Filing at a Glance - catalog.state.ct.us · Filing at a Glance Company: Anthem Health Plans, Inc...

Filing at a Glance Company: Anthem Health Plans, Inc dba Anthem Blue Cross and Blue Shield of Connecticut

Product Name: Small Group 3Q 2017

State: Connecticut

TOI: HOrg02G Group Health Organizations - Health Maintenance (HMO)

Sub-TOI: HOrg02G.004E Small Group Only - Other

Filing Type: Rate

Date Submitted: 02/21/2017

SERFF Tr Num: AWLP-130903165

SERFF Status: Assigned

State Tr Num: 201701135

State Status:

Co Tr Num:

ImplementationDate Requested:

07/01/2017

Author(s): Tu Nguyen, Mary McCarthy, Jeremy Chernofsky, Dickson Lee, Kristin Roberts, AustinLederman

Reviewer(s): Paul Lombardo (primary)

Disposition Date:

Disposition Status:

Implementation Date:

SERFF Tracking #: AWLP-130903165 State Tracking #: 201701135 Company Tracking #:

State: Connecticut Filing Company: Anthem Health Plans, Inc dba Anthem Blue Crossand Blue Shield of Connecticut

TOI/Sub-TOI: HOrg02G Group Health Organizations - Health Maintenance (HMO)/HOrg02G.004E Small Group Only- Other


Project Name/Number: /

PDF Pipeline for SERFF Tracking Number AWLP-130903165 Generated 03/01/2017 07:11 AM

General Information

Project Name: Status of Filing in Domicile: Not Filed

Project Number: Date Approved in Domicile:

Requested Filing Mode: Review & Approval Domicile Status Comments:

Explanation for Combination/Other: Market Type: Group

Submission Type: New Submission Group Market Size: Small

Group Market Type: Employer Overall Rate Impact: 24.1%

Filing Status Changed: 02/22/2017

State Status Changed: Deemer Date:

Created By: Kristin Roberts Submitted By: Tu Nguyen

Corresponding Filing Tracking Number:

PPACA: Not PPACA-Related

PPACA Notes: null

Exchange Intentions: This filing includes Small Group benefit plans in SHOP and OffExchange plans.

Filing Description:

February 21, 2017

Mr. Paul Lombardo, ASA, MAAAActuary, Life & Health DivisionState of Connecticut Insurance DepartmentP.O. Box 816Hartford, CT 06142-0816

Re: Anthem BCBS 2017 Small Group Rate FilingSERFF Tracking Number AWLP-130576921

Dear Mr. Lombardo:

For your approval, Anthem Blue Cross and Blue Shield (ABCBS) is submitting proposed premium rates for its Small GroupProducts effective July 1, 2017 through December 31, 2017.

Please see the enclosed files for the scope of changes and the supporting documents:

Anthem Small Group State - Actuarial MemorandumAnthem 2017 Actuarial CertificationAnthem Small Group Federal Actuarial MemorandumAnthem 2017 Unified Rate Review TemplateUnique Plan Design Supporting DocumentationActuarial Value Screenshot for each Small Group planAnthem 2017 Rates TemplateAnthem 2017 Schedule of Benefits

The On-Exchange and Off-Exchange products include pediatric dental benefits embedded in the benefits.







Company and Contact

Filing Fees

State Specific

Thank you for your attention to this filing. If you have any questions regarding this matter, please feel free to contact me at 203677-8510. You may also email me at [email protected].

Sincerely,

Tu Nguyen, FSA, MAAADirector & Actuary III

Attachments

Filing Contact InformationTu Nguyen, Director & Actuary III [email protected]

108 Leigus Road

Wallingford, CT 06492

203-677-8510 [Phone]

Filing Company InformationAnthem Health Plans, Inc dbaAnthem Blue Cross and BlueShield of Connecticut

108 Leigus Road

Wallingford, CT 06492

(203) 677-4000 ext. [Phone]

CoCode: 60217

Group Code: 671

Group Name: WellPoint Inc Group

FEIN Number: 06-1475928

State of Domicile: Connecticut

Company Type: Life,Accident, Health

State ID Number:

Fee Required? No

Retaliatory? No

Fee Explanation:

Individual, Small group and non-employer group health filings require rates to be filed. Does this filing comply with therequirements of item 17 of the general instructions?: Yes







Rate Information Rate data applies to filing.

Filing Method: Review & Approval

Rate Change Type: Increase

Overall Percentage of Last Rate Revision: 10.500%

Effective Date of Last Rate Revision: 01/01/2017

Filing Method of Last Filing: Review & Approval

Company Rate Information

Company

Name:

Company

Rate

Change:

Overall %

Indicated

Change:

Overall %

Rate

Impact:

Written

Premium

Change for

this Program:

Number of Policy

Holders Affected

for this Program:

Written

Premium for

this Program:

Maximum %

Change

(where req'd):

Minimum %

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(where req'd):

Anthem Health Plans,Inc dba Anthem BlueCross and BlueShield of Connecticut

Increase 24.100% 24.100% % %


State: Connecticut Filing Company: Anthem Health Plans, Inc dba Anthem Blue Cross and Blue Shieldof Connecticut

TOI/Sub-TOI: HOrg02G Group Health Organizations - Health Maintenance (HMO)/HOrg02G.004E Small Group Only - Other




Rate Review Detail

COMPANY:Company Name: Anthem Health Plans, Inc dba Anthem Blue Cross and Blue Shield of Connecticut

HHS Issuer Id: 86545

PRODUCTS:

Product Name HIOS Product ID HIOS Submission ID Number of Covered

LivesSee Actuarial Memorandum Exhibit A 42200

Trend Factors: 12.9%

FORMS:New Policy Forms: CT_ABCBS_HMO, CT_ABCBS_PPO

Affected Forms:

Other Affected Forms:

REQUESTED RATE CHANGE INFORMATION:Change Period: Annual

Member Months: 506,400

Benefit Change: Increase

Percent Change Requested: Min: 18.4 Max: 33.6 Avg: 24.1

PRIOR RATE:Total Earned Premium: 255,552,471.00

Total Incurred Claims: 190,473,147.00

Annual $: Min: 130.21 Max: 1,603.41 Avg: 531.59

REQUESTED RATE:Projected Earned Premium: 186,567,336.00

Projected Incurred Claims: 263,505,240.00

Annual $: Min: 171.62 Max: 2,126.13 Avg: 671.99







Rate/Rule Schedule

Item

No.

Schedule

Item

Status

Document Name

Affected Form Numbers

(Separated with commas) Rate Action Rate Action Information Attachments

1 2017 Actuarial Memorandum -CT Small Group Exhibit A

CT_ABCBS_HMO,CT_ABCBS_PPO

Revised Previous State Filing Number:201603315Percent Rate Change Request:10.5

2017 ActuarialMemorandum CT SGExhibit A (2-21-17).pdf,







1

HIOS Plan Name 2017 HIOS Plan IDOn/Off

Exchange Metal LevelBenefit Plan

Factor Network Name Area(s) Offered2016 HIOS Plan ID

Mapping Plan CategoryPlan Specific Rate Change

(excluding aging) {1}

Bronze Standard Pathway X PPO 86545CT1260003 On Bronze 0.6673 Pathway X PPO All 86545CT1260003 Renewing 24.5%Bronze Standard Pathway X PPO w/HSA 86545CT1260008 On Bronze 0.6557 Pathway X PPO All 86545CT1260008 Renewing 30.6%

Silver Standard Pathway X PPO 86545CT1260002 On Silver 0.9742 Pathway X PPO All 86545CT1260002 Renewing 18.4%Silver Standard Pathway X PPO w/HSA 86545CT1260009 On Silver 0.8094 Pathway X PPO All 86545CT1260009 Renewing 30.8%

Gold Standard Pathway X PPO 86545CT1260001 On Gold 1.1914 Pathway X PPO All 86545CT1260001 Renewing 20.1%Platinum Standard Pathway X PPO 86545CT1260010 On Platinum 1.4316 Pathway X PPO All 86545CT1260010 Renewing 33.4%

Bronze Pathway X HMO w/HSA 86545CT1270002 On Bronze 0.6527 Pathway X HMO All 86545CT1270002 Renewing 24.8%Gold Pathway X HMO 86545CT1270001 On Gold 1.0893 Pathway X HMO All 86545CT1270001 Renewing 20.7%

Anthem Silver BlueCare HMO 6000/0%/6550 w/HSA 86545CT1280007 Off Silver 0.6683 BlueCare All 86545CT1280007 Renewing 33.1%Anthem Gold BlueCare HMO 2750/0%/4000 86545CT1280009 Off Gold 1.0923 BlueCare All 86545CT1280009 Renewing 20.2%

Anthem Gold BlueCare HMO Tiered 2000/0%/5500 86545CT1280013 Off Gold 1.0355 BlueCare Tiered All 86545CT1280013 Renewing 20.0%Anthem Platinum BlueCare HMO 30/0%/3000 86545CT1280008 Off Platinum 1.3012 BlueCare All 86545CT1280008 Renewing 24.3%

Anthem Platinum BlueCare HMO Tiered 20/0%/6600 86545CT1280014 Off Platinum 1.2456 BlueCare Tiered All 86545CT1280014 Renewing 25.1%Anthem Bronze Century Preferred PPO 6500/0%/6500 w/HSA 86545CT1300062 Off Bronze 0.6698 Century Preferred All 86545CT1280006 New 33.1%

Anthem Bronze Century Preferred PPO 6000/30%/6550 w/HSA 86545CT1300039 Off Bronze 0.6441 Century Preferred All 86545CT1300039 Renewing 33.6%Anthem Bronze Century Preferred PPO 5500/20%/6550 w/HSA 86545CT1300023 Off Bronze 0.6557 Century Preferred All 86545CT1300023 Renewing 32.6%Anthem Bronze Century Preferred PPO 6000/0%/6550 w/HSA 86545CT1300032 Off Bronze 0.6340 Century Preferred All 86545CT1300032 Renewing 21.4%

Anthem Bronze Century Preferred PPO 5000/50%/6550 w/HSA 86545CT1300058 Off Bronze 0.6774 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3550/20%/7150 86545CT1300045 Off Silver 0.7957 Century Preferred All 86545CT1300045 Renewing 29.8%Anthem Silver Century Preferred PPO 2500/20%/6500 86545CT1300030 Off Silver 0.8487 Century Preferred All 86545CT1300030 Renewing 25.9%

Anthem Silver Century Preferred PPO 2700/25%/5000 w/HSA 86545CT1300022 Off Silver 0.7929 Century Preferred All 86545CT1300022 Renewing 29.3%Anthem Silver Century Preferred PPO 3000/0%/5000 w/HSA 86545CT1300047 Off Silver 0.8295 Century Preferred All 86545CT1300047 Renewing 30.1%

Anthem Silver Century Preferred PPO 3500/30%/5500 86545CT1300038 Off Silver 0.7946 Century Preferred All 86545CT1300038 Renewing 31.8%Anthem Silver Century Preferred PPO Tiered 2750/0%/6000 w/HSA 86545CT1300046 Off Silver 0.7388 Century Preferred Tiered All 86545CT1300046 Renewing 29.6%

