Healthcare Industry News
Rise in Cost of Healthcare Rejected by MA Authorities
Saturday, 03, April 2010
Keeping Governor Deval Patrick's promise to make sure that the rise in healthcare costs is rejected if the increase in rates is considered too heavy to be handled, the state Division of Insurance yesterday ended up denying 235 out of the total 274 hikes which were proposed by insurers for plans which covered individuals and small businesses.The rulings, which came after a review process which was set in motion by the emergency regulations that were filed by the Governor in February, mark the first ever time that the state of Massachusetts has utilized its authority to turn down health premium rises.
The development managed to stir the entire healthcare industry.Insurers have insisted that the move would usher in an era of price controls, and pledged to appeal to the state or through the courts, a procedure which could now go on for months on end.We share the concern about rising health costs, but we don't think government price controls will solve the problem", said Jay McQuaide, Vice President at Blue Cross and Blue Shield of Massachusetts, which is the state's largest health insurer.
