The New York Times (4/2, A14, Sack) reports, "With the encouragement of Gov. Deval L. Patrick (D), Massachusetts insurance regulators took the extraordinary step Thursday of rejecting nearly 9 out of 10 rate increases requested by the state's health insurers." The proposed increases, "which were for individual and small-group plans, ranged from seven percent to 34 percent." While "small businesses cheered the state's intervention...health insurers predicted disruption in the marketplace."

        The AP (4/2, Johnson) reports that Insurance Commissioner Joseph Murphy said the proposed rate increases included "excessive increases and rates unreasonable relative to the benefits provided." But, insurance companies "say caps on their charges are justified only if there are similar caps on the costs that healthcare providers -- such as doctors and hospital networks -- charge them."

        They argued that the move "would usher in an era of price controls, and vowed to appeal to the state or though the courts," the Boston Globe (4/2, A1, Weisman) reports on its front page. Meanwhile, "small businesses applauded the rejection of higher premiums, saying they can't continue to endure rapidly escalating insurance bills." The rates "established last year" will "remain in effect" for now.

        "The move is a rare rebuke for the state's insurers, as past rate hikes have essentially been rubber stamped by state regulators," the Boston Business Journal (4/1, Donnelly) reported.

        Maine Court To Rule On Regulator's Rejection Of Anthem Premium Increase. The Wall Street Journal (4/2, Mathews, Johnson, subscription required) reports that in Maine, a court is expected to rule on a decision last year by a state regulator to reject Anthem Blue Cross and Blue Shield's proposed premium increase, citing rising healthcare costs. A smaller increase was approved instead, which left Anthem losing money on individual policies. The case is being watched closely throughout the nation, as the decision may have implications for state regulation of insurance.

USA Today (4/2, Schouten) reports, "The next battles over President Obama's sweeping revamp of the nation's healthcare system will be waged in the states -- where healthcare interests are heavily invested." Notably, "six of the 15 attorneys general who have challenged the new law count healthcare interests among the top five industries giving to their most recent campaigns," data indicate. According to one expert, "All of these companies know that they are not involved in just one healthcare debate. ... They know that they have to be players at the state and the federal level." Indeed, "states will play a big role in implementing the healthcare law, which will expand Medicaid...and will require states to create exchanges for individuals to compare and purchase coverage."

        WSJournal: AGs Posing Serious Constitutional Challenge To Health Reform Law. The Wall Street Journal (4/2, A16 subscription required) says in an editorial that although the media are characterizing the constitutional challenges to President Obama's new healthcare law as hopeless efforts on the part of health reform opponents, these challenges are in fact a serious matter, with serious implications for Americans' rights and liberty. The Journal argues that the individual mandate is an unprecedented expression of power, and that while Democrats maintain that it is warranted, the courts have not yet ruled that any federal law can be justified under the Commerce Clause.

        Arizona Governor Seeks To Challenge Healthcare Law Over AG Objections. The AP (4/2, Cooper) reports, "Republican Arizona Gov. Jan Brewer has signed a bill giving her authority to skirt the state's Democratic attorney general and file a lawsuit challenging federal healthcare legislation. Brewer signed the legislation Thursday after requesting last week that lawmakers approve it." The AP adds, "Attorney General Terry Goddard, a Democrat, angered Republicans last week by declining to join more than a dozen other states in suing to block the healthcare overhaul bill signed by President Barack Obama."

        Democratic AGs Facing Increased Pressure To Challenge Health Reform Law. The Politico (4/2, Catanese) reports, "Until recently, the Democratic attorneys general have largely sat on the sidelines as more than a dozen of their GOP counterparts banded together to pursue a lawsuit against [health reform], the centerpiece of President Barack Obama's domestic policy agenda. Like many in their party, they dismissed the suit as a naked political play without any legal grounding -- an opinion based on the fact that many of the Republicans advancing the cause are seeking higher office." Now, however, "some of the Democratic AGs have become reluctant combatants, dragged into the fray by GOP governors and legislators who insist that their reluctance to join the case is a clear attempt to protect their national party's interests." Notably, the Democratic AGs "facing the most pressure tend to hail from Republican-leaning states."

The AP (4/2, Johnson) reports, "In about six months, the new law will allow at least 2 million young adults to be covered under their parents' policies. These are the 'millennials,' those who came of age in the new century and now are struggling to get on their feet during the worst slump since the Depression." The new "law will allow young adults to stay on or return to their parents' insurance until age 26. To qualify, young people must be 'dependents' of their parents," although "they don't necessarily have to live under the same roof." The law allows married children to be covered, "but not their spouses or their kids," and it remains unclear "whether parents must wait until their health plan's next open enrollment period to sign up their uninsured older children."

        Some Barriers To Health Insurance Coverage To Be Removed In June. CNNMoney.com (4/2, Kavilanz) reports, "For millions of uninsured or underinsured Americans, health reform legislation will soon remove some of the barriers preventing them from getting the coverage they need." Notably, the "most immediate changes affecting those who don't have health insurance, or are not buying enough insurance to meet their needs, start in about 81 days." Meanwhile, "many other longer term measures will be phased in over the next few years."

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