Anthem Silver Century Preferred PPO $4000/50%/$7150 86545CT1300055 Off Silver 0.8178 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3000/25%/$7150 86545CT1300053 Off Silver 0.8741 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3750/25%/7150 86545CT1300060 Off Silver 0.8654 Century Preferred All None New 0.0%

Anthem Silver Century Preferred PPO 5000/25%/$7150 86545CT1300051 Off Silver 0.8447 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 2500/50%$6850 86545CT1300056 Off Silver 0.8325 Century Preferred All None New 0.0%

Anthem Silver Century Preferred PPO 2800/20%/4000 w/HSA 86545CT1300057 Off Silver 0.8407 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3000/20%/6750 86545CT1300054 Off Silver 0.8021 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 4500/0%/6000 86545CT1300052 Off Silver 0.7714 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 1500/20%/3000 86545CT1300037 Off Gold 1.1374 Century Preferred All 86545CT1300037 Renewing 22.7%Anthem Gold Century Preferred PPO 1000/20%/5500 86545CT1300043 Off Gold 1.1376 Century Preferred All 86545CT1300043 Renewing 26.7%Anthem Gold Century Preferred PPO 2500/0%/5000 86545CT1300026 Off Gold 1.0835 Century Preferred All 86545CT1300026 Renewing 19.4%

Anthem Gold Century Preferred PPO Tiered 2000/0%/5500 86545CT1300044 Off Gold 1.0392 Century Preferred Tiered All 86545CT1300044 Renewing 19.4%Anthem Gold Century Preferred PPO 2000/0%/3050 86545CT1300059 Off Gold 1.2256 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 1500/0%/3550 86545CT1300050 Off Gold 1.1694 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 2000/0%/3500 86545CT1300048 Off Gold 1.1367 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 2000/0%/4900 86545CT1300049 Off Gold 1.0061 Century Preferred All None New 0.0%

Anthem Gold Century Preferred PPO 2500/20%/4600 86545CT1300061 Off Gold 1.0699 Century Preferred All None New 0.0%Anthem Platinum Century Preferred PPO 30/0%/3000 86545CT1300024 Off Platinum 1.3182 Century Preferred All 86545CT1300024 Renewing 24.6%

NOTES:{1} Plan level increases in rates do not include demographic changes in the population.

Exhibit A - Non-Grandfathered Rate Changes

Anthem Health Plans, Inc.Small Group

Rates Effective July 1, 2017

Supporting Document Schedules Satisfied - Item: Actuarial MemorandumComments:Attachment(s): 2017 Actuarial Memorandum CT SG State (2-21-2017).pdfItem Status:Status Date:

Bypassed - Item: Consumer Disclosure FormBypass Reason: Bypass, not needed at this timeAttachment(s):Item Status:Status Date:

Satisfied - Item: Actuarial Memorandum and CertificationsComments:

Attachment(s): Anthem Actuarial Certification 2.21.2017.pdf2017 Actuarial Memorandum CT SG Federal (2-21-2017).pdfItem Status:Status Date:

Satisfied - Item: Unified Rate Review TemplateComments:Attachment(s): URRT-CT-SG1-86545-3Q17 - Submission (02-21-2017).pdfItem Status:Status Date:

Satisfied - Item: AV ScreenshotsComments:Attachment(s): CT Anthem Small Group 2017 Plan AVs (9-7-16).pdfItem Status:Status Date:

Satisfied - Item: Unique Plan JustificationsComments:Attachment(s): CT Anthem Small Group 2017 Unique Plan Justification Sets (9-7-16).pdfItem Status:







Status Date:

Satisfied - Item: Rate TemplateComments:Attachment(s): 3Q17_CT_86545_SG_On-Off_RateTables.pdfItem Status:Status Date:

Satisfied - Item: Summary of BenefitsComments:Attachment(s): CT Anthem Small Group 2017 Summary of Benefits (9-7-16) Clean.pdfItem Status:Status Date:







These rates were previously approved on 09/02/2016 with state tracking number 201603315 and are being revised due to higher emerging trends. The previously approved rate increase for 07/01/2017 was 10.5%. The new proposed rate increase for 07/01/2017 is 24.1%.

The Memorandum provides support to the rate development and demonstrates that rates are established in compliance with state laws and provisions of the Affordable Care Act. To the extent relevant rules or guidance on the rules are updated or changed, amendments to this filing may be required. This rate filing is not intended to be used for other purposes.

Policy Form Number(s):CT_ABCBS_HMOCT_ABCBS_PPO

Primary Contact Telephone Number: (203) 677-8510Primary Contact Email Address: [email protected]

2. Scope and Purpose of the Filing

This is a rate filing for the Small Group market ACA-compliant plans offered by Anthem Health Plans, Inc., also referred to as Anthem. The policy forms associated with these plans are listed below. The proposed rates in this filing will be effective for the 2017 plan year beginning July 1, 2017, and apply to plans both On-Exchange and Off-Exchange. This filing also includes quarterly premium trends for the year. Rates are guaranteed for 12 months after the groups effective date or renewal date. The products and proposed rates in this filing apply to groups with 50 or fewer employees.

Market: Small GroupEffective Date: July 1, 2017

Company Contact InformationPrimary Contact Name: Tu Nguyen

State: ConnecticutHIOS Issuer ID: 86545NAIC Company Code: 60217

ACTUARIAL MEMORANDUM

1. General Information

Company Identifying InformationCompany Legal Name: Anthem Health Plans, Inc.

Changes in the claim cost relativity by area.

4. Experience Period Premium and Claims

The experience period premium and claims reported in Worksheet 1, Section I of the Unified Rate Review Template (URRT) are for the non-grandfathered, single risk pool compliant policies of the identified legal entity in the Small Group market. The definition of a small employer is group policies of 50 or fewer employees.

Paid Through Date

The experience reported in Worksheet 1, Section I of the URRT reflect the incurred claims from January 1, 2015, through December 31, 2015, based on claims paid through March 31, 2016.

Changes in taxes, fees, and some non-benefit expenses, including the one-year suspension of the Health Insurer Tax for 2017.

Discontinuance of the Federal Transitional Reinsurance Program, which impacts contributions to the program.

Although rates are based on the same claims experience, the rate changes vary by plan due to the following factors:

Changes in benefit design that vary by plan.

Updates in benefit relativity factors among plans.

Changes in some non-benefit expenses.

3. Proposed Rate Increase(s)

The proposed annual rate changes by product in this filing range from 20.9% to 24.3%, with rate changes by plan from 18.4% to 33.6%. These ranges are based on the renewing plans, and are consistent with what's reported in the Unified Rate Review Template. Exhibit A shows the rate change for each plan.

Factors that affect the rate changes for all plans include:

Trend: This includes the impact of inflation, provider contracting changes, and increased utilization of services.

Morbidity: There are anticipated changes in the market-wide morbidity of the covered population in the projection period.

Benefit modifications, including changes made to comply with updated AV requirements.

Consistency with most recent financial statements

Exhibit S details historical experience for the policy forms included in this filing.

Anthem reconciles its internal source systems monthly to ensure consistency with reported financials. Please note that the products contained in this filing are only a part of the total business reported on the financial statements. In addition, there are timing differences and certain definitional differences in the statutory statements compared to emerging experience utilized in this filing.

The earned premium prior to MLR rebate is $291,353,033. The earned premium reflects the pro-rata share of premium based on policy coverage dates, and includes expected risk adjustments for the experience period.

The MLR rebate estimate is $0, which is based on the actual 2015 rebate amount allocated to the experience period of January through December 2015. Using this MLR estimate, the net earned premium is $291,353,033 for the legal entity as reported in cell F14 of Worksheet 1, Section I of the URRT.

Allowed and Incurred Claims Incurred During the Experience Period

The allowed claims are determined by subtracting non-covered benefits, provider discounts, and coordination of benefits amounts from the billed amount.

Allowed and incurred claims are completed using the chain ladder method, an industry standard, by using historic paid vs. incurred claims patterns. The method calculates historic completion percentages, representing the percent of cumulative claims paid of the ultimate incurred amounts for each lag month. Claim backlog files are reviewed on a monthly basis and are accounted for in the historical completion factor estimates.

Allowed and incurred claims reported in Worksheet 1, Section I of the URRT are $259,537,847 and $218,642,589, respectively. Exhibit B provides claims detail.

Premiums (net of MLR Rebate) in Experience Period

Rx Adjustments: Adjustments are made to reflect the difference between the experience period and the projection period in the Rx formulary and mail order programs. This factor also includes the impact of the pharmacy tier network and a retail Rx maintenance program for 2017. In addition, adjustments are made to account for waving the deductible on a defined list of preventive drugs for certain plans.

Changes in the Morbidity of the Population Insured

Adjustments are made to account for the differences between the average morbidity of the experience period population and that of the anticipated population in the projection period.

The projected population consists of expected retention of existing policies and new groups to Anthem. The morbidity impacts of population movement are based on the experience period risk score data and estimated risk scores of the projected population. Exhibit F shows the morbidity factor.

Changes in Benefits

Changes in benefits include the following items. Exhibit F shows each adjustment factor.

Essential Health Benefit (EHB) Changes: Adjustments are made to reflect the 2017 requirement to provide separate but equal visit limits for rehabilitative and habilitative therapies per HHS Notice of Benefit and Payment Parameters.

Professional: Includes non-capitated primary care, specialist, therapy, the professional component of laboratory and radiology, and other professional services, other than hospital-based professionals whose payments are included in facility fees.

Other Medical: Includes non-capitated ambulance, home health care, DME, prosthetics, supplies, vision exams, and dental services.

Capitation: Includes all services provided under one or more capitated arrangements.

Prescription Drug: Includes drugs dispensed by a pharmacy and rebates received from drug manufacturers.

6. Projection Factors

The experience period claims in Worksheet 1, Section I of the URRT are projected to the projection period using the factors described below. Exhibit C provides a summary of the factors.

5. Benefit Categories

The methodology used to determine benefit categories in Worksheet 1, Section II of the URRT is as follows:

Inpatient Hospital: Includes non-capitated facility services for medical, surgical, maternity, mental health and substance abuse, skilled nursing, and other services provided in an inpatient facility setting and billed by the facility.

Outpatient Hospital: Includes non-capitated facility services for surgery, emergency room, lab, radiology, therapy, observation and other services provided in an outpatient facility setting and billed by the facility.

Benefits in excess of the essential health benefits in the projection period are included. Exhibit G provides details of additional non-EHB benefits.

Trend Factors (cost/utilization)

The annual pricing trend used in the development of the rates is 12.9%. The trend is developed by normalizing historical benefit expense for changes in the underlying population and known cost drivers, which are then projected forward to develop the pricing trend. Examples of such changes include contracting, cost of care initiatives, workdays, costs associated with Hepatitis C, compound drugs, average wholesale price, and expected introduction of generic drugs. For projection, the experience period claims are trended 31.3 months from the midpoint of the experience period, which is June 24, 2015, to the midpoint of the projection period, which is February 2, 2018. Exhibit F has details.

