On Monday, Suffolk County Superior Court Judge Stephen E. Neel denied a request by Massachusetts health insurers for an injunction against the Commissioner of Insurance's rejection of insurance premium rate hikes. The judge's decision allows Commissioner Joseph Murphy's determination that the premium increases were excessive or unreasonable to stand for now. The plaintiffs in the case were five nonprofit carriers, Blue Cross and Blue Shield of Massachusetts, Harvard Pilgrim Health Care, Tufts Health Plan, Fallon Community Health Plan, Health New England, and Neighborhood Health Plan.

Governor Deval Patrick stated in a press release, "I appreciate the court's decision. It's a welcome decision for small businesses and working families who need immediate relief from excessive and unreasonable increases in their health care costs. We look forward to working with the insurance companies, as well as hospitals and other providers, to secure this short-term relief, and to working with the legislature on proposals to reduce costs throughout the industry."

Judge Neel said the plaintiffs needed to exhaust administrative remedies within the Division of Insurance before initiating litigation. Blue Cross Blue Shield stated in a press release that it will continue legal action along with the other health plan insurers and will also appeal directly to the Division of Insurance. "As we have stated, we believe the insurance commissioner used arbitrary price controls to set premium rates in the individual and small group market," the company said. "We look forward to the opportunity to demonstrate that the premium rates we filed are appropriate and reflect the expected medical costs of insuring individuals and small group customers purchasing or renewing health insurance plans during this period."
Read more:

Governor Patrick's press release: http://www.mass.gov/?pageID=gov3modulechunk&L=1&L0=Home&sid=Agov3&b=terminalcontent&f=dailyupdate_dailyupdate041310&csid=Agov3

Blue Cross Blue Shield's press release: https://www.bluecrossma.com/visitor/newsroom/news-releases/newsRelease04122010.html

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