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MA Eyes Health Plans

From the Boston Globe on boston.com:

State officials said they sent letters to three health insurers earlier this year asking them to accept more intense oversight and supply additional data because of concerns about their financial health.

One of the insurance companies has agreed to administrative oversight, while regulators are negotiating details with the other two, the officials said. Administrative oversight is a first step regulators take when they determine there is a need to monitor the financial condition of insurance carriers more closely. It does not mean the companies are insolvent.

Read the rest of the article on boston.com.

That this is happening should come as a surprise to exactly no one. Although portrayed in the media as a "raking-in-billions" industry, the margin for health insurance is actually rather thin. Earlier Massachusetts health reforms attempted "universal coverage," increasing demand for health services and pushing up the cost of care while giving insurers no additional offsetting leverage. The State's arbitrary imposition of rate caps was the kicker. Increasing expenses without increases revenue leads to losses, which are sustainable only for so long.

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