MA Rejects Proposed Insurance Premium Hikes

[WilliamPitt]

Mass. rejects proposed health care premiums hikes
April 1, 2010 10:49 AM

By Robert Weisman, Globe Staff

Making good on Governor Deval Patrick's promise to reject health insurance rate hikes deemed excessive, the state Division of Insurance this morning turned down 235 of 274 increases proposed by Massachusetts health insurers for small businesses and individuals.

The ruling, stemming from emergency regulations the governor put in place in February, marks the first time state government in Massachusetts has used its authority to deny health premium increases. It is expected to have wide ramifications in the health care industry and in the gubernatorial campaign, where Republican challenger Charles Baker already has criticized rate caps.

Insurance Commissioner Joseph G. Murphy disapproved most of the base rates proposed by state health plans, finding that they included excessive increases and were "unreasonable relative to the benefits provided," according to a statement issued by the division.

The rates were to have taken effect today for many health insurance policies in the so-called small group market, a merged market that includes small businesses and individuals.

Health insurance carriers had proposed rate hikes ranging from 8 to 32 percent. For now, the old premium rates remain in effect. Any policyholders that already have made premium payments under the new rates will receive a refund or credit, the insurance division said.

"For me, this is all about jobs," said Patrick as he met with a group of 10 small business owners at a clock factory in Chelsea this morning. "And creating conditions in which small businesses will start hiring. And without that, we don't have an economic recovery."

The rest: http://www.boston.com/business/ticker/2010/04/mass_rejects_re.html