In a shocking move, Aetna (NYSE: AET) has proposed decreasing its premiums an average 10 percent for more than 15,000 Connecticut residents as a result of the medical-loss requirements and a decline in expenses from medical claims.
Aetna's proposed decrease, which is a complete about-face in the pricing trend of health insurance, is a direct result of it seeing a drop in spending on medical services, though not in the price of doctor and hospital services, reports the Hartford Courant.
"This is really about a good experience on this block of business, and the ability to be able to go back in and say, 'We can make our rates more competitive, we can deliver value back to the consumer, and we can let people put this money back in their own pockets,'" Aetna spokeswoman Susan Millerick told the Courant.
The rate cuts range from 5 percent to 19 percent and would affect state residents covered by Aetna individual health plans. If approved by the Connecticut Insurance Department, they would take effect Sept. 1, according to the Connecticut Mirror.
Annual savings to consumers would range from $28 on the least expensive plans, which would drop to $533 per year, to $3,519 on the most expensive plans, which would be $14,528 per year, the Courant notes. Aetna says it expects to pay rebates on these plans for 2011 and is trying to stabilize rates at a reasonable level over a period of years, reports the Hartford Business Journal.
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