Oxford To Refund Some N.Y. Premiums

Because implementation of a risk pool regulation fell through, Oxford approached the state about paying refunds directly to small employers, the company says.

Eric Dinallo, superintendent of the New York department, confirms that Oxford cooperated with state efforts to address the low 2006 small group loss ratio.

"Oxford did the right thing in working with the insurance department to make sure consumers got their money back," Dinallo says in a statement.

Dinallo and New York Gov. David Paterson, D, say the Oxford settlement shows lawmakers should restore the state insurance department's authority to review and approve small group rate requests.

Before 1996, the department had the authority had to approve rate increase requests before they took effect.

Since then, the department has had the authority to make carriers refund excess underwriting gains, officials say.

"An after-the-fact settlement in 2008 does nothing for those businesses that may have had to drop coverage in 2006 because they could not afford a larger than necessary premium increase," Dinallo says.