The small group health insurance market in Massachusetts has temporarily shut down.
Governor Deval Patrick rejected 90 percent of the rate increases that had been sought by the state's health insurers.
In response, the health insurers have stopped selling any new policies.
As resported in the Wall Street Journal, the arbitrary rate cap would result in collective losses of as much as $100 million and threaten the immediate solvency of some insurers.
Source: Wall Street Journal
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tom replied on Permalink
Health Reform in Massachusetts
The four largest health insurers in Mass just announced a combined loss of $150 million in the first quarter.
The companies attribute the losses to the Mass health reform imposed rate cap:
http://www.boston.com/business/ticker/2010/05/health_insurers_3.html
A model of things to come??