Harvard Pilgrim Health Care
Rate Justification for New Hampshire Individual Plans
Rate Change Effective January 1, 2023
Qualified Health Plan (QHP) issuers are required to post justifications for any QHP rate changes to their websites. Below, please find the justification for the rate change effective January 1, 2023 for the Harvard Pilgrim Health Care (HPHC) New Hampshire Individual QHP plans.
Drivers of the rate change
- A key driver of health insurance premium increases year over year is medical trend, which is comprised of inpatient, outpatient, and physician services as well as pharmacy costs. Medical trend includes both increases in the cost of the services provided by hospitals and physician groups and increases in the utilization of these services by our members.
- HPHC has reflected the anticipated costs of COVID-19 treatment, testing, and vaccines in 2023 pricing as we expect these costs to continue into the future.
- Effective January 1, 2021, the New Hampshire Insurance Department began operating a reinsurance program with the goal of lowering insurer liability for Individual Plans. HPHC’s rates reflect the impact of this program.
Under the Affordable Care Act, at least 80% of premium must be used for medical expenses (otherwise, a rebate is paid to subscribers). The 2023 rates were calculated to comply with this requirement.
Harvard Pilgrim’s Strategy to Keep Premiums Affordable
Harvard Pilgrim is committed to improving value and quality across the health care system. Some of the ways we are working to meet our goals include:
- Establishing collaborative arrangements with providers that control costs and enhance health outcomes
- Negotiating pharmacy contracts aligning payments with outcomes
- Managing rare diseases through our nurse care managers
- Updating our payment policies to deter inappropriate payment for services on selected medical infusible drug claims
- Maintaining focus on reducing fraud, waste and abuse
Continuing to find ways to lower health care costs while providing enhanced value to our customers through our products and services is a keystone to our organization’s long-term strategy.