As governors around the country are deciding whether to align themselves politically with Obama’s plan for reform, a report just out details the current state of the healthcare economy in Massachusetts, the first state in the nation with a comprehensive universal coverage mechanism.

With respect to the insurers, the major question is whether or not premium hikes over the past decade further fattened their profit margins. While that parameter may seem readily apparent, the report’s executive summary explains that increases in revenue may be offset by the insurers’ liabilities, investments, and risk-adjusted expenses.

The study comes as insurers are challenging the state’s rejection of premium increases for individuals and small businesses, warning that it could threaten the insurance industry’s financial stability and even push some into receivership.

What remains to be seen among the state’s eight insurers is if they have any more leverage 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 Healthcare Finance & Policy

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