Projected trends include the estimated cost of the pharmaceutical Harvoni and other high-cost drugs for treating Hepatitis C. These cost estimates were based on Connecticut Small Group claims experience, together with CDC recommendations, Industry and Anthem Inc. data.

Other Adjustments

Other adjustments to the experience claims data include the following items. Exhibit C has the seasonality maturing adjustment factor that has been set to 1.0 to remove any seasonality maturing adjustment impact. Exhibit F and Exhibit G provide all other factors.

Seasonality Maturing Adjustment: Adjustments are made when policies in the experience period have less than 12 months of experience in order to get them on a full 12-month basis that is expected in the projection period. The seasonality factors take into account claim seasonality during the year and the effect of calendar-year deductibles in health insurance.

Change in Medical Management: This adjustment reflects the medical management costs not already included in the claims experience and trend.

Rx Rebates: The projected claims cost is adjusted to reflect anticipated Rx rebates. These projections take into account the most up-to-date information regarding anticipated rebate contracts, drug prices, anticipated price inflation, and upcoming patent expirations.

Projected cost of pediatric dental and vision benefits are included.

Changes in Demographics (Normalization)

The experience period claims are normalized to reflect anticipated changes in age/gender, area, network, and benefit plan in the projection period. Exhibit E provides detail of each normalization factor below:

Age/Gender: The assumed claims cost is applied by age and gender to the experience period membership distribution and the projection period membership distribution.

Area/Network: The area claims factors are developed based on an analysis of allowed claims by network, mapped to the prescribed rating areas using the groups 5-digit zip code.

Benefit Plan: The experience period claims are normalized to reflect the average benefit level in the projection period using benefit relativities. The benefit relativities include the value of cost shares and anticipated changes in utilization due to the difference in average cost share requirements.

Projected Risk Adjustments PMPM:

The projected risk adjustment PMPMs reported in the URRT are net of risk adjustment fees, and on a paid claim basis. The projected amount applied to the development of Market Adjusted Index Rate is on an allowed claim basis. Exhibit D and Exhibit H provide details.

9. Paid to Allowed Ratio

The Paid to Allowed Average Factor in Projection Period reported in Worksheet 1, Section III of the URRT is equal to the ratio of member weighted average paid claims PMPM by plan to the member weighted average allowed claims PMPM by plan for the essential health benefits. The projected membership by plan used in the weighted average is reported in Worksheet 2, Section II of the URRT.

10. Risk Adjustment and Reinsurance

Experience Period Risk Adjustment and Reinsurance Adjustments PMPM:

Experience period risk adjustment used the 2015 actual risk adjustment, which we know the 2015 risk adjustment to be $54.04.

ACA reinsurance recoveries do not apply to Small Group business. The Net Amt of Rein reported in Worksheet 2, section III of the URRT reflect the reinsurance contribution amounts for 2015.

8. Credibility of Experience

Credibility Method Used

Based on an analysis of historical data, the standard for fully credible experience is 6,725 members.

To determine credibility, the following formula was used:

Resulting Credibility Level Assigned to Base Period Experience

With 39,076 members, the credibility level assigned to the experience period claims is 100%.

7. Credibility Manual Rate Development

The experience period claims are 100% credible based on the credibility method used. Therefore, a manual rate was not used in the rate development.

Selling Expense

Selling Expense represents projected broker commissions and bonuses associated with the broker distribution channel. Commissions will be paid for products both On-Exchange and Off-Exchange. An additional 2.5% selling expense was added to plans that will be sold through a private exchange.

Specialty Expenses

Specialty Expenses are projected administrative expenses for dental and vision coverage.

Miscellaneous Item

The miscellaneous items represent DOI fees and assessments, including the assessment from the State of Connecticut to cover the cost of the Vaccine Immunization Program and the DPH assessment.

11. Non-Benefit Expenses and Profit & Risk

Non-benefit expenses and profit & risk margin are explained below. Exhibit I shows the amount for each component.

Administrative Expense

Administrative Expenses are expected to be consistent with historical levels and are developed utilizing the same methodology as previous filings. Maintenance costs are projected for 2017 based on 2015 actual expenses with adjustments made for expected changes in business operations.

Quality Improvement Expense

Quality Improvement initiatives include programs such as Improve Health Outcomes, Activities to Prevent Hospital Readmissions, Improve Patient Safety and Reduce Medical Errors, Wellness and Health Promotion Activities, and Health Information Technology Expenses for Health Care Quality Improvements. The expense assumptions are based on historical expense level adjusted for cost inflation and anticipated changes in the programs.

Projected ACA Reinsurance Recoveries Net of Reinsurance Premium

Beginning in 2017, the Federal reinsurance program will no longer be in effect. The projected reinsurance contribution amount will be $0.

Projected CSEHRP Reinsurance Recovery Net of Reinsurance Premium

The Connecticut Small Employer Health Reinsurance Pool (CSEHRP) reinsurance risk mitigation program collects premium for each ceded member, submits payments for all ceded members with claims in excess of the attachment point, and assesses each carrier for any losses to the pool. Anthem expects a net gain for 2017 after ceding premium and claims to the CSEHRP pool and paying the annual assessment.

13. Single Risk Pool

The single risk pool for this filing is established according to the requirements in 45 CFR 156.80. It reflects all covered lives for every non-grandfathered product/plan combination sold in the Connecticut Small Group market by Anthem Health Plans, Inc.

The Risk Adjustment User Fee is reflected in the risk adjustment component of incurred claims, therefore not included in taxes and fees.

Profit & Risk Margin

Profit & risk margin is reflected on a post-tax basis as a percentage of premium.

12. Projected Loss Ratio

Projected Federal MLR

Exhibit J shows the projected Federal MLR for the products in this filing. The calculation is an estimate and is not meant to be a true measure for Federal or State MLR rebate purposes. The products in this filing represent only a subset of Anthem's Small Group business. The MLR for Anthem's entire book of Small Group business will be compared to the minimum Federal benchmark for purposes of determining regulation-related premium refunds. Also note that the projected Federal MLR presented here does not capture all adjustments, including but not limited to: three-year averaging, credibility, dual option, and deductible. Anthem's projected MLR is expected to meet or exceed the minimum MLR standards at the market level after including all adjustments.

Taxes and Fees

Patient-Centered Outcomes Research Institute (PCORI) Fee: The PCORI fee is a federally- mandated fee designed to help fund the Patient-Centered Outcomes Research Trust Fund.

ACA Insurer Fee: The health insurance industry is assessed a permanent fee, based on market share of net premium, which is not tax deductible. The tax impact of non-deductibility is captured in this fee. For Small Group, this is calculated as the member-month weighted average of the 2017 and 2018 Insurer Fees. For 2017, this fee is 0% due to a one-year suspension by the federal government.

Exchange User Fee: The Exchange User Fee applies to Exchange business only, but the cost is spread across all plans in the market. The expected charge is estimated at 1.65% of premium. The resulting fee/percentage is applied evenly to all plans in the risk pool, both On and Off Exchange.

The Exchange User Fee is applied as an adjustment to the Market Adjusted Index Rate at the market level as shown in Exhibit D.

Premium taxes, federal income taxes, and state income taxes are also included.

The projection period Index Rate is equal to projected allowed claims PMPM for the essential health benefits of Anthem's non-grandfathered business in the Small Group market. It reflects the anticipated claim level of the projection period including impact from trend, benefit and demographics as described in Section 6 of this memo.

The projected index rate is reported in Worksheet 1, Section III, cell V44 of the URRT. No benefits in excess of the essential health benefits have been included in this amount. Since quarterly trends are included in this filing, the index rate reflects the member weighted average of the projected index rates applicable for each quarter. Exhibit D provides details on this.

Quarterly Premium Trend Factors

Quarterly premium rate changes will be implemented for products both On-Exchange and Off-Exchange. Exhibit D provides the quarterly premium trend factors for the remainder of the year.

15. Market Adjusted Index Rate

The Market Adjusted Index rate is calculated as the Index Rate adjusted for all allowable market-wide modifiers defined in the market rating rules. The three market-wide adjustments - Federal reinsurance program adjustment (ended for 2017), risk adjustment and Exchange user fee adjustment - were described previously in the memo. In compliance with URR Instructions, these adjustments were applied on an allowed basis in the development of the Market Adjusted Index Rate, while they were reported in the URRT on a paid basis. Exhibit D illustrates the development of the Market Adjusted Index Rate.

14. Index Rate

Experience Period Index Rate

The experience period Index Rate is equal to the allowed claims PMPM for the essential health benefits of Anthem's non-grandfathered business in the Small Group market. The Index Rate reported in Worksheet 1, Section I, cell G17 of the URRT is $553.00, rounded to the nearest whole dollar as instructed. No benefits in excess of the essential health benefits have been included in this amount.

Projection Period Index Rate

Geographic Factor Calibration

The geographic factors are developed from historical claims experience. The geographic calibration adjustment is calculated as the member weighted average of the geographic factors, using the projected membership distribution by area.

Experience Period Plan Adjusted Index Rate

The Plan Adjusted Index Rates for the experience period are reported in Worksheet 2, Section III of the URRT. They represent the Plan Adjusted Index Rates filed in 2015.

17. Calibration

The Plan Adjusted Index Rate is calibrated by the Age and Geographic factors so that the schedule of premiums rates for each plan can be further developed. Exhibit L shows both calibration factors.

Age Curve Calibration

The age factors are based on the Default Federal Standard Age Curve. The age calibration adjustment is calculated as the member weighted average of the age factors, using the projected membership distribution by age, with an adjustment for the maximum of 3 child dependents under age 21. Under this methodology, the approximate average age rounded to the nearest whole number for the risk pool is 45.

16. Plan Adjusted Index Rate

The Plan Adjusted Index Rate is calculated as the Market Adjusted Index Rate adjusted for all allowable plan level modifiers defined in the market rating rules. Exhibit K shows the development. The plan level modifiers are described below:

AV and Cost Sharing Adjustments: This is a multiplicative factor that adjusts for the projected paid/allowed ratio of each plan, based on the AV metal value with an adjustment for utilization differences due to differences in cost sharing.

Provider Network Adjustments: This is a multiplicative factor that adjusts for differences in projected claims cost due to different network discounts.

Adjustments for Benefits in Addition to the Essential Health Benefits: This multiplicative factor adjusts for additional non-EHB benefits shown in Exhibit G.

Adjustments for Distribution and Administrative Cost: This is an additive adjustment that includes all the selling expense, administration and retention Items shown in Exhibit I, with the exception of the Exchange user fee. The Exchange user fee has been included in the Market Adjusted Index Rate at the market level.

19. Actuarial Value Metal Values

The Actuarial Value (AV) Metal Values reported in Worksheet 2, Section I of the URRT are based on the AV Calculator. To the extent a component of the benefit design was not accommodated by an available input within the AV Calculator, the benefit characteristic was adjusted to be actuarially equivalent to an available input within the AV Calculator for purposes of utilizing the AV Calculator as the basis for the AV Metal Values. When applicable, benefits for plans that are not compatible with the parameters of the AV Calculator have been separately identified and documented in the Unique Plan Design Supporting Documentation and Justification that supports the Plan & Benefits Template.

