Massachusetts brokers, brace for premium hikes

Clients across the state are expected see health insurance rates increase by as much as 12% this year as the industry’s biggest player joins the growing number of carriers rejigging premiums

Insurance News

By Lyle Adriano

Health insurance in Massachusetts is expected to cost more for both individual customers and businesses in 2016.

According to information compiled by The Boston Globe and the Massachusetts Division of Insurance, the state’s largest commercial insurer, Blue Cross Blue Shield of Massachusetts, is increasing its premiums by an average of 5%. Other insurers have followed suit, with Tufts Health Plan raising its rates by 3% to 7%, Harvard Pilgrim Health by 6% to 12%, and Fallon Health by as much as 17%.

Industry experts note that the premium hikes coincide with the rise in drug prices and the expansion of healthcare coverage under the Affordable Care Act.

The state Division of Insurance is scheduled to hold a public hearing regarding the issue on Jan. 11 and 12.

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