Mass. Insurers plead rate case; judge to rule by Monday

The Boston Globe reports:

Lawyers for health insurers and the state sparred in court yesterday over regulators’ rejection of 235 proposed rate increases, and a judge said he would decide by Monday whether the companies will be allowed to charge the higher prices.

Suffolk Superior Court Judge Stephen E. Neel’s promise of a quick decision followed a two-hour hearing on the case, which has focused public debate on the impact of rising health care expenses and the role of government in controlling costs. The rates affect individuals and small businesses.

The attorney for the insurers called the state’s rejection of rate increases last week “arbitrary and capricious.’’

Insurance Commissioner Joseph G. Murphy exceeded the state’s authority when he denied 235 of 274 proposed premium increases, argued Dean Richlin, a partner at Boston law firm Foley Hoag who is representing six Massachusetts insurers.

Insurers are now faced with having to agree to unfair rates or “go out of business,’’ Richlin told the judge and a standing-room-only crowd of about 70 insurance industry representatives, government officials, and others. Onlookers spilled out the door of the courtroom, as the insurers’ lawyer argued for a preliminary injunction that would clear the way for the companies to begin charging higher rates.

A glimpse of the future for ObamaCare. Destroying private insurance.