Kaiser Family Foundation and eHealthInsurance.com To Release New Report On Individual Health Insurance Premiums And Purchaser Demographics
The Kaiser Family Foundation and eHealthInsurance, the nation's leading source of health insurance for individuals and families, will release a new report on the individual health insurance market at 9:30 a.m. on Monday, August 2, 2004. The report will include demographic data about who is buying individual health insurance, as well as information about the actual premiums people are paying and the cost-sharing mechanisms for those products. The event will include a panel discussion with representatives from the insurance industry on the individual health insurance marketplace, including Health Savings Accounts and other products available to consumers who purchase their health insurance directly from insurance companies.
The report is the first of a series of planned reports from the Kaiser Family Foundation and eHealthInsurance to provide policymakers and others with information about individual health insurance products and their purchasers.
WHAT:
Briefing for reporters and policymakers on the individual
health insurance market
WHEN:
Monday, August 2, 2004 at 9:30 a.m. Registration beginning at 9 a.m.
WHO:
Gary Claxton, Vice President and Director, The Health Care
Marketplace Project, Kaiser Family Foundation
Gary Lauer, Chairman and Chief Executive Officer, eHealthInsurance
WHERE:
Barbara Jordan Conference Center (Kaiser Family Foundation Office) 1330 G Street, NW, Washington, DC (one block west of Metro Center)
RSVP:
Tiffany Ford at (202) 347-5270, or email tford@kff.org
Thursday, July 29, 2004
Monday, July 26, 2004
Anthem/Wellpoint Merger rejected
California Department of Insurance Commissioner John Garamendi on Friday rejected the proposed Anthem/WellPoint merger, stating Californians would have to pay for the $16 billion deal.
Mr. Garamendi made his announcement soon after the California Department of Managed Health Care (DMHC) had approved the merger. The DMHC had negotiated a $122 million investment in California health-care services with Anthem and WellPoint.
Both WellPoint and Anthem are members of the Blue Cross Blue Shield Association and their merger would create the largest health plan in the country. Blue Cross of California is a subsidiary of WellPoint.
The United States Attorney General's office, shareholders, Blue Cross Blue Shield Association and 10 states have approved the deal.
The department had negotiated a deal to protect consumers in four different areas - improve quality of care, ensure premium dollars are spent on health care, protect enrollee and improve access to care.
Blue Cross had promised to invest $17 million in areas to improve quality of care for its members in the areas of mental health, childhood obesity and quality physician standards. With this investment, the company's goal is to improve its "fair" rating on the state's HMO Report Card.
Blue Cross had vowed not to use California premium dollars to pay for the estimated $4 billion merger deal and will file financial reports with the state to show its compliance with the state.
The health-care provider said it would continue to offer health insurance to the poor through government-sponsored insurance programs such as Medi-Cal, Access for Infant and Mothers Program and Healthy Families.
Blue Cross committed 2 percent of its current investment portfolio, estimated at $100 million, to improve access to care in rural and underserved communities which would be invested over 20 years.
The WellPoint Foundation had said it would invest $5 million per year over three years in outreach efforts to increase enrollment in the Healthy Families Program.
Mr. Garamendi made his announcement soon after the California Department of Managed Health Care (DMHC) had approved the merger. The DMHC had negotiated a $122 million investment in California health-care services with Anthem and WellPoint.
Both WellPoint and Anthem are members of the Blue Cross Blue Shield Association and their merger would create the largest health plan in the country. Blue Cross of California is a subsidiary of WellPoint.
The United States Attorney General's office, shareholders, Blue Cross Blue Shield Association and 10 states have approved the deal.
The department had negotiated a deal to protect consumers in four different areas - improve quality of care, ensure premium dollars are spent on health care, protect enrollee and improve access to care.
Blue Cross had promised to invest $17 million in areas to improve quality of care for its members in the areas of mental health, childhood obesity and quality physician standards. With this investment, the company's goal is to improve its "fair" rating on the state's HMO Report Card.
Blue Cross had vowed not to use California premium dollars to pay for the estimated $4 billion merger deal and will file financial reports with the state to show its compliance with the state.
The health-care provider said it would continue to offer health insurance to the poor through government-sponsored insurance programs such as Medi-Cal, Access for Infant and Mothers Program and Healthy Families.
