Health Insurers Sue in Massachusetts to Raise Rates
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Apr 8th, 2010
Health Insurers Sue in Massachusetts to Raise Rates
The Boston Globe reports that a half-dozen health insurers filed a lawsuit on April 5 seeking to reverse last week’s decision by the Massachusetts insurance commissioner to block double-digit premium increases — a ruling they say could leave them with hundreds of millions in losses this year.
The proposed rate hikes would have taken effect April 1 for plans covering thousands of small businesses and individuals. Insurers wanted to raise base rates an average of 8 percent to 32 percent; tacked on to that are often additional costs calculated according to factors such as the size and age of the workforce.
Monday’s legal action sets the stage for a showdown between Massachusetts regulators and the health insurance industry.
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