20. Actuarial Value Pricing Values

The Actuarial Value (AV) Pricing Values for each plan are reported in Worksheet 2, Section I of the URRT. The AV Pricing Value represents the cumulative effect of adjustments made to move from the Market Adjusted Index Rate to the Plan Adjusted Index Rate. Consistent with final Market Rules, utilization adjustments are made to account for member behavior variations based upon cost-share variations of the benefit design and not the health status of the member. The plan level allowable modifiers to the Index Rate are included in Exhibit K and described in Section 16 above.

21. Membership Projections

Membership projections are reported in Worksheet 2, Section IV of the URRT. They are based on historical and current enrollment, and expected new sales and lapses.

18. Consumer Adjusted Premium Rate Development

The Consumer Adjusted Premium Rate is calculated by calibrating the Plan Adjusted Index Rate by the Age and Geographic calibration factors described above, and applying consumer specific age and geographic rating factors. Exhibit O has the sample rate calculations.

Small Group Plan Premium Rates

For Small Group, the Plan Adjusted Index Rate reflects the member weighted average premium over the calendar year. As such, the Consumer Adjusted Premium Rate column in Exhibit K has been adjusted by the member weighted quarterly premium trend to reflect the July 2017 rates.

26. Effective Rate Review Information

The RBC Ratio for Anthem Health Plans, Inc. is 572.85% as of 12/31/2015.

Current capital and surplus for Anthem Health Plans, Inc. is $284,114,721 as shown on page 5, line 49 of the 2015 Annual Statement.

25. Tiered-Network Benefit Plans

The 2017 Small Group plan portfolio contains four plans with tiered in-network benefits. These plans have up to three networks of provider care and different cost share provisions for each network:

The Tier 1 network is a subset of preferred in-network providers; members have the lowest cost share amounts when utilizing this preferred network.

The Tier 2 network is comprised of the remaining in-network providers and has higher cost share amounts compared to the Tier 1 network.

For tiered PPO plans, the Tier 3 network is comprised of the out-of-network providers and has the highest cost share amounts.

Additional cost of care savings are expected from increased utilization of Tier 1 providers. These savings are used to reduce the tiered plan rate compared to a non-tiered plan with similar cost share provisions.

22. Terminated Plans and Products

Exhibit P provides a listing of 2015 and 2016 plans that will be terminated prior to January 1, 2017. The mapping of terminated plans to the new plans is also included. The same plans continue to be offered for July 1, 2017 as were offered beginning January 1, 2017.

23. Plan Type

The plan type for each plan reported in Worksheet 2, Section I of the URRT is consistent with the option chosen from the drop-down box.

24. Warning Alerts

There is a warning alert in cell A83 on Worksheet 2, Section IV of the Unified Rate Review Template. This is because the Small Group Plan Adjusted Index Rates reflect the member weighted average of the rates for all effective dates in the filing, whereas the Worksheet 1 Single Risk Pool Gross Premium Avg. Rate reflects the effective date of the change in the Index Rate.

The Annual Certification for substituting non-dollar limits on an essential health benefit can be found in Exhibit T.

Appendix A in conjunction with Exhibit A show a summary of the requested rate changes.

28. Reliance

In support of this rate development, various data and analyses were provided by other members of Anthems actuarial staff, including data and analysis related to cost of care, valuation, and pricing. I have reviewed the data and analyses for reasonableness and consistency. I have relied on Wakely Consulting to provide the actuarial certification for the Unique Plan Design Supporting Documentation for the On Exchange Standard plans required by the Connecticut state exchange. I have also relied on Michele Archer, FSA, MAAA to provide the actuarial certification for the Unique Plan Design Supporting Documentation and Justification for plans included in this filing.

Exhibit Q details Anthem's unit cost trend, utilization trend, technology trend, and other trend components.

Benefit buy-down analysis and impact on trend: No explicit buy-down impact was used in the rate development.

Bulletin HC-102 removed the age limit on hearing aid benefits. The expected cost of this change is an additional $0.34 claims PMPM during the 2017 rating period, which is not included in the 2015 experience period. The $0.34 PMPM represents 75% of the expected $0.45 impact of the Oct15 benefit mandate that removed age limits on hearing aids, which was included in the approved 2016 rate filing.

Bulletin HB-5233 requires health insurance coverage for mammograms provided by breast tomosynthesis. Anthem considers this coverage as a new mandate for 2017. The expected cost of this coverage has been considered but no adjustment to the rates has been made to cover the expected increase in cost at this time.

Bulletin HC-104 removed the age limit on infertility benefits. The expected cost of this change is an additional $0.25 claims PMPM during the 2017 rating period, which is not included in the 2015 experience period. The $0.25 represents 100% of the expected impact of the Jan16 benefit mandate that removed age limits on infertility benefits, which was included in the approved 2016 rate filing.

Exhibit R shows the claim lag triangle for the experience data.

27. State Actuarial Memorandum Requirements

Supplemental material to satisfy the 2017 filing requirement notices issued on March 7, 2016 is included below.

The proposed retention charge in the rate development is 22.6%. This is comprised of both fixed and variable expenses and includes selling expense, administrative expense, federal fees, federal income tax, ACA fees, exchange fees and risk and net profit margin. The December 31, 2015 Annual Statement for Anthem Health Plans, Inc. has a retention amount of 22.4%. This amount is calculated from the Analysis of Operations by Lines of Business exhibit on page 7: 1 [line 17, column 2 $791,038,042 / line 7, column 2 $1,018,886,075] = 22.4%.

February 21, 2017Date

(5) The most recent AV Calculator was used to determine the AV Metal Values shown in Worksheet 2 of the Part I Unified Rate Review Template for all plans.

The Part I Unified Rate Review Template does not demonstrate the process used by the issuer to develop the rates. Rather it represents information required by Federal regulation to be provided in support of the review of rate changes, for certification of Qualified Health Plans for Federally-Facilitated Exchanges, and for certification that the Index Rate is developed in accordance with Federal regulation, used consistently, and only adjusted by the allowable modifiers. However, this Actuarial Memorandum does accurately describe the process used by the issuer to develop the rates.

Tu Nguyen, FSA, MAAADirector & Actuary III

(1) The projected Index Rate is:

In compliance with all applicable state and Federal statutes and regulations (45 CFR 156.80 and 147.102)

Not excessive nor deficient

(2) The Index Rate and only the allowable modifiers as described in 45 CFR 156.80(d)(1) and 156.80(d)(2) were used to generate plan level rates.

(3) The percent of total premium that represents essential health benefits included in Worksheet 2, Sections III and IV of the Part I Unified Rate Review Template is calculated in accordance with Actuarial Standards of Practice.

(4) The geographic rating factors reflect only differences in the costs of delivery (which can include unit cost and provider practice pattern differences) and do not include differences for population morbidity by geographic area.

29. Actuarial Certification

I, Tu Nguyen, FSA, MAAA, am an actuary for Anthem. I am a member of the American Academy of Actuaries and a Fellow of the Society of Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. I hereby certify that the following statements are true to the best of my knowledge with regards to this filing:

1

HIOS Plan Name 2017 HIOS Plan IDOn/Off

Exchange Metal LevelBenefit Plan

Factor Network Name Area(s) Offered2016 HIOS Plan ID

Mapping Plan CategoryPlan Specific Rate Change

(excluding aging) {1}

Bronze Standard Pathway X PPO 86545CT1260003 On Bronze 0.6673 Pathway X PPO All 86545CT1260003 Renewing 24.5%Bronze Standard Pathway X PPO w/HSA 86545CT1260008 On Bronze 0.6557 Pathway X PPO All 86545CT1260008 Renewing 30.6%

Silver Standard Pathway X PPO 86545CT1260002 On Silver 0.9742 Pathway X PPO All 86545CT1260002 Renewing 18.4%Silver Standard Pathway X PPO w/HSA 86545CT1260009 On Silver 0.8094 Pathway X PPO All 86545CT1260009 Renewing 30.8%

Gold Standard Pathway X PPO 86545CT1260001 On Gold 1.1914 Pathway X PPO All 86545CT1260001 Renewing 20.1%Platinum Standard Pathway X PPO 86545CT1260010 On Platinum 1.4316 Pathway X PPO All 86545CT1260010 Renewing 33.4%

Bronze Pathway X HMO w/HSA 86545CT1270002 On Bronze 0.6527 Pathway X HMO All 86545CT1270002 Renewing 24.8%Gold Pathway X HMO 86545CT1270001 On Gold 1.0893 Pathway X HMO All 86545CT1270001 Renewing 20.7%

Anthem Silver BlueCare HMO 6000/0%/6550 w/HSA 86545CT1280007 Off Silver 0.6683 BlueCare All 86545CT1280007 Renewing 33.1%Anthem Gold BlueCare HMO 2750/0%/4000 86545CT1280009 Off Gold 1.0923 BlueCare All 86545CT1280009 Renewing 20.2%

Anthem Gold BlueCare HMO Tiered 2000/0%/5500 86545CT1280013 Off Gold 1.0355 BlueCare Tiered All 86545CT1280013 Renewing 20.0%Anthem Platinum BlueCare HMO 30/0%/3000 86545CT1280008 Off Platinum 1.3012 BlueCare All 86545CT1280008 Renewing 24.3%

Anthem Platinum BlueCare HMO Tiered 20/0%/6600 86545CT1280014 Off Platinum 1.2456 BlueCare Tiered All 86545CT1280014 Renewing 25.1%Anthem Bronze Century Preferred PPO 6500/0%/6500 w/HSA 86545CT1300062 Off Bronze 0.6698 Century Preferred All 86545CT1280006 New 33.1%

Anthem Bronze Century Preferred PPO 6000/30%/6550 w/HSA 86545CT1300039 Off Bronze 0.6441 Century Preferred All 86545CT1300039 Renewing 33.6%Anthem Bronze Century Preferred PPO 5500/20%/6550 w/HSA 86545CT1300023 Off Bronze 0.6557 Century Preferred All 86545CT1300023 Renewing 32.6%Anthem Bronze Century Preferred PPO 6000/0%/6550 w/HSA 86545CT1300032 Off Bronze 0.6340 Century Preferred All 86545CT1300032 Renewing 21.4%

Anthem Bronze Century Preferred PPO 5000/50%/6550 w/HSA 86545CT1300058 Off Bronze 0.6774 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3550/20%/7150 86545CT1300045 Off Silver 0.7957 Century Preferred All 86545CT1300045 Renewing 29.8%Anthem Silver Century Preferred PPO 2500/20%/6500 86545CT1300030 Off Silver 0.8487 Century Preferred All 86545CT1300030 Renewing 25.9%

Anthem Silver Century Preferred PPO 2700/25%/5000 w/HSA 86545CT1300022 Off Silver 0.7929 Century Preferred All 86545CT1300022 Renewing 29.3%Anthem Silver Century Preferred PPO 3000/0%/5000 w/HSA 86545CT1300047 Off Silver 0.8295 Century Preferred All 86545CT1300047 Renewing 30.1%

