UnitedHealthcare Insurance Company has requested a new rate increase become effective January 1, 2022 for their small group ACA plans. The requested increase amounts to an average increase of 11.9%, with a minimum of 6.3% and a maximum of 18.5%.  Small group plans are not subject to the public hearing requirement.

Part II - Written Rate Justification for Consumers and Federal Rate Filing Justification Part III

The public is welcome to submit comments on the proposed rate increase.

Public comments

September 17, 2021

The Iowa Insurance Division (IID) and INS Consultants, Inc. (INS) have reviewed the small group medical rate filing of UnitedHealthcare Insurance Company (UHIC).

UHIC filed for approval of an average rate revision of 11.9% (minimum of 6.3% and maximum of 18.5%) for 2022 applicable to off-exchange small group medical products that will be offered in 2022.

IID and INS have reviewed the submission in its entirety. However, we have focused our review, in particular, on the details of the Company’s Part III Actuarial Memorandum, the Part 1 Unified Rate Review Template and the Part II Written Description Justifying the Rate Increase. 

In order to maintain an Effective Rate Review Program, federal regulations require that certain criteria must be followed. The IID and INS’s review was conducted so that these standards were strictly complied with. Our analysis included (but was not limited to) examination of the company’s assumptions, medical cost trend changes by major service categories, changes in utilization of services by major service categories, the impact of changes in benefits, the impact of cost sharing changes, changes in enrollee risk profile, impact of the estimate of medical trend in previous years on the current rate, reserve needs, administrative costs related to programs that improve health care quality, other administrative costs, applicable taxes and licensing or regulatory fees, the impact of changes within a single risk pool to all products or plans within the risk pool, rating limitations for age and tobacco usage, the impact of geographic factors, medical loss ratio, the company’s capital and surplus, and the impact of reinsurance and risk adjustment payments.

The IID projects a Federal medical loss ratio of just over 80% after the 11.9% rate increase becomes effective in 2022.

Based on IID and INS’s review and on the certifying statements of UHIC’s opining actuary, it appears that the subject filing is compliant with Iowa and PPACA regulations.