Blue Cross committed 2 percent of its current investment portfolio, estimated at $100 million, to improve access to care in rural and underserved communities which would be invested over 20 years.
The WellPoint Foundation had said it would invest $5 million per year over three years in outreach efforts to increase enrollment in the Healthy Families Program.
Catastrophes blamed for insurance woes
CHARLESTON, W.Va. (AP) - Claims filed against insurers are not the main culprit behind West Virginia's homeowner insurance woes, according to a report issued to lawmakers Sunday by the state insurance commissioner.
Instead, catastrophes involving hail, windstorms and other forces of nature "appear to be the principal driver of the recent rise in homeowner rates," the analysis concluded.
Commissioner Jane Cline's office examined homeowner claims filed between 1997 and 2002, the latest year for available data. She presented her findings during the interim meeting of a joint select committee assigned to study insurance issues.
Instead, catastrophes involving hail, windstorms and other forces of nature "appear to be the principal driver of the recent rise in homeowner rates," the analysis concluded.
Commissioner Jane Cline's office examined homeowner claims filed between 1997 and 2002, the latest year for available data. She presented her findings during the interim meeting of a joint select committee assigned to study insurance issues.
Ohio car insurance firm selects Injury Sciences' 'black box' product
Grange Insurance has licensed San Antonio-based Injury Sciences LLC's proprietary Event Data Recorder product in its claims evaluation process.
Injury Sciences' EDR InSight provides insurance companies with "black box" data in order to analyze automobile accidents. It records such information as the vehicle and engine speed before impact, throttle position, braking activity and severity of impact.
"We are committed to fair claim service and believe that EDR InSight provides us the opportunity to improve liability determination on select claims by analyzing accurate and objective vehicle data," says Lyle Rhodebeck, vice president of claims at Columbus, Ohio-based Grange. "Injury Sciences makes it possible to take advantage of this new technology with its harvesting and interpretive services."
Grange Insurance offers auto, home, life, business and farm insurance. It also offers financial services through The Grange Bank.
Injury Sciences is a leading provider of software and related solutions for the automobile insurance industry.
Injury Sciences' EDR InSight provides insurance companies with "black box" data in order to analyze automobile accidents. It records such information as the vehicle and engine speed before impact, throttle position, braking activity and severity of impact.
"We are committed to fair claim service and believe that EDR InSight provides us the opportunity to improve liability determination on select claims by analyzing accurate and objective vehicle data," says Lyle Rhodebeck, vice president of claims at Columbus, Ohio-based Grange. "Injury Sciences makes it possible to take advantage of this new technology with its harvesting and interpretive services."
Grange Insurance offers auto, home, life, business and farm insurance. It also offers financial services through The Grange Bank.
Injury Sciences is a leading provider of software and related solutions for the automobile insurance industry.
Wednesday, July 21, 2004
Allstate stock a good buy
NEW YORK, July 21 (New Ratings) - Analyst Jay H Gelb of Prudential Financial maintains his "overweight" rating on Allstate (ALL.NYS), while raising his estimates for the company. The target price is set to $60.Shares of Allstate, the second-largest home and auto insurance company in the US, are currently trading at $46.64.
New York to reduce auto insurance rates
In an effort to aid more than 337,000 New York State drivers and lower their insurance payments, Governor George Pataki announced a 2% decrease in NY auto insurance premiums for drivers with coverage under the New York Assigned Risk Plan. The announcement, according to Pataki's administration, is part of his effort to "fight insurance fraud."
Thursday, July 15, 2004
S&P ratings on Blue Cross Blue Shield of North Carolina
NEW YORK--(BUSINESS WIRE)--July 14, 2004--On July 14, 2004, Standard & Poor's Ratings Services revised its outlook on Blue Cross and Blue Shield of North Carolina (BCBSNC) to negative from stable.
At the same time, Standard & Poor's affirmed its 'A+' counterparty credit and financial strength ratings on BCBSNC.
The outlook revision reflects proposed legislation by North Carolina's Department of Insurance that could have a negative effect on the company's capital level and earnings potential. Although Standard & Poor's commented on the proposal in June 2004 before the end of the state's short legislative session, there is now a degree of uncertainty regarding what form this bill might take in the full session in early 2005. The bill, in some form, will likely be introduced during the full session, but the extent of its possible effect on BCBSNC is unknown at this time. It is the uncertainty regarding what form this bill might take that has resulted in the negative outlook.