Anthem Silver Century Preferred PPO 3500/30%/5500 86545CT1300038 Off Silver 0.7946 Century Preferred All 86545CT1300038 Renewing 31.8%Anthem Silver Century Preferred PPO Tiered 2750/0%/6000 w/HSA 86545CT1300046 Off Silver 0.7388 Century Preferred Tiered All 86545CT1300046 Renewing 29.6%

Anthem Silver Century Preferred PPO $4000/50%/$7150 86545CT1300055 Off Silver 0.8178 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3000/25%/$7150 86545CT1300053 Off Silver 0.8741 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3750/25%/7150 86545CT1300060 Off Silver 0.8654 Century Preferred All None New 0.0%

Anthem Silver Century Preferred PPO 5000/25%/$7150 86545CT1300051 Off Silver 0.8447 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 2500/50%$6850 86545CT1300056 Off Silver 0.8325 Century Preferred All None New 0.0%

Anthem Silver Century Preferred PPO 2800/20%/4000 w/HSA 86545CT1300057 Off Silver 0.8407 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 3000/20%/6750 86545CT1300054 Off Silver 0.8021 Century Preferred All None New 0.0%Anthem Silver Century Preferred PPO 4500/0%/6000 86545CT1300052 Off Silver 0.7714 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 1500/20%/3000 86545CT1300037 Off Gold 1.1374 Century Preferred All 86545CT1300037 Renewing 22.7%Anthem Gold Century Preferred PPO 1000/20%/5500 86545CT1300043 Off Gold 1.1376 Century Preferred All 86545CT1300043 Renewing 26.7%Anthem Gold Century Preferred PPO 2500/0%/5000 86545CT1300026 Off Gold 1.0835 Century Preferred All 86545CT1300026 Renewing 19.4%

Anthem Gold Century Preferred PPO Tiered 2000/0%/5500 86545CT1300044 Off Gold 1.0392 Century Preferred Tiered All 86545CT1300044 Renewing 19.4%Anthem Gold Century Preferred PPO 2000/0%/3050 86545CT1300059 Off Gold 1.2256 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 1500/0%/3550 86545CT1300050 Off Gold 1.1694 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 2000/0%/3500 86545CT1300048 Off Gold 1.1367 Century Preferred All None New 0.0%Anthem Gold Century Preferred PPO 2000/0%/4900 86545CT1300049 Off Gold 1.0061 Century Preferred All None New 0.0%

Anthem Gold Century Preferred PPO 2500/20%/4600 86545CT1300061 Off Gold 1.0699 Century Preferred All None New 0.0%Anthem Platinum Century Preferred PPO 30/0%/3000 86545CT1300024 Off Platinum 1.3182 Century Preferred All 86545CT1300024 Renewing 24.6%

NOTES:{1} Plan level increases in rates do not include demographic changes in the population.

Exhibit A - Non-Grandfathered Rate Changes



Total Member TotalMedical Drug Medical Drug Medical Drug Capitation Benefit Expense Months PMPM

$164,716,246 $56,699,574 $4,846,230 $19,279 $169,562,476 $56,718,853 $99,852 $226,381,181 468,916 $482.78

Total Member TotalMedical Drug Medical Drug Medical Drug Capitation Benefit Expense Months PMPM

$195,707,323 $65,690,756 $5,756,281 $22,227 $201,463,604 $65,712,983 $99,852 $267,276,439 468,916 $569.99

Note

{1} The 'Experience Rate Claims Experience' above does not account for Rx Rebates; whereas, the claims shown in Worksheet 1, Section 1 of the URRT include them.{2} Drug Claims are processed by an external vendor.

Incurred and Paid Claims: IBNR: Fully Incurred Claims:

PAID CLAIMS:Incurred and Paid Claims: IBNR: Fully Incurred Claims:

ALLOWED CLAIMS:

Paid through March 31, 2016

Exhibit B - Claims Experience for Rate Developments


Experience Rate Claims ExperienceIncurred January 1, 2015 through December 31, 2015

Experience Rate1) Starting Paid Claims PMPM $482.78 Exhibit B2) x Seasonality Maturing Adjustment 1.00003) = Mature Claims PMPM $482.78 = (1) x (2)

4) x Normalization Factor 0.8915 Exhibit E5) = Normalized Claims $430.40 = (3) x (4)

6) x Benefit Changes 0.9865 Exhibit F7) x Morbidity Changes 0.9985 Exhibit F8) x Trend Factor 1.3708 Exhibit F9) x Other Cost of Care Impacts 1.0010 Exhibit F

10) = Projected Paid Claim Cost $581.74 = (5) x (6) x (7) x (8) x (9)

11) Credibility Weight 100.00%12) Blended Paid Claims $581.7413) - Non-EHBs Embedded in Line Item 1) Above $1.0114) = Projected Paid Claims, Excluding ALL Non-EHBs $580.73 = (12) - (13)15) + Rx Rebates -$10.51 Exhibit G16) + Additional EHBs $4.09 Exhibit G17) = Projected Paid Claims Reflecting only EHBs $574.31 = (14) + (15) + (16)18) Paid to Allowed Ratio 0.797119) = Index Rate {2} $720.50 = (17) / (18)

NOTE:{1} Factors above are detailed in subsequent exhibits{2} Index Rate is Projected Allowed Claims for EHBs only

Exhibit C - Index Rate Development



3Q17 4Q17Member Weighted

AverageRenewing Member Weights 21.45% 31.68% 53.13%

Quarterly Allowed Trend 3.6%

Index Rate {1} $720.50 $746.74 736.14$

Reinsurance Contribution {2} $0.00 $0.00Expected Reinsurance Payments -$2.35 -$2.35Risk Adjustment Fee $0.13 $0.13Risk Adjustment Net Transfer -$54.17 -$54.17Exchange User Fee $11.09 $11.68

Paid-to-allowed Ratio 0.7971 0.7971

Market Adjusted Index Rate {3} $663.67 $690.65 679.76$

Quarterly Premium Trend {4} 5.3%

NOTES:

{2} The details of Risk Mitigation programs are shown in Exhibit H. Exchange User Fee is explained in the { } j (( j g ) Paid-to-allowed Ratio){4} The quarterly premium trend reflects quarterly allowed trend, deductible leveraging, and anticipated quarterly changes in risk mitigation programs and non-benefit expenses.{5} Minor rate variances may occur due to differences in rounding methodology.

Exhibit D - Quarterly Index and Market Adjusted Index Rate Development


Rates Effective:

{1} The 3Q17 index rate was derived in Exhibit C. The index rate changes each quarter with the quarterly

Experience Period Population

Future Population

Normalization Factor (1)

Age/Gender 1.0468 1.0468 1.0000Area 1.0011 1.0053 1.0042Network 1.0056 1.0091 1.0035Benefit Plan 0.8285 0.7330 0.8847Total 0.8915

Note

{1} Nomalization Factor = Future Population Factor / Experience Period Population Factor

Exhibit E - Normalization Factors



Average Claim Factors - Experience Rate

Experience RateBenefit changes

EHB Changes 1.0018Network Adjustments 0.9975Rx adjustments 0.9872Total Benefit Changes 0.9865

Morbidity changesTotal Morbidity Changes 0.9985

Trend & Other Cost of Care impactsAnnual Medical/Rx Trend Rate 12.9%# Months of Projection 31.3Trend Factor 1.3708

Other Cost of Care:Medical Management 1.0010Total other Cost of Care Impacts 1.0010

Note{1} Explanation of the factors above is provided in the Actuarial Memorandum

Exhibit F - Projection Period Adjustments



Impact of Changes Between Experience Period and Projection Period:

PMPMRx Rebates ($10.51)

Additional EHBsPediatric Dental $3.63Pediatric Vision $0.46

Total - Additional EHBs $4.09

Additional non-EHBs CCP Packages, Adult Dental, Adult Vision $1.42Non-EHB pmpm (in experience) $0.01Elective Abortion (if Non-EHB) $1.00

Total - Additional Non-EHBs $2.43

NOTES:{1} This exhibit includes projected claims from lines 15 & 16 of Exhibit C and additional non EHBs.

Exhibit G - Other Claim Adjustments



Other Claim Adjustments

Risk Adjustment:PMPM User Fee {1} Net Transfer {2}

Federal Program $0.13 ($54.17)

Reinsurance: {3}

PMPM Contributions Made Expected Receipts

Federal Program $0.00 $0.00State Program {4} $0.00 ($2.35)

Grand Total of All Risk Mitigation Programs ($56.39)

{3} Federal Reinsurance Program is no longer applicable starting in 2017.

{1} The Risk Adjustment User Fee is a member month weighted average of 2017 and 2018 per capita user fee established by HHS.{2} Projected risk adjustment transfer amount is explained in the Memorandum "Risk Adjustment and Reinsurance" Section.

{4} Anthem expects a net gain for 2017 after ceding premium and claims to the CSEHRP pool and paying the annual assessment.

Exhibit H - Risk Adjustment and Reinsurance - Contributions and Payments



NOTES:

Expenses Applied As a PMPM Cost

Expenses Applied as a % of Premium (1)

Expenses Expressed as a PMPM {4}

Administrative ExpensesAdministrative Costs $32.42 $32.42Quality Improvement Expense $6.28 $6.28Selling Expense $21.66 0.33% $23.89Specialty Expenses $1.34 $1.34Misc Admin (PMPM) {5} $2.37 $2.37

Total Administrative Expenses $64.07 0.33% $66.30Taxes and Fees

PCORI Fee $0.21 $0.21

ACA Insurer Fee 1.99% $13.34Exchange User Fee 1.65% $11.09Premium Tax 1.75% $11.74MLR-Deductible Federal/State Income Taxes {2} 2.21% $14.85Misc Taxes & Fees (% prem) {6} 0.99% $6.62

Total Taxes and Fees $0.21 8.58% $57.85Profit and Risk Margin {3} 4.09% $27.48Total Non-Benefit Expenses, Profit, and Risk $64.28 13.00% $151.64

NOTES:

{5} Includes charge for State of Connecticut Vaccine Immunization Program and the DPH assessment.{6} Includes charges for DOI Fees and Assessments.

{3} Profit and Risk Margin shown here is post-tax profit, net of those federal and state income taxes which are deductible from the MLR denominator.{4} Anthem's Non-Benefit Expenses are applied in both PMPM and % of Premium as shown above. The last column expresses all non-benefit Expenses in PMPM only.

Exhibit I - Non-Benefit Expenses and Profit & Risk



{1} The sum of the rounded percentages shown may not equal the total at the bottom of the table due to rounding.{2} Includes only those income taxes which are deductible from the MLR denominator; in particular, Federal income taxes on investment income are excluded.

