The best list of HSA providers right now is at HSAInsider.com, but the investing options continue to improve almost every month.
Many companies, like yours, offer a fixed rate of 2% to 4% paired with a specific health insurance plan, but a few firms offer stand-alone HSAs available to anyone -- no matter which insurer provides the high-deductible health policy.
More of these companies are starting to let you invest your HSA money in mutual funds and sometimes even stocks, which is a great place for money that you don't need to have immediately accessible for medical expenses.
Any money that isn't spent on deductibles can continue to grow on a tax-deferred basis. You can withdraw the money tax-free anytime for medical expenses. You'll owe taxes, but no penalty, if you use the money for non-medical reasons after age 65 (there's a penalty for non-medical expenses before then).
Vanguard doesn't offer its own HSAs, but you can invest in 15 Vanguard funds through Health Savings Administrators, an HSA administrator that had been in the Medical Savings Account business for years.
First HSA and eHealthInsurance.com also offer HSAs that let you invest in mutual funds and stocks, and many large banks and mutual fund companies are entering the business or expanding their investment options. Mellon Bank, Wells Fargo and JPMorgan Chase, which offer HSAs through many health insurance companies (including many Blue Cross/Blue Shield plans), continue to expand their investing options. Mellon, for example, now lets you invest in three Dreyfus mutual funds in addition to a fixed account. And some large mutual fund companies, like Fidelity, expect to enter the business in about a year.
As more people learn about HSAs and the balances in their accounts get larger, more financial institutions will get into this line of business.
But don't wait to open an HSA. Every month you wait to buy the high-deductible health plan lowers the amount you can invest in the HSA by 1/12th. See Don't Delay Starting Your HSA for more information. It's easy to roll your money to another HSA provider if a better option comes along -- just like you would with an IRA. The company you're interested in switching to will usually be very eager to help you make the change.
Monday, February 28, 2005
State Farm cutting Auto Insurance Rates
STATE FARM MUTUAL CUTTING AUTO RATES BY 5 PERCENT
NEW YORK -- (02/28/2005; 1130)(EIS) -- Acting Superintendent of Insurance Howard Mills today announced that the New York State Insurance Department has approved a State Farm Mutual rate filing that will reduce the auto premiums paid by their policyholders by a statewide average of 5 percent. The savings are estimated at $47 million for 2005 alone. In addition, State Farm Fire & Casualty is cutting auto rates by an average of 4 percent, producing additional savings of about $6 million.
"The Insurance Department has now authorized rate reductions that will keep a quarter-billion dollars in the pockets of New York's drivers that would otherwise have gone toward auto insurance premium payments," Acting Superintendent Mills stated. "Governor Pataki's commitment to fighting fraud and streamlining the insurance regulatory system are directly responsible for these extraordinary consumer savings and we're committed to building on these successes."
State Farm Mutual, which also cut rates twice in 2004, insures 1.1 million private passenger vehicles in New York State, representing an 11.3 percent market share. State Farm, Allstate and GEICO insure the largest number of New York drivers. GEICO is already implementing a 6 percent rate reduction for this year.
The reduced rates for State Farm auto policyholders are effective on April 1, 2005 for new business and May 1, 2005 for renewals.
State Farm is the seventh insurer to seek and win Department approval for auto rate reductions. The others are GEICO, Progressive, Nationwide, MetLife, Amica Mutual, and Travelers. The combined savings from all of these approved rate filings are now estimated at more than $250 million.
The origins of these rate reductions date back to November 2004 when the New York State Insurance Department asked the state's largest auto insurance carriers to meet with the Department's senior management team to discuss possible rate reductions in light of industry data indicating that losses had dropped substantially between 2002 and the third quarter of 2004. Meetings with other carriers are continuing.
NEW YORK -- (02/28/2005; 1130)(EIS) -- Acting Superintendent of Insurance Howard Mills today announced that the New York State Insurance Department has approved a State Farm Mutual rate filing that will reduce the auto premiums paid by their policyholders by a statewide average of 5 percent. The savings are estimated at $47 million for 2005 alone. In addition, State Farm Fire & Casualty is cutting auto rates by an average of 4 percent, producing additional savings of about $6 million.
"The Insurance Department has now authorized rate reductions that will keep a quarter-billion dollars in the pockets of New York's drivers that would otherwise have gone toward auto insurance premium payments," Acting Superintendent Mills stated. "Governor Pataki's commitment to fighting fraud and streamlining the insurance regulatory system are directly responsible for these extraordinary consumer savings and we're committed to building on these successes."
State Farm Mutual, which also cut rates twice in 2004, insures 1.1 million private passenger vehicles in New York State, representing an 11.3 percent market share. State Farm, Allstate and GEICO insure the largest number of New York drivers. GEICO is already implementing a 6 percent rate reduction for this year.
The reduced rates for State Farm auto policyholders are effective on April 1, 2005 for new business and May 1, 2005 for renewals.
State Farm is the seventh insurer to seek and win Department approval for auto rate reductions. The others are GEICO, Progressive, Nationwide, MetLife, Amica Mutual, and Travelers. The combined savings from all of these approved rate filings are now estimated at more than $250 million.
The origins of these rate reductions date back to November 2004 when the New York State Insurance Department asked the state's largest auto insurance carriers to meet with the Department's senior management team to discuss possible rate reductions in light of industry data indicating that losses had dropped substantially between 2002 and the third quarter of 2004. Meetings with other carriers are continuing.
Sunday, February 27, 2005
Governors Urged to Reach Deal on Medicaid
By Ceci Connolly and Dan Balz
Washington Post Staff Writers
Monday, February 28, 2005; Page A02
The Bush administration is urging the nation's governors to reach early agreement on a restructuring plan for the Medicaid health program for the poor or risk steep budget cuts in the Republican-controlled Congress, according to governors of both parties meeting this week in Washington.
In interviews, several governors balked at what they view as a threat by the White House to slash $60 billion from the program over the next decade. But others see a bipartisan deal emerging around securing lower prescription-drug prices, charging modest copayments and tightening loopholes that allow elderly people to transfer assets to children in order to qualify for Medicaid nursing-home care.
Discussions on Medicaid will dominate the next two days of the National Governors Association (NGA) meeting, with the governors scheduled to meet with President Bush at the White House this morning and congressional leaders at a private lunch today. They will host Health and Human Services Secretary Mike Leavitt tomorrow.
The Medicaid issue has taken on a greater sense of urgency as the administration's desire to slow federal spending collides with the governors' fear that Washington will try to reduce the deficit by cutting funding for a program that has strained state budgets in the past several years and whose growth all agree is unsustainable.
The federal-state program that serves nearly 50 million Americans has swelled in cost and enrollment as many people have lost private insurance and as health care prices have soared. Today, the program pays for two-thirds of all nursing-home care, and the cost of prescription drugs for low-income seniors is one of the fastest-growing components of the overall Medicaid budget.
Federal law requires states to provide health care to millions of low-income Americans at a level beyond that offered by some private health-insurance plans. Medicaid accounts for one of every five dollars spent by the states, and in many states, spending on Medicaid now exceeds that for education. The most significant growth of the program, originally created to serve the nation's poorest people, primarily women and children, has come from efforts to expand care to other members of the uninsured population, such as the elderly and the disabled.
With widespread agreement that the $324 billion program cannot continue in its current form, governors of both parties said they are amenable to long-term structural changes. But they worry that Bush is more focused on his shorter-term goal of cutting the federal budget deficit in half over the next five years. In private meetings with the governors, he has been seeking agreement on a plan to take to Congress and has warned that time may be running out before lawmakers take matters into their own hands.
Leavitt "did say that, given the crush of other business in Washington, unless we are aggressive and bold and visible within the next few weeks, he thinks the window of opportunity is going to close and Congress will go about its business in a way" that could be harmful to the states, said Minnesota Gov. Tim Pawlenty (R).
"The administration wants a deal by the end of the week," said New Mexico Gov. Bill Richardson, chairman of the Democratic Governors' Association. "We're going to resist that. It just shouldn't be 'our way or the highway.' "
At a private breakfast meeting, Virginia Gov. Mark R. Warner, the current NGA chairman, urged his Democratic colleagues not to rush into an agreement with the administration. He said many Republican governors share the Democrats' skepticism about Bush's proposed cuts. He recommended that they stay focused on policy changes that could also save money, rather than just on the bottom line.
Interviews with governors attending the annual winter conference revealed broad bipartisan support for a handful of adjustments, but those changes will likely fall well short of the budgetary savings the administration seeks. Democrats in particular fear that, even with some agreement, their Medicaid budgets will be cut dramatically as the administration tries to enforce spending discipline in Washington.
Over the past few years, almost every governor has been forced to limit Medicaid enrollment or to trim benefits to contain the rate of growth. Now many agree that the program needs a dramatic restructuring that would allow more discretion in how care is delivered and to whom. But they object to the budgetary ax that Bush is threatening to use.
"I've had to cut just a whole array of services from people and I'm done. I don't want to cut people off of health care; enough is enough," said Michigan Gov. Jennifer M. Granholm (D). "I will get busloads of people to come and march on Washington, and I think other governors will do the same. We will not stand for that. We have all cut and cut and cut."
In his 2006 budget, Bush has proposed reducing the federal share of Medicaid spending by $60 billion, largely through changes that Leavitt has characterized as eliminating waste, fraud and abuse. The new HHS secretary has publicly chastised governors for "accounting gimmicks" that he said enable states to use federal Medicaid dollars to cover some of the administrative costs of providing health care to the poor.
Some of those intergovernmental transfers probably should be eliminated, acknowledged Arkansas Gov. Mike Huckabee (R). However, "to suddenly say, 'Well, we told you you could, but now we're saying that you can't' -- and to do it abruptly -- that's a tough pill to swallow," he said.
"One person's loophole is another person's program," said Arizona Gov. Janet Napolitano (D). "What I'm worried about is, this is all about the budget and not about health care reform."
Democrats fear that, even if they agree to program modifications that would cut costs for both Washington and the states, the administration will continue to insist on deeper cuts in the upcoming budget. "Governors are really ready to consider some more dramatic proposals," said Tennessee Gov. Phil Bredesen (D). "This started as a very simple program for the poorest women and children and has grown into something much bigger and more complex."
Nevertheless, with the administration "faced with the short-term issue of getting the budget deficit under control," it may be difficult to reach a deal on broader changes this year, he added.
Although Democrats see the administration as trying to squeeze governors for a quick resolution, Mississippi Gov. Haley Barbour (R) offered a more positive interpretation of Leavitt's message.
"Secretary Leavitt is offering his assistance and advocacy if governors can come up with a bipartisan proposal," Barbour said. "What he's doing is offering to help promote something from the administration's perspective if governors of both parties can unite behind something."
Washington Post Staff Writers
Monday, February 28, 2005; Page A02
The Bush administration is urging the nation's governors to reach early agreement on a restructuring plan for the Medicaid health program for the poor or risk steep budget cuts in the Republican-controlled Congress, according to governors of both parties meeting this week in Washington.
In interviews, several governors balked at what they view as a threat by the White House to slash $60 billion from the program over the next decade. But others see a bipartisan deal emerging around securing lower prescription-drug prices, charging modest copayments and tightening loopholes that allow elderly people to transfer assets to children in order to qualify for Medicaid nursing-home care.
Discussions on Medicaid will dominate the next two days of the National Governors Association (NGA) meeting, with the governors scheduled to meet with President Bush at the White House this morning and congressional leaders at a private lunch today. They will host Health and Human Services Secretary Mike Leavitt tomorrow.
The Medicaid issue has taken on a greater sense of urgency as the administration's desire to slow federal spending collides with the governors' fear that Washington will try to reduce the deficit by cutting funding for a program that has strained state budgets in the past several years and whose growth all agree is unsustainable.
The federal-state program that serves nearly 50 million Americans has swelled in cost and enrollment as many people have lost private insurance and as health care prices have soared. Today, the program pays for two-thirds of all nursing-home care, and the cost of prescription drugs for low-income seniors is one of the fastest-growing components of the overall Medicaid budget.
Federal law requires states to provide health care to millions of low-income Americans at a level beyond that offered by some private health-insurance plans. Medicaid accounts for one of every five dollars spent by the states, and in many states, spending on Medicaid now exceeds that for education. The most significant growth of the program, originally created to serve the nation's poorest people, primarily women and children, has come from efforts to expand care to other members of the uninsured population, such as the elderly and the disabled.
With widespread agreement that the $324 billion program cannot continue in its current form, governors of both parties said they are amenable to long-term structural changes. But they worry that Bush is more focused on his shorter-term goal of cutting the federal budget deficit in half over the next five years. In private meetings with the governors, he has been seeking agreement on a plan to take to Congress and has warned that time may be running out before lawmakers take matters into their own hands.
Leavitt "did say that, given the crush of other business in Washington, unless we are aggressive and bold and visible within the next few weeks, he thinks the window of opportunity is going to close and Congress will go about its business in a way" that could be harmful to the states, said Minnesota Gov. Tim Pawlenty (R).
"The administration wants a deal by the end of the week," said New Mexico Gov. Bill Richardson, chairman of the Democratic Governors' Association. "We're going to resist that. It just shouldn't be 'our way or the highway.' "
At a private breakfast meeting, Virginia Gov. Mark R. Warner, the current NGA chairman, urged his Democratic colleagues not to rush into an agreement with the administration. He said many Republican governors share the Democrats' skepticism about Bush's proposed cuts. He recommended that they stay focused on policy changes that could also save money, rather than just on the bottom line.
Interviews with governors attending the annual winter conference revealed broad bipartisan support for a handful of adjustments, but those changes will likely fall well short of the budgetary savings the administration seeks. Democrats in particular fear that, even with some agreement, their Medicaid budgets will be cut dramatically as the administration tries to enforce spending discipline in Washington.
Over the past few years, almost every governor has been forced to limit Medicaid enrollment or to trim benefits to contain the rate of growth. Now many agree that the program needs a dramatic restructuring that would allow more discretion in how care is delivered and to whom. But they object to the budgetary ax that Bush is threatening to use.