The proposal in its current form would require BCBSNC to return some of its surplus to consumers because of the company's strong risk-based-capital position. Any surplus above an indicated level will immediately be deemed inappropriate and would need to be corrected within a short timeframe.
The insurer financial strength rating on BCBSNC is based on the company's leading market share in North Carolina, extremely strong capital and operating performance, and good membership growth.
Outlook
The negative outlook reflects Standard & Poor's belief that some form of negative legislation will likely be introduced in early 2005. Once a new proposal is presented it will be evaluated for its possible effect on BCBSNC. If Standard & Poor's determines that the legislation would result in capital and earnings that are not supportive of an 'A+' rating, then the rating will likely be lowered.
Standard & Poor's believes that BCBSNC's overall membership base will grow at a good rate, with some likely shifting from the insured to the self-funded accounts. The company should be able to provide the product options and high customer service that is necessary for its continued overall membership growth. Pricing for 2004 was set at rates that should maintain some profit margin for the company, yet not be as profitable as 2003. For year-end 2004, Standard & Poor's expects consolidated pretax GAAP income of $230 million to $240 million, reflecting a slight increase in the medical loss ratio and a reduction in administrative expenses as a percentage of operating revenue. It is expected that BCBSNC will likely maintain its capital adequacy at the current level of about 220%.
At the same time, Standard & Poor's affirmed its 'A+' counterparty credit and financial strength ratings on BCBSNC.
The outlook revision reflects proposed legislation by North Carolina's Department of Insurance that could have a negative effect on the company's capital level and earnings potential. Although Standard & Poor's commented on the proposal in June 2004 before the end of the state's short legislative session, there is now a degree of uncertainty regarding what form this bill might take in the full session in early 2005. The bill, in some form, will likely be introduced during the full session, but the extent of its possible effect on BCBSNC is unknown at this time. It is the uncertainty regarding what form this bill might take that has resulted in the negative outlook.
The proposal in its current form would require BCBSNC to return some of its surplus to consumers because of the company's strong risk-based-capital position. Any surplus above an indicated level will immediately be deemed inappropriate and would need to be corrected within a short timeframe.
The insurer financial strength rating on BCBSNC is based on the company's leading market share in North Carolina, extremely strong capital and operating performance, and good membership growth.
Outlook
The negative outlook reflects Standard & Poor's belief that some form of negative legislation will likely be introduced in early 2005. Once a new proposal is presented it will be evaluated for its possible effect on BCBSNC. If Standard & Poor's determines that the legislation would result in capital and earnings that are not supportive of an 'A+' rating, then the rating will likely be lowered.
Standard & Poor's believes that BCBSNC's overall membership base will grow at a good rate, with some likely shifting from the insured to the self-funded accounts. The company should be able to provide the product options and high customer service that is necessary for its continued overall membership growth. Pricing for 2004 was set at rates that should maintain some profit margin for the company, yet not be as profitable as 2003. For year-end 2004, Standard & Poor's expects consolidated pretax GAAP income of $230 million to $240 million, reflecting a slight increase in the medical loss ratio and a reduction in administrative expenses as a percentage of operating revenue. It is expected that BCBSNC will likely maintain its capital adequacy at the current level of about 220%.
WebMD & Blue Cross Blue Shield of MA renew Strategic relationship
ELMWOOD PARK, N.J., July 15 /PRNewswire-FirstCall/ -- WebMD Corporation (Nasdaq: HLTH - News) today announced a three-year extension to its agreement with Blue Cross Blue Shield of Massachusetts (BCBSMA) to continue to provide comprehensive electronic data interchange (EDI) services.
This renewed contract is just one example of how WebMD and BCBSMA are working together to reduce health care costs while promoting better care for BCBSMA members, and to improve access to more efficient services for its provider community. BCBSMA makes WebMD's Personal Health Manager available to its members, including access to the health risk assessment tool, physician continuing medical education and other interactive health management and wellness programs.