Numerator: Incurred Claims {1} $576.74 Exhibit C (Line 17) + Exhibit G (Total Non-EHBs)+ Quality Improvement Expense $6.28 Exhibit I+ Risk Corridor Contributions $0.00+ Risk Adjustment Net Transfer -$54.17 Exhibit H+ Reinsurance Receipts -$2.35 Exhibit H+ Risk Corridor Receipts $0.00+ Reduction to Rx Incurred Claims (ACA MLR) -$13.69 Footnote {3}

= Estimated Federal MLR Numerator $512.82

Denominator: Premiums {2} $671.99 Incurred Claims + Exhibit H (Total) + Exhibit I (Total)- Federal and State Taxes $14.85 Exhibit I (Federal/State Income Taxes)- Premium Taxes $11.74 Exhibit I (Premium Tax)- Risk Adjustment User Fee $0.13 Exhibit H- Reinsurance Contributions $0.00 Exhibit H- Misc Admin (PMPM) $2.37 Exhibit I- Misc Taxes & Fees (% of Premium) $6.62 Exhibit I- Licensing and Regulatory Fees $24.64 Exhibit I (PCORI, ACA and Exchange Fees)= Estimated Federal MLR Denominator $611.64

Estimated Federal MLR 83.84%

NOTES:{1} Incurred Claims = Projected Paids Claims for EHB (Exhibit C Line 17) + additional non EHBs (Exhibit G Total Non-EHBs)

* Licensing and Regulatory Fees include ACA-related fees as allowed under the MLR Final Rule.

Exhibit J - Federal MLR Estimated Calculation



{2} Premiums = Incurred Claims in this exhibit + Risk Mitigation Programs in Exhibit H + Non-Benefit Expenses and Profit & Risk Margin in Exhibit I

{3} This is the amount of 2017 pharmacy claims that are attributable to PBM Administrative Expenses (i.e. the "retail spread" or "pharmacy claims margin"). It is calculated by applying the 3rd party margin percentage to the 2017 projected Pharmacy claims including projected rebates.

{4} The above calculation is purely an estimate and not meant to be compared to the minimum MLR benchmark for federal/state MLR rebate purposes:

* The above calculation represents only the products in this filing. Federal MLR will be calculated at the legal entity and market level.

* Not all numerator/denominator components are captured above (for example, fraud and prevention program costs, payroll taxes, assessments for state high risk pools etc.).

* Other adjustments may also be applied within the federal MLR calculation such as 3-year averaging, new business, credibility, deductible and dual option. These are ignored in the above calculation.

HIOS Plan Name HIOS Plan ID

Market Adjusted Index Rate (Exhibit

D)Cost Sharing Adjustment

Provider Network Adjustment

Adjustment for Benefits in Addition

to the EHBSAdministrative Costs

{1}Plan Adjusted Index Rate {2} Calibration Factor {3}

Adjust to 3Q17 eff date

Consumer Adjusted Premium Rate {4}

Bronze Standard Pathway X PPO 86545CT1260003 $679.76 0.5386 1.0012 1.0026 $95.19 $462.67 1.4660 0.9692 $305.87Bronze Standard Pathway X PPO w/HSA 86545CT1260008 $679.76 0.5292 1.0012 1.0027 $93.57 $454.67 1.4660 0.9692 $300.57Silver Standard Pathway X PPO 86545CT1260002 $679.76 0.7874 1.0012 1.0018 $138.66 $675.48 1.4660 0.9692 $446.55Silver Standard Pathway X PPO w/HSA 86545CT1260009 $679.76 0.6538 1.0012 1.0022 $115.31 $561.19 1.4660 0.9692 $370.99Gold Standard Pathway X PPO 86545CT1260001 $679.76 0.9635 1.0012 1.0015 $169.43 $826.11 1.4660 0.9692 $546.13Platinum Standard Pathway X PPO 86545CT1260010 $679.76 1.1582 1.0012 1.0012 $203.45 $992.64 1.4660 0.9692 $656.22Bronze Pathway X HMO w/HSA 86545CT1270002 $679.76 0.5312 0.9913 1.0041 $93.12 $452.55 1.4660 0.9692 $299.17Gold Pathway X HMO 86545CT1270001 $679.76 0.8887 0.9913 1.0025 $154.96 $755.28 1.4660 0.9692 $499.31Anthem Silver BlueCare HMO 6000/0%/6550 w/HSA 86545CT1280007 $679.76 0.5426 0.9913 1.0050 $95.96 $463.37 1.4660 0.9692 $306.33Anthem Gold BlueCare HMO 2750/0%/4000 86545CT1280009 $679.76 0.8887 0.9913 1.0042 $156.00 $757.35 1.4660 0.9692 $500.67Anthem Gold BlueCare HMO Tiered 2000/0%/5500 86545CT1280013 $679.76 0.8424 0.9913 1.0043 $147.96 $718.02 1.4660 0.9692 $474.68Anthem Platinum BlueCare HMO 30/0%/3000 86545CT1280008 $679.76 1.0599 0.9913 1.0034 $185.58 $902.22 1.4660 0.9692 $596.45Anthem Platinum BlueCare HMO Tiered 20/0%/6600 86545CT1280014 $679.76 1.0144 0.9913 1.0036 $177.71 $863.69 1.4660 0.9692 $570.97Anthem Bronze Century Preferred PPO 6500/0%/6500 w/HSA 86545CT1300062 $679.76 0.5228 1.0012 1.0052 $106.77 $464.44 1.4660 0.9692 $307.04Anthem Bronze Century Preferred PPO 6000/30%/6550 w/HSA 86545CT1300039 $679.76 0.5176 1.0012 1.0052 $92.53 $446.57 1.4660 0.9692 $295.22Anthem Bronze Century Preferred PPO 5500/20%/6550 w/HSA 86545CT1300023 $679.76 0.5270 1.0012 1.0051 $94.19 $454.67 1.4660 0.9692 $300.58Anthem Bronze Century Preferred PPO 6000/0%/6550 w/HSA 86545CT1300032 $679.76 0.5095 1.0012 1.0051 $91.12 $439.62 1.4660 0.9692 $290.63Anthem Bronze Century Preferred PPO 5000/50%/6550 w/HSA 86545CT1300058 $679.76 0.5289 1.0012 1.0050 $107.96 $469.71 1.4660 0.9692 $310.52Anthem Silver Century Preferred PPO 3550/20%/7150 86545CT1300045 $679.76 0.6395 1.0012 1.0058 $113.99 $551.72 1.4660 0.9692 $364.74Anthem Silver Century Preferred PPO 2500/20%/6500 86545CT1300030 $679.76 0.6834 1.0012 1.0040 $121.51 $588.45 1.4660 0.9692 $389.02Anthem Silver Century Preferred PPO 2700/25%/5000 w/HSA 86545CT1300022 $679.76 0.6382 1.0012 1.0042 $113.62 $549.80 1.4660 0.9692 $363.46Anthem Silver Century Preferred PPO 3000/0%/5000 w/HSA 86545CT1300047 $679.76 0.6678 1.0012 1.0041 $118.81 $575.16 1.4660 0.9692 $380.23Anthem Silver Century Preferred PPO 3500/30%/5500 86545CT1300038 $679.76 0.6382 1.0012 1.0064 $113.83 $550.97 1.4660 0.9692 $364.24Anthem Silver Century Preferred PPO Tiered 2750/0%/6000 w/HSA 86545CT1300046 $679.76 0.5944 1.0012 1.0045 $105.95 $512.28 1.4660 0.9692 $338.66Anthem Silver Century Preferred PPO $4000/50%/$7150 86545CT1300055 $679.76 0.6384 1.0012 1.0058 $130.04 $567.01 1.4660 0.9692 $374.85Anthem Silver Century Preferred PPO 3000/25%/$7150 86545CT1300053 $679.76 0.6827 1.0012 1.0054 $138.90 $606.07 1.4660 0.9692 $400.66Anthem Silver Century Preferred PPO 3750/25%/7150 86545CT1300060 $679.76 0.6759 1.0012 1.0055 $137.53 $600.03 1.4660 0.9692 $396.67Anthem Silver Century Preferred PPO 5000/25%/$7150 86545CT1300051 $679.76 0.6596 1.0012 1.0056 $134.28 $585.70 1.4660 0.9692 $387.20Anthem Silver Century Preferred PPO 2500/50%$6850 86545CT1300056 $679.76 0.6500 1.0012 1.0057 $132.35 $577.22 1.4660 0.9692 $381.59Anthem Silver Century Preferred PPO 2800/20%/4000 w/HSA 86545CT1300057 $679.76 0.6575 1.0012 1.0041 $133.67 $582.94 1.4660 0.9692 $385.37Anthem Silver Century Preferred PPO 3000/20%/6750 86545CT1300054 $679.76 0.6458 1.0012 1.0040 $114.92 $556.16 1.4660 0.9692 $367.67Anthem Silver Century Preferred PPO 4500/0%/6000 86545CT1300052 $679.76 0.6209 1.0012 1.0042 $110.58 $534.88 1.4660 0.9692 $353.60Anthem Gold Century Preferred PPO 1500/20%/3000 86545CT1300037 $679.76 0.9175 1.0012 1.0029 $162.43 $788.68 1.4660 0.9692 $521.39Anthem Gold Century Preferred PPO 1000/20%/5500 86545CT1300043 $679.76 0.9165 1.0012 1.0042 $162.42 $788.77 1.4660 0.9692 $521.44Anthem Gold Century Preferred PPO 2500/0%/5000 86545CT1300026 $679.76 0.8728 1.0012 1.0042 $154.76 $751.25 1.4660 0.9692 $496.64Anthem Gold Century Preferred PPO Tiered 2000/0%/5500 86545CT1300044 $679.76 0.8369 1.0012 1.0044 $148.48 $720.55 1.4660 0.9692 $476.35Anthem Gold Century Preferred PPO 2000/0%/3050 86545CT1300059 $679.76 0.9594 1.0012 1.0040 $194.25 $849.78 1.4660 0.9692 $561.78Anthem Gold Century Preferred PPO 1500/0%/3550 86545CT1300050 $679.76 0.9152 1.0012 1.0041 $185.39 $810.80 1.4660 0.9692 $536.01Anthem Gold Century Preferred PPO 2000/0%/3500 86545CT1300048 $679.76 0.9170 1.0012 1.0029 $162.32 $788.16 1.4660 0.9692 $521.04Anthem Gold Century Preferred PPO 2000/0%/4900 86545CT1300049 $679.76 0.8111 1.0012 1.0032 $143.81 $697.58 1.4660 0.9692 $461.16Anthem Gold Century Preferred PPO 2500/20%/4600 86545CT1300061 $679.76 0.8617 1.0012 1.0044 $152.84 $741.85 1.4660 0.9692 $490.43Anthem Platinum Century Preferred PPO 30/0%/3000 86545CT1300024 $679.76 1.0631 1.0012 1.0035 $188.00 $914.02 1.4660 0.9692 $604.25

Notes:

{1} This is an additive adjustment that includes all the selling expense, administration and retention Items shown in Exhibit I, with the exception of the Exchange user fee. The Exchange user fee has been included in the Market Adjusted Index Rate at the market level.{2} The Plan Adjusted Index Rate is calculated by multiplying the Market Adjusted Index Rate by the AV and cost sharing, provider network, benefits in addition to the EHBs, and catastrophic plan adjustments and then adding the administrative costs. The Plan Adjusted Index Rate can also be described as a Plan Level Required Premium.{3} See Exhibit L - Calibration.{4} The Consumer Adjusted Premium Rate is equal to 'Plan Adjusted Index Rate' divided by 'Calibration Factor' and then multiplied by Adjust to 3Q17 effective date factor.

