HHS Calls Trustmark's Rate Increases 'Unreasonable'; Insurer Begs to Differ - 麻豆女优 Health News /news/hhs-calls-trustmarks-rate-increases-unreasonable-insurer-begs-to-differ/ Thu, 12 Jan 2012 22:04:38 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 /wp-content/uploads/sites/2/2023/04/kffhealthnews-icon.png?w=32 HHS Calls Trustmark's Rate Increases 'Unreasonable'; Insurer Begs to Differ - 麻豆女优 Health News /news/hhs-calls-trustmarks-rate-increases-unreasonable-insurer-begs-to-differ/ 32 32 161476233 HHS Calls Trustmark’s Rate Increases ‘Unreasonable’; Insurer Begs to Differ /news/hhs-calls-trustmarks-rate-increases-unreasonable-insurer-begs-to-differ/ /news/hhs-calls-trustmarks-rate-increases-unreasonable-insurer-begs-to-differ/#respond Thu, 12 Jan 2012 22:04:38 +0000 http://khn.wp.alley.ws/news/hhs-calls-trustmarks-rate-increases-unreasonable-insurer-begs-to-differ/ The Department of Health and Human Services Thursday deemed a health insurer’s proposed 聽premium increases in five states “unreasonable” and called on the company to rescind the rates, issue refunds or justify the increase.

proposed health insurance premium hikes of 13 percent 聽for 10,000 residents in five states: Arizona, Alabama, Pennsylvania, Virginia and Wyoming, according to When combined with other rate hikes made over the last year,聽premiums for small businesses in Alabama and Arizona, had increased by 27.2 percent and 18.1 percent, respectively.

In a statement Thursday afternoon, Trustmark spokesman Patton Hollow said company officials “respectfully disagree” with the聽government’s “assumptions and conclusions,” and would go ahead with the rate hikes.聽聽“Our premiums are driven by the rising cost and increased utilization of medical services,” Hollow said.聽聽“As a smaller carrier, our loss ratios can vary significantly from year to year, and we take that volatility into consideration.”

Hollow added that the company “will continue to be in compliance with all aspects” of the health law. “If there are instances where we do not reach the required loss ratio as calculated under the federal regulations, we will, promptly鈥ebate the difference to those customers.”

Under the 2010 federal health law, states – or in some cases, the federal government – of 10 percent or more, and insurers must publicly justify聽those deemed unreasonable. Information is also posted on a .

Since passage of the health law, the number of states with聽authority to reject premium increases they deem unreasonable has increased to 37 from 30,聽officials said.聽 HHS steps in when states are unwilling or unable to do so.

In November, Everence Insurance of Pennsylvania was the by federal regulators for having an unreasonable rate increase. 聽“I’m not aware that they changed what they were charging, but at least consumers were able to see what the reasons were for the increase, and were able to take that into account in making their choices,”聽Gary Cohen, acting director of oversight at the federal聽Center for Consumer Information and Insurance Oversight, told reporters Thursday.

Julie Appleby contributed to this report.

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