The Massachusetts Association of Health Plans (MAHP) is working with MassAHU to send a letter to Governor Patrick in support of the rate review provisions in the budget and we need your help. Please send the attached letter to the Governor as soon as possible.

 The letter can be emailed to the Governor’s Office at: http://www.mass.gov/?pageID=gov3utilities&sid=Agov3&U=Agov3_contact_us

If you have any questions, please contact Lynn Ostrowski, HNE’s Director of Brand & Corporate Relations, at 413-233-3383 or cell 413-538-1564.

~~~~~~~~~~~~SAMPLE LETTER~~~~~~~~~~COPY AND PASTE~~~~~~~ 

July  2011

Re:   Actuarial Soundness of Rates – Support Sections 107 & 108

His Excellency Deval Patrick, Governor

Commonwealth of Massachusetts

State House, Room 360

Boston, MA 02133

Dear Governor Patrick:

On behalf of hundreds brokers that work with thousands of small businesses across the Commonwealth, we are writing to express our support for provisions included in the House and Senate FY12 Conference Committee report that will provide stability and certainty for Massachusetts employers and brokers around the applicable rates for health benefit plans.

Sections 107 and 108 amend section 29 of Chapter 288 of the Acts of 2010 (Chapter 288) to establish more specific standards for the Division of Insurance (the Division) when disapproving proposed premium rates and ensure that health plans have sufficient time to give employers and brokers the information they need on premium rates.  Section 107 retains the current standard established by Chapter 288 for rate approvals, including maintaining the nation’s strictest medical loss ratio standards and limits on health plan profits and the rate of increase for administrative expenses, but requires that the Division utilize sound actuarial principles in disapproving rates.

Section 108 would require that the Division notify the health plan 60 days prior to the effective date of the proposed rates if it intends to disapprove the rate, rather than the current 45 days.  Additionally, Section 108 further requires that if the Division failed to notify the health plan within 60 days that it was disapproving the proposed rate, the rate would be deemed approved.  This provision would help to minimize the risk of confusion for employers and brokers as to what rates apply and minimize any potential delays in making rates available to them.  Further, it will provide Massachusetts businesses with more time than they currently have to review rates among carriers in determining the coverage that best meets the needs of their employees and is consistent with the rate review process other states, including Maine and New Hampshire, have taken.

For all these reasons, we urge that you support sections 107 and 108 in the final version of the FY12 state budget.

Sincerely,

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