"I've had to cut just a whole array of services from people and I'm done. I don't want to cut people off of health care; enough is enough," said Michigan Gov. Jennifer M. Granholm (D). "I will get busloads of people to come and march on Washington, and I think other governors will do the same. We will not stand for that. We have all cut and cut and cut."
In his 2006 budget, Bush has proposed reducing the federal share of Medicaid spending by $60 billion, largely through changes that Leavitt has characterized as eliminating waste, fraud and abuse. The new HHS secretary has publicly chastised governors for "accounting gimmicks" that he said enable states to use federal Medicaid dollars to cover some of the administrative costs of providing health care to the poor.
Some of those intergovernmental transfers probably should be eliminated, acknowledged Arkansas Gov. Mike Huckabee (R). However, "to suddenly say, 'Well, we told you you could, but now we're saying that you can't' -- and to do it abruptly -- that's a tough pill to swallow," he said.
"One person's loophole is another person's program," said Arizona Gov. Janet Napolitano (D). "What I'm worried about is, this is all about the budget and not about health care reform."
Democrats fear that, even if they agree to program modifications that would cut costs for both Washington and the states, the administration will continue to insist on deeper cuts in the upcoming budget. "Governors are really ready to consider some more dramatic proposals," said Tennessee Gov. Phil Bredesen (D). "This started as a very simple program for the poorest women and children and has grown into something much bigger and more complex."
Nevertheless, with the administration "faced with the short-term issue of getting the budget deficit under control," it may be difficult to reach a deal on broader changes this year, he added.
Although Democrats see the administration as trying to squeeze governors for a quick resolution, Mississippi Gov. Haley Barbour (R) offered a more positive interpretation of Leavitt's message.
"Secretary Leavitt is offering his assistance and advocacy if governors can come up with a bipartisan proposal," Barbour said. "What he's doing is offering to help promote something from the administration's perspective if governors of both parties can unite behind something."
Life Insurance Quote Comparison Available Online
Press Release
miQuotes.com, Strategic Partner with the National Association of Mortgage Brokers, has released its new and enhanced web-based life insurance quoting engine. This online engine allows clients and employees of national mortgage lending companies to obtain life insurance quotes in as little as 60 seconds and from the privacy of their home.
(PRWEB) February 22, 2005 -- miQuotes.com, a leading online provider of life insurance, has bridged the gap between the mortgage lending community and the life insurance industry by offering a simplified approach to marketing and selling life insurance and related products to the public.
When individuals secure a first or second mortgage, they often inquire about life insurance to protect their loan in the event of the untimely death of the mortgage holder. miQuotes.com has partnered with the National Association of Mortgage Brokers to provide a two-tiered approach to this market, recognizing that mortgage lenders are best at marketing their services to the public, and miQuotes.com is best at selling and servicing life insurance to the public.
Traditionally, clients either relied upon direct mail solicitations from their mortgage lender or insurance agent referrals from their mortgage broker to find life insurance quotes. Neither is an organized solution to the life insurance market, and the public is left with an uneasy feeling about who is actually their life insurance agent.
The miQuotes.com platform markets individually underwritten life insurance products, which can be as much as 50% less in premiums than the standard mortgage-life plans in the industry.
miQuotes.com continually shops the market for competitive pricing and only contracts with companies known for strong financials and excellent customer service. This new and enhanced life insurance quoting engine will give the client multiple quotes and options from reputable national life insurance companies in as little as 60 seconds.
The miQuotes.com program provides the mortgage lending community with an entirely customized insurance agency solution, making it possible for lenders to provide quality life insurance services to their clients. Through a minimal investment, any mortgage lender can be ready to offer life insurance services to their client base within 30 days.
miQuotes.com, Strategic Partner with the National Association of Mortgage Brokers, has released its new and enhanced web-based life insurance quoting engine. This online engine allows clients and employees of national mortgage lending companies to obtain life insurance quotes in as little as 60 seconds and from the privacy of their home.
(PRWEB) February 22, 2005 -- miQuotes.com, a leading online provider of life insurance, has bridged the gap between the mortgage lending community and the life insurance industry by offering a simplified approach to marketing and selling life insurance and related products to the public.
When individuals secure a first or second mortgage, they often inquire about life insurance to protect their loan in the event of the untimely death of the mortgage holder. miQuotes.com has partnered with the National Association of Mortgage Brokers to provide a two-tiered approach to this market, recognizing that mortgage lenders are best at marketing their services to the public, and miQuotes.com is best at selling and servicing life insurance to the public.
Traditionally, clients either relied upon direct mail solicitations from their mortgage lender or insurance agent referrals from their mortgage broker to find life insurance quotes. Neither is an organized solution to the life insurance market, and the public is left with an uneasy feeling about who is actually their life insurance agent.
The miQuotes.com platform markets individually underwritten life insurance products, which can be as much as 50% less in premiums than the standard mortgage-life plans in the industry.
miQuotes.com continually shops the market for competitive pricing and only contracts with companies known for strong financials and excellent customer service. This new and enhanced life insurance quoting engine will give the client multiple quotes and options from reputable national life insurance companies in as little as 60 seconds.
The miQuotes.com program provides the mortgage lending community with an entirely customized insurance agency solution, making it possible for lenders to provide quality life insurance services to their clients. Through a minimal investment, any mortgage lender can be ready to offer life insurance services to their client base within 30 days.
CO Auto insurance rates decline
The insurance industry released a survey Thursday that shows Colorado auto insurance premiums have dropped since reforms were implemented.
The survey was released by the Property Casualty Insurers of America and the Rocky Mountain Insurance Information Association.
The study claims that in the 18 months since Colorado shifted to a tort auto insurance system from a no-fault system, premiums have dropped. The study examined a 35-year-old married couple with the same risk factors and tracked what this couple paid in June 2003, August 2003 and January 2005. The industry found a drop of between 19.5 percent and 27.1 percent.
But the industry cautioned that doesn't mean everyone should see that decrease in premiums.
"People do need to understand that the change in systems doesn't change the way insurance works -- insurance costs will still vary from person to person depending on your individual risk factors, such as where you live, what you drive and how you drive," Carole Walker, executive director of the Rocky Mountain Insurance Information Association, said in a statement.
Part of the savings came from drivers no longer having to buy personal injury protection coverage, which was required under the no-fault system.
The survey was released by the Property Casualty Insurers of America and the Rocky Mountain Insurance Information Association.
The study claims that in the 18 months since Colorado shifted to a tort auto insurance system from a no-fault system, premiums have dropped. The study examined a 35-year-old married couple with the same risk factors and tracked what this couple paid in June 2003, August 2003 and January 2005. The industry found a drop of between 19.5 percent and 27.1 percent.
But the industry cautioned that doesn't mean everyone should see that decrease in premiums.
"People do need to understand that the change in systems doesn't change the way insurance works -- insurance costs will still vary from person to person depending on your individual risk factors, such as where you live, what you drive and how you drive," Carole Walker, executive director of the Rocky Mountain Insurance Information Association, said in a statement.
Part of the savings came from drivers no longer having to buy personal injury protection coverage, which was required under the no-fault system.
Friday, February 25, 2005
Progressive to hire 500 for call center
By JEFF HARRINGTON, Times Staff Writer
Published February 25, 2005
--------------------------------------------------------------------------------
Progressive Insurance plans to hire 500 workers for its call center in southern Hillsborough County this year, partially offsetting a pair of huge job cuts by other area call centers the past eight months.
Progressive, the third-largest auto insurer in the country, employs about 2,250 at its Riverview center, a four-building complex at U.S. 301 and Falkenburg Road, southeast of Brandon Town Center.
Like most of the current workers, nearly all new hires will field inbound calls inquiring about buying a Progressive policy and existing customers with service or claim issues, said Patricia Edwards, area human resources director for the company's sales and service division.
The salary range will be between $11 and $14 an hour depending on experience and type of position, Edwards said. Most positions will be full-time.
"Awesome," Kim Scheeler, president of the Greater Tampa Chamber of Commerce, said Thursday when told of Progressive's plans. "It shows that even though there's some consolidation going on in the market, there's still opportunity for us to come out on top."
The hiring spree runs counter to recent history. Last month, JPMorgan Chase told 1,900 Tampa employees they would lose their jobs with the closing if its credit card call center here. Seven months earlier, Capital One said it was shutting down its sprawling credit card call center in Tampa, eliminating 1,100 jobs.
It also runs counter to a popular trend among call centers to move offshore, using cheaper labor in other countries.
"Our CEO (Glenn Renwick) has been very open and honest to his employees that (offshoring) is not something he is seriously contemplating right now," Edwards said.
His stance is partially because many of Progressive's employees are licensed to sell and service insurance, a requirement that would be difficult if not impossible to duplicate overseas, Edwards said. The Riverview center is Progressive's second-largest customer service location, after the company's headquarters and flagship customer service operation in Cleveland. The auto insurer has sites in Sacramento, Calif.; Colorado Springs, Colo.; Phoenix and Austin, Texas.
Progressive's employment base grew rapidly in recent years, from 900 in 2000 to 2,200 in 2003. It has remained relatively flat the past year.
In late 2003, Progressive was awared a $630,000 state training grant connected to an expansion that would create as many as 600 jobs. Edwards said some of the new jobs may be tied to the training grant but she could not specify how many.
Published February 25, 2005
--------------------------------------------------------------------------------
Progressive Insurance plans to hire 500 workers for its call center in southern Hillsborough County this year, partially offsetting a pair of huge job cuts by other area call centers the past eight months.
Progressive, the third-largest auto insurer in the country, employs about 2,250 at its Riverview center, a four-building complex at U.S. 301 and Falkenburg Road, southeast of Brandon Town Center.
Like most of the current workers, nearly all new hires will field inbound calls inquiring about buying a Progressive policy and existing customers with service or claim issues, said Patricia Edwards, area human resources director for the company's sales and service division.
The salary range will be between $11 and $14 an hour depending on experience and type of position, Edwards said. Most positions will be full-time.
"Awesome," Kim Scheeler, president of the Greater Tampa Chamber of Commerce, said Thursday when told of Progressive's plans. "It shows that even though there's some consolidation going on in the market, there's still opportunity for us to come out on top."
The hiring spree runs counter to recent history. Last month, JPMorgan Chase told 1,900 Tampa employees they would lose their jobs with the closing if its credit card call center here. Seven months earlier, Capital One said it was shutting down its sprawling credit card call center in Tampa, eliminating 1,100 jobs.
It also runs counter to a popular trend among call centers to move offshore, using cheaper labor in other countries.
"Our CEO (Glenn Renwick) has been very open and honest to his employees that (offshoring) is not something he is seriously contemplating right now," Edwards said.
His stance is partially because many of Progressive's employees are licensed to sell and service insurance, a requirement that would be difficult if not impossible to duplicate overseas, Edwards said. The Riverview center is Progressive's second-largest customer service location, after the company's headquarters and flagship customer service operation in Cleveland. The auto insurer has sites in Sacramento, Calif.; Colorado Springs, Colo.; Phoenix and Austin, Texas.
Progressive's employment base grew rapidly in recent years, from 900 in 2000 to 2,200 in 2003. It has remained relatively flat the past year.
In late 2003, Progressive was awared a $630,000 state training grant connected to an expansion that would create as many as 600 jobs. Edwards said some of the new jobs may be tied to the training grant but she could not specify how many.
Board reverses Insurance action
By JONATHAN CLAYBORNE News Editor
WILLIAMSTON -- A contrite Martin County Board of Commissioners voted unanimously Thursday night to rescind a previously approved motion that essentially granted commissioners fully paid health insurance for life.
The board reversed a unanimous, Dec. 6 vote that guaranteed 100-percent insurance premium payments for commissioners serving three full terms or at least eight years on the board.
As a result of Thursday's action, the policy reverts to county payments of 50 percent of a commissioner's insurance premiums, if that commissioner serves two full terms or eight years on the board.
According to County Manager Russell Overman, the policy still will cover commissioners no longer serving on the board.
That sets Martin County apart from some other counties, including Craven and Beaufort, where a commissioner's county-paid insurance benefits end once he leaves the board.
Still, all five Martin County commissioners backed away from the December change, with a couple even offering apologies to the roughly 28 spectators who turned out for the special meeting on a rainy Thursday night.
The turnout may have been indicative of the level of public interest in the insurance matter.
Chairman Mort Hurst recommended a motion to rescind the December vote, and expressed regrets for talking with a couple of commissioners about that vote prior to the December meeting.
Hurst had said he voted for the insurance policy change, even though he had reservations about it, to keep peace among board members.
"I guess I put peace and harmony ahead of asking some people to do some things they shouldn't have done," he commented.
Vice Chairman Tommy Bowen declared the December action "a mistake."
"It's been a mistake and I apologize for the mistake, and people can accept that if they want to," Bowen said.
Bowen made the motion to back away from the December policy alteration, scoring a second from Commissioner Al Perry.
Commissioner Elmo "Butch" Lilley said it was good that the issue had been revisited.
Commissioner Ronnie Smith stood by his December vote, saying he voted correctly based on the information he had at the time. But Smith added he'd go along with the rest of the board, which he did once Thursday's vote was taken.
It was clear members of the audience had been upset by the commissioners' insurance-related moves. One woman who lingered after the session had a heated exchange with Bowen.
Two or three board-watchers had murmured or exhaled deeply during the meeting.
Nearby, Frankie Biggs of Williamston briefly had interrupted the meeting to make a comment, noting that all five commissioners take advantage of the county's insurance, which Overman later confirmed. Hurst had silenced Biggs by cautioning that the floor was not open for discussion.
In a post-meeting interview, Biggs faulted the board for not making clear in December exactly what it was voting on. She said the insurance item was on the commissioners' agenda, but it was not thoroughly discussed.
"It was kind of done under the cloak of darkness to me," she said.
Hurst has maintained the vote was taken in the open and that supporting documentation was available for public inspection.
Completely paid, lifetime insurance coverage for commissioners "is a terrible burden" to the county, Biggs added, pointing out that Martin County is a Tier 1 county, ranked in the lowest rung of the economic ladder by the state Department of Commerce.
Biggs also acknowledged her own health problems, stating that she has multiple sclerosis.
