The NYS Dept of Financial Services recently finalized Care Connect’s small group health insurance rates for 2017. Surprisingly, they were approved for an amount higher than Care Connect had applied for. The reason cited for the higher than applied for increase: “..flawed methodology” of the Federal Risk Adjustment Program:
“A major portion of the current rate increase for small group plans can be attributed to the Federal Risk Adjustment program, which includes flawed methodology that is adversely affecting nearly all insurers on New York State’s health exchange. Without risk adjustment fees, CareConnect’s proposed increase would have been significantly lower “ , according to the Care Connect news release.
In spite of this, Care Connect states “Despite the rate hikes, CareConnect’s premiums are among the most affordable on the market for individuals and small groups. Unlike some of its competitors, the company continues to offer its more than 100,000 members access to the same network of 20,000 providers throughout the metropolitan area as before.”
While this rate hike, which will affect small groups in the 1-100 employee size, will definitely cause concern amongst employers and employees alike, our feeling is that Care Connect will continue to maintain strong benefit options while continuing their high quality and focused network when other carriers are cutting back.
For information on what Care Connect is offering for small groups, please visit this link to find out more and request additional information https://peakinsuranceadvisors.com/2017-new-york-group-health-insurance/