Health insurers sue Mass. on rate denial

[Joanne98]

Source: Boston Globe

A half dozen state health insurers, warning they could collectively lose hundreds of millions of dollars this year, today filed a lawsuit seeking to reverse a decision by Massachusetts regulators to block double-digit premium hikes.

The increases would have taken effect April 1 for plans covering thousands of small businesses and individuals.

The insurance carriers will go before a judge in state Superior Court Thursday seeking a preliminary injunction against last week's rulings by Insurance Commissioner Joseph G. Murphy to reject 235 of 274 premium hikes proposed by the health insurers.

Those rulings, following emergency regulations set by Governor Deval Patrick, marked the first time the state has used its authority to deny premium increases.

"What the commissioner did, we think, is going to create tremendous disruption in the marketplace," said Dean Richlin, a partner at Boston law firm Foley Hoag, who is representing the insurers.


Read more: http://www.boston.com/business/ticker/2010/04/health_insurers_1.html

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[bluestateguy]

1. I wonder if the "tort reformers" would include this as an example of lawsuit abuse?

Hmmmm

[Proletariatprincess]

2. very good point.

I wonder if they will see the irony. Consumers use lawsuits because regulations are non existant or are inadequet. In this case, the industry finds the regulation too effective...LOL.

[Posteritatis]

3. I assume the insurers are defining "not getting more money" as "losing money" (nt)

[Old Codger]

4. Actually

This is probably good in the long run, the more these asshats run the cost up with these rate hikes and obscene pay for their top people the more we will attempt to get the public options through, if they keep up the crap they will end up with nothing and we may get what we really want/need/deserve.

[customerserviceguy]

5. I've read that the new national HCR

is pretty much like the Massachusetts system, but I don't seem to recall any regulators who can deny premium increases in the national HCR law.

[eridani]

6. DiFi had an amendment that proposed this, but it was shot down n/t