"It's very difficult for me to get insurance," she said. "It costs me out the wazoo."
WILLIAMSTON -- A contrite Martin County Board of Commissioners voted unanimously Thursday night to rescind a previously approved motion that essentially granted commissioners fully paid health insurance for life.
The board reversed a unanimous, Dec. 6 vote that guaranteed 100-percent insurance premium payments for commissioners serving three full terms or at least eight years on the board.
As a result of Thursday's action, the policy reverts to county payments of 50 percent of a commissioner's insurance premiums, if that commissioner serves two full terms or eight years on the board.
According to County Manager Russell Overman, the policy still will cover commissioners no longer serving on the board.
That sets Martin County apart from some other counties, including Craven and Beaufort, where a commissioner's county-paid insurance benefits end once he leaves the board.
Still, all five Martin County commissioners backed away from the December change, with a couple even offering apologies to the roughly 28 spectators who turned out for the special meeting on a rainy Thursday night.
The turnout may have been indicative of the level of public interest in the insurance matter.
Chairman Mort Hurst recommended a motion to rescind the December vote, and expressed regrets for talking with a couple of commissioners about that vote prior to the December meeting.
Hurst had said he voted for the insurance policy change, even though he had reservations about it, to keep peace among board members.
"I guess I put peace and harmony ahead of asking some people to do some things they shouldn't have done," he commented.
Vice Chairman Tommy Bowen declared the December action "a mistake."
"It's been a mistake and I apologize for the mistake, and people can accept that if they want to," Bowen said.
Bowen made the motion to back away from the December policy alteration, scoring a second from Commissioner Al Perry.
Commissioner Elmo "Butch" Lilley said it was good that the issue had been revisited.
Commissioner Ronnie Smith stood by his December vote, saying he voted correctly based on the information he had at the time. But Smith added he'd go along with the rest of the board, which he did once Thursday's vote was taken.
It was clear members of the audience had been upset by the commissioners' insurance-related moves. One woman who lingered after the session had a heated exchange with Bowen.
Two or three board-watchers had murmured or exhaled deeply during the meeting.
Nearby, Frankie Biggs of Williamston briefly had interrupted the meeting to make a comment, noting that all five commissioners take advantage of the county's insurance, which Overman later confirmed. Hurst had silenced Biggs by cautioning that the floor was not open for discussion.
In a post-meeting interview, Biggs faulted the board for not making clear in December exactly what it was voting on. She said the insurance item was on the commissioners' agenda, but it was not thoroughly discussed.
"It was kind of done under the cloak of darkness to me," she said.
Hurst has maintained the vote was taken in the open and that supporting documentation was available for public inspection.
Completely paid, lifetime insurance coverage for commissioners "is a terrible burden" to the county, Biggs added, pointing out that Martin County is a Tier 1 county, ranked in the lowest rung of the economic ladder by the state Department of Commerce.
Biggs also acknowledged her own health problems, stating that she has multiple sclerosis.
"It's very difficult for me to get insurance," she said. "It costs me out the wazoo."
Wednesday, February 23, 2005
Insurance Rates and credit
By Elizabeth Pierson
The Brownsville Herald
AUSTIN, February 22, 2005 — Using credit scores to determine insurance rates is discriminatory and unfairly hurts minorities and low-income people, according to testimony in front of a House committee on Monday.
Insurance industry representatives disagreed, telling the House Committee on Insurance that credit scores accurately predict behavior, and doing away with the practice will raise rates for good drivers.
Many insurance and homeowner insurance carriers use credit history as one factor in determining rates.
House Bill 23 by Rep. Fred Brown, R-Bryan, would ban the practice.
“If this body embraces credit scoring … you will be approving a practice that is known to have a discriminatory effect,” said Ware Wendell, policy director for Texas Watch, speaking in support of the bill.
Credit scores are closely aligned with race, he said. Among those with the best credit scores in Texas, 90 percent are white, 2 percent are African American and 5 percent are Latino, Wendell said.
Gender, marital status, and age are more useful in predicting whether someone will file an insurance claim than is credit, he said.
But doing away with credit scores would hurt minority communities where insurance agents were scarce before they could use credit scores, said Charles Duckworth, an insurance agent in Houston.
“It seems like the whole thing about the scoring is like arguing with your bathroom scale,” Duckworth said. “If it’s accurate, you really don’t have much to argue with.”
And ridding insurance companies of the tool would cause many good drivers to pay more to compensate for bad drivers, said Jonathan Klein, president of Progressive Mutual County in Texas, the state’s fourth-largest auto insurer.
Klein cited a Texas Department of Insurance study that showed there was a correlation between credit scores and claims filed. The company uses the information responsibly and as just one of 15 factors in determining rates, he said.
Customers with good credit would pay $200 more a year for auto insurance, on average, if credit scoring were not used.
“It’s a proven, irrefutable fact, confirmed by the TDI, that individuals with better credit scores have fewer accidents,” he said.
Conversely, having bad credit doesn’t always mean they have more accidents, some testified.
One woman said she has auto insurance rates as high as those of a drunk driver even though her driving record is clean. A 1999 failed business deal left her and her husband starting from scratch with new careers, and they still pay elevated rates, because of the ordeal, she said.
Another man had to file bankruptcy after medical bills from his wife’s brain tumor piled up. Some late bills hurt their credit and nearly tripled their home insurance premium, he said.
In presenting the bill to the committee, Brown said he is concerned that the practice of using credit scores targets elderly people who tell him they have what is called a “thin file,” or little credit, not necessarily bad credit.
And high rates prevent some people from buying insurance, which means even those with good credit pay higher premiums when they are in an accident with an uninsured person, Brown said.
State Rep. Aaron Peña, D-Edinburg, said he is coauthoring the bill because he is concerned about the close correlation between credit scores and Hispanics and low income people.
“When a hurricane passes through the Valley as it does every so often, those hurricanes don’t make any distinction between those people with good credit scores and those without good credit scores,” he said.
In 2003, the House voted unanimously to ban the use of credit scoring. What eventually became law is known as Senate Bill 14, which allowed the practice but gave consumers some help in appealing the increases when their credit is damaged from catastrophic life events.
The Brownsville Herald
AUSTIN, February 22, 2005 — Using credit scores to determine insurance rates is discriminatory and unfairly hurts minorities and low-income people, according to testimony in front of a House committee on Monday.
Insurance industry representatives disagreed, telling the House Committee on Insurance that credit scores accurately predict behavior, and doing away with the practice will raise rates for good drivers.
Many insurance and homeowner insurance carriers use credit history as one factor in determining rates.
House Bill 23 by Rep. Fred Brown, R-Bryan, would ban the practice.
“If this body embraces credit scoring … you will be approving a practice that is known to have a discriminatory effect,” said Ware Wendell, policy director for Texas Watch, speaking in support of the bill.
Credit scores are closely aligned with race, he said. Among those with the best credit scores in Texas, 90 percent are white, 2 percent are African American and 5 percent are Latino, Wendell said.
Gender, marital status, and age are more useful in predicting whether someone will file an insurance claim than is credit, he said.
But doing away with credit scores would hurt minority communities where insurance agents were scarce before they could use credit scores, said Charles Duckworth, an insurance agent in Houston.
“It seems like the whole thing about the scoring is like arguing with your bathroom scale,” Duckworth said. “If it’s accurate, you really don’t have much to argue with.”
And ridding insurance companies of the tool would cause many good drivers to pay more to compensate for bad drivers, said Jonathan Klein, president of Progressive Mutual County in Texas, the state’s fourth-largest auto insurer.
Klein cited a Texas Department of Insurance study that showed there was a correlation between credit scores and claims filed. The company uses the information responsibly and as just one of 15 factors in determining rates, he said.
Customers with good credit would pay $200 more a year for auto insurance, on average, if credit scoring were not used.
“It’s a proven, irrefutable fact, confirmed by the TDI, that individuals with better credit scores have fewer accidents,” he said.
Conversely, having bad credit doesn’t always mean they have more accidents, some testified.
One woman said she has auto insurance rates as high as those of a drunk driver even though her driving record is clean. A 1999 failed business deal left her and her husband starting from scratch with new careers, and they still pay elevated rates, because of the ordeal, she said.
Another man had to file bankruptcy after medical bills from his wife’s brain tumor piled up. Some late bills hurt their credit and nearly tripled their home insurance premium, he said.
In presenting the bill to the committee, Brown said he is concerned that the practice of using credit scores targets elderly people who tell him they have what is called a “thin file,” or little credit, not necessarily bad credit.
And high rates prevent some people from buying insurance, which means even those with good credit pay higher premiums when they are in an accident with an uninsured person, Brown said.
State Rep. Aaron Peña, D-Edinburg, said he is coauthoring the bill because he is concerned about the close correlation between credit scores and Hispanics and low income people.
“When a hurricane passes through the Valley as it does every so often, those hurricanes don’t make any distinction between those people with good credit scores and those without good credit scores,” he said.
In 2003, the House voted unanimously to ban the use of credit scoring. What eventually became law is known as Senate Bill 14, which allowed the practice but gave consumers some help in appealing the increases when their credit is damaged from catastrophic life events.
Insurance Company Scam
Gwen Carter had health insurance through her husband's employer, but she started getting suspicious about it after she got sick.
Carter had multiple sclerosis. Her medical bills began piling up because her insurance company made only one payment.
"That set another stress mark over and above what I needed at the time," she said.
It's one of the biggest insurance scams out there -- unlicensed companies selling insurance. You pay your premiums, but they refuse to pay most of your claims.
North Carolina's Department of Insurance has issued Cease and Desist orders against seven different health insurance companies, including American Heartland Health Administrators and Benefit Plans of America.
A government investigation finds more than 200,000 consumers have some $252 million in unpaid claims.
Alice Molasky-Arman is with the National Association of Insurance Commissioners. She said the problem of phony insurance companies is growing.
"The people who perpetuate these plans are predators," she said. "The policies themselves are counterfeit. They look like, they sound like an ordinary insurance contract."
Right now, the Department of Labor has more than 100 open investigations across the country.
James Quiggle, with the Coalition Against Insurance Fraud, said consumers have to be smart as well.
"Consumers will have to be very careful when they're offered a deal that seems too good to be true," he said.
Carter said she wishes she had checked on her insurance company before she really needed it.
"The old adage is, 'Don't assume.' Because when you assume, that's when you run into problems," she said.
There's a very simple way to find out if an insurance company is licensed or not. You can call the North Carolina Department of Insurance at 1-800-546-5664.
Carter had multiple sclerosis. Her medical bills began piling up because her insurance company made only one payment.
"That set another stress mark over and above what I needed at the time," she said.
It's one of the biggest insurance scams out there -- unlicensed companies selling insurance. You pay your premiums, but they refuse to pay most of your claims.
North Carolina's Department of Insurance has issued Cease and Desist orders against seven different health insurance companies, including American Heartland Health Administrators and Benefit Plans of America.
A government investigation finds more than 200,000 consumers have some $252 million in unpaid claims.
Alice Molasky-Arman is with the National Association of Insurance Commissioners. She said the problem of phony insurance companies is growing.
"The people who perpetuate these plans are predators," she said. "The policies themselves are counterfeit. They look like, they sound like an ordinary insurance contract."
Right now, the Department of Labor has more than 100 open investigations across the country.
James Quiggle, with the Coalition Against Insurance Fraud, said consumers have to be smart as well.
"Consumers will have to be very careful when they're offered a deal that seems too good to be true," he said.
Carter said she wishes she had checked on her insurance company before she really needed it.
"The old adage is, 'Don't assume.' Because when you assume, that's when you run into problems," she said.
There's a very simple way to find out if an insurance company is licensed or not. You can call the North Carolina Department of Insurance at 1-800-546-5664.
Tuesday, February 22, 2005
BCBSNC launches new RX drug initiative
CHAPEL HILL -- Following the success of its generic copayment holiday in 2004, Blue Cross and Blue Shield of North Carolina (BCBSNC) has launched a new effort to encourage members to consider generic drugs for the treatment of common conditions.
From October through December of 2004, BCBSNC waived copayments for all generic drugs for members who have their prescription coverage through the company. Under that initiative, the company's generic dispensing rate increased from 47 percent to 53 percent. The number of generic prescriptions increased 390,000, compared to the previous three-month period.
"Members are clearly finding that choosing generic drugs is a sensible way to control their monthly health care costs without sacrificing quality," said Ron Smith, BCBSNC director of Corporate Pharmacy. "In 2005, we are continuing to offer incentives for members to consider generics as a cost-effective option, when appropriate."
As part of its new initiative, BCBSNC is waiving a member's first copayment for any new prescription for selected generic maintenance drugs in a variety of classes. These include generic maintenance drugs for the treatment of high blood pressure, diabetes, depression and high cholesterol. [Full list is at the end of this release.] The initiative began on January 1 for BCBSNC- insured members who have prescription drug coverage through the company. Self- insured companies whose drug benefits are administered by BCBSNC will also have the option of offering this waiver to members, beginning April 1. Every new prescription that a member receives for a generic medication included in this program is eligible for the one-time waiver. Members' deductibles and benefit limits still apply.
"These generic maintenance drugs are for the treatment of chronic conditions, and they are typically taken daily," Smith said. "As such, members stand to save significantly by switching from a brand-name to a generic maintenance drug."
Generic drugs are the same as the corresponding brand-name drugs in active ingredients, dosage, strength, safety and performance. Generics typically cost 30 to 70 percent less than the comparable brand-name drug. For BCBSNC members, the average monthly out-of-pocket savings for switching to an appropriate generic is $10 to $30, which is an annual savings of $120 to $360. This does not include the additional savings they will receive because of the copayment waiver. The lower costs for generic drugs are typically associated with the lower marketing and development costs for those drugs.
BCBSNC members retain the option of choosing a brand-name drug, even if an appropriate generic alternative is available. Members cannot be prescribed a generic drug unless a physician specifically indicates that it is an appropriate alternative to a brand-name drug.
Members of the State Health Plan and Federal Employee Program are not eligible for the copayment waiver for new generic maintenance drug prescriptions because BCBSNC does not administer the drug benefits for those plans.
