This is a court case that is worth paying attention to: Governor Patrick’s effort to rein in the increase of health insurance rates is being challenged this Thursday by insurance providers looking for rate increases for as much as 32% this year!

See the link below:

http://www.boston.com/business/healthcare/articles/2010/04/06/health_insurers_sue_to_raise_rates/

“Health insurers sue to raise rates - The Boston Globe 

A half-dozen health insurers yesterday filed a lawsuit against the state seeking to reverse last week’s decision by the insurance commissioner to block double-digit premium increases  — a ruling they say could leave them with hundreds of millions in losses this year.

The proposed rate hikes would have taken effect April 1 for plans covering thousands of small businesses and individuals. Insurers wanted to raise base rates an average of 8 percent to 32 percent; tacked on to that are often additional costs calculated according to factors such as the size and age of the workforce.

Yesterday’s legal action sets the stage for a showdown between state regulators and the health insurance industry.

Governor Deval Patrick has made reining in runaway health care costs a centerpiece of his administration and his campaign for reelection — contending they are stifling the capacity of small businesses to create jobs. At the same time, health insurers argue that government is forcing them to sell policies at a loss that is unsustainable as the costs of medical services climb …”

As a small business owner myself I can attest that double digit percentage increases in health insurance rates each year has stymied the ability of businesses to add new employees.  There needs to be a comprehensive solution to this problem that includes better regulations on what hospital associations charge to the insurance companies and reasonable tort reform as well.  The legislature is working on a number of proposals, the Governor’s actions are a welcome pressure to make some change this year!