Archive for July 23rd, 2010

Fallon Health Plans Appeals State’s Caps

Friday, July 23rd, 2010

bostonMassachusetts state regulators are trying to get skyrocketing health care costs under control.  According to The Boston Globe article “State caps more health insurance rates” by Robert Weisman, 137 health insurance companies had their rates capped at 2009 levels.  Fallon Health Plans and two others filed appeals on the decision; they will wait until later in the summer to find out what will come of their appeals.

Four companies in the small group market did have premium increases in the single-digits approved.  Three insurers will be providing more information to the state before a decision is made on their requested double-digit increases.  This latest decision is for the three-month period ending in September and is quite a different outcome than the last three-month period where nearly all of the premium increases were rejected.

While officials with the state argue that they are using these rate caps to help small businesses and working families struggling in a tough economy, insurance companies say that the rates officials are forcing upon them are wreaking financial havoc by making them operate at a loss.  Insurers were given the ability to prove their case for increasing customers’ rates.  If they can’t prove necessity, their rate increases will not be approved.