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Insurers halt Massachusetts coveragePosted On Wed, April 7, 2010
Massachusetts is determined to not let health insurance companies overcharge its residents.
For the first time, the state used its authority to reject health insurers' request for a double-digit increase in premiums. As a result, six insurers filed a lawsuit on Monday saying the companies will lose hundreds of millions of dollars because of Massachusetts' decision.
To push things even further, on Tuesday the insurers ceased offering new coverage to individuals and small businesses, the Boston Globe reported. Massachusetts state officials have told insurers that by Friday they must start offering policies and list their updated rates online, the Globe said.
Insurance Commissioner Joseph G. Murphy told the Globe that "if we don’t see the rates posted by the end of the week, we have a variety of enforcement tools at our disposal, including the ability to fine carriers," and that "it’s imperative that consumers have information available to them as they consider their purchasing options."
Health insurers sought an 8 to 32 percent increase in rates to go into effect on April 1, in addition to other costs.
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