The Virginian-Pilot
©
The federal government has deemed "unreasonable" a 12.7 percent increase in health insurance premiums for some Virginians with policies under Trustmark Life Insurance Co.
It's the first rate increase in the commonwealth to get such a designation from the federal government.
Since September, insurers seeking rate hikes of 10 percent or more for individual or small-group policies have been required to publicly disclose and justify the increases - a tenet of the national health care overhaul.
The U.S. Department of Health and Human Services or a state agency then evaluates the assumptions behind the increases. The company has 10 days to withdraw or modify an increase deemed unreasonable, according to the federal government. Otherwise, the insurer must explain to customers why the rate hike is going forward.
Federal health officials wrote in a statement Thursday that increases proposed in Virginia and four other states by Illinois-based Trustmark Life Insurance were unreasonable because a "low" percentage of premium dollars would be spent on medical care and quality improvements. They also said the increases were based on "unreasonable assumptions."
In Virginia, 766 people will be affected by the Trustmark rate increase, which went into effect for renewals after Sept. 1, according to healthcare.gov, a website managed by the U.S. Department of Health and Human Services. Members are required to pay an additional $48 a month, for a total monthly rate of $421.
Trustmark previously increased premiums for the policy 18.3 percent in 2010, 27.8 percent in 2009 and zero in 2008, according to the website.
Increases for four other insurance products offered in Virginia are pending review. They include two plans offered by John Alden Life Insurance Co. and two from Time Insurance Co.
Amy Jeter, (757) 446-2730, amy.jeter@pilotonline.com
Delicious
Digg
Reddit
Facebook
Twitter
Google
Yahoo
Medical Industries
The government need to get at the root of the problem, the medical, pharmacy/drug industries. Have you ever seen one of those bills from a heart procedure,associated drugs etc? It ain't just the insurance companies.
wish they'd go after anthem
year after year they jack the rates 15-20% for no reason.
I'm healthy with no pre-existing or chronic issues yet the rates continue to skyrocket.
Yes
This is the kind of stuff our Government should be doing. Look at the previously outrageous presumably unexplained rate increases! The Health Care act is not saying that Trustmark can NOT increase its rates, just that it must explain why to the customers. You would think an honorable business would be glad to inform their customers of the reason for the increases.
The free market can still operate but it must often be forced by the government to give honest information to the unprotected consumer.
Thankfully most of our Civil Servants are not political and do try to do their job. (I know I will get flack for that statement and yes I am a Civil Servant)
Awwww!!!!
Mean ol' President Obama's Affordable Health Care Act won't let the greedy insurance company jack up premiums for no reason. Socialism I tell you, socialism.