Posted on 04/01/2010 1:34:18 PM PDT by reaganaut1
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 insurance division, in letters to insurers, outlined reasons for the disapprovals. Among them were proposing rates significantly above the medical consumer price index - a measure estimated at 4.8 percent - and failing to explain how different health care providers were paid different rates of reimbursement.
...
Lora Pellegrini, president of the Massachusetts Association of Health Plans, said her organization was working with insurers to look at their adminstrative and legal options.
Three of the four largest nonprofit health insurance carriers posted operating losses in 2009 due to job cuts at businesses that buy health insurance, increased use of medical services by employees fearful of losing benefits, and the slumping value of investments.
"We're going to review all the options that are available to us," Pellegrini said. "At the end of the day, if we're not going to be allowed to have our prices cover our costs, that will be a problem for the whole industry."
(Excerpt) Read more at boston.com ...
A better question is “Is this what happens when Government gets involved with Health Caare Insurance?”
Was that a rheoterical question? Where are the Mittbots???
Romney, the gift that keeps on giving.
Rate caps sound really nice to the rank and file citizen but they don’t really understand all of the ramifications.
What now cash cow?
The complete and utter ignorance an stupidity of so many in the political class is truly breathtaking. It is matched only by the complete and utter ignorance and stupidity of those who elect them.
It really does make sense . . . If you're afraid you are about to lose your job, you might as well go out and get any medical treatments you need ASAP -- before you lose your insurance.
“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.”
Wait, Mitt said his Romneycare was free market and not run by the state. I’m confused!
Remember when California didnt allow utilities to charge electric consumers what they were forced to pay(price controls). Electric shut off!
Romney is to world of politics what Herpes is to the world of STD’s. Once you think you’re rid of him, he flares up again.
Why don’t they just “deem” that the insurance premiums are already high enough to cover expenses? That should work.
Then the government will take them over and lose even more money.
Il Douche’ Jr., game, set, match...
Good question. Soon no insurance companies will do business in Massachusetts.
Either that, or the insurers will be forced to low ball the providers so severely that a huge percentage of physicians will either get out of medicine or flee Massachusetts, and most hospitals will close.
Libeerals just don’t get the fact that nothing is free. You can keep trying to push the costs onto another party, but eventually somebody has to pay.
We shoot for system wide margins of 2 to 3% in order to maintain our bond ratings. If people think healthcare is making money hand over fist, they should think about that.
I'm getting tired of this Romney BS. Grow up! It was the entire liberal legislature that thought up the idea and Romney went along. So if you are blaming Romney alone you are really misinformed. I am not a Romney fan but getting tired of crucifying one for the problem of the masses in State that wanted it.
Patrick running interference for his homey...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.