Massachusetts Health Insurance Companies Forced to Keep Old Rates

In the state of Massachusetts, health insurers have been battling with Governor Deval Patrick and other state regulators over their proposed premium increases. After major insurance companies filed for 2010 increases for their individual and family policies of up to 32 percent, the state’s insurance department denied them and demanded an explanation.
The health insurance companies have vowed to continue their appeals and have even considered filing a lawsuit. Until the process is exhausted, they have been ordered to maintain last year’s lower rates. The two insurers most recently Child Therapy Techniques affected by this order are Fallon Community Health Plan and Harvard Pilgrim Health Care. Those premium increases were scheduled to become effective this month, before they were blocked by the Massachusetts insurance department.
According to the health insurers, continuing to charge the lower rates will irrevocably harm their finances, and even put some of them out of business. They direct blame for the rate increases on soaring medical costs, including higher payments to hospitals and doctors. The health of their policyholders is also a factor, with worse health status resulting in insurance companies having to pay out more costly claims.
The governor has the power to deny rate increases that are deemed excessive, which he has been using. For now, they have to submit new proposals for health insurance plan premiums. Those increases must begin with Community Pharmacy Work Experience 2009 base rates, as opposed to the new ones. Meanwhile, they must continue selling individual and small group health insurance coverage at the lower rates until the administrative appeals process is exhausted.