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U.S. Seeks Rollback of a Health Insurer’s “Excessive” Rate Increase

On January 12 the Obama administration said that the health insurance rate increases sought by Trustmark Life Insurance Company, a unit of Trustmark Mutual Holding Company, were unreasonable and ordered the company to withdraw the request or to justify the rate increase
January 17, 2012

On January 12 the Obama administration said that the health insurance rate increases sought by Trustmark Life Insurance Company, a unit of Trustmark Mutual Holding Company, were unreasonable and ordered the company to withdraw the request or to justify the rate increase. The finding against Trustmark was issued by Kathleen Sebelius, the secretary of Health and Human Services, who said that nearly 10,000 people in Alabama, Arizona, Pennsylvania, Virginia and Wyoming would be affected by the excessive rate increases. The new healthcare law gives Sebelius the authority to order a health insurer to rescind the rates, issue refunds to consumers or publicly explain its decision not to comply. Cindy Gallaher, a spokesperson for Trustmark, based in Lake Forest, Illinois, said that the company respectfully disagreed with the findings of the Department of Health and Human Services and that its premiums reflected the rising cost and increased use of medical services.

Read more on the government's block on rate increases: U.S. Seeks Rollback of Health Insurer’s Rate Increase (New York Times 1/13/12)

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