WebMD Envoy processes more than 2.4 billion electronic healthcare transactions every year. Its products and services help create administrative and financial efficiencies for physicians and payers. For BCBSMA, all transactions are transmitted in the HIPAA-standard format.
This renewed contract is just one example of how WebMD and BCBSMA are working together to reduce health care costs while promoting better care for BCBSMA members, and to improve access to more efficient services for its provider community. BCBSMA makes WebMD's Personal Health Manager available to its members, including access to the health risk assessment tool, physician continuing medical education and other interactive health management and wellness programs.
WebMD Envoy processes more than 2.4 billion electronic healthcare transactions every year. Its products and services help create administrative and financial efficiencies for physicians and payers. For BCBSMA, all transactions are transmitted in the HIPAA-standard format.
Tuesday, July 13, 2004
Auto Insurance Fraud Ring
NEW ORLEANS -- Thirteen people are accused of staging 70 crashes in Orleans and Jefferson parishes from 1997 to 2004, defrauding auto insurance companies of more than $193,000, according to State Police investigators.
Police said in 69 of the 70 crashes, no injuries were reported at the scene. Instead, the suspects reported injuries over the phone and requested quick bodily injury settlements, investigators said.
The fraud ring was uncovered when Direct General Insurance Co. contacted State Police in January. The company said a woman, Monica Edwards, told them she had been recruited to participate in a staged accident with promises of easy money. Through further investigation, police discovered that Edwards' alleged recruiters -- Yolanda Mitchell and Torres Ross, along with several others -- had filed claims in 70 accidents in two parishes in five years.
The companies allegedly defrauded include: State Farm, Allstate, Progressive, GEICO, Traveler's, Republic Western, U.S. Agencies, Republic Fire and Casualty, USAA, Direct General, Liberty Mutual, ACE Property, Naval Legal Services, and Gallagher Bassett.
Police said in 69 of the 70 crashes, no injuries were reported at the scene. Instead, the suspects reported injuries over the phone and requested quick bodily injury settlements, investigators said.
The fraud ring was uncovered when Direct General Insurance Co. contacted State Police in January. The company said a woman, Monica Edwards, told them she had been recruited to participate in a staged accident with promises of easy money. Through further investigation, police discovered that Edwards' alleged recruiters -- Yolanda Mitchell and Torres Ross, along with several others -- had filed claims in 70 accidents in two parishes in five years.
The companies allegedly defrauded include: State Farm, Allstate, Progressive, GEICO, Traveler's, Republic Western, U.S. Agencies, Republic Fire and Casualty, USAA, Direct General, Liberty Mutual, ACE Property, Naval Legal Services, and Gallagher Bassett.
Friday, July 9, 2004
Health Savings Accounts (HSAs)
A new study of purchasers of Health Savings Accounts shows that the new health care financing arrangements are appealing to those who previously were shut out of the insurance market, to families, to older Americans, and to workers of all income levels.
The study shows that 70 percent of purchasers are over age 40, one-third make less than $50,000 a year, and more 75 percent are families with children.
Critics of Health Savings Account have charged that HSAs are only for the “healthy and wealthy” and argue that they should be rejected because they will destabilize health insurance for everyone else. But early findings about HSAs and other consumer-directed health plans show that the critics are wrong.
The study, conducted by Assurant Health of Milwaukee, also showed that 43 percent of those purchasing the accounts were previously uninsured. Clearly, HSAs also provide a new option to help the uninsured.
Another study by the major health insurer Aetna of Hartford, Connecticut, showed that its consumer-directed health care products are helping companies lower their health costs while providing incentives for employees to get better access to preventive care.
The Aetna study showed that companies that replaced their traditional health insurance with a consumer-directed plan saw their health costs fall by 11 percent. Meanwhile, the use of preventive services by workers increased by as much as 23 percent.
eHealthInsurance, an on-line health insurance brokerage, also surveyed those who have purchased insurance though its website and found that nearly half of HSA purchasers make less than $50,000 a year. Further, 70 percent of them paid less than $100 a month for their health insurance premiums.
Health Savings Accounts were enacted as part of the Medicare bill signed into law by President Bush December 8, 2003. The first Health Savings Account was sold on Jan. 1.
They allow anyone under age 65 to put aside money tax free for health care expenses. The only consideration is that the accounts must be accompanied by a high-deductible health insurance policy.
