About Careers MedBlog Contact us
Medindia LOGIN REGISTER
Advertisement

Health Insurers Hold Back on Premium Rate Increases

by Lyju Kuruvilla on January 23, 2012 at 3:40 PM
Font : A-A+

 Health Insurers Hold Back on Premium Rate Increases

Premium increases have been approved by the state regulators averaging 2.3% for health insurance covering hundreds of thousands of residents. This is the most modest hike in at least a decade and is also a sign that years of efforts to control costs may be working.

The new rates are applicable in Massachusetts' "small group'' market, which includes tens of thousands of small businesses as well as self-employed and uninsured individuals. They apply to policies taking effect April 1, the biggest renewal date for insurance coverage. Last year, it was an average 9% increase for small group premium.

Advertisement

Governor Deval Patrick said that it was a great progress to find 16, 17, and 18% increases a couple of years ago coming down to 2.3%. It was great for small businesses and the Massachusetts economy. He said that they need to make sure it was sustainable.

For the past 2 years, Patrick has been pressing health insurers in Massachusetts, as well as hospitals and doctors, to prevent the rising health care spending. The annual double-digit percentage rate increases were crippling businesses and individuals and making it harder for employers to create jobs.
Advertisement

When the insurers requested an average 16.3% premium increase, the state Division of Insurance temporarily froze 2010 rates at 2009 levels. Initially, the health insurance companies protested, saying that they would lose money, but ultimately they agreed to limit 2010 increases to about 10%.

The insurers have since then been cutting administrative costs and also taking a tough stand in contract negotiations with health care providers. Hospitals and doctors have been working to deliver care more efficiently and ward off the possibility of the state moving to regulate how much they receive from insurers.

Source: Medindia
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
What's New on Medindia
Diet and Oral Health: The Sugary Connection May Become Sour
World AIDS Day 2022 - Equalize!
Test Your Knowledge on Sugar Intake and Oral Health
View all
Recommended Reading
News Archive
Date
Category
Advertisement
News Category

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Third Party Administrator for Claims and Cashless Health Insurance Critical Care Insurance Health Insurance - India 

Most Popular on Medindia

Drug Side Effects Calculator Selfie Addiction Calculator Find a Doctor A-Z Drug Brands in India Diaphragmatic Hernia The Essence of Yoga Vent Forte (Theophylline) Pregnancy Confirmation Calculator Post-Nasal Drip Blood - Sugar Chart
This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close
×

Health Insurers Hold Back on Premium Rate Increases Personalised Printable Document (PDF)

Please complete this form and we'll send you a personalised information that is requested

You may use this for your own reference or forward it to your friends.

Please use the information prudently. If you are not a medical doctor please remember to consult your healthcare provider as this information is not a substitute for professional advice.

Name *

Email Address *

Country *

Areas of Interests