Aetna rate hike plan under scrutiny

The rate hike proposal of insurance carrier Aetna Global is being scrutinized by both the CNMI Department of Commerce and the U.S. Department of Health and Human Services to see if it meets the standards of the federal Patient Protection and Affordable Care Act.

Acting Commerce secretary Sixto Igisomar said that Aetna’s rate hike proposal has already been turned in to the federal agency for review and assessment and a response is expected very soon.

Any insurance carrier in the Commonwealth that wants to increase their rates has to go through Commerce’s Insurance Commission Office for review and approval.

Igisomar described Aetna’s proposed new rates as “high,” prompting Commerce to seek the federal government’s review and determination to make sure it is acceptable and allowable.

“The rate proposals of Aetna may be incompliant with the allowable increase [under PPACA]. I cannot discuss the rates they’ve presented but I do know that it will significantly impact the pocket of our consumers currently covered by Aetna,” he said.

Aetna Global’s contract as the Fund’s insurance carrier for its members was supposed to expire on Nov. 1. Its renewal is contingent on two options, both with increases in current rates.

However, as the central government has yet to decide on which option to take, Aetna decided to postpone its contract’s renewal to January 2012. The Group Health and Life Insurance Program, GHLIP, is a government program being handled by the Fund administrator.

The Patient Protection and Affordable Care Act, or PPACA, is a U.S. federal statute that reforms certain aspects of the private health insurance industry and public health insurance programs, increases insurance coverage of pre-existing conditions, and expands access to insurance to over 30 million Americans.

According to press secretary Angel Demapan, the Fitial administration and the Fund are scheduled to meet today to discuss Aetna’s proposal. He declined to comment further on the matter.

Igisomar, who is also the Fund board chairman, said the carrier’s proposal is under negotiation.

Saipan Tribune learned that Aetna is the only carrier willing to handle the insurance plan for retirees and active government employees.

The Fund in October 2010 approved the carrier’s proposal to increase members’ health insurance premiums by 33 percent. Aetna Global threatened last year to terminate the plan if the government fails to reach a decision.