Connecticut Attorney General's Office
Press Release
Attorney General Praises Feds For Admonishing State’s Failure To Openly Review Massive Insurance Rate Hikes
October 18, 2010
Attorney General Richard Blumenthal praised the U.S. Department of Health & Human Services for supporting his fight against the state Insurance Department’s approval of recent staggering health insurance rate increases.
Despite being awarded a $1 million federal grant to enable stronger insurance rate oversight, the Connecticut Insurance Department actually weakened its rate review process for an extremely large premium increase by the Anthem Insurance Company.
The Insurance Department held a public hearing, provided more intensive public analysis and ultimately reduced a lesser rate increase by Anthem last year -- but held no public hearing whatsoever and provided virtually no public analysis on a more recent and more massive proposed rate increase.
The director of the federal Office of Consumer Information & Insurance Oversight today called for the Insurance Department’s reconsideration of the rate approval -- chiding Insurance Commissioner Thomas R. Sullivan for diminishing its oversight when consumers need and deserve more.
“This federal rebuke should lead to real review and rate reduction,” Blumenthal said. “I commend the federal government for supporting our call for the Insurance Department to reopen and rescind this massive unjustified health insurance increase. Connecticut consumers deserve a do-over -- a new rate review that includes public hearings, scrutiny and slashing away at this rate increase.
“When the Insurance Department should have improved oversight of staggering rate increases, it relaxed its review -- disregarding a $1 million federal grant to enable stronger scrutiny.”