Board accepts Hartford rate reductions for life, AD&D and long-term disability

Aon consultant Mike Clark presented Hartford's proposed fully insured 2023 rates for basic life, accidental death and dismemberment, and long-term disability, and recommended that the Health Service Board accept the renewal. The board approved the recommendation unanimously.

Clark said the proposed 2023 basic life rate falls from 0.105 to 0.089 per $1,000 of coverage (roughly a 15% reduction). Long-term disability rates were reduced by about 25% for the two benefit levels used by the plan. Supplemental member-paid coverages were also proposed at roughly 20% lower rates. Based on current enrollment and premium volumes, Clark estimated nearly $2 million in employer savings and more than $200,000 in member savings for the 2023 plan year.

Hartford also agreed to a 12-month continuation-of-coverage provision for employees on leave or furlough that began in 2022; the insurer committed to these rates as part of a three-year rate guarantee for 2023-25, subject to future board approvals.