Individuals, employers, or employees can make a pre-tax annual contribution of $2,600, and families can make an annual contribution of up to $5,150 into an HSA. Interest earned on HSA funds is tax-free, and funds for qualified medical expenses can be withdrawn tax-free.
The study shows that 70 percent of purchasers are over age 40, one-third make less than $50,000 a year, and more 75 percent are families with children.
Critics of Health Savings Account have charged that HSAs are only for the “healthy and wealthy” and argue that they should be rejected because they will destabilize health insurance for everyone else. But early findings about HSAs and other consumer-directed health plans show that the critics are wrong.
The study, conducted by Assurant Health of Milwaukee, also showed that 43 percent of those purchasing the accounts were previously uninsured. Clearly, HSAs also provide a new option to help the uninsured.
Another study by the major health insurer Aetna of Hartford, Connecticut, showed that its consumer-directed health care products are helping companies lower their health costs while providing incentives for employees to get better access to preventive care.
The Aetna study showed that companies that replaced their traditional health insurance with a consumer-directed plan saw their health costs fall by 11 percent. Meanwhile, the use of preventive services by workers increased by as much as 23 percent.
eHealthInsurance, an on-line health insurance brokerage, also surveyed those who have purchased insurance though its website and found that nearly half of HSA purchasers make less than $50,000 a year. Further, 70 percent of them paid less than $100 a month for their health insurance premiums.
Health Savings Accounts were enacted as part of the Medicare bill signed into law by President Bush December 8, 2003. The first Health Savings Account was sold on Jan. 1.
They allow anyone under age 65 to put aside money tax free for health care expenses. The only consideration is that the accounts must be accompanied by a high-deductible health insurance policy.
Individuals, employers, or employees can make a pre-tax annual contribution of $2,600, and families can make an annual contribution of up to $5,150 into an HSA. Interest earned on HSA funds is tax-free, and funds for qualified medical expenses can be withdrawn tax-free.
Thursday, July 8, 2004
Auto Insurance rates falling
As if rising gasoline costs weren't enough to dampen our love of the open road, auto insurance rates have been increasing steadily for about the past four years. But there's some good news for many of us -- rates are falling in many places, and overall, the growth rate is dropping. Last year alone, American auto insurance rates rose nearly 8%, on average, but this year's average increase is expected to be just 3.5%.
According to a New York Times article, "After nearly 25 years of rising auto insurance rates, prices leveled off in 1997 and 1998, then dipped to an average cost of $680 per car across the country in 1999 and 2000. But the insurers said costs began to get ahead of them again and they began raising prices to an average of $842 per car last year." Ouch.
Many insurers are cutting rates in some or all regions, but they're generally not doing so with a broad stroke. Instead, some are cutting rates for their better customers (those who manage to avoid accidents, speeding tickets, and claims) while raising them for those who cost them more. Some of the many insurers involved include GEICO, a unit of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B); USAA; Progressive (NYSE: PGR); Allstate (NYSE: ALL); and State Farm.
According to a New York Times article, "After nearly 25 years of rising auto insurance rates, prices leveled off in 1997 and 1998, then dipped to an average cost of $680 per car across the country in 1999 and 2000. But the insurers said costs began to get ahead of them again and they began raising prices to an average of $842 per car last year." Ouch.
Many insurers are cutting rates in some or all regions, but they're generally not doing so with a broad stroke. Instead, some are cutting rates for their better customers (those who manage to avoid accidents, speeding tickets, and claims) while raising them for those who cost them more. Some of the many insurers involved include GEICO, a unit of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B); USAA; Progressive (NYSE: PGR); Allstate (NYSE: ALL); and State Farm.
Wednesday, July 7, 2004
Auto Insurers respect same sex marriages
(CNSNews.com) - A homosexual advocacy group is hailing three of the largest auto insurance companies in New York for "respecting the marriages of same-sex couples."
Lambda Legal says Allstate, State Farm and Geico -- the top three auto-insurance providers in New York -- have agreed to give legally married same-sex couples the same rates and coverage as married heterosexual couples.
Lambda Legal says Allstate, State Farm and Geico -- the top three auto-insurance providers in New York -- have agreed to give legally married same-sex couples the same rates and coverage as married heterosexual couples.
