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Insurance Division approves rate hike

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Tuesday, April 03, 2012

The Insurance Division approved a 2.2% rate increase for small employers who have coverage through Providence Health Plans.

The rate hike will impact about 30,000 people over nine months, and range between 1.88 and 5.4 percent.
“We're doing all we possibly can to get our rate increases to as low a figure as possible,” said Jack Friedman, CEO of Providence Health Plans.
Initially, Providence had requested a 5 percent rate hike. However, the Insurance Division lowered that increase primarily because Providence had erroneously overstated its administrative expense costs and other expenses related to federal health reform, said Lou Savage, acting administrator and senior policy advisor with the Department of Consumer and Business Services.

Read more at The Lund Report.

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