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Aetna’s rate hike plan is a go
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Posted on Dec 01 2011
New plan to take effect Jan. 1 with 8- to 18-pct. increases
By Moneth Deposa
Reporter
Reporter
The Department of Commerce has approved the rate hike proposal of insurance carrier Aetna Global, which will result in an 8- to 18-percent increase in the premiums of government employees enrolled in the Group Health and Life Insurance program.
Acting Commerce secretary Sixto Igisomar disclosed yesterday that the department’s decision comes on the heels of information from the federal Department of Health and Human Services, which reviewed Aetna’s proposal to see if it complies with the Patient Protection and Affordable Care Act, the federal law that reforms aspects of the private health insurance industry and public health insurance programs.
Igisomar said the federal agency told Commerce that Aetna, classified as a large group plan, cannot be subjected to federal review because it is not included in the categories stipulated in the federal act.
DHHS gave Commerce the authority to decide on the rate increase options.
Pursuant to law, any insurance carrier wanting to implement an increase in their rates has to go through the local commerce’s Insurance Commission Office for review and approval.
“We’ve done our review on Aetna’s proposals and Commerce will not decline them,” Igisomar said yesterday.
Under the new plan, government employees will have two options to choose from: the high option and the low option. In the high option, which has 80/20 percent sharing between the government and the member, the premium rate will increase by 18.54 percent. For the low option, which has a sharing of 70/30 percent, premiums will increase by 8.73 percent.
The Fitial administration green-lighted the increases in October 2010.
According to press secretary Angel Demapan, the administration looked into the benefits incorporated under the new plan and found them satisfactory. Among these benefits are the no annual maximum, no lifetime plan maximum, and coverage of dependents up to age 26 regardless of student/residence/marital status. The new plan also adds service providers such as Philippine-based St. Luke’s Medical Center and Makati Medical Center.
The new plan will become effective on Jan. 1, 2012, according to Igisomar.
