HHS awarded State Rate Review Grants to states in September 2011 and September 2012. States submitted data to HHS on rate increases for major medical policies in their individual and small group policies as part of their State Rate Review Grant requirements. The Rate Review Grant (RRG) database consists of state quarterly submissions, from 2011 Quarter 3 to 2013 Quarter 2, for rate increases effective for calendar years 2011, 2012, and 2013, but with only partial data for 2011 and 2013. For 2012, rate filings with a limited number of covered lives were submitted in five out of 43 states in the individual market and two out of 37 states in the small group market, and thus were excluded from the analysis. Rate filings that combined small and large groups were not included in the analysis because the rate changes and covered lives specific to the small groups are not always available. ASPE supplemented its analysis of RRG data with data from the Florida Office of Insurance Regulation website for a total of 39 states in the individual market and 35 states in the small group market for calendar year 2012.
ASPE manually cleaned the data to correct rate filings that were out of scope, or contained similar or duplicative entries, missing or incomplete filings, or incorrect data on requested and/or approved rate changes.13 ASPE then compared the cleaned RRG data with an ASPE database of individual market rate changes for 15 states (available from state websites: Arkansas, California, Connecticut, Delaware, Florida, Indiana, Maine, Minnesota, North Carolina, New Jersey, Oregon, Pennsylvania, Rhode Island, Washington, and Wisconsin). After revising the RRG data for incomplete or incorrect data and comparing the RRG data with the ASPE database, 7.5 percent of rate filings for individual policies were revised, which affected 26.6 percent of total covered lives.
ASPE does not have a database for small group rate increases but checked available data on several state websites for rate filings that had unusual entries. After cleaning the RRG data, 11.3 percent of rate filings for small group policies were revised, which affected 23.7 percent of total covered lives.