Will rising premiums play havoc with the mandatory insurance law in Massachusetts? What will have to give here as well if the increases are held to 5%? What kind of insurance will be available if the payers feel they are not adequately paid for the policies offered? BD
Concerned that rising costs could jeopardize Massachusetts' landmark health insurance initiative, a state panel voted yesterday to press insurers to hold premium increases to 5 percent next year for unsubsidized plans sold across the state. The panel also instructed insurers to try to curb premiums without shifting significantly more costs to consumers.
Without the limit, connector staff estimated that premiums for the Commonwealth Choice insurance would increase between 4 and 14 percent depending on the coverage an individual chooses. Mitchell and some board members said even 5 percent might be too large an increase.
"Five percent is a really tough target," said Dr. Marylou Buyse, president of the Massachusetts Association of Health Plans, an insurance trade group. "Premiums reflect the underlying cost of care, which is going up 8 to 10 percent [per year]. If the plans are going to meet the 5 percent target, providers are going to have to scale back their demands."
State panel to press insurers to hold down premium increases - The Boston Globe
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