The New York Times (4/6, A15, Sack) reports, "Six Massachusetts health insurers and an industry trade group filed suit Monday to challenge last week's denial by the state of nearly nine out of 10 rate increases requested by the companies." Overall, Gov. Deval Patrick's (D) administration rejected "235 out of 274 proposed premium increases," which "were scheduled to take effect April 1."

        The AP (4/6, Johnson) reports that the insurers contend that "a premium rate cap imposed by the Patrick administration on small business health plans" after denying the increases "was arbitrary, politically motivated and could lead to losses in the 'hundreds of millions of dollars.'" The insurers are seeking "a hearing Thursday on a temporary injunction to suspend the cap, as well as a speedy trial by June 15." The administration claimed that the insurers sought "excessive increases and rates unreasonable relative to the benefits provided."

        On its front page, the Boston Globe (4/6, A1, Weisman) reports, "Insurers wanted to raise base rates an average of 8 to 32 percent; tacked on to that are often additional costs calculated according to factors such as the size and age of the workforce." Their complaint "alleges that the state Division of Insurance acted illegally in three ways: by imposing a 'rate cap' that is arbitrary and capricious; by attempting to peg rates to a measure...that does not predict future costs; and by violating a requirement to enable insurers to charge adequate rates based on their projected costs in covering medical care."

        The Boston Business Journal (4/6, Donnelly) reports that the Division of Insurance "has said that plans must either refund the rate increases or credit them to small businesses accounts." The Boston Herald (4/6, McConville) also covers the story.

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