Mass. official: Gov premium caps faulted in e-mail
A top state insurance official said that health insurance caps the Patrick administration placed on major insurers could cripple them financially and would most likely cause "a train wreck," according to an e-mail obtained Tuesday by The Associated Press.
The April 6 e-mail, obtained following a public records request, showed that Deputy Insurance Commissioner Robert Dynan warned that the caps could cause insolvency at the insurance companies. Dynan also wrote that the caps were imposed "against my objections" and without his input.
Insurance Commissioner Joseph Murphy rejected a series of small business health insurance premium increases proposed by insurance companies on April 1.
Gov. Deval Patrick lauded the move, saying he hoped it would lead to lower premium costs for struggling small businessmen. Insurers unsuccessfully sued to overrule the rejection.
In another e-mail to Murphy, Dynan wrote on April 30 that artificially setting rate limits rather than basing them on the insurers' projected cost could create "the potential for catastrophic consequences to our nonprofit health care industry." He urged that they be allowed to charge "actuarially sound rates."