BCBSNC features a series of online tools to help members with their drug choices. The average retail price of all drugs covered by BCBSNC is available in the member drug guide. The company's Web site allows members to search for generic alternatives for brand-name drugs. BCBSNC recently launched PharmaAdvisor(TM), an online tool that members can use to select a particular medical condition and find out the various types of drug treatments that may be available. A member can research the relative costs of those options and estimate their out-of-pocket costs. BCBSNC is making PharmaAdvisor available through a relationship with Subimo, LLC, a leader in providing innovative health-related decision support tools for consumers.
Generic Maintenance Drugs Included in New BCBSNC Initiative
DIURETICS (Drugs to Treat High Blood Pressure)
chlorthalidone
hydrochlorothiazide (HCTZ)
indapamide (generic Lozol)
spironolactone (generic Aldactone)
spironolactone/HCTZ (generic Aldactazide)
triamterene/HCTZ (generic Dyazide, Maxzide)
BETA BLOCKERS (Drugs to Treat High Blood Pressure)
atenolol (generic Tenormin)
labetalol (generic Trandate, Normodyne)
metoprolol (generic Lopressor)
nadolol (generic Corgard)
propranolol (generic Inderal)
ACE INHIBITORS (Drugs to Treat High Blood Pressure)
benazepril (generic Lotensin)
captopril (generic Capoten)
enalapril (generic Vasotec)
fosinopril (generic Monopril)
lisinopril (generic Zestril, Prinivil)
ANTIHYPERTENSIVE COMBINATIONS (Drugs to Treat High Blood Pressure)
atenolol/chlorthalidone (generic Tenoretic)
benazepril/HCTZ (generic Lotensin HCT)
bisoprolol/HCTZ (generic Ziac)
captopril/HCTZ (generic Capozide)
enalapril/HCTZ (generic Vaseretic)
lisinopril/HCTZ (generic Zestoretic, Prinzide)
metoprolol/HCTZ (generic Lopressor HCT)
propranolol/HCTZ (generic Inderide)
quinapril/HCTZ (generic Accuretic)
ORAL AGENTS FOR DIABETES (Drugs to Treat Non-Insulin Dependent Diabetes)
glipizide (generic Glucotrol)
glipizide ER (generic Glucotrol XL)
glyburide (generic Micronase, Diabeta)
glyburide micronized (generic Glynase)
glyburide/metformin (generic Glucovance)
metformin (generic Glucophage)
metformin ER (generic Glucophage XR)
ANTIDEPRESSANTS (Drugs to Treat Depression)
bupropion (generic Wellbutrin)
bupropion ER (generic Wellbutrin SR)
citalopram (generic Celexa)
fluoxetine (generic Prozac)
mirtazapine (generic Remeron, Remeron SolTab)
nortriptyline (generic Pamelor)
paroxetine (generic Paxil)
trazodone (generic Desyrel)
LIPID-LOWERING AGENTS (Drugs to Treat High Cholesterol)
cholestyramine (generic Questran)
gemfibrozil (generic Lopid)
lovastatin (generic Mevacor)
From October through December of 2004, BCBSNC waived copayments for all generic drugs for members who have their prescription coverage through the company. Under that initiative, the company's generic dispensing rate increased from 47 percent to 53 percent. The number of generic prescriptions increased 390,000, compared to the previous three-month period.
"Members are clearly finding that choosing generic drugs is a sensible way to control their monthly health care costs without sacrificing quality," said Ron Smith, BCBSNC director of Corporate Pharmacy. "In 2005, we are continuing to offer incentives for members to consider generics as a cost-effective option, when appropriate."
As part of its new initiative, BCBSNC is waiving a member's first copayment for any new prescription for selected generic maintenance drugs in a variety of classes. These include generic maintenance drugs for the treatment of high blood pressure, diabetes, depression and high cholesterol. [Full list is at the end of this release.] The initiative began on January 1 for BCBSNC- insured members who have prescription drug coverage through the company. Self- insured companies whose drug benefits are administered by BCBSNC will also have the option of offering this waiver to members, beginning April 1. Every new prescription that a member receives for a generic medication included in this program is eligible for the one-time waiver. Members' deductibles and benefit limits still apply.
"These generic maintenance drugs are for the treatment of chronic conditions, and they are typically taken daily," Smith said. "As such, members stand to save significantly by switching from a brand-name to a generic maintenance drug."
Generic drugs are the same as the corresponding brand-name drugs in active ingredients, dosage, strength, safety and performance. Generics typically cost 30 to 70 percent less than the comparable brand-name drug. For BCBSNC members, the average monthly out-of-pocket savings for switching to an appropriate generic is $10 to $30, which is an annual savings of $120 to $360. This does not include the additional savings they will receive because of the copayment waiver. The lower costs for generic drugs are typically associated with the lower marketing and development costs for those drugs.
BCBSNC members retain the option of choosing a brand-name drug, even if an appropriate generic alternative is available. Members cannot be prescribed a generic drug unless a physician specifically indicates that it is an appropriate alternative to a brand-name drug.
Members of the State Health Plan and Federal Employee Program are not eligible for the copayment waiver for new generic maintenance drug prescriptions because BCBSNC does not administer the drug benefits for those plans.
BCBSNC features a series of online tools to help members with their drug choices. The average retail price of all drugs covered by BCBSNC is available in the member drug guide. The company's Web site allows members to search for generic alternatives for brand-name drugs. BCBSNC recently launched PharmaAdvisor(TM), an online tool that members can use to select a particular medical condition and find out the various types of drug treatments that may be available. A member can research the relative costs of those options and estimate their out-of-pocket costs. BCBSNC is making PharmaAdvisor available through a relationship with Subimo, LLC, a leader in providing innovative health-related decision support tools for consumers.
Generic Maintenance Drugs Included in New BCBSNC Initiative
DIURETICS (Drugs to Treat High Blood Pressure)
chlorthalidone
hydrochlorothiazide (HCTZ)
indapamide (generic Lozol)
spironolactone (generic Aldactone)
spironolactone/HCTZ (generic Aldactazide)
triamterene/HCTZ (generic Dyazide, Maxzide)
BETA BLOCKERS (Drugs to Treat High Blood Pressure)
atenolol (generic Tenormin)
labetalol (generic Trandate, Normodyne)
metoprolol (generic Lopressor)
nadolol (generic Corgard)
propranolol (generic Inderal)
ACE INHIBITORS (Drugs to Treat High Blood Pressure)
benazepril (generic Lotensin)
captopril (generic Capoten)
enalapril (generic Vasotec)
fosinopril (generic Monopril)
lisinopril (generic Zestril, Prinivil)
ANTIHYPERTENSIVE COMBINATIONS (Drugs to Treat High Blood Pressure)
atenolol/chlorthalidone (generic Tenoretic)
benazepril/HCTZ (generic Lotensin HCT)
bisoprolol/HCTZ (generic Ziac)
captopril/HCTZ (generic Capozide)
enalapril/HCTZ (generic Vaseretic)
lisinopril/HCTZ (generic Zestoretic, Prinzide)
metoprolol/HCTZ (generic Lopressor HCT)
propranolol/HCTZ (generic Inderide)
quinapril/HCTZ (generic Accuretic)
ORAL AGENTS FOR DIABETES (Drugs to Treat Non-Insulin Dependent Diabetes)
glipizide (generic Glucotrol)
glipizide ER (generic Glucotrol XL)
glyburide (generic Micronase, Diabeta)
glyburide micronized (generic Glynase)
glyburide/metformin (generic Glucovance)
metformin (generic Glucophage)
metformin ER (generic Glucophage XR)
ANTIDEPRESSANTS (Drugs to Treat Depression)
bupropion (generic Wellbutrin)
bupropion ER (generic Wellbutrin SR)
citalopram (generic Celexa)
fluoxetine (generic Prozac)
mirtazapine (generic Remeron, Remeron SolTab)
nortriptyline (generic Pamelor)
paroxetine (generic Paxil)
trazodone (generic Desyrel)
LIPID-LOWERING AGENTS (Drugs to Treat High Cholesterol)
cholestyramine (generic Questran)
gemfibrozil (generic Lopid)
lovastatin (generic Mevacor)
MAKING ASSOCIATION HEALTH PLANS A SUCCESS
Author: Nina Owcharenko
Source: The Heritage Foundation, 02/14/05
Association health plans (AHPs) would improve coverage options for Americans, but "Congress can make AHPs even more successful by advancing consumer-oriented mechanisms, such as competition, consumer choice, and a nimble regulatory structure," writes Nina Owcharenko of The Heritage Foundation. The limitations of employer-sponsored coverage still exist under traditional AHPs, resulting in "lack of individual ownership, personal choice, and true portability." The proposed expanded AHP model, which would allow non-employer groups like religious, charitable, and civic organizations to form AHPs based on individual membership, offers more advantages by helping to "promote continuity in care and coverage as well as [empowering] consumers to choose and own their own health care policies." Owcharenko also suggests that Congress "tackle the tax treatment of health insurance… [to] ensure that individuals are able to choose, without bias from the tax code, the best source of health care and coverage for themselves and their families."
Source: The Heritage Foundation, 02/14/05
Association health plans (AHPs) would improve coverage options for Americans, but "Congress can make AHPs even more successful by advancing consumer-oriented mechanisms, such as competition, consumer choice, and a nimble regulatory structure," writes Nina Owcharenko of The Heritage Foundation. The limitations of employer-sponsored coverage still exist under traditional AHPs, resulting in "lack of individual ownership, personal choice, and true portability." The proposed expanded AHP model, which would allow non-employer groups like religious, charitable, and civic organizations to form AHPs based on individual membership, offers more advantages by helping to "promote continuity in care and coverage as well as [empowering] consumers to choose and own their own health care policies." Owcharenko also suggests that Congress "tackle the tax treatment of health insurance… [to] ensure that individuals are able to choose, without bias from the tax code, the best source of health care and coverage for themselves and their families."
A HEALTH PLAN THAT COVERS IT ALL: CASH
Author: Nick Perry
Source: The Seattle Times, 02/15/05
"A growing number of Washington doctors, pharmacists and patients believe they have found an alternative to the spiraling cost and bureaucracy of health insurance. Cash," writes Nick Perry, staff reporter for The Seattle Times. Washington State's 600,000 uninsured residents and a rising number of employees with only catastrophic coverage have led to an increase in cash-only physician practices and pharmacies like the Save Now Discount Pharmacy. Save Now founder Todd McElroy says he is able to offer significant discounts "because he saves up to 30 percent of staff costs by eliminating insurance paperwork," writes Perry. "That enables him to offer prices competitive with low-price Canadian pharmacies." The article also features Dr. Vern Cherewatenko's SimpleCare program and his positive experience with running a cash-only medical practice.
Source: The Seattle Times, 02/15/05
"A growing number of Washington doctors, pharmacists and patients believe they have found an alternative to the spiraling cost and bureaucracy of health insurance. Cash," writes Nick Perry, staff reporter for The Seattle Times. Washington State's 600,000 uninsured residents and a rising number of employees with only catastrophic coverage have led to an increase in cash-only physician practices and pharmacies like the Save Now Discount Pharmacy. Save Now founder Todd McElroy says he is able to offer significant discounts "because he saves up to 30 percent of staff costs by eliminating insurance paperwork," writes Perry. "That enables him to offer prices competitive with low-price Canadian pharmacies." The article also features Dr. Vern Cherewatenko's SimpleCare program and his positive experience with running a cash-only medical practice.
HEALTH SAVINGS ACCOUNTS: THE FIRST YEAR IN REVIEW
Health Savings Accounts (HSAs) are affordable, comprehensive, and are being adopted by all income levels, according to an eHealthInsurance study which provides a snapshot of HSA plans purchased last year. The study analyzed 82,000 policies purchased through the on-line brokerage from March to August, 2004. Key findings: 40% of HSA-eligible plans were purchased by people with incomes of $50,000 or below; 89% of HSA-eligible plan purchasers paid $200 or less per person per month in premiums; 85% of HSA-eligible plans were comprehensive policies that paid 100% of office visits, surgery, hospitalization, and lab/x-ray services after the plan deductible was met; and 99.4% of HSA-eligible plans included prescription drug benefits. The study provides much more information on purchaser demographics and costs paid for HSA-eligible plans in the individual and family markets, as well as a side-by-side look at HSA-eligible plans and non HSA-eligible plans.
Monday, February 21, 2005
Support of mental health parity bill
By RACHEL LA CORTE
ASSOCIATED PRESS WRITER
OLYMPIA, Wash. -- The sister of House Speaker Frank Chopp told lawmakers Monday that they need to end insurance discrimination and pass a bill that would force health insurance companies to cover mental health the same way they cover physical health.
Jo-Anne Wilson, 60, told the Senate Health & Long-Term Care Committee that after she was diagnosed with bipolar disorder in 1986, she had to pay significant out-of-pocket costs for many items associated with her treatment, including most prescriptions.
"I received treatment, but at a high financial and emotional price," she said.
Wilson was one of several people who argued in support of a Senate bill mandating that mental health coverage, when provided under an insurance policy, be equal to physical health coverage. A version of the bill passed the House last month.
"Limits on therapy and hospital days, and higher out-of-pocket costs are a form of discrimination that is every bit as profound as discrimination based on race," Wilson said.
The bill mandates parity for mental health coverage. For example, if the copayment for a diabetes or asthma drug is $10, the copayment for an anti-anxiety medication would also be $10. If a health plan allowed unlimited doctor visits for physical ailments, it couldn't cap mental health therapy sessions.
State law does not require employers to offer health benefits and it doesn't require health insurers to offer mental health coverage. This bill would not change that; it would simply require plans that do offer mental health coverage to offer those benefits at the same level and cost as benefits for medical and surgical services.
Many of those arguing against the bill Monday noted that many employers are already struggling under increasing health costs. Opponents have argued that the bill will increase costs and force some employers to stop offering health benefits.
"Mandating a benefit helps no one who loses their coverage," said Mellani Hughes McAleenan, with the Association of Washington Business.
The measure would not cover employees of businesses with less than 50 people, self-insured companies such as Boeing and people who purchase individual plans.
