Charter Oak Health Plan Premiums Increasing

Health care reform is having effects across the nation including Connecticut where the Charter Oak Health Plan is in trouble. Over 9500 people enrolled in the state run plan will see their premiums increase by around 45% according to the article "Subsidy Cuts Boost Charter Oak Health Plan Premiums" by Arielle Levin Becker on CTMirror.org. Rates could increase by upwards of 67% starting September 1st for some members since the state is cutting some subsidies that go towards this important program.

Rate increases are being caused by a few factors. Health care claims are up causing problems and in addition to this, state officials are trying to be more strict with the state budget. David Dearborn, a spokesperson for the state Department of Social Services, says that since 2008 when the plan was started, it attracted mostly older members with more chronic health care problems which ultimately leads to higher costs and increased premiums. Currently, Charter Oak Health Plan has over 9700 members and around $5000 of them will see their rates increase from $307 to $446 this September.