A half-dozen health insurers…[Monday] filed a lawsuit against the state seeking to reverse last week\u2019s decision by the insurance commissioner to block double-digit premium increases \u201d\u201d a ruling they say could leave them with hundreds of millions in losses this year.<\/p>\n
The proposed rate hikes would have taken effect April 1 for plans covering thousands of small businesses and individuals. Insurers wanted to raise base rates an average of 8 percent to 32 percent; tacked on to that are often additional costs calculated according to factors such as the size and age of the workforce.<\/p>\n
Yesterday\u2019s legal action sets the stage for a showdown between state regulators and the health insurance industry.<\/p>\n
Governor Deval Patrick has made reining in runaway health care costs a centerpiece of his administration and his campaign for reelection \u201d\u201d contending they are stifling the capacity of small businesses to create jobs. At the same time, health insurers argue that government is forcing them to sell policies at a loss that is unsustainable as the costs of medical services climb.<\/p>\n