Ronald Bachman, an actuary who did a report for PricewaterhouseCoopers LLP, said that the actual cost increase is less than 1 percent. He cited the more than 30 other states, like Minnesota and Vermont, where parity has been introduced at some level. The bill would phase in mental health parity requirements over four years beginning in 2006.
"There is no state that has implemented mental health parity that has reduced it," he said. "There is no study that shows this breaks the bank. There is just no evidence."
Mel Sorensen, a lobbyist with America's Health Insurance Plans and the Washington Association of Health Underwriters, said he believed the cost differential would be higher than 1 percent, but that even if it weren't, employers would suffer tremendous financial impact.
"The dollar amounts that are represented by even small percentage increases are not insubstantial," he said. "For $1 billion in underwritten premiums ... a 1 percent impact is $10 million. It cannot be said that this proposal comes without costs."
Psychiatrist Greg Simon said that people who are depressed miss two times as many work days as other employees, and that the cost of providing psychiatric services would be offset by the increase in productivity and decrease in absenteeism.
"Depression is just as disabling or more disabling than major medical conditions like heart disease, emphysema or arthritis," he said.
Wilson, who spent nearly 25 years as a public school teacher, said her illness eventually led to her being declared disabled and having to leave her profession, something she said was "a great personal loss."
"If people do not get early care, they are more likely to become disabled, as I did," she said.
Chopp came to listen to his sister's testimony, and hugged her after the hearing.
"I'm extremely proud of her," he said.
---
The mental health parity bill is Senate Bill 5450. The bill that passed the House and is now being heard in the Senate is Senate House Bill 1154.
ASSOCIATED PRESS WRITER
OLYMPIA, Wash. -- The sister of House Speaker Frank Chopp told lawmakers Monday that they need to end insurance discrimination and pass a bill that would force health insurance companies to cover mental health the same way they cover physical health.
Jo-Anne Wilson, 60, told the Senate Health & Long-Term Care Committee that after she was diagnosed with bipolar disorder in 1986, she had to pay significant out-of-pocket costs for many items associated with her treatment, including most prescriptions.
"I received treatment, but at a high financial and emotional price," she said.
Wilson was one of several people who argued in support of a Senate bill mandating that mental health coverage, when provided under an insurance policy, be equal to physical health coverage. A version of the bill passed the House last month.
"Limits on therapy and hospital days, and higher out-of-pocket costs are a form of discrimination that is every bit as profound as discrimination based on race," Wilson said.
The bill mandates parity for mental health coverage. For example, if the copayment for a diabetes or asthma drug is $10, the copayment for an anti-anxiety medication would also be $10. If a health plan allowed unlimited doctor visits for physical ailments, it couldn't cap mental health therapy sessions.
State law does not require employers to offer health benefits and it doesn't require health insurers to offer mental health coverage. This bill would not change that; it would simply require plans that do offer mental health coverage to offer those benefits at the same level and cost as benefits for medical and surgical services.
Many of those arguing against the bill Monday noted that many employers are already struggling under increasing health costs. Opponents have argued that the bill will increase costs and force some employers to stop offering health benefits.
"Mandating a benefit helps no one who loses their coverage," said Mellani Hughes McAleenan, with the Association of Washington Business.
The measure would not cover employees of businesses with less than 50 people, self-insured companies such as Boeing and people who purchase individual plans.
Ronald Bachman, an actuary who did a report for PricewaterhouseCoopers LLP, said that the actual cost increase is less than 1 percent. He cited the more than 30 other states, like Minnesota and Vermont, where parity has been introduced at some level. The bill would phase in mental health parity requirements over four years beginning in 2006.
"There is no state that has implemented mental health parity that has reduced it," he said. "There is no study that shows this breaks the bank. There is just no evidence."
Mel Sorensen, a lobbyist with America's Health Insurance Plans and the Washington Association of Health Underwriters, said he believed the cost differential would be higher than 1 percent, but that even if it weren't, employers would suffer tremendous financial impact.
"The dollar amounts that are represented by even small percentage increases are not insubstantial," he said. "For $1 billion in underwritten premiums ... a 1 percent impact is $10 million. It cannot be said that this proposal comes without costs."
Psychiatrist Greg Simon said that people who are depressed miss two times as many work days as other employees, and that the cost of providing psychiatric services would be offset by the increase in productivity and decrease in absenteeism.
"Depression is just as disabling or more disabling than major medical conditions like heart disease, emphysema or arthritis," he said.
Wilson, who spent nearly 25 years as a public school teacher, said her illness eventually led to her being declared disabled and having to leave her profession, something she said was "a great personal loss."
"If people do not get early care, they are more likely to become disabled, as I did," she said.
Chopp came to listen to his sister's testimony, and hugged her after the hearing.
"I'm extremely proud of her," he said.
---
The mental health parity bill is Senate Bill 5450. The bill that passed the House and is now being heard in the Senate is Senate House Bill 1154.
What are they saying about your credit?
Monday, February 21, 2005
By Matt Vande Bunte
The Grand Rapids Press
Scott Mazur was on a hunting trip several years ago when his wallet was stolen.
Stuck at deer camp with no telephone, the Rockford police lieutenant could not report the loss, which would have triggered a fraud alert on all his credit-card accounts.
Fraudulent use of your credit cards can have long-term financial ramifications, even if you were diligent in reporting them stolen.
Mazur tackled the problem head-on -- he obtained his personal credit report to make sure they accurately reflected his credit history -- and not the extravagant spending habits of a backwoods thief.
"I have a report done every year for my own protection," Mazur said of the credit reports. The typical fee for one is $10.
Starting March 1, credit reports can be obtained free -- courtesy Uncle Sam. It is one of the more visible components of the Fair and Accurate Credit Transactions Act signed into law by President George W. Bush last year.
Rockford's Police Department gets five to 10 complaints of identity fraud each year. But many more cases are undiscovered.
Eventually, the unsuspecting victim learns his or her credit has been ruined by a stranger. It does not have to be from a break-in, either. It could be from letters taken from your mailbox or a crumpled credit-card receipt tossed in a restaurant ash tray.
It may not be until you apply for a store credit card that you learn something is amiss.
With the new law, you can get a free report once every 12 months from each of the three national consumer credit-reporting agencies -- Equifax, Experian and TransUnion.
An annual review can save you a lot of aggravation, especially if your credit report is inaccurate, said Julie MacDougall, a counselor with GreenPath Debt Solutions in Grand Rapids.
"If there's an inaccuracy, you may not know, but you're going to get whacked," MacDougall said. "Is everything on there accurate? Is it yours? Do you recognize everything? Is it up to date?"
President Bush, in declaring Feb. 6-12 National Consumer Protection Week, called identity theft "one of the highest impact financial crimes in our nation."
"Identity theft can undermine the basic trust on which our economy depends," Bush said in the proclamation. "Identity theft can shake consumers' confidence, destroy a person's financial reputation, and damage lifelong efforts to build and maintain a good credit rating."
Michigan is one of 12 Midwest states where free reports will be available beginning March 1. The law went into effect for 13 Western states in December, and will trigger in June for residents in 11 Southern states. Eastern states and U.S. territories will be able to get free reports in September.
All you have to do is ask for it, either online at www.AnnualCreditReport.com or by phone at 877-322-8228. You also can fill out an online request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Stay informed
A credit report contains a detailed history of your personal loans and credit accounts, which lenders use to assess the risk of loaning you money. It also gives a list of agencies that have received a report about your credit.
Such inquiries will increase if someone tries to get a credit card in your name. But don't expect credit agencies to tell you about the red flags, Mazur said.
"The credit agencies don't notify you just because there has been a lot of inquiries," Mazur said. "You could go two, three years, and you would have no idea someone is using your identity. Most people don't know until they apply for a loan."
Security fears aside, there are good financial reasons to take a look at your credit report. If you know you have lots of debt, it might be an emotional bummer, of course. But it also could be harmful to ignore an incorrect report.
Like a stone cast upon the water, a faulty credit report has a ripple effect on your every financial move.
Want a car loan? How about the interest rate on that loan; something competitive would be nice, right?
Bad credit scores can torpedo your chances of borrowing money. Even if you are approved, the interest rate likely will be higher than what a good credit score would bring.
The poor credit score that you knew nothing about affects what you pay for car insurance and, in some cases, can sabotage your job hunt.
MacDougall regularly has clients who have not seen their credit report in years. Once they do, clients find out why they cannot get a mortgage or why their auto insurance rates are soaring.
Source of contention
The source of a bad credit rating might be something you have overlooked or assumed was taken care of, MacDougall said. A good example, she said, are overdue medical bills you thought your health insurer paid. A slew of $50 co-pays can quickly bust your credit score, MacDougall said.
"It's not the balance. It doesn't have to be a big one," she said.
Other times, the credit report is not up-to-date. It can be hard to get a car loan when a lender thinks you are paying on three other cars and a boat.
And remember that loan you co-signed? Pulling a credit report "is how you find out your nephew isn't making his car payments," she said.
Because the new law permits you to get a free report from each of the three national agencies, you could either pull three reports at once or get a checkup every four months.
The advantage on the one hand is being able to compare the reports from different companies. On the other hand, it might be nice to have a continual checkup -- for free.
Either way, "you gotta know what's on there," MacDougall said.
By Matt Vande Bunte
The Grand Rapids Press
Scott Mazur was on a hunting trip several years ago when his wallet was stolen.
Stuck at deer camp with no telephone, the Rockford police lieutenant could not report the loss, which would have triggered a fraud alert on all his credit-card accounts.
Fraudulent use of your credit cards can have long-term financial ramifications, even if you were diligent in reporting them stolen.
Mazur tackled the problem head-on -- he obtained his personal credit report to make sure they accurately reflected his credit history -- and not the extravagant spending habits of a backwoods thief.
"I have a report done every year for my own protection," Mazur said of the credit reports. The typical fee for one is $10.
Starting March 1, credit reports can be obtained free -- courtesy Uncle Sam. It is one of the more visible components of the Fair and Accurate Credit Transactions Act signed into law by President George W. Bush last year.
Rockford's Police Department gets five to 10 complaints of identity fraud each year. But many more cases are undiscovered.
Eventually, the unsuspecting victim learns his or her credit has been ruined by a stranger. It does not have to be from a break-in, either. It could be from letters taken from your mailbox or a crumpled credit-card receipt tossed in a restaurant ash tray.
It may not be until you apply for a store credit card that you learn something is amiss.
With the new law, you can get a free report once every 12 months from each of the three national consumer credit-reporting agencies -- Equifax, Experian and TransUnion.
An annual review can save you a lot of aggravation, especially if your credit report is inaccurate, said Julie MacDougall, a counselor with GreenPath Debt Solutions in Grand Rapids.
"If there's an inaccuracy, you may not know, but you're going to get whacked," MacDougall said. "Is everything on there accurate? Is it yours? Do you recognize everything? Is it up to date?"
President Bush, in declaring Feb. 6-12 National Consumer Protection Week, called identity theft "one of the highest impact financial crimes in our nation."
"Identity theft can undermine the basic trust on which our economy depends," Bush said in the proclamation. "Identity theft can shake consumers' confidence, destroy a person's financial reputation, and damage lifelong efforts to build and maintain a good credit rating."
Michigan is one of 12 Midwest states where free reports will be available beginning March 1. The law went into effect for 13 Western states in December, and will trigger in June for residents in 11 Southern states. Eastern states and U.S. territories will be able to get free reports in September.
All you have to do is ask for it, either online at www.AnnualCreditReport.com or by phone at 877-322-8228. You also can fill out an online request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Stay informed
A credit report contains a detailed history of your personal loans and credit accounts, which lenders use to assess the risk of loaning you money. It also gives a list of agencies that have received a report about your credit.
Such inquiries will increase if someone tries to get a credit card in your name. But don't expect credit agencies to tell you about the red flags, Mazur said.
"The credit agencies don't notify you just because there has been a lot of inquiries," Mazur said. "You could go two, three years, and you would have no idea someone is using your identity. Most people don't know until they apply for a loan."
Security fears aside, there are good financial reasons to take a look at your credit report. If you know you have lots of debt, it might be an emotional bummer, of course. But it also could be harmful to ignore an incorrect report.
Like a stone cast upon the water, a faulty credit report has a ripple effect on your every financial move.
Want a car loan? How about the interest rate on that loan; something competitive would be nice, right?
Bad credit scores can torpedo your chances of borrowing money. Even if you are approved, the interest rate likely will be higher than what a good credit score would bring.
The poor credit score that you knew nothing about affects what you pay for car insurance and, in some cases, can sabotage your job hunt.
MacDougall regularly has clients who have not seen their credit report in years. Once they do, clients find out why they cannot get a mortgage or why their auto insurance rates are soaring.
Source of contention
The source of a bad credit rating might be something you have overlooked or assumed was taken care of, MacDougall said. A good example, she said, are overdue medical bills you thought your health insurer paid. A slew of $50 co-pays can quickly bust your credit score, MacDougall said.
"It's not the balance. It doesn't have to be a big one," she said.
Other times, the credit report is not up-to-date. It can be hard to get a car loan when a lender thinks you are paying on three other cars and a boat.
And remember that loan you co-signed? Pulling a credit report "is how you find out your nephew isn't making his car payments," she said.
Because the new law permits you to get a free report from each of the three national agencies, you could either pull three reports at once or get a checkup every four months.
The advantage on the one hand is being able to compare the reports from different companies. On the other hand, it might be nice to have a continual checkup -- for free.
Either way, "you gotta know what's on there," MacDougall said.
WMU formally joins health insurance collective
KALAMAZOO--Acting at their Feb. 18 meeting, Western Michigan University trustees authorized the university administration to become part of a nonprofit corporation called MUCH--Michigan University Coalition on Health.
Founded in 1997 as an informal statewide committee, MUCH seeks to use the collective leverage of all of the state's public universities to control health insurance costs through group purchases of claims processing services, pharmacy benefit manager's services, life and long-term disability coverages, and other related costs.
To carry out its goals more effectively and better effect savings, MUCH is now seeking to formalize the arrangement and secure legal authority to contract on behalf of all of the institutions it represents. WMU is one of 12 universities whose business officers have recommended approval of the new arrangement.
