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Health insurance company granted premium increase in Bay StatePosted On Wed, August 18, 2010
Massachusetts health insurance company Health New England has finally come to an agreement with the state this week over rate hikes.
The Bay State has agreed to allow the health insurance company to increase premiums 8.2 percent to 14.7 percent. Health New England initially tried to gain approval for an increase of 11.5 percent to 21.3 percent.
While some may think that such an increase is high, the Boston Globe notes that several health insurance companies were denied proposed premium increases earlier this year.
"With the Health New England agreement, the Patrick administration has now reached accords with five of the six Massachusetts insurance carriers that were denied double-digit increases on April 1," reports the Globe. "They later sued the insurance division."
Even though the approved rate increase settlement date back to April of this year, health insurance companies will not be able to retroactively charge customers the difference.
Under the Affordable Care Act, most citizens will be required to have health insurance by 2014. In Massachusetts, however, mandatory coverage was signed into law effective in 2006. Many have looked at the Bay State has a harbinger of what will happen when then health insurance is required nationwide.
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