27East.com reports:

Empire Blue Cross Blue Shield, the largest health insurer in the region, announced to health insurance brokers … that it will eliminate most of its small group plans in the New York market effective April 1, 2012, and is slashing its financial incentives for brokers to sell those products—a move one industry insider has said would be “catastrophic” for the insurance marketplace.

…Officers of New York State Association of Health Underwriters sent a letter … addressed to the superintendent of the State Department of Financial Services, stating concerns that a major carrier, which it did not mention by name, is withdrawing from the small group market because of rate request denials/reductions in the last five consecutive quarters. Mr. Hasday later confirmed that the letter referred to Empire.

Read more at DirectorBlue: Obamacare-style price controls succeed in New York: ‘tens of thousands’ to lose their health care coverage.

(via FIRM)