Well so much for trying to hold down premiums to where they could be affordable I guess. 235 of the 274 proposed premium increases were denied. I wonder if this will spread to other states as well. We could have all the states jump in on this action before long and time will tell.
In a related story in Texas we have investors of a now defunct physician owned hospital suing the insurance companies, Aetna, Blue Cross, Blue Shield and Humana and a few more for boycotting Houston Town and Country Hospital. One thing we don’t have a shortage of is lawsuits in healthcare. Who knows we may end up with a single pay system by default at this rate. BD
Yesterday, the Massachusetts Association of Health Plans, which represents Harvard Pilgrim Health Care, Tufts Health Plan, Fallon Community Health Plan, Health New England and Neighborhood Health Plan, teamed up with Blue Cross Blue Shield of Massachusetts to fire back.
Their complaint accuses Murphy of acting illegally when he imposed a rate cap and when he tied premiums to the medical consumer price index, which has no actuarial significance.
MAHP said the rates that the health plans filed for April 2010 “are actuarially sound, which is the basis upon which the decision should have been made.
The state’s six health insurers filed suit yesterday against Massachusetts Division of Insurance Commissioner Joseph G. Murphy, saying he acted illegally when he told insurers to charge many of their customers the same premiums they did last year - effectively capping rates.
Health insurers sue state - BostonHerald.com
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