Consumers Union Urges CA Department of Managed Care to Reject Aetna’s Proposed Rate Hike
By Consumers Union on Monday, September 10th, 2012
Consumers Union submitted comments today urging the CA Department of Managed Care to reject Aetna’s requested 9.9% increase over last year in the small group market. Aetna has been posting record profits and an average return on surplus of about 26% – more than twice as high as a reasonable value. Aetna’s requested rate is not supported by the data. Aetna used a medical trend higher than their historical trend, and it padded the rate request with a 1% Provision for Adverse Deviation (“PAD”). The PAD is simply another name for expected profit and that should not be included as part of the trend.
Click here to read Consumers Union’s comments: