A newsworthy judicial item in the healthcare blogosphere this morning. A judge has ruled against private insurers in Massachusetts moves to increase premium rates as planned for 2010 which cover small businesses. Siding for the state’s insurance commission, the judge said the companies could not justify those increases as they exceed the medical inflation rate. This action will most assuredly set up a protracted battle between the state’s Governor’s ability to decide just how far rates can increase (premium rate cap imposition).
Also, Governor Duval Patrick’s rival in this fall’s elections just happens to be the former CEO of Massachusetts’ second-largest insurer. It’s just one of a handful of health insurers who promise to fight back, claiming that the state’s projected caps could threaten their solvency — invoking an amount of $100 million in losses. They blame hospitals and physician-related expenses for justification of premium rate increases. The judge in this case has asked for findings of fact prior to ultimate court actions. | LINK
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[...] This post was mentioned on Twitter by Michael Douglas. Michael Douglas said: Massachusetts Wins First Round of Fight against State’s Insurers: A newsworthy judicial item in the healthcare blo… http://bit.ly/bSADum [...]
[...] in their quest for justification of premium hikes as a result of the report in light of the recent ruling in favor of the state to cap such increases. | LINK | PDF report from the Mass. Division of [...]
[...] test the state government’s reach on the regulation of premiums crescendoed recently, with a judicial ruling that expressed that the state was able to cap premium rate increases coverage for small businesses. [...]