Wednesday, August 18. 2010Bay State approves health insurance hike
Massachusetts has just agreed to allow a health insurance company located in the western part of the state to increase premiums.
The Bay State will permit the health insurance provider to increase rates from 8.3 percent to 14.7 percent for roughly 21,000 people. While the increase may seem steep to some, the original rate increase sought was between 11.5 percent and 21.3 percent. The Boston Herald notes that other insurance companies wanted the state to grant premium increases as well. "On April 1, the Division of Insurance rejected 235 of 274 rate changes filed by the state's health insurers .... saying they were excessive," reports the Herald. "Some of the insurers appealed the decision to the agency's hearing officers." While the agreement dates back to April 1 of this year, the insurance company will not be able to retroactively charge consumers the rate difference. Massachusetts isn't the only state that has seen requests from health insurance companies to increase rates. Earlier this year, California also received several requests. However, some companies withdrew requests after it was determined mathematical errors occurred.
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