The Massachusetts Division of Insurance (DOI) has rejected the premium rates proposed by HNE for April and May effective dates, as well as the rates filed by most of the other Massachusetts health plans.  HNE believes that the DOI’s position on premium rates is incorrect and we are currently appealing this decision.

As instructed by the DOI, HNE has established an interim premium rate based on last year’s base rate. Employer groups will be billed this interim premium rate. The premium rates provided for June are subject to DOI approval. In the event that these premium rates are disapproved, employer groups will be billed an interim premium rate as determined by the DOI. If the DOI rejects HNE’s June premium rates, we intend to contest that decision. 

It is likely that the final premium rates will not be known for awhile. The cost of coverage ultimately will be based on the final premium rate determination. Affected groups will be responsible for the difference between the final premium and the interim premium.

 What does this mean?

For existing small group business (renewals):

• We will adjust April and May premium bills to reflect the interim rate.
• We will credit groups for the difference between the interim rate and any premium they have already paid since HNE’s premium filing was rejected.

 For new small group business:

• We will adjust April premium bills to reflect the interim rate.
• We will credit groups for the difference between the interim rate and any premium they have already paid since HNE’s premium filing was rejected.
• We are rerunning May new business quotes and we will notify the groups of the interim rates.

 All premium bills will include an explanation for the interim premium rates.

 Large group quotes released for April and going forward are not affected by this at this time. Our large group rate filing has not been disapproved by the DOI.