Mass. Health Insurers Want Significant Rate Hikes (up to 32%!)

[Bluebear]

BOSTON (AP) ― Massachusetts health insurance companies have asked the state to approve significant rate hikes, weeks after Gov. Deval Patrick warned his administration might turn down increases it deemed excessive.

The insurers have asked for increases of 8 to 32 percent, starting April 1.

Last month, Patrick said the state Division of Insurance would review rate increases higher than 4.8 percent as part of a broader effort to control health care expenses.

The Boston Globe reports that if the state rejects the increases, it would be the first time Massachusetts has capped health insurance rates.

Insurers say the increases are mostly the result of a rise in medical spending. They say if the state caps the rates, it would cause confusion because contracts have already been negotiated under the higher rates.

http://wbztv.com/wireapnewsma/Mass.health.insurers.2.1542106.html

[sakabatou]

1. Deny the insurance companies!

[Tippy]

2. Seems to me they should have held off on their negotiating...

Hope the Gov. tells them so....

[Hello_Kitty]

3. So mandates aren't magical after all. eom

[frazzled]

6. They do if there is regulatory oversight ... as is contained in the current bill

Massachusetts can and probably will kick these insurers off their state exchange if they exceed certain rates (in advance of the national oversight board). It all works--but only if COMPREHENSIVE reform is adopted. You can't just legislate one part of it--and you also can't attack it based on just one part of it.

[frazzled]

7. Deleted for double past

Man, this is acting up today

[laughingliberal]

9. +1 nt

[dkf]

4. Mandates don't work. Don't they have an exchange too?

This is an omen of things to come under the hcr bill we have now.

[Hello_Kitty]

8. Well see, um, it needs to be made more COMPREHENSIVE.

Yeah, that's the ticket, comprehensive.

[Trillo]

5. Why should insurance prices increase faster than the CPI?

"Over the last 12 months, the index
increased 2.6 percent before seasonal adjustment."
http://www.bls.gov/news.release/cpi.nr0.htm

Capping at 4.8% seems some kind of odd ($), unless state-level inflation is really out of control in Massachusetts. If there's a skewed CPI, shouldn't it skew for everyone equally, including insurance corporations?

[Bluebear]

10. Yes.

Just, yes!