Some recipients thought the letter seemed suspicious, especially those who had never been insured by Aetna in the past,” said Stewart. “Scammers are using increasingly deceptive methods to steal people’s personal and banking information, so consumers have a right to be leery about mailings that claim they are owed money. However, I can assure these former Coventry customers that the 1,900-plus letters are authentic.”

Because the letter was sent out in late March and requires a response be made within 45 days, the Department urges recipients to read it carefully and reply in a timely fashion.

If you believe you have received such a letter and have questions or concerns, please contact the Delaware Department of Insurance at 1-800-282-8611.

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Contact: Jerry Grant | 302-674-7303 | jerry.grant@delaware.gov

www.delawareinsurance.gov | Dept. of Insuance Phone: 302-674-7300