Suit Filed in Massachusetts

April 6, 2010

Six insurers and an industry trade group filed suit Monday in response to rejected proposed premium increases

Last week the Massachusetts Division of Insurance rejected 235 out of 274 proposed rate increases that were scheduled to take effect April 1st. The insurance carriers claim that the rate rejection in addition to the premium rate cap imposed by the Patrick administration could lead to losses in the hundreds of millions of dollars. The Division of Insurance claims the rate increases were excessive and unreasonable for the benefits provided (rate increases requested were an average of 8 to 32 percent). The insurers are seeking a hearing Thursday on a temporary injunction to suspend the rate cap and have also asked for an expedient trial by June 15.

In an editorial in the April 6th Wall Street Journal, assert that the healthcare law will politicize medical treatment decisions. Cited is the National Institute for Health and Clinical Excellence in Britain where some advanced treatments for cancer are denied because of the cost. At risk is the decrease of innovation and treatment availability and increased morbidity of some medical conditions.

More on the two above articles can be found in the April 6, 2010 NAHU Newswire.

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