Governor Deval Patrick recently offered public support of the Massachusetts Division of Insurance, which has rejected 235 out of 274 insurance company requests to be allowed to raise rates. Insurance Commissioner Joseph Murphy found the rejected requests in changes to base rates "to include excessive increases and rates unreasonable relative to the benefits provided."

Governor Patrick stated in a press release, "The Commissioner's decision means that the rates that were in effect in April of last year will remain in effect for those companies that were disapproved. Small businesses that have already made a premium payment under the disapproved rate will receive either a refund check or a credit on their next statement."

"At the beginning of this process and throughout our review of the rate filings, we made it clear to insurers that the Division of Insurance would be taking a close look at proposed increases," Commissioner Murphy commented. "In most cases, Division staff determined that the changes were excessive and necessitated disapproval." The Commissioner's statement said that small businesses will realize immediate relief from double-digit premium increases.

In February, the Governor directed the Commissioner of Insurance to file an emergency regulation requiring carriers to file changes to base rates for approval. (See, DM 11642.)

Patrick acknowledged that insurance companies would criticize the actions, but that "Small businesses and working families can't wait any longer. I have no doubt this is the right thing to do. I understand this doesn't solve all of the challenges facing us or our health care system. For example, some businesses could still see increases due to other rating factors. And providers are not yet part of the solution."

The Governor then called upon the State legislature to act upon the other measures he had submitted to help in health care costs, and also for health care providers to do what they can to lower costs for insurers.

Read more about it:

Gov. Patrick's statement: http://www.mass.gov/?pageID=gov3pressrelease&L=1&L0=Home&sid=Agov3&b=pressrelease&f=040110_statement&csid=Agov3

Commissioner Murphy's statement: http://www.mass.gov/?pageID=ocapressrelease&L=4&L0=Home&L1=Government&L2=Our+Agencies+and+Divisions&L3=Division+of+Insurance&sid=Eoca&b=pressrelease&f=20100401_hirates&csid=Eoca

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