Exhibit K - Plan Adjusted Index Rate and Consumer Adjusted Premium Rates



Calibration FactorsAge 1.4589Area 1.0049Total Calibration Factor{1} 1.4660

NOTES:{1} Total Calibration factor was used in Exhibit K.

Exhibit L - Calibration



Average rating factors for 2017 population:

Age Factors Tobacco FactorsAge 2017 20170-17 0.635 1.00018 0.635 1.00019 0.635 1.00020 0.635 1.00021 1.000 1.00022 1.000 1.00023 1.000 1.00024 1.000 1.00025 1.004 1.00026 1.024 1.00027 1.048 1.00028 1.087 1.00029 1.119 1.00030 1.135 1.00031 1.159 1.00032 1.183 1.00033 1.198 1.00034 1.214 1.00035 1.222 1.00036 1.230 1.00037 1.238 1.00038 1.246 1.00039 1.262 1.00040 1.278 1.00041 1.302 1.00042 1.325 1.00043 1.357 1.00044 1.397 1.00045 1.444 1.00046 1.500 1.00047 1.563 1.00048 1.635 1.00049 1.706 1.00050 1.786 1.00051 1.865 1.00052 1.952 1.00053 2.040 1.00054 2.135 1.00055 2.230 1.00056 2.333 1.00057 2.437 1.00058 2.548 1.00059 2.603 1.00060 2.714 1.00061 2.810 1.00062 2.873 1.00063 2.952 1.000

64+ 3.000 1.000

NOTES:

Exhibit M - Age and Tobacco Factors



The weighted average of these factors for the entire risk pool included in this rate filing is provided in Exhibit L.

Rating Area Description

2017 Area Rating Factor

Fairfield 1.0800Hartford 0.9300Litchfield 0.9600Middlesex 0.9800New Haven 0.9800New London 0.9600Tolland 0.9600Windham 0.9600

NOTES:{1} The weighted average of these factors for the entire risk pool included in this rate filing

Exhibit N - Area Factors



Group Name: Sample GroupEffective Date: 7/1/2017On/Off Exchange: OnMetal Level: BronzePlan ID: 86545CT1260008Rating Area: 01

Group Census: Employee Spouse Child #1 Child #2 Child #3Age Age Age Age Age

Employee #1 24 23 0 1Employee #2 26Employee #3 28Employee #4 32 33Employee #5 30 2 4 2Employee #6 45 45 18 15 12 5Employee #7 53 55Employee #8 41 16 13 2Employee #9 56Employee #10 39 25 1Employee #11 62Employee #12 64 64

Calculation of Monthly Premium:Consumer Adjusted Premium Rate $300.57x Area Factor 1.0800Rate Adjusted for Area = $324.62

Age Factors:

Employee Spouse Child #1 Child #2 Child #3Age

FactorAge

FactorAge

FactorAge

FactorAge

FactorEmployee #1 1.000 1.000 0.635 1Employee #2 1.024Employee #3 1.087Employee #4 1.183 1.198Employee #5 1.135 0.635 0.635 2Employee #6 1.444 1.444 0.635 0.635 0.635 3Employee #7 2.040 2.230Employee #8 1.302 0.635 0.635 2Employee #9 2.333Employee #10 1.262 1.004 1Employee #11 2.873Employee #12 3.000 3.000

Final Monthly Premium PMPM:

Employee Spouse Children TotalEmployee #1 $324.62 $324.62 $206.13 $855.37Employee #2 $332.41 $332.41Employee #3 $352.86 $352.86Employee #4 $384.03 $388.89 $772.92Employee #5 $368.44 $412.26 $780.70Employee #6 $468.75 $468.75 $618.39 $1,555.89Employee #7 $662.22 $723.90 $1,386.12Employee #8 $422.66 $412.26 $834.92Employee #9 $757.34 $757.34Employee #10 $409.67 $325.92 $735.59Employee #11 $932.63 $932.63Employee #12 $973.86 $973.86 $1,947.72

NOTES:

{2} This sample calculation ignores the tobacco offset under a Wellness Program as described in the Market Reform Rule.

{3} Minor rate variances may occur due to differences in rounding methodology.

{1} As per the Market Reform Rule, when computing family premiums no more than the three oldest covered children under the age of 21 are taken into account whereas the premiums associated with each child age 21+ are included.

Total Number of Children

Number of Children Rated

{1}

Exhibit O - Sample Rate Calculation



Following are the plans that will be terminated prior to the effective date:

Plan ID Plan Name HIOS Product ID HIOS Product Name2017 Mapped HIOS Plan ID {1}

86545CT1280006 Anthem Bronze BlueCare HMO 6300/0%/6300 Plus w/HSA 86545CT128 HMO Off Exchange 86545CT130006286545CT1280010 Anthem Bronze BlueCare HMO 5000/0%/5500 Plus w/HSA 86545CT128 HMO Off Exchange 86545CT130002386545CT1290006 Anthem Gold BlueCare POS 1000/0%/4500 86545CT129 POS Off Exchange 86545CT130003786545CT1290007 Anthem Gold BlueCare POS 2500/0%/5000 86545CT129 POS Off Exchange 86545CT130002686545CT1290008 Anthem Gold BlueCare POS F 3000/0%/5500 86545CT129 POS Off Exchange 86545CT130002686545CT1290009 Anthem Gold BlueCare POS S 3000/0%/5500 86545CT129 POS Off Exchange 86545CT130002686545CT1300025 Anthem Gold Century Preferred PPO 1000/0%/4500 86545CT130 PPO Off Exchange 86545CT130002686545CT1300027 Anthem Gold Century Preferred PPO 3500/0%/4500 w/HRA 86545CT130 PPO Off Exchange 86545CT130004786545CT1300028 Anthem Silver Century Preferred PPO 1750/20%/5000 w/HSA 86545CT130 PPO Off Exchange 86545CT130002286545CT1300029 Anthem Silver Century Preferred PPO 1500/35%/5500 Plus 86545CT130 PPO Off Exchange 86545CT130003086545CT1300031 Anthem Bronze Century Preferred PPO 3750/20%/6350 w/HSA 86545CT130 PPO Off Exchange 86545CT130002386545CT1300033 Anthem Bronze Century Preferred PPO 4000/20%/6350 Plus w/HSA 86545CT130 PPO Off Exchange 86545CT130002386545CT1300034 Anthem Bronze Century Preferred PPO 5500/30%/6350 Plus w/HSA 86545CT130 PPO Off Exchange 86545CT130002386545CT1300035 Anthem Bronze Century Preferred PPO 5600/10%/6600 Plus 86545CT130 PPO Off Exchange 86545CT130004586545CT1300036 Anthem Bronze Century Preferred PPO 3500/30%/6350 w/HSA 86545CT130 PPO Off Exchange 86545CT130002386545CT1300041 Anthem Gold Century Preferred PPO 1000/0%/3000 86545CT130 PPO Off Exchange 86545CT130003786545CT1300042 Anthem Gold Century Preferred PPO 1000/20%/3000 86545CT130 PPO Off Exchange 86545CT130003786545CT1280011 Anthem Gold BlueCare HMO 1000/0%/3000 86545CT128 HMO Off Exchange NA86545CT1300040 Anthem Gold Century Preferred PPO 1000/0%/3000 86545CT130 PPO Off Exchange NA

Post ACA Terminated Plans

{1} Plans that were offered in 2015 or 2016 that have 0 members were not mapped to a 2017 plan. These plans are indicated "NA" in the "2017 Mapped HIOS Plan ID" Column.

Exhibit P - Terminated Plans


Effective July 1, 2017

This includes plans that have experience included in the URRT during the experience period and any plans that were not in effect during the experience period but were made available thereafter.

Rating Trend

Leveraging

Historical Cost and Utilization Paid Data Inpatient Outpatient Professional Rx Drug TotalNormalized Unit Cost Data (Paid)

CY 2012 $3,558.26 $732.36 $154.65 $86.45CY 2013 $3,777.29 $808.13 $158.09 $92.76CY 2014 $3,795.54 $848.19 $163.23 $105.96CY 2015 $4,030.48 $897.78 $169.96 $121.03CY 2016 $4,401.75 $964.63 $178.92 $131.89CY 2017 $4,775.25 $1,021.76 $186.68 $147.95CY 2018 $5,249.40 $1,110.56 $198.27 $171.98

Utilization Data (per thousand members)CY 2012 24.02 139.68 900.08 1,072.90 2,136.67 CY 2013 23.40 144.10 922.87 1,083.76 2,174.13 CY 2014 23.71 141.54 923.48 1,076.29 2,165.01 CY 2015 24.65 156.31 974.23 1,067.80 2,222.98 CY 2016 25.02 163.08 1,001.31 1,094.49 2,283.90 CY 2017 25.39 170.74 1,016.33 1,105.44 2,317.90 CY 2018 25.77 178.77 1,031.58 1,116.49 2,352.61

Paid PMPMCY 2012 $85.46 $102.29 $139.19 $92.75 $419.69CY 2013 $88.39 $116.45 $145.90 $100.53 $451.28CY 2014 $90.00 $120.05 $150.74 $114.05 $474.84CY 2015 $99.34 $140.33 $165.58 $129.23 $534.48CY 2016 $110.12 $157.31 $179.16 $144.35 $590.94CY 2017 $121.25 $174.46 $189.73 $163.55 $648.99CY 2018 $135.29 $198.53 $204.53 $192.01 $730.36

Paid Trend2013/2012 3.4% 13.8% 4.8% 8.4% 7.5%2014/2013 1.8% 3.1% 3.3% 13.4% 5.2%2015/2014 10.4% 16.9% 9.8% 13.3% 12.6%2016/2015 10.8% 12.1% 8.2% 11.7% 10.6%2017/2016 10.1% 10.9% 5.9% 13.3% 9.8%2018/2017 11.6% 13.8% 7.8% 17.4% 12.5%

2 Year Trends2014/2012 2.6% 8.3% 4.1% 10.9% 6.4%2015/2013 6.0% 9.8% 6.5% 13.4% 8.8%2016/2014 10.6% 14.5% 9.0% 12.5% 11.6%2017/2015 10.5% 11.5% 7.0% 12.5% 10.2%2018/2016 10.8% 12.3% 6.8% 15.3% 11.2%

Based on the considerations below, Anthem proposes a 12.9% rating trend. The rating trend is developed from the expected paid trend.

Exhibit Q - Trend



The use of Paid Claims removes the need to adjust for Leveraging.

Other Trend ComponentsMedical technology trend is included in observed experience and is not an independent assumption.

Observed Paid Trends

Observed trends have been normalized to remove the impact of aging and morbidity, shifts in gender, mandates, and impact of medical benefit changes.

