Health Insurance Cap---Message from Governor, April 1...no foolin'

April 1, 2010

Friends,

Today, the Commissioner of Insurance has disapproved all excessive or unreasonable health insurance premium increases. I directed this review, on an emergency basis, because sharp and repeated rate increases are crushing small businesses and working families in the Commonwealth. I wanted to make sure that you understand exactly what we are doing, why we are doing it, and what it means for you.

What are we doing?

The Commissioner of Insurance has rejected all health insurance premium increases for small businesses that he deems to be excessive. The Commissioner’s decision means that the rates that were in effect in April of last year will remain in effect for those companies that were disapproved.

Why are we doing it?

Because enough is enough. Small businesses are being crushed under the weight of health care costs that keep rising sharply year after year. Instead of hiring and growing our economy, they are trying to manage under unreasonable pressure from the cost of health care. Big insurance companies and hospitals have been talking about the problem for years but doing little about it. Small businesses and working families need relief now while we continue working with the industry on long-term solutions to control the costs of health care.

What does this mean for you?

If you own a small business and the premium increase charged by your health insurance company has been disapproved by the Commissioner, it means you will be getting a rebate or credit for the premium increase that you paid. That will give you some economic breathing room and allow your business to keep growing. Critics will say that we have been too aggressive, but the time has run out for circular conversations. Small businesses cannot wait any longer.

How can you help?

Support our efforts to help small businesses and working families today. Talk to your local representative and senator, friends, neighbors, and coworkers, and ask them to stand with us as we support this necessary step to provide relief for small businesses now, and get people back to work.

Thank you.