Court Blocks Hikes Sought by Massachusetts Health Insurance Corps.
A Massachusetts court yesterday blocked premium increases—some as high as 40 percent—sought by six state health insurers. The action by the Suffolk Superior Court was the second time the insurance companies’ bid to boost rates was rejected. The state Division of Insurance rejected the rate hikes last month, calling them “excessive.”
The insurance companies then filed suit claiming the state has no authority to block the premium increases and sought an injunction to prevent the state from regulating premiums until the suit comes to trial. The judge rejected the request.
In an interview with the Boston Globe, Gov. Deval Patrick (D) praised the court’s decision.
Unless insurers can give us a good reason, when everything else is flat, that they deserve 20 percent, 30 percent and in some cases 40 percent increases, they’re going to be denied.