Founded in 1997 as an informal statewide committee, MUCH seeks to use the collective leverage of all of the state's public universities to control health insurance costs through group purchases of claims processing services, pharmacy benefit manager's services, life and long-term disability coverages, and other related costs.
To carry out its goals more effectively and better effect savings, MUCH is now seeking to formalize the arrangement and secure legal authority to contract on behalf of all of the institutions it represents. WMU is one of 12 universities whose business officers have recommended approval of the new arrangement.
Thursday, February 17, 2005
Auto Insurance Gets Even Easier
MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--Feb. 17, 2005--The Progressive Direct Group of Insurance Companies continues its commitment to making auto insurance easier by becoming one of the first auto insurers to enable customers to sign purchase documents electronically via computer - making the process of purchasing a policy online easier and faster. The electronic signature, or "e-signature," is a technological leap forward because it can replace a "wet" signature, in which a customer has to physically sign a paper document. Progressive Direct, which sells directly to customers online and over the phone, recently made the capability available to customers in 17 states, with the goal of making it available in all states where Progressive Direct is offered within the next several months.
"Buying auto insurance online is already incredibly convenient, but without the ability to sign policy forms online, at the point of sale, customers still get forms in the mail they have to sign and return to complete their purchase," said Richard Hutchinson who, as a general manager for Progressive Direct, oversees the quoting and buying experience. "Being able to sign forms online eliminates most of that follow-up paperwork."
For example, a Progressive Direct customer can now electronically sign the application or, if the customer chooses to have funds automatically deducted from a checking account, the customer can electronically sign the form to authorize Electronic Funds Transfer (EFT). Customers can also sign forms to reject certain coverages online at the point of sale. Without the ability to sign online, in some states, customers would be required to accept - and pay for - the coverages until they physically signed and returned forms. These are just a few instances where Progressive Direct customers can sign the legally required forms online, without the hassle of getting follow-up paperwork in the mail.
"We're always looking for new and innovative ways to make car insurance easier and better for consumers," said Hutchinson. "This is just the latest example of an innovation that gives customers a choice in how they want to interact with us."
In states with the e-signature capability, a Progressive Direct customer who decides to purchase a policy online is offered the choice of signing many of the needed forms with an electronic signature or through the traditional method of having forms sent through the mail. Customers who choose the e-signature option are asked some questions to verify their identity and are then presented with online exact replicas of the required signature forms. Signing a form is as easy as keying in their name and clicking on a "Continue" button.
Progressive Direct customers who opt to sign forms electronically may still have to conduct some post-sale business by mail, such as if they need to provide proof of prior insurance or home ownership. The Companies are developing processes to accomplish those tasks online, too. In addition, Progressive Direct is exploring ways to adapt the technology for use by the Drive Group of Progressive Insurance Companies, which sells to consumers through independent agents and brokers.
Currently, the e-signature capability is available to Progressive Direct's online customers in Louisiana, Pennsylvania, Ohio, Delaware, Indiana, Missouri, Kansas, Wisconsin, Tennessee, Mississippi, Alabama, Nevada, Utah, Colorado, Montana, North Dakota and Vermont. For an up-to-date map showing where e-fulfillment is available, click here.
Use of electronic signatures in commerce became possible in 2000 after Congress passed the Electronic Signatures in Global and National Commerce Act (E-SIGN). The E-SIGN Act adopted the most significant rules of the Uniform Electronic Transactions Act (UETA), which gives electronic signatures the same legal standing as paper signatures.
"Buying auto insurance online is already incredibly convenient, but without the ability to sign policy forms online, at the point of sale, customers still get forms in the mail they have to sign and return to complete their purchase," said Richard Hutchinson who, as a general manager for Progressive Direct, oversees the quoting and buying experience. "Being able to sign forms online eliminates most of that follow-up paperwork."
For example, a Progressive Direct customer can now electronically sign the application or, if the customer chooses to have funds automatically deducted from a checking account, the customer can electronically sign the form to authorize Electronic Funds Transfer (EFT). Customers can also sign forms to reject certain coverages online at the point of sale. Without the ability to sign online, in some states, customers would be required to accept - and pay for - the coverages until they physically signed and returned forms. These are just a few instances where Progressive Direct customers can sign the legally required forms online, without the hassle of getting follow-up paperwork in the mail.
"We're always looking for new and innovative ways to make car insurance easier and better for consumers," said Hutchinson. "This is just the latest example of an innovation that gives customers a choice in how they want to interact with us."
In states with the e-signature capability, a Progressive Direct customer who decides to purchase a policy online is offered the choice of signing many of the needed forms with an electronic signature or through the traditional method of having forms sent through the mail. Customers who choose the e-signature option are asked some questions to verify their identity and are then presented with online exact replicas of the required signature forms. Signing a form is as easy as keying in their name and clicking on a "Continue" button.
Progressive Direct customers who opt to sign forms electronically may still have to conduct some post-sale business by mail, such as if they need to provide proof of prior insurance or home ownership. The Companies are developing processes to accomplish those tasks online, too. In addition, Progressive Direct is exploring ways to adapt the technology for use by the Drive Group of Progressive Insurance Companies, which sells to consumers through independent agents and brokers.
Currently, the e-signature capability is available to Progressive Direct's online customers in Louisiana, Pennsylvania, Ohio, Delaware, Indiana, Missouri, Kansas, Wisconsin, Tennessee, Mississippi, Alabama, Nevada, Utah, Colorado, Montana, North Dakota and Vermont. For an up-to-date map showing where e-fulfillment is available, click here.
Use of electronic signatures in commerce became possible in 2000 after Congress passed the Electronic Signatures in Global and National Commerce Act (E-SIGN). The E-SIGN Act adopted the most significant rules of the Uniform Electronic Transactions Act (UETA), which gives electronic signatures the same legal standing as paper signatures.
Wednesday, February 16, 2005
fake insurance card pushers
Published Thursday, February 3, 2005 1:00 am
by By Sean Salai
Palm Beach County is a hotbed of fake automobile insurance cards, according to the fraud investigators who nabbed a Riviera Beach confidence man sentenced to prison this week.
The state and local investigators said it was not a fluke that a Palm Beach County judge on Monday sentenced Howard M. McKinon of 481 W. 30th Street in Riviera to three years in prison for selling fake proof of insurance cards to at least 196 drivers throughout the county.
“I’m sure there are other Howard McKinons out there,” T.N. Prakash, chief investigator for the Florida Department of Highway Safety and Motor Vehicles (DHSMV), told the Boca Raton News on Wednesday. “Every official document necessary for daily life gets defrauded and insurance cards are among the most common. The McKinon case proves fake cards are a reality in South Florida.”
Prakash vowed to hunt down other fake-card pushers in Palm Beach County, adding, “We’ll find them. The amount of fraud is not in the billions of dollars, and the companies don’t care because they aren’t liable, but it’s a huge problem for drivers. If you’re the victim in a crash, and the other driver has a fraudulent card, who’s going to pay your medical bills?”
In Florida, it is a third-degree felony punishable by up to five years in prison (per each criminal count) to create a false or fraudulent vehicle insurance card.
“This wasn’t the only scam of its kind,” said Nina Banister, spokeswoman for Florida Chief Financial Tom Gallagher. “We’re following up on several leads. People need to know they will be caught and face serious consequences.”
Pat Bradley, a branch manager at the Palm Beach County Tax Collector’s Office, said his agency gets four to five suspicious insurance cards a week.
“The McKinon case definitely wasn’t isolated,” said Bradley. “Fake card giveaways include insurance company codes that don’t match, misspelled words, typewritten words, flimsy copier paper.”
McKinon, 58, pleaded guilty to nine counts of marketing a false motor vehicle insurance card and one count of organized scheme to defraud. At least 12 of his customers still face charges for knowingly presenting the cards to county officials.
Even McKinon’s allegedly innocent customers may still be charged in the case if new evidence emerges. They could not be reached for comment Wednesday.
Investigators said McKinon worked off the streets, using word of mouth to sell most of the fake cards in West Palm and Riviera. He sold other cards to drivers as far south as Delray Beach.
None of the drivers went to McKinon’s house, investigators said, but he would meet them at different locations or via door-to-door soliciting at homes and businesses. One favorite meeting place was the Kentucky Fried Chicken in Riviera Beach.
“Certainly some of his clients could have been legitimately duped,” said Banister, whose state agency took the lead in the investigation. “But how many of us meet our insurance agents at KFC? And I understand the price he was charging came nowhere close to legitimate premium rates.”
McKinon used a real Progressive Insurance Co. card as a template for his scam, typing different personal and vehicle information on each fake card.
“It’s not a completely new scheme,” said Karen Pelot, a Progressive Insurance special investigator who worked on the McKinon case. “We’re investigating the same scheme all over Florida. This is just the first time we’ve had an actual arrest and sentencing.”
Pelot said McKinon’s fake cards looked very convincing; his only mistake was that they all had the same policy number and minimum levels of coverage.
She said Progressive started looking into the McKinon case when PBC motorists called to make claims against the duplicated policy.
Also, when customers began taking the cards to the PBC Tax Collector’s Office to get their license plate tags, an employee quickly noticed the duplications and contacted state authorities.
“McKinon’s cards were just duplicated a few too many times,” said Bradley, the PBC tax collector branch manager.
A state investigator got McKinon’s cell phone number from a cardholder, put his photo into several lineups and interviewed most of the fake policyholders. Almost all of them picked him out.
In an attempt to find other fake cardholders, DHSMV investigators ran a trace for McKinon’s policy number through their records. When police finally busted McKinon, they even found sales records collected in his home.
A March 10 mitigation hearing is scheduled for McKinon, who is trying to reduce his jail time on the strength of his plea bargain.
It is unclear whether he will succeed. The Palm Beach County State Attorney’s Office, which prosecuted him in court, confirmed Wednesday that McKinon has a lengthy criminal record — including 1992 arrests for residential burglary and cocaine dealing.
by By Sean Salai
Palm Beach County is a hotbed of fake automobile insurance cards, according to the fraud investigators who nabbed a Riviera Beach confidence man sentenced to prison this week.
The state and local investigators said it was not a fluke that a Palm Beach County judge on Monday sentenced Howard M. McKinon of 481 W. 30th Street in Riviera to three years in prison for selling fake proof of insurance cards to at least 196 drivers throughout the county.
“I’m sure there are other Howard McKinons out there,” T.N. Prakash, chief investigator for the Florida Department of Highway Safety and Motor Vehicles (DHSMV), told the Boca Raton News on Wednesday. “Every official document necessary for daily life gets defrauded and insurance cards are among the most common. The McKinon case proves fake cards are a reality in South Florida.”
Prakash vowed to hunt down other fake-card pushers in Palm Beach County, adding, “We’ll find them. The amount of fraud is not in the billions of dollars, and the companies don’t care because they aren’t liable, but it’s a huge problem for drivers. If you’re the victim in a crash, and the other driver has a fraudulent card, who’s going to pay your medical bills?”
In Florida, it is a third-degree felony punishable by up to five years in prison (per each criminal count) to create a false or fraudulent vehicle insurance card.
“This wasn’t the only scam of its kind,” said Nina Banister, spokeswoman for Florida Chief Financial Tom Gallagher. “We’re following up on several leads. People need to know they will be caught and face serious consequences.”
Pat Bradley, a branch manager at the Palm Beach County Tax Collector’s Office, said his agency gets four to five suspicious insurance cards a week.
“The McKinon case definitely wasn’t isolated,” said Bradley. “Fake card giveaways include insurance company codes that don’t match, misspelled words, typewritten words, flimsy copier paper.”
McKinon, 58, pleaded guilty to nine counts of marketing a false motor vehicle insurance card and one count of organized scheme to defraud. At least 12 of his customers still face charges for knowingly presenting the cards to county officials.
Even McKinon’s allegedly innocent customers may still be charged in the case if new evidence emerges. They could not be reached for comment Wednesday.
Investigators said McKinon worked off the streets, using word of mouth to sell most of the fake cards in West Palm and Riviera. He sold other cards to drivers as far south as Delray Beach.
None of the drivers went to McKinon’s house, investigators said, but he would meet them at different locations or via door-to-door soliciting at homes and businesses. One favorite meeting place was the Kentucky Fried Chicken in Riviera Beach.
“Certainly some of his clients could have been legitimately duped,” said Banister, whose state agency took the lead in the investigation. “But how many of us meet our insurance agents at KFC? And I understand the price he was charging came nowhere close to legitimate premium rates.”
McKinon used a real Progressive Insurance Co. card as a template for his scam, typing different personal and vehicle information on each fake card.
“It’s not a completely new scheme,” said Karen Pelot, a Progressive Insurance special investigator who worked on the McKinon case. “We’re investigating the same scheme all over Florida. This is just the first time we’ve had an actual arrest and sentencing.”
Pelot said McKinon’s fake cards looked very convincing; his only mistake was that they all had the same policy number and minimum levels of coverage.
She said Progressive started looking into the McKinon case when PBC motorists called to make claims against the duplicated policy.
Also, when customers began taking the cards to the PBC Tax Collector’s Office to get their license plate tags, an employee quickly noticed the duplications and contacted state authorities.
“McKinon’s cards were just duplicated a few too many times,” said Bradley, the PBC tax collector branch manager.
A state investigator got McKinon’s cell phone number from a cardholder, put his photo into several lineups and interviewed most of the fake policyholders. Almost all of them picked him out.
In an attempt to find other fake cardholders, DHSMV investigators ran a trace for McKinon’s policy number through their records. When police finally busted McKinon, they even found sales records collected in his home.
A March 10 mitigation hearing is scheduled for McKinon, who is trying to reduce his jail time on the strength of his plea bargain.
It is unclear whether he will succeed. The Palm Beach County State Attorney’s Office, which prosecuted him in court, confirmed Wednesday that McKinon has a lengthy criminal record — including 1992 arrests for residential burglary and cocaine dealing.
