HARTFORD, Conn. (WTNH)–The dominant health insurer in Connecticut says it has no choice but to increase rates 12.5%, or it may risk insolvency.
Executives from Anthem Blue Cross Blue Shield said the exploding cost of prescription drugs is a major factor in its decision to request to state regulators that it raise rates.
“This rate increase is excessive and people cannot afford it.”
[BEARS] “What’s notable this time is that pharmacy spending is really the key piece that’s leading to higher trends…going forward.”
“Current rates are already unaffordable…especially for those without advance premium tax credits.”
But it is the tax that ‘Obamacare’ charges the insurance company to pay for those individual tax credits that’s another major reason they say they have to increase the rates on everyone else.
[BEARS] “That amount begins at 8 billion dollars in 2014 and increases over forty percent to 11-point-3 billion dollars in 2015.”
The company says that the ‘Obamacare Tax’ from the federal government is not a tax deductible business expense, making the actual cost of it even higher.
The executives said they are mandated by the law to spend 80 percent of every dollar they charge for health care benefits, and if they end up spending less, rebates will be issued to customers.
The insurance commissioner will rule on the rate hike in 30 days.