1. State Corporation Commission Bureau of Insurance Rate Presentations
July 18, 2019

2. Health Care Coverage of the Virginia Population - 2018
Source: U.S. Census Bureau - Current Population Survey - Annual Social and Economic Supplements
Definitions
Medicaid: Includes those covered by Medicaid, the Children’s Health Insurance Program (CHIP), and those who have both Medicaid and another type of coverage, such as dual eligibles who are also covered by Medicare.
Medicare: Includes those covered by Medicare, Medicare Advantage, and those who have Medicare and another type of non-Medicaid coverage where Medicare is the primary payer. Excludes those with Medicare Part A coverage only and those covered by Medicare and Medicaid (dual eligibles).
Employer: Includes those covered by employer-sponsored coverage either through their own job or as a dependent in the same household.
Other Public: Includes those covered under the military or Veterans Administration.
Non-Group: Includes individuals and families that purchased or are covered as a dependent by non-group insurance.
Uninsured: Includes those without health insurance and those who have coverage under the Indian Health Service only.

3. Enrollment in Self-Funded Plans and the Individual, Small Group, and Large Group Comprehensive Markets
Enrollment in the Fully-Insured Market – Individual, Small Group, and Large Group Comprehensive
Source: Company reported data found in the Annual Report - Supplemental Health Care Exhibit.

4. Health Care Coverage of the Virginia Population
Employer
Non-Group
Medicaid
Medicare
Other Public
Uninsured
2018
53% 4%
12%
14% 7%
10%
2017
55% 5%
11% 9%
2016
2015 8%
2014
13% 6%
2013
57%
2012
2011
2010
2009
2008
59%
Source: U.S. Census Bureau - Current Population Survey - Annual Social and Economic Supplements
Definitions
Medicaid: Includes those covered by Medicaid, the Children’s Health Insurance Program (CHIP), and those who have both Medicaid and another type of coverage, such as dual eligibles who are also covered by Medicare.
Medicare: Includes those covered by Medicare, Medicare Advantage, and those who have Medicare and another type of non-Medicaid coverage where Medicare is the primary payer. Excludes those with Medicare Part A coverage only and those covered by Medicare and Medicaid (dual eligibles).
Employer: Includes those covered by employer-sponsored coverage either through their own job or as a dependent in the same household.
Other Public: Includes those covered under the military or Veterans Administration.
Non-Group: Includes individuals and families that purchased or are covered as a dependent by non-group insurance.
Uninsured: Includes those without health insurance and those who have coverage under the Indian Health Service only.

5. Number of Carriers in the Individual Market On and Off Exchange

7. Individual Market Share – by 2020 Projected Covered Lives

8. Number of Carriers in the Small Group Market On and Off Exchange

10. Small Group Market Share – by 2020 Projected Covered Lives

11. Individual and Small Group On and Off Exchange
Total Enrollment
Source: Annual Supplemental Health Care Report – Number of covered lives by market for and 2020 data derived from the 2020 rate filings.

12. Individual On and Off Exchange Total Enrollment and
Total Weighted Average Premium

13. Estimated Distribution of the On-Exchange Individual Market Enrollment by Federal Poverty Level
Source: Carrier data call and Marketplace Open Enrollment Period Public Use files. Virginia – Individual Market Summary and Modeling Results – January 4, Oliver Wyman. Funds for the study provided to the State Corporation Commission by the Federal Market Stabilization Grant.

14. Effects on Individual Market Rates due to Medicaid Expansion
Medicaid expansion estimated impact on the individual market rates ranged from 0% to -2.3%
Actuarial study estimated 44,300-70,400 will move from Individual Market to Medicaid over the next one to three years.
Transition – agencies worked together

15. Estimated Impact of New Coverage Options on Projected Individual Market Enrollees
Source: Carrier data call and Marketplace Open Enrollment Period Public Use files. Virginia – Individual Market Summary and Modeling Results – January 4, Oliver Wyman. Funds for the study provided to the State Corporation Commission by the Federal Market Stabilization Grant.

16. General Approach to Rate Reviews
Initial rate submissions were due May 24; the Bureau’s deadline to submit QHP recommendations is August 21 (non-QHP reviews are completed by this date as well)
SERFF public access suspended for any individual and small group market form, rate, and binder revisions made on or after May 31
Deadline of July 10th for carriers to submit voluntary service area revisions and voluntary rate filing revisions. Plans may be withdrawn following this date if such withdrawal does not cause a change in service area. SERFF public access will be fully enabled following this date.
Bureau staff review the contents of each rate filing for completeness, accuracy and compliance with Federal and state filing requirements
Companies are requested to make any necessary changes before the filing is sent to the consulting actuaries for their review

17. Virginia Rate Filing Template
Introduced for 2019 ACA rate filings
Standardized format for carrier experience data, projections, source of rate changes, etc.
New template includes some prior required exhibits
Consistent with URRT definitions
Summary tools allow for state-wide analysis of ACA markets, including any outliers, in addition to changes from 2019 approved rates

18. 2020 Pricing Challenges Population morbidity Carrier entrances/exits
Member movement
High cost claimants
Medical and drug trend

19. 2020 ACA Pricing Trends Individual Small Group INPATIENT OUTPATIENT
INPATIENT
OUTPATIENT
PHYSICIAN Rx
Carrier
Cost
Util
Total
TOTAL
Cigna
3.0%
1.8%
4.9%
3.6%
4.5%
0.7%
5.2%
HealthKeepers
7.0%
10.0%
6.0%
3.2%
9.4%
2.7%
6.4%
8.0%
2.5%
10.7%
8.9%
Kaiser
3.5%
2.0%
5.6%
1.0%
2.1%
3.1%
2.3%
4.3%
4.8%
Optima HP
7.6%
8.7%
7.4%
8.5%
5.4%
6.5%
8.6%
0.1%
7.5%
Small Group
CareFirst
-2.0%
4.0%
1.9%
5.0%
8.1%
6.1%
7.7%
Anthem/HK
2.4%
7.1%
1.5%
7.3%
United
3.7%
7.8%

20. ACA Loss Ratio Experience

21. Percentage increase of weighted average premium – individual market from 2014 to 2020: 96%.

22. Percentage increase of weighted average premium – small group market from 2014 to 2020: 35.4%.

23. Presenting Companies
HealthKeepers, Inc. (Ind/SG) /Anthem Health Plans of Virginia, Inc. (SG only)
Cigna Health and Life Insurance Company (Ind only)
Optima Health Plan (Ind/SG)
Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc. (Ind/SG)
UnitedHealthcare Insurance Company (SG only)
CareFirst BlueChoice, Inc./Group Hospitalization and Medical Services, Inc (SG only)