Tuesday, February 15, 2005
Health Insurance Companies Use Innovative Product Development Research
FORT WORTH, Texas, Feb. 15 /PRNewswire/ -- DSS Research, a national market research firm specializing in health insurance and health care, today announced a significant rise in Medicare product development activity over the last 90 days as insurance carriers investigate new market opportunities created by the implementation of the Medicare Modernization Act (MMA). During the past quarter, DSS has conducted product development research for companies currently not in the Medicare market at all, those with a Medicare Advantage HMO, those who offer supplements and those who offer a combination of HMO + supplements.
"Carriers across the country from New York to California, from Illinois to Texas, have come to us with specific research questions regarding their Medicare product portfolio," said Roger Gates, president and CEO of DSS Research. "They want to understand the tradeoffs beneficiaries will make between current and prospective product offerings. They're interested in identifying and profiling segments of beneficiaries most likely to buy various product alternatives, as well as addressing the important issue of profitability of products. We're helping these clients take action and address the new Medicare opportunities in a comprehensive way."
DSS is drawing on its expertise of the health insurance market and its experience in working with more than 90 health insurance companies to optimize their product offerings. For Medicare product development, DSS utilizes its experience with the target market (including over 100,000 interviews with the 65 and older market in the past two years), its knowledge of the unique regulatory environment and its understanding of all the products involved. DSS has just completed work with clients who:
* Currently have Medicare Supplements only, but want to understand the impact of Medicare PPOs on their business and what they can do with plan design and Rx to minimize that impact. * Currently have Medicare Advantage HMOs only, but want to offer PPOs that minimally cannibalize their HMO business and maximally attract from the pool of consumers with Supplements. * Are interested in being regional PDPs or MA PDPs. * Want to explore the feasibility of reentering the Medicare market with PPOs.
"There will be a flurry of new activity in Medicare," said Gates. "The most successful efforts will be from those most in tuned to the specific mix of features and thresholds actually desired by consumers. Extensive planning now will pay off in the form of new Medicare products that carry the most sensible business logic."
"Carriers across the country from New York to California, from Illinois to Texas, have come to us with specific research questions regarding their Medicare product portfolio," said Roger Gates, president and CEO of DSS Research. "They want to understand the tradeoffs beneficiaries will make between current and prospective product offerings. They're interested in identifying and profiling segments of beneficiaries most likely to buy various product alternatives, as well as addressing the important issue of profitability of products. We're helping these clients take action and address the new Medicare opportunities in a comprehensive way."
DSS is drawing on its expertise of the health insurance market and its experience in working with more than 90 health insurance companies to optimize their product offerings. For Medicare product development, DSS utilizes its experience with the target market (including over 100,000 interviews with the 65 and older market in the past two years), its knowledge of the unique regulatory environment and its understanding of all the products involved. DSS has just completed work with clients who:
* Currently have Medicare Supplements only, but want to understand the impact of Medicare PPOs on their business and what they can do with plan design and Rx to minimize that impact. * Currently have Medicare Advantage HMOs only, but want to offer PPOs that minimally cannibalize their HMO business and maximally attract from the pool of consumers with Supplements. * Are interested in being regional PDPs or MA PDPs. * Want to explore the feasibility of reentering the Medicare market with PPOs.
"There will be a flurry of new activity in Medicare," said Gates. "The most successful efforts will be from those most in tuned to the specific mix of features and thresholds actually desired by consumers. Extensive planning now will pay off in the form of new Medicare products that carry the most sensible business logic."
Monday, February 14, 2005
Insurance in the spotlight once again
Carolyn Woodie figured she had enough car insurance -- until she really needed it.
After she was rear-ended in 1996, the other driver's insurance couldn't pay all her medical expenses from whiplash or her lost wages. The Cape St. Claire woman ended up going to court against her own insurance company.
Mrs. Woodie said the experience taught her that when it dealing with insurance, consumers are often on their own.
"I became disillusioned," she said.
That reaction is one reason that the General Assembly is swamped with insurance-related bills every year, as lawmakers try to fill in gaps discovered by consumers, perennial problems and even the occasional crisis such as malpractice. For many policyholders, a lifetime can evaporate without filing a claim. When it happens, the fine print can contain some unpleasant surprises.
This year is no different, with insurance bills ranging from medical malpractice, to mold. One measure, HB 64, would require insurers to provide policyholders with annual written statements that summarize the coverages and exclusions.
Sen. Phil Jimeno, a State Farm insurance agent, stays away from the issues because of his work. But he said the national rise in premiums naturally leads to increased concerns for consumers.
"A lot of this comes out of last year from Isabel and what homeowners and flood insurance policies said," Mr. Jimeno said.
Not all of the issues are clear cut. The Maryland Insurance Administration is testifying against HB 117, which would require homeowners' insurance policies to provide coverage for losses that result from mold under specified circumstances.
Randi Johnson, associate commissioner for property and casualty, said it would raise homeowners' premiums. The administration has 23 open files involving a claim for mold damage in some way. That's out of 1,819 open complaints, which she said indicates the consumer is being adequately served.
"Mandated coverage is not something everyone needs or wants," Ms. Johnson said. "If the consumer wants to buy it, they should be able to buy it."
Insurance advice
Allstate spokesman Shaundra Thomas said consumers can avoid shocks over coverage by meeting yearly with their insurance agent to discuss their policy. Too many times, she said, homeowners don't raise their premiums in accordance to their valuables, nor do they update a home inventory list.
"You have people who stay in one place for 15 or 20 years ... over the course of time they may receive more valuable items and they should make sure they have adequate coverage," she said. "It's hard to know when people have received special gifts and to make sure they have insurance for those."
Paying the price
According to the Insurance Information Institute based in New York, the average premium for homeowner's insurance in Maryland in 2001 was $419, while for renters it was $143. The average expenditure for consumers for car insurance in 2002 was $837.34.
Even with standard car insurance, drivers can find themselves in the hole if their car is totaled, said Joel Katz, an Annapolis attorney who has represented clients in medical malpractice and property damage lawsuits. For those buying a new or used car, he recommends "gap insurance" which can cover the difference between what is owed on the car compared to what the vehicle is worth if it's destroyed.
"Without gap insurance, you may owe thousands more," Mr. Katz said. He also recommends personal injury protection, which has a minimum payout of $2,500.
"Nobody should waive their PIP - it's very inexpensive," he said.
Damon Hostetter, the CEO of Jack Martin and Associates Inc. Insurance in Annapolis said while boat insurance is not always a necessity, it's still a smart idea.
Besides, since boats depreciate in value, "they are usually insured for a little more than they are worth," he said. "Does it make sense to have insurance? Absolutely. Am I required? No. But a lot of marinas make owners show proof of insurance."
Steve Donovan, an Annapolis resident, said investing in significant insurance is a small price to pay when confronted with the possibilities. When he reads of people wiped out of their waterfront homes who complain of inadequate insurance, he feels limited sympathy.
"It's your responsibility," he said. "FEMA should be a last resort."
Choosing high coverage can pay off, he said - in the mid-'80s, someone broke into his car and stole his camera. Since that particular model was no longer being manufactured, "the check for replacing it was worth hundreds more than the camera," Mr. Donovan said.
"Insurance to me is not about getting a portion of what I lost back - it's getting it all back and then some," he said. "Nobody wants these things to happen, but all it takes is just one time when it serves you."
Dawn Bristow, of Pasadena, learned that the hard way when another driver's car ran into her house.
With no renter's insurance, she turned to the driver's insurance company, which is covering the cost of renting a house for two months. But it's been a bitter feud over where she's going after March, and who will cover the damage to personal property inside her house.
"The house was my lifeline," Ms. Bristow said. "I'm paying money out all over the place. I don't have a cent to my name. All I know is in two months I'm homeless."
After she was rear-ended in 1996, the other driver's insurance couldn't pay all her medical expenses from whiplash or her lost wages. The Cape St. Claire woman ended up going to court against her own insurance company.
Mrs. Woodie said the experience taught her that when it dealing with insurance, consumers are often on their own.
"I became disillusioned," she said.
That reaction is one reason that the General Assembly is swamped with insurance-related bills every year, as lawmakers try to fill in gaps discovered by consumers, perennial problems and even the occasional crisis such as malpractice. For many policyholders, a lifetime can evaporate without filing a claim. When it happens, the fine print can contain some unpleasant surprises.
This year is no different, with insurance bills ranging from medical malpractice, to mold. One measure, HB 64, would require insurers to provide policyholders with annual written statements that summarize the coverages and exclusions.
Sen. Phil Jimeno, a State Farm insurance agent, stays away from the issues because of his work. But he said the national rise in premiums naturally leads to increased concerns for consumers.
"A lot of this comes out of last year from Isabel and what homeowners and flood insurance policies said," Mr. Jimeno said.
Not all of the issues are clear cut. The Maryland Insurance Administration is testifying against HB 117, which would require homeowners' insurance policies to provide coverage for losses that result from mold under specified circumstances.
Randi Johnson, associate commissioner for property and casualty, said it would raise homeowners' premiums. The administration has 23 open files involving a claim for mold damage in some way. That's out of 1,819 open complaints, which she said indicates the consumer is being adequately served.
"Mandated coverage is not something everyone needs or wants," Ms. Johnson said. "If the consumer wants to buy it, they should be able to buy it."
Insurance advice
Allstate spokesman Shaundra Thomas said consumers can avoid shocks over coverage by meeting yearly with their insurance agent to discuss their policy. Too many times, she said, homeowners don't raise their premiums in accordance to their valuables, nor do they update a home inventory list.
"You have people who stay in one place for 15 or 20 years ... over the course of time they may receive more valuable items and they should make sure they have adequate coverage," she said. "It's hard to know when people have received special gifts and to make sure they have insurance for those."
Paying the price
According to the Insurance Information Institute based in New York, the average premium for homeowner's insurance in Maryland in 2001 was $419, while for renters it was $143. The average expenditure for consumers for car insurance in 2002 was $837.34.
Even with standard car insurance, drivers can find themselves in the hole if their car is totaled, said Joel Katz, an Annapolis attorney who has represented clients in medical malpractice and property damage lawsuits. For those buying a new or used car, he recommends "gap insurance" which can cover the difference between what is owed on the car compared to what the vehicle is worth if it's destroyed.
"Without gap insurance, you may owe thousands more," Mr. Katz said. He also recommends personal injury protection, which has a minimum payout of $2,500.
"Nobody should waive their PIP - it's very inexpensive," he said.
Damon Hostetter, the CEO of Jack Martin and Associates Inc. Insurance in Annapolis said while boat insurance is not always a necessity, it's still a smart idea.
Besides, since boats depreciate in value, "they are usually insured for a little more than they are worth," he said. "Does it make sense to have insurance? Absolutely. Am I required? No. But a lot of marinas make owners show proof of insurance."
Steve Donovan, an Annapolis resident, said investing in significant insurance is a small price to pay when confronted with the possibilities. When he reads of people wiped out of their waterfront homes who complain of inadequate insurance, he feels limited sympathy.
"It's your responsibility," he said. "FEMA should be a last resort."
Choosing high coverage can pay off, he said - in the mid-'80s, someone broke into his car and stole his camera. Since that particular model was no longer being manufactured, "the check for replacing it was worth hundreds more than the camera," Mr. Donovan said.
"Insurance to me is not about getting a portion of what I lost back - it's getting it all back and then some," he said. "Nobody wants these things to happen, but all it takes is just one time when it serves you."
Dawn Bristow, of Pasadena, learned that the hard way when another driver's car ran into her house.
With no renter's insurance, she turned to the driver's insurance company, which is covering the cost of renting a house for two months. But it's been a bitter feud over where she's going after March, and who will cover the damage to personal property inside her house.
"The house was my lifeline," Ms. Bristow said. "I'm paying money out all over the place. I don't have a cent to my name. All I know is in two months I'm homeless."
Insurance in the spotlight once again
Carolyn Woodie figured she had enough car insurance -- until she really needed it.
After she was rear-ended in 1996, the other driver's insurance couldn't pay all her medical expenses from whiplash or her lost wages. The Cape St. Claire woman ended up going to court against her own insurance company.
Mrs. Woodie said the experience taught her that when it dealing with insurance, consumers are often on their own.
"I became disillusioned," she said.
That reaction is one reason that the General Assembly is swamped with insurance-related bills every year, as lawmakers try to fill in gaps discovered by consumers, perennial problems and even the occasional crisis such as malpractice. For many policyholders, a lifetime can evaporate without filing a claim. When it happens, the fine print can contain some unpleasant surprises.
This year is no different, with insurance bills ranging from medical malpractice, to mold. One measure, HB 64, would require insurers to provide policyholders with annual written statements that summarize the coverages and exclusions.
Sen. Phil Jimeno, a State Farm insurance agent, stays away from the issues because of his work. But he said the national rise in premiums naturally leads to increased concerns for consumers.
"A lot of this comes out of last year from Isabel and what homeowners and flood insurance policies said," Mr. Jimeno said.
Not all of the issues are clear cut. The Maryland Insurance Administration is testifying against HB 117, which would require homeowners' insurance policies to provide coverage for losses that result from mold under specified circumstances.
Randi Johnson, associate commissioner for property and casualty, said it would raise homeowners' premiums. The administration has 23 open files involving a claim for mold damage in some way. That's out of 1,819 open complaints, which she said indicates the consumer is being adequately served.
"Mandated coverage is not something everyone needs or wants," Ms. Johnson said. "If the consumer wants to buy it, they should be able to buy it."
Insurance advice
Allstate spokesman Shaundra Thomas said consumers can avoid shocks over coverage by meeting yearly with their insurance agent to discuss their policy. Too many times, she said, homeowners don't raise their premiums in accordance to their valuables, nor do they update a home inventory list.
"You have people who stay in one place for 15 or 20 years ... over the course of time they may receive more valuable items and they should make sure they have adequate coverage," she said. "It's hard to know when people have received special gifts and to make sure they have insurance for those."
Paying the price
According to the Insurance Information Institute based in New York, the average premium for homeowner's insurance in Maryland in 2001 was $419, while for renters it was $143. The average expenditure for consumers for car insurance in 2002 was $837.34.
Even with standard car insurance, drivers can find themselves in the hole if their car is totaled, said Joel Katz, an Annapolis attorney who has represented clients in medical malpractice and property damage lawsuits. For those buying a new or used car, he recommends "gap insurance" which can cover the difference between what is owed on the car compared to what the vehicle is worth if it's destroyed.
