The AP (5/18) reports that
Blue Cross Blue Shield of Massachusetts, the Fallon Community
Health Plan, Harvard Pilgrim Health Care, and the Tufts Health
Plan "are blaming Gov. Deval Patrick (D) for contributing to a
more than $100 million loss in the first quarter of the year."
According to Massachusetts Association of Health Plans President
Lora Pellegrini, "the cap caused losses of $116 million for" the
states' "four major health insurers," which had "proposed small
business premium hikes of up to 32 percent."
The Boston Globe
(5/17, Weisman) reported that "on April 1, the Massachusetts
Division of Insurance (DOI) rejected the insurers' proposed
double-digit premium increases for small businesses and
individuals in the so-called small group market, instead
ordering the carriers to continue using premiums that took
effect a year earlier." The health insurers, "which contend they
will lose millions of dollars because of the rate caps, are
challenging the decision in administrative hearings and through
a lawsuit in Suffolk Superior Court."
CQ HealthBeat (5/18)
reports, "Blue Cross Blue Shield of Massachusetts reported a
$65.2 million net loss for the first three months of the year
and an operating loss of $95.5 million," while "Harvard Pilgrim
Health Care of Wellesley reported a net loss of $27 million and
an operating loss of $28.6 million." Meanwhile, "Tufts Health
Plan of Watertown had a net loss of $51.9 million and an
operating loss of $59 million, and Fallon Community Health Plan
reported a net loss of $8.5 million and an operating loss of
$10.8 million."
The Boston Business Journal
(5/17, Donnelly) reported that because "Gov. Deval Patrick
instructed the DOI to reject any small business premium rate
hikes that were 'excessive,'" the "vast majority of plan rates
for 2010 were rejected." For their part, the health insurers
charge in their lawsuit that "they would suffer hundreds of
millions in losses if the proposed rates are not approved, and
that it is the responsibility of the DOI to maintain the
solvency of the health insurers."
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