Gov. aims to control small biz health costs

By Matt Yas

March 23, 2010

The state insurance commissioner will now require health insurance companies to provide advance notice of any rate increases for small businesses and will reject those that he believes are “unreasonable or excessive,” Gov. Deval L. Patrick has announced.

The Boston Globe reported that any increases that are “significantly higher” than the current level of medical inflation, 3.2 percent, will automatically be challenged by Insurance Commissioner Joseph G. Murphy, Patrick said.

The governor acknowledged that the plan was likely to upset some in the health care industry but said that health care costs are crushing small businesses, defined as those with 50 or fewer employees.

Patrick said he would also seek additional authority from the state legislature to limit the rate increases that providers are passing onto insurers.

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