"Without gap insurance, you may owe thousands more," Mr. Katz said. He also recommends personal injury protection, which has a minimum payout of $2,500.
"Nobody should waive their PIP - it's very inexpensive," he said.
Damon Hostetter, the CEO of Jack Martin and Associates Inc. Insurance in Annapolis said while boat insurance is not always a necessity, it's still a smart idea.
Besides, since boats depreciate in value, "they are usually insured for a little more than they are worth," he said. "Does it make sense to have insurance? Absolutely. Am I required? No. But a lot of marinas make owners show proof of insurance."
Steve Donovan, an Annapolis resident, said investing in significant insurance is a small price to pay when confronted with the possibilities. When he reads of people wiped out of their waterfront homes who complain of inadequate insurance, he feels limited sympathy.
"It's your responsibility," he said. "FEMA should be a last resort."
Choosing high coverage can pay off, he said - in the mid-'80s, someone broke into his car and stole his camera. Since that particular model was no longer being manufactured, "the check for replacing it was worth hundreds more than the camera," Mr. Donovan said.
"Insurance to me is not about getting a portion of what I lost back - it's getting it all back and then some," he said. "Nobody wants these things to happen, but all it takes is just one time when it serves you."
Dawn Bristow, of Pasadena, learned that the hard way when another driver's car ran into her house.
With no renter's insurance, she turned to the driver's insurance company, which is covering the cost of renting a house for two months. But it's been a bitter feud over where she's going after March, and who will cover the damage to personal property inside her house.
"The house was my lifeline," Ms. Bristow said. "I'm paying money out all over the place. I don't have a cent to my name. All I know is in two months I'm homeless."
After she was rear-ended in 1996, the other driver's insurance couldn't pay all her medical expenses from whiplash or her lost wages. The Cape St. Claire woman ended up going to court against her own insurance company.
Mrs. Woodie said the experience taught her that when it dealing with insurance, consumers are often on their own.
"I became disillusioned," she said.
That reaction is one reason that the General Assembly is swamped with insurance-related bills every year, as lawmakers try to fill in gaps discovered by consumers, perennial problems and even the occasional crisis such as malpractice. For many policyholders, a lifetime can evaporate without filing a claim. When it happens, the fine print can contain some unpleasant surprises.
This year is no different, with insurance bills ranging from medical malpractice, to mold. One measure, HB 64, would require insurers to provide policyholders with annual written statements that summarize the coverages and exclusions.
Sen. Phil Jimeno, a State Farm insurance agent, stays away from the issues because of his work. But he said the national rise in premiums naturally leads to increased concerns for consumers.
"A lot of this comes out of last year from Isabel and what homeowners and flood insurance policies said," Mr. Jimeno said.
Not all of the issues are clear cut. The Maryland Insurance Administration is testifying against HB 117, which would require homeowners' insurance policies to provide coverage for losses that result from mold under specified circumstances.
Randi Johnson, associate commissioner for property and casualty, said it would raise homeowners' premiums. The administration has 23 open files involving a claim for mold damage in some way. That's out of 1,819 open complaints, which she said indicates the consumer is being adequately served.
"Mandated coverage is not something everyone needs or wants," Ms. Johnson said. "If the consumer wants to buy it, they should be able to buy it."
Insurance advice
Allstate spokesman Shaundra Thomas said consumers can avoid shocks over coverage by meeting yearly with their insurance agent to discuss their policy. Too many times, she said, homeowners don't raise their premiums in accordance to their valuables, nor do they update a home inventory list.
"You have people who stay in one place for 15 or 20 years ... over the course of time they may receive more valuable items and they should make sure they have adequate coverage," she said. "It's hard to know when people have received special gifts and to make sure they have insurance for those."
Paying the price
According to the Insurance Information Institute based in New York, the average premium for homeowner's insurance in Maryland in 2001 was $419, while for renters it was $143. The average expenditure for consumers for car insurance in 2002 was $837.34.
Even with standard car insurance, drivers can find themselves in the hole if their car is totaled, said Joel Katz, an Annapolis attorney who has represented clients in medical malpractice and property damage lawsuits. For those buying a new or used car, he recommends "gap insurance" which can cover the difference between what is owed on the car compared to what the vehicle is worth if it's destroyed.
"Without gap insurance, you may owe thousands more," Mr. Katz said. He also recommends personal injury protection, which has a minimum payout of $2,500.
"Nobody should waive their PIP - it's very inexpensive," he said.
Damon Hostetter, the CEO of Jack Martin and Associates Inc. Insurance in Annapolis said while boat insurance is not always a necessity, it's still a smart idea.
Besides, since boats depreciate in value, "they are usually insured for a little more than they are worth," he said. "Does it make sense to have insurance? Absolutely. Am I required? No. But a lot of marinas make owners show proof of insurance."
Steve Donovan, an Annapolis resident, said investing in significant insurance is a small price to pay when confronted with the possibilities. When he reads of people wiped out of their waterfront homes who complain of inadequate insurance, he feels limited sympathy.
"It's your responsibility," he said. "FEMA should be a last resort."
Choosing high coverage can pay off, he said - in the mid-'80s, someone broke into his car and stole his camera. Since that particular model was no longer being manufactured, "the check for replacing it was worth hundreds more than the camera," Mr. Donovan said.
"Insurance to me is not about getting a portion of what I lost back - it's getting it all back and then some," he said. "Nobody wants these things to happen, but all it takes is just one time when it serves you."
Dawn Bristow, of Pasadena, learned that the hard way when another driver's car ran into her house.
With no renter's insurance, she turned to the driver's insurance company, which is covering the cost of renting a house for two months. But it's been a bitter feud over where she's going after March, and who will cover the damage to personal property inside her house.
"The house was my lifeline," Ms. Bristow said. "I'm paying money out all over the place. I don't have a cent to my name. All I know is in two months I'm homeless."
Sunday, February 13, 2005
Health Care in the 21st Century
Press Release
Denver, CO (PRWEB) February 11, 2005 -- In an article entitled “Health Care in the 21st Century”, published in the New England Journal of Medicine on January 20, 2005, Senate Majority Leader Bill Frist, M.D., made several suggestions on ways to provide all Americans with lifelong, affordable access to high-quality health care. Senator Frist graduated from Harvard Medical School in 1978, and was a surgeon before entering politics. One of the key aspects of his vision is a system that is responsive primarily to individual consumers, rather than to third-party payers. This concept is known as consumer-driven health care.
Today most health care is paid for and controlled by third parties such as the government, insurers, and employers. Consumers rarely compare prices or quality of service when shopping for health care – partly because this comparison is usually very difficult or even impossible, and partly because the price often just doesn’t matter to the consumer, who is only responsible for a moderate co-payment. Frist notes “a consumer-driven system will empower all people – if they so choose – to make decisions that will directly affect the most fundamental and intimate aspects of their life – their own health. This empowerment gives people a greater stake in and more responsibility for, their own health care. Health care will not improve in a sustained and substantial way until consumers drive it.”
A key aspect to enabling consumer-driven health care was the creation of tax-free Health Savings Accounts (HSAs). This legislation was part of the Medicare Modernization Act (Public Law 108-173). “HSAs, coupled with affordable high deductible insurance policies, give individual consumers more control over their health care choices and hard earned dollars. HSAs give people a greater stake in their own health care. The accounts can move with employees from job to job and can be rolled over year to year. HSAs should increase demand for greater information and transparency.”
What Senator Frist is suggesting is that people with high deductible health insurance plans and HSAs have incentive to keep their health costs low, since any money they save on health care expenses stays in their Health Savings Account, and grows tax-deferred, like an IRA. Thus there is also incentive for the consumer to demand information about health care pricing. No system has yet been devised in the history of mankind that does more to increase quality and lower prices than a competitive market system. As more and more consumers begin to own health savings accounts, health care providers will be forced to compete for their business by providing better quality service and better prices.
The other factor in play is the financial motivation the individual will have to stay healthy. The vast majority of health care spending today is due to degenerative diseases such as high blood pressure, diabetes, metabolic syndrome, cardiovascular disease, and other modern ailments that are primarily the result of lifestyle choices. The consumer who wisely spends his HSA dollars on preventative care (which can be done tax-free) and pays attention to diet and exercise could be rewarded with a substantial amount of money in their Health Savings Account by age 65.
Consumer-driven health care has the potential to be a powerful force of change in the health care system. By instituting competitive pressures, encouraging greater price transparency, and rewarding consumers who are proactive about their health, the growing adoption of Health Savings Accounts will help make health care more affordable for everyone.
More information about how HSAs work, along with instant quotes on qualifying high deductible health insurance plans, can be found at HSA for America, or by calling 866-254-5121.
Denver, CO (PRWEB) February 11, 2005 -- In an article entitled “Health Care in the 21st Century”, published in the New England Journal of Medicine on January 20, 2005, Senate Majority Leader Bill Frist, M.D., made several suggestions on ways to provide all Americans with lifelong, affordable access to high-quality health care. Senator Frist graduated from Harvard Medical School in 1978, and was a surgeon before entering politics. One of the key aspects of his vision is a system that is responsive primarily to individual consumers, rather than to third-party payers. This concept is known as consumer-driven health care.
Today most health care is paid for and controlled by third parties such as the government, insurers, and employers. Consumers rarely compare prices or quality of service when shopping for health care – partly because this comparison is usually very difficult or even impossible, and partly because the price often just doesn’t matter to the consumer, who is only responsible for a moderate co-payment. Frist notes “a consumer-driven system will empower all people – if they so choose – to make decisions that will directly affect the most fundamental and intimate aspects of their life – their own health. This empowerment gives people a greater stake in and more responsibility for, their own health care. Health care will not improve in a sustained and substantial way until consumers drive it.”
A key aspect to enabling consumer-driven health care was the creation of tax-free Health Savings Accounts (HSAs). This legislation was part of the Medicare Modernization Act (Public Law 108-173). “HSAs, coupled with affordable high deductible insurance policies, give individual consumers more control over their health care choices and hard earned dollars. HSAs give people a greater stake in their own health care. The accounts can move with employees from job to job and can be rolled over year to year. HSAs should increase demand for greater information and transparency.”
What Senator Frist is suggesting is that people with high deductible health insurance plans and HSAs have incentive to keep their health costs low, since any money they save on health care expenses stays in their Health Savings Account, and grows tax-deferred, like an IRA. Thus there is also incentive for the consumer to demand information about health care pricing. No system has yet been devised in the history of mankind that does more to increase quality and lower prices than a competitive market system. As more and more consumers begin to own health savings accounts, health care providers will be forced to compete for their business by providing better quality service and better prices.
The other factor in play is the financial motivation the individual will have to stay healthy. The vast majority of health care spending today is due to degenerative diseases such as high blood pressure, diabetes, metabolic syndrome, cardiovascular disease, and other modern ailments that are primarily the result of lifestyle choices. The consumer who wisely spends his HSA dollars on preventative care (which can be done tax-free) and pays attention to diet and exercise could be rewarded with a substantial amount of money in their Health Savings Account by age 65.
Consumer-driven health care has the potential to be a powerful force of change in the health care system. By instituting competitive pressures, encouraging greater price transparency, and rewarding consumers who are proactive about their health, the growing adoption of Health Savings Accounts will help make health care more affordable for everyone.
More information about how HSAs work, along with instant quotes on qualifying high deductible health insurance plans, can be found at HSA for America, or by calling 866-254-5121.
Friday, February 11, 2005
New tack for health insurance
So we learned from President Bush's budget this week that the new- and-improved Medicare prescription drug benefit won't cost Americans less than $400 billion over 10 years as originally proposed, but instead nearly twice that amount.
A pig in a poke? Quite possibly.
A lousy health care system? Definitely.
Boston University researchers released a study this week concluding that about half of all health care spending in the country is squandered on administrative waste, excessive pricing and fraud.
Yet Californians may soon have an alternative, at least if a state lawmaker succeeds in her latest effort to introduce universal health care.
State Sen. Sheila Kuehl, D-Santa Monica, told me Thursday that she plans to unveil her California Health Insurance Reliability Act on Feb. 23.
It will be Kuehl's third stab at getting a universal-care bill through the Legislature. But this time things are a little different.
For one thing, disenchantment with the existing health care system continues to grow among both ordinary people and businesses saddled with skyrocketing insurance premiums.
Meanwhile, advocates of universal coverage have brought a new level of seriousness to their cause by hiring a prominent political operative, Andrew McGuire, to spearhead fund-raising and lobbying efforts.
Less money, more coverage
And most importantly, a new report by the Lewin Group, a well-regarded health care consulting firm, finds that a system along the lines of what Kuehl is proposing would reduce health care spending in California by $8 billion next year alone.
It also would provide coverage for the nearly 6 million uninsured people statewide and result in lower costs for virtually all California companies now providing insurance to employees.
"This is an independent report proving that we can achieve universal coverage in California while reducing health spending," Kuehl said. "It's a very important development."
It's not a slam dunk, though. Kuehl acknowledged that almost as soon as she introduces her legislation this month, the insurance and drug industries will unleash all their political firepower to protect their interests.
"When they do, I plan to raise questions about the obscene profits these companies are making," Kuehl said. "I love a good fight."
Her bill would create a so-called single-payer health system in California -- the first in the nation (although similar efforts are under way in other states). Single-payer systems have existed in Canada and other nations for decades.
Under a single-payer system, any California resident could be treated by any doctor at any hospital anywhere in the state.
Commissioner to oversee
The state's medical resources would be overseen by a newly created health commissioner, who would ensure that money is spent wisely.
According to the report issued last month by Virginia's Lewin Group, funding for a California single-payer system could come in part from an 8.2 percent payroll tax for employers.
The tax would replace all current health care benefits paid for workers, dependents and retirees. Lewin estimates that this change would result in a 16 percent average saving in 2006 for all employers now offering health benefits.
Meanwhile, salaried workers would pay a 3.8 percent payroll tax that would replace all existing insurance premiums, deductibles and co-pays.
According to Lewin's projections, this would reduce the $2,788 expected to be paid by