Rate increase justification plain language summary - Vermont


UnitedHealthcare Insurance Company
(NAIC # 79413)

Rate submission

2018 Rate Revision and Annual Loss Ratio Filing for:
Standardized Medicare Supplement Plans
(SERFF # UHLC-131047976)
Pre-Standardized Medicare Supplement Plans
(SERFF # UHLC-131047944)


August 11, 2017

2018 premium rate changes have been requested for several AARP Medicare Supplement Insurance Plans.  These would affect approximately 18,600 Standardized plan members, and approximately 290 Pre-Standardized plan members in the State of Vermont.

The new monthly premium rates would apply to members beginning January 1, 2018.

Premium rate changes are needed to cover the expected benefit costs and expenses of the program.  Benefit costs change due to increases in costs for medical services and supplies, higher Medicare deductibles and co-payments, and the use of medical services and supplies by members.

Proposed 2018 rate revisions for Standardized Plans average 5.4%; increases by plan range from 0.0% to 9.9%.  No rate changes are proposed for the Pre-Standardized Plans.

Plans effective 1/1/1992 & later

Plans effective before 1/1/1992

Proposed rate increases

Proposed rate increases

Standardized Plan Ages 65+ Under Age 65
Plan A 7.5% 9.8%
Plan B 5.0% 9.8%
Plan C 5.7% 9.9%

Plan D

5.4% 9.8%
Plan E 5.5% 9.8%
Plan F 5.2% 9.9%
Plan H (with drugs) 6.8% 9.9%
Plan H (without drugs) 6.7% 9.9%

Plan J (with drugs)

7.0% 9.9%
Plan J (without drugs) 7.0% 9.8%
Plan K 0.0% 9.9%
Plan L 0.0% 7.5%
Plan N 2.7% 9.8%
Pre-Standardized Plan Pre-Standardized Plan
Plan M1 0.0%
Plan M2 0.0%
Plan M3 (with drugs) 0.0%

Plan M3 (without drugs)

Plan M4 (with drugs) 0.0%

Plan M4 (without drugs)

Plan M5 0.0%
Plan M6 0.0%
Plan M7 (with drugs) 0.0%

Plan M7 (without drugs)

Plan MA 0.0%
Plan AD/DP 0.0%

Additionally, discounts for electronic fund transfer (EFT) and annual payment methods are proposed for premiums due January 1, 2018 and later.

We are working hard to keep premium rates as low as possible for all members.

The proposed rate increases have been filed with the Vermont Department of Insurance for approval.  This filing complies with the laws and regulations of the State of Vermont.  Revised rates will not be implemented until approved by the Department.