Massachusetts Could See Significant Health Insurance Rate Hike

According to State House News Service, hundreds of thousands of Massachusetts residents could face "significantly higher health insurance premiums" next year. SHNS reported the increase would "add another crushing weight to employers and residents already struggling to manage high costs."

The Massachusetts Division of Insurance is reviewing the "merged market" rates submitted by commercial insurers for next year that impact small businesses and individuals, which SHNS reported "average out to a 13.4% hike that's more than twice as large as the 4.8% growth regulators approved two years ago."

According to the Massachusetts Office of Consumer Affairs and Business Regulation's Division of Insurance, "merged market health insurance rates refer to the premium rates for health insurance plans sold to individuals and small businesses (those with 50 or fewer eligible employees)."

The plans, collectively known as the merged market, are subject to rate review by the Massachusetts Division of Insurance, which is seeking public comment on the proposed new premiums.

The insurance companies insist that premium increases are needed to offset sharply rising costs associated with healthcare providers and the pharmaceutical industry.

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In a statement to SHNS, Massachusetts Gov. Maura Healey said, "Health care costs, as reflected in the proposed rates filed by health insurers, are simply unsustainable."

InsuranceNewsNet calls on state regulators to "reject the higher costs," saying business leaders say they will "cost jobs and hurt the state's small employers."

IN says, "The insurance hikes, if approved by regulators, would far exceed the 3.6% benchmark for health care costs set by the Massachusetts Health Policy Commission, an agency that tracks health care spending."

In a prepared statement, Jon Hurst, president of the Retailers Association of Massachusetts, called the proposed rate hikes "shocking and unaffordable."

A decision is expected in mid-August.

The proposed rate increases could impact more than 720,000 people.