Blue Cross of California offers mobile outreach program
Camarillo, CA--(HISPANIC PR WIRE - BUSINESS WIRE)--June 29, 2004--Blue Cross of California (Blue Cross) today announced that it has launched a mobile outreach program offering application assistance for children into California’s Healthy Families Program, the state’s low-cost health program for children. Blue Cross is rolling out two new custom vans staffed with outreach personnel to travel throughout the state offering education and onsite application assistance for California’s Healthy Families or Medi-Cal Programs.
Tuesday, July 6, 2004
State Farm and Assurant renew relationship
MILWAUKEE, July 6 /PRNewswire/ -- State Farm Insurance and Assurant Health have renewed the national marketing alliance that makes Assurant Health's individual medical insurance products available through State Farm agents nationwide. The original alliance became official in July 2000 and marked the first time that State Farm had joined forces with a national health insurance provider.
"Over the past four years, our alliance with Assurant Health has made it possible to provide our customers with a complete portfolio of quality individual medical insurance products -- from traditional health coverage to innovative High Deductible Health Plans that can be combined with Health Savings Accounts to help manage qualified healthcare expenses," said State Farm Health Vice President, Sharon McAuley. "Continuing this alliance will allow us to do the same for many more of our current and future State Farm customers."
Nearly 17,000 agents currently sell State Farm insurance products and State Farm customers now comprise about one of every four households in the United States. Assurant Health is one of the nation's leading providers of individual medical and small group health insurance products.
"Over the past four years, our alliance with Assurant Health has made it possible to provide our customers with a complete portfolio of quality individual medical insurance products -- from traditional health coverage to innovative High Deductible Health Plans that can be combined with Health Savings Accounts to help manage qualified healthcare expenses," said State Farm Health Vice President, Sharon McAuley. "Continuing this alliance will allow us to do the same for many more of our current and future State Farm customers."
Nearly 17,000 agents currently sell State Farm insurance products and State Farm customers now comprise about one of every four households in the United States. Assurant Health is one of the nation's leading providers of individual medical and small group health insurance products.
Should doctors pay less for car insurance?
HARTFORD, Conn. - Your profession could land you a discount on auto insurance, but you might be surprised which occupations get a break -- or annoyed about which ones don't.
Several auto insurers have started granting discounts of 5 percent to 15 percent to attract doctors, engineers and firefighters, among others, in certain states.
But salespeople, politicians, clergy, homemakers and others with a lower-than-average frequency of crashes do not usually get an occupational discount.
For years, many insurers have given price breaks to people who belong to ``affinity groups,'' which include professional associations and groups such as AARP and AAA. The newer job-related discounts, though, are available to certain consumers directly, not requiring membership in an organization.
The occupation discounts are among insurers' latest ways of attracting the drivers they think pose the lowest risk or the highest profit potential.
Yet some of the occupations on their most-wanted lists, such as physicians and architects, have some of the highest accident rates, according to a study released last fall. San Francisco-based Quality Planning studied data that state motor vehicle departments gave insurers.
Several auto insurers have started granting discounts of 5 percent to 15 percent to attract doctors, engineers and firefighters, among others, in certain states.
But salespeople, politicians, clergy, homemakers and others with a lower-than-average frequency of crashes do not usually get an occupational discount.
For years, many insurers have given price breaks to people who belong to ``affinity groups,'' which include professional associations and groups such as AARP and AAA. The newer job-related discounts, though, are available to certain consumers directly, not requiring membership in an organization.
The occupation discounts are among insurers' latest ways of attracting the drivers they think pose the lowest risk or the highest profit potential.
Yet some of the occupations on their most-wanted lists, such as physicians and architects, have some of the highest accident rates, according to a study released last fall. San Francisco-based Quality Planning studied data that state motor vehicle departments gave insurers.
Thursday, July 1, 2004
Fireman's Fund exits MA auto insurance market
The Fireman's Fund Insurance Companies has given notice to Massachusetts officials that it intends to withdraw from Mass. personal automobile insurance market on Dec. 31, 2004, because of continuing uncertainty in implementing state personal automobile insurance reform. Fireman's Fund also stated that if the insurance reform package currently under consideration is enacted by the state, they will rescind its withdrawal action.
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