Business Services Industry

Connecticut Insurers among Firms Raising 2004 Rates by Average of 17.5 Percent.

Knight Ridder/Tribune Business News, May, 2003

The Hartford Courant, Conn. Knight Ridder/Tribune Business News

May 21--Health insurers are quoting prices that average 17.5 percent higher for 2004 renewals for large employers, according to a Morgan Stanley report that fueled insurers' stock prices Tuesday.

Final rate increases after negotiations and benefit changes are expected to average 12 percent. But the initial data from consultant Hewitt should reassure investors that most insurers "are maintaining pricing discipline even as costs appear to be stabilizing," Morgan Stanley said.

Based on small fractions of their clientele, CIGNA's initial 2004 price quotes averaged 25.6 percent higher, and Aetna averaged 8.3 percent. Morgan Stanley expects Aetna's average will end up higher,...

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