The New York Times (4/13,
A16, Sack) reports, "Gov. Deval L. Patrick won the first round
Monday in a legal dispute with health insurers over the state's
recent rejection of rate increases requested by the companies.
Ruling in a lawsuit brought by the companies, Judge Stephen E.
Neel of Suffolk Superior Court in Boston said he would not block
the state from denying the increases because the insurers had
not exhausted their right to appeal administratively."
According to the AP
(4/13), "In his ruling...Neel denied a request from the insurers
that the court allow them to go ahead with planned 2010 rate
increases for plans covering small businesses. Neel said the
insurers hadn't exhausted the state's administrative hearing
process yet." Notably, the "state Division of Insurance had
rejected the bulk of the proposed increases, saying the
companies have not justified them, and that they exceed the
medical inflation rate." But, the "insurers have argued that the
state's decision earlier this month to reject nearly all of
their proposed 2010 premium increases will cause 'destabilizing'
losses for them."
The Christian Science
Monitor (4/13, Buchanan) says that a total of "six
insurance companies sued, arguing the state does not have the
regulatory authority to cap premiums. They said they would lose
$100 million without the premium increase, plus even more in the
administrative costs of having to redesign their plans."
Meanwhile, in a front-page article, the
Boston Globe (4/13, A1,
Weisman) reports, "The case has focused a national spotlight on
the tug of war between regulators and a healthcare system over
mounting costs for consumers and businesses," and adds that
"Neel's decision not to grant an injunction sought by the
insurers means the state Division of Insurance's rejection of
235 proposed rate hikes stands for now." In response to this
ruling, Gov. Patrick "hailed Neel's decision as a victory for
small businesses and families that have been burdened by years
of rising healthcare expenses." The
Boston Herald (4/13, McConville) and the
Boston Business Journal
(4/13, Donnelly) also cover the story.
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