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Maryland AG Seeks 5% Cap on Health Rate Increases

Maryland Attorney General Douglas Gansler is pushing state regulators to restrict premium increases to 5 percent before the federal healthcare law takes effect, and to allow rates to be re-examined six months after the law is implemented...
June 12, 2013

Maryland Attorney General Douglas Gansler is pushing state regulators to restrict premium increases to 5 percent before the federal healthcare law takes effect, and to allow rates to be re-examined six months after the law is implemented. He believes it is unfair for insurers to propose substantial increases when the full impact of the law remains uncertain. Maryland Insurance Commissioner Therese Goldsmith has the sole authority to review and approve insurance premiums under state law. A statement released by her office said, “The law requires that the commissioner disapprove or modify a proposed premium rate if, based on statistical analysis and reasonable assumptions, the rate appears to be inadequate, unfairly discriminatory or excessive in relation to benefits under the plan.”

Maryland, which is ahead of other states in implementing the provisions of the healthcare law, is experimenting with its own plan to lower costs. Officials are trying to persuade the federal government to adopt a plan that would tie hospital rates to the state’s economy.

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