The Massachusetts Division of Insurance order insurers to submit their 2010 rates based on 2009’s rates in an effort to cap increases, according to the report. The 2009 rates were, on average, 8-12 percent lower than what Harvard Pilgrim had asked for 2010 and 18-32 percent than what Fallon had asked. The insurers said billing at 2009 rates would result in “severe financial losses,” according to the report.
The judge ruled that the state’s decision to limit premium increases was not “contrary to the public interest,” according to the report. Insurance Commissioner Joseph Murphy has asked Harvard Pilgrim and Fallon to resubmit their 2010 premiums based off of 2009 rates.
Both companies have filed appeals but have resubmitted their rates using 2009 numbers.
Read the Globe’s report on Harvard Pilgrim’s and Fallon’s premium increases.
