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Blue Cross Blue Shield of Massachusetts Shares Position Regarding Today's Decision by Suffolk Superior Court Judge Stephen Neel

CONTACT: Jay McQuaide
(617) 246-2365
Jay.McQuaide@bcbsma.com

BOSTON — April 12, 2010 — Today's court decision is one-step in a process. Blue Cross Blue Shield of Massachusetts (BCBSMA) remains confident in the final outcome of the legal action that we and five other not-for-profit health plans have filed against the Division of Insurance. As we have stated, we believe the Insurance Commissioner used arbitrary price controls to set premium rates in the individual and small group market.

While the legal action is considered by the courts, we are appealing directly to the Division of Insurance its April 1, 2010 disapproval of premium rates for April, May and June. We look forward to the opportunity to demonstrate that the premium rates we filed are appropriate and reflect the expected medical costs of insuring individuals and small group customers purchasing or renewing health insurance plans during this period.

Until there is a final resolution, we will use the premium rates in effect a year ago as directed by the Division of Insurance. Our goal is for a swift resolution to minimize the confusion for members and customers.

Slowing the unacceptable rise in premium rates will only happen when we lower the costs which drive those premiums. Blue Cross Blue Shield of Massachusetts stands ready and willing to participate in any constructive, community-based effort to achieve a meaningful and sustainable solution to the rise in health care costs here in Massachusetts.

Blue Cross Blue Shield of Massachusetts (www.bluecrossma.com) was founded 73 years ago by a group of community-minded business leaders. Today, headquartered in Boston, BCBSMA provides coverage to nearly 3 million members, 2.5 million in Massachusetts. BCBSMA believes in rewarding doctors and hospitals for delivering safe and effective care, and in empowering patients to take more responsibility, become educated health care consumers and become stronger partners with their doctors. Blue Cross Blue Shield of Massachusetts is an independent licensee of the Blue Cross Blue Shield Association.

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