Third insurer exits Connecticut exchange after rate request dispute

ConnectiCare has withdrawn from Connecticut's Affordable Care Act marketplace for 2017 after insurance regulators denied its requested average rate increase, reports Hartford Courant.

However, the insurer said it plans to offer individual policies if it wins its appeal on what rate it can charge in 2017.

ConnectiCare filed suit against the state insurance department and threatened to exit the exchange after insurance regulators denied ConnectiCare's proposed average 27.1 percent rate increase for 2017. Regulators had approved a 17.4 percent rate increase.

In its complaint, ConnectiCare argued the 27.1 percent rate increase is necessary to cover members' claims and make a profit on the plans next year, according to Hartford Courant. The insurance department requested the court dismiss the case on grounds ConnectiCare has not exhausted its administrative appeals within the department.

In a prepared statement, insurance department officials said they are working with the attorney general's office to determine their best options, according to the article.

Without ConnectiCare, Anthem will be the only insurer to sell plans on the exchange next year. 

The insurer covers about 47,600 members.

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