Mega Life insurance rate change affects 7,000
Around 7,000 customers of the Texas-based Mega Life and Health Insurance Co. could see changes in their bills starting today, as a new rate change goes into effect.
The Bangor Daily News reported that Mega, which provides coverage to 37% of the individual health care market in Maine, will raise its premiums an average of 6.5%. The paper reported that the nearly 7,000 customers affected by the change represents around 12,600 people, who could see premium costs drop as much as 33% or rise as much as 47%.
The paper reported that the rate increase required state approval because Mega does not meet what is called the "80/20 rule." That rule is part of public law 90, which, in part, allows insurance companies in Maine to raise rates at an average increase of less than 10% if the company spends at least 80 cents of every premium dollar on medical care and quality improvement, leaving 20 cents per premium dollar for administrative costs, marketing and profits.
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