Benefit Buy DownsCost and utilization data in the experience periods includes the impact of benefit buy-downs. The trend process is normalized for benefit buy-down to develop a projected trend for 2016, 2017, and 2018.

Provider ContractingProvider contracting is included in the Unit Cost Data.

Incurred Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 +

201401 $1 $337,848 $189,424 $180,350 $385,168 $267,710 $168,053 $78,014 $26,957 $91,766 $11,213 $35,084 -$500 $3,651 $10,266 -$13,539 $20,930 -$7,190 -$8,725 $2,803 -$1,369 $2,194 $184 $1,700 $313

201402 $365,481 $364,995 $300,301 $299,521 $441,282 $97,057 $147,596 $73,109 $329,369 $59,391 $51,529 $38,243 $254 $10,376 $19,785 -$14,882 -$45,172 -$140,826 -$1,709 $3,470 $6,449 -$635 $0 $352 -$27,643

201403 $782,659 $642,469 $763,256 $583,328 $231,672 $74,033 $193,686 $149,173 $63,612 -$3,970 $14,608 $17,748 $25,758 $52,573 $8,659 -$24,962 $7,451 $2,824 $646 -$2,074 -$224 -$5,303 $17,048 $533 $535

201404 $945,807 $1,596,991 $818,009 $312,489 $118,019 $132,901 $274,705 $139,197 $26,184 $24,112 $65,129 -$47,426 $10,069 $10,007 -$39,726 $5,002 $5,275 $7,856 -$5,080 $1,118 $1,312 $248 $2,660 -$5 $0

201405 $1,512,185 $1,978,164 $508,374 $246,457 $116,347 $292,642 -$5,257 $90,485 $45,260 $8,577 -$1,610 $74,635 $203,687 -$35,642 -$7,364 $5,404 $15,989 -$735 -$4,857 $8,273 $458 $825 $995 $0 $0

201406 $2,709,631 $2,035,809 $513,315 $316,790 $200,834 $199,609 $74,343 $40,446 -$6,493 -$46,106 $29,558 $82,256 -$31,652 $21,573 -$2,047 $25,754 $19,234 -$1,589 -$3,610 -$8,078 $497 -$80 $0 $0 $0

201407 $2,715,200 $3,299,644 $1,266,865 $272,477 $126,949 $124,726 $58,612 -$13,895 -$139,404 $39,292 $16,106 -$14,713 $61,533 $15,461 -$44,963 $64,935 -$79 $6,877 -$10,025 $446 -$339 $0 $0 $0 $0

201408 $3,574,620 $3,562,556 $884,602 $161,809 $105,220 $57,564 -$17,319 $88,937 $62,313 $85,217 -$32,159 $10,672 $6,280 $15,627 $1,020 $5,004 $6,194 $1,302 $16,029 $1,316 $0 $0 $0 $0 $0

201409 $3,926,659 $4,372,832 $599,634 $205,956 $199,817 $33,666 -$4,206 $110,082 $19,438 -$2,583 $29,205 $6,039 $4,801 $21,416 $3,720 -$10,246 $6,895 $326 $1,653 $0 $0 $0 $0 $0 $0

201410 $5,450,710 $4,412,089 $1,203,176 $469,997 $71,128 $55,525 $53,127 $74,473 $3,921 $26,813 $13,388 $18,282 $12,096 $16,141 $14,912 $3,996 $52 $46 $0 $0 $0 $0 $0 $0 $0

201411 $4,276,893 $6,498,415 $670,323 $235,451 $231,144 $216,252 $49,568 $124,258 $195,792 $57,791 $46,404 $34,014 $20,204 -$124,485 $5,327 -$1,755 -$70,424 $0 $0 $0 $0 $0 $0 $0 $0

201412 $8,519,669 $7,683,516 $1,261,563 $571,472 $397,562 $358,696 -$72,508 $88,877 $22,954 $106,554 $19,316 -$18,557 -$52,269 $3,099 $29,260 -$30,176 $0 $0 $0 $0 $0 $0 $0 $0 $0

201501 $7,861,064 $6,712,074 $1,206,099 $980,189 $1,375,167 $137,899 $122,049 -$6,817 $108,207 $10,301 -$43,613 -$3,084 $8,004 $45,586 -$45,659 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201502 $7,843,981 $7,263,497 $905,574 $639,164 $399,718 $133,630 $36,702 $495,944 $73,894 -$20,624 -$31,489 $14,816 $16,455 -$29,528 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201503 $8,435,170 $9,104,678 $806,112 $908,060 $619,236 $48,967 $221,143 -$5,649 -$360,368 -$145,971 -$9,255 $54,730 $1,288,072 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201504 $7,354,630 $9,229,006 $1,078,153 $357,975 $189,891 $272,201 $537,944 $46,719 -$5,532 $54,419 -$53,279 -$4,392 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201505 $8,334,864 $7,729,509 $1,153,357 $284,002 $487,720 $283,092 $128,738 $883 $81,983 $13,972 -$157,316 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201506 $8,326,522 $8,518,057 $809,202 $574,916 $551,598 $567,249 $213,003 $26,650 $80,968 $110,430 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201507 $10,079,336 $6,307,207 $1,399,077 $502,180 $376,686 $139,573 $15,592 $80,046 $157,187 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201508 $7,393,690 $7,508,591 $1,496,861 $332,041 $111,618 $128,838 $207,865 $61,086 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201509 $7,052,066 $8,543,693 $1,261,506 $257,282 $174,507 $70,532 $139,181 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201510 $7,934,723 $7,622,943 $1,712,852 $283,855 $304,990 $188,447 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201511 $6,917,531 $8,509,836 $1,193,725 $344,452 $106,304 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

201512 $6,840,431 $7,291,342 $1,111,091 $635,905 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Notes:{1} As noted in Section 28. State Actuarial Memorandum Requirements, this exhibit displays the claim lag triangle for Small Group ACA experience, which was the basis of the Small Group ACA rate

Exhibit R - Claims Lag Triangle


Paid through March 31, 2016

Lag

CT Small Group CT Small Group Non-ACA CT Small Group ACA

Member Months

Premium PMPM

Incurred Benefit Expense PMPM

Paid Benefit Expense PMPM

Incurred Loss Ratio

Paid Loss Ratio

Member Months

Premium PMPM



Incurred Loss Ratio

Paid Loss Ratio

Member Months

Premium PMPM



Incurred Loss Ratio

Paid Loss Ratio

CY 2011 975,299 $511.09 $406.21 $407.14 79.5% 79.7% 975,299 $511.09 $406.21 $407.14 79.5% 79.7% - $0.00 $0.00 $0.00 0.0% 0.0%CY 2012 1,088,077 $521.54 $419.60 $412.52 80.5% 79.1% 1,088,077 $521.54 $419.60 $412.52 80.5% 79.1% - $0.00 $0.00 $0.00 0.0% 0.0%CY 2013 1,112,406 $549.18 $442.85 $440.49 80.6% 80.2% 1,112,406 $549.18 $442.85 $440.49 80.6% 80.2% - $0.00 $0.00 $0.00 0.0% 0.0%

201401 87,341 $571.62 $469.12 $479.22 82.1% 83.8% 82,962 $565.34 $471.57 $503.70 83.4% 89.1% 4,379 $690.58 $422.70 $15.48 61.2% 2.2%201402 85,598 $574.32 $408.08 $428.96 71.1% 74.7% 78,996 $564.69 $411.04 $454.88 72.8% 80.6% 6,602 $689.59 $372.70 $118.79 54.0% 17.2%201403 83,390 $576.24 $445.25 $453.46 77.3% 78.7% 74,037 $563.43 $453.93 $493.72 80.6% 87.6% 9,353 $677.72 $376.56 $134.79 55.6% 19.9%201404 81,772 $576.87 $441.85 $409.23 76.6% 70.9% 70,501 $562.69 $449.05 $444.40 79.8% 79.0% 11,271 $665.57 $396.77 $189.26 59.6% 28.4%201405 80,090 $579.63 $449.31 $429.26 77.5% 74.1% 66,800 $561.55 $464.26 $447.72 82.7% 79.7% 13,290 $670.50 $374.16 $336.50 55.8% 50.2%201406 77,728 $580.85 $439.82 $488.63 75.7% 84.1% 61,154 $560.66 $458.64 $510.46 81.8% 91.0% 16,574 $655.34 $370.40 $408.06 56.5% 62.3%201407 75,148 $576.41 $475.03 $423.08 82.4% 73.4% 55,454 $557.36 $502.98 $464.72 90.2% 83.4% 19,694 $630.07 $396.35 $305.84 62.9% 48.5%201408 73,606 $573.64 $439.92 $462.27 76.7% 80.6% 51,788 $556.64 $460.69 $503.17 82.8% 90.4% 21,818 $613.99 $390.62 $365.20 63.6% 59.5%201409 70,710 $569.56 $449.90 $477.85 79.0% 83.9% 45,971 $557.27 $484.86 $526.05 87.0% 94.4% 24,739 $592.38 $384.95 $388.28 65.0% 65.5%201410 67,999 $563.84 $500.98 $517.99 88.9% 91.9% 41,007 $554.74 $541.65 $560.09 97.6% 101.0% 26,992 $577.67 $439.20 $454.03 76.0% 78.6%201411 65,108 $552.39 $448.01 $448.12 81.1% 81.1% 35,554 $548.58 $469.62 $538.44 85.6% 98.2% 29,554 $556.97 $422.01 $339.46 75.8% 60.9%201412 46,394 $477.37 $404.30 $591.01 84.7% 123.8% 91 $694.69 -$2,852.82 $114,280.62 -410.7% 16450.5% 46,303 $476.94 $410.70 $367.57 86.1% 77.1%CY 2014 894,882 $567.84 $448.35 $462.22 79.0% 81.4% 664,315 $560.52 $464.55 $504.66 82.9% 90.0% 230,567 $588.92 $401.67 $339.96 68.2% 57.7%

201501 43,385 $600.37 $427.24 $396.69 71.2% 66.1% - $0.00 $0.00 $0.00 0.0% 0.0% 43,385 $600.37 $427.24 $396.69 71.2% 66.1%201502 42,432 $608.81 $404.62 $368.11 66.5% 60.5% - $0.00 $0.00 $0.00 0.0% 0.0% 42,432 $608.81 $404.62 $368.11 66.5% 60.5%201503 41,512 $616.27 $534.14 $415.20 86.7% 67.4% - $0.00 $0.00 $0.00 0.0% 0.0% 41,512 $616.27 $534.14 $415.20 86.7% 67.4%201504 40,865 $624.11 $462.56 $467.70 74.1% 74.9% - $0.00 $0.00 $0.00 0.0% 0.0% 40,865 $624.11 $462.56 $467.70 74.1% 74.9%201505 40,337 $626.43 $452.92 $522.23 72.3% 83.4% - $0.00 $0.00 $0.00 0.0% 0.0% 40,337 $626.43 $452.92 $522.23 72.3% 83.4%201506 39,366 $629.63 $504.42 $466.81 80.1% 74.1% - $0.00 $0.00 $0.00 0.0% 0.

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