When the Patrick Administration, through the Division of Insurance (“DOI”), denied carrier rates for April, 2010, we spoke to many of you regarding the potential for market confusion. We fully understand the significant burden this has put on you and your clients along with the additional pressure of not knowing what your clients’ actual health care cost obligations will be for 2010.
 
The State Senate will begin debate today on the FY’11 state budget. Amendment 345 filed by Senator Stephen Buonoconti, Chair of Financial Services, is an attempt to fix this situation. The amendment would put in place an alternative rate approval process and strict timelines for rate approval at the Division of Insurance. The amendment will hold carriers to the most stringent rate approval  standards in the country,  setting a test for  approval that will ensure appropriate levels of medical and  administrative spending while requiring DOI and the carriers to adhere to timelines for approval  well in advance of you receiving your official rate quotes .  While we cannot fix the confusion you and your clients have experienced  because of DOI’s actions, Senate Amendment 345, if adopted, will bring certainty to you and your clients going forward.
 
Please call your State Senator and tell him or her that you support Amendment 345 as a way to alleviate the chaos caused by current DOI actions.  Direct lines for state senators are attached for your convenience.  If you do not know who your senator is please call Jen Willis at 617-259-2780 (or 617-448-4749) she is standing by to help connect you with your senator. 

 While we realize that this does not eliminate caps on rates, it will allow plans an alternative option for rate filing. Under this amendment plans would agree that a minimum of 88% will be spent on medical care and there will not be more than a 1% profit margin.

If you have any questions please contact Lynn Ostrowski, Director, Brand & Corporate Relations at 413-538-1564.

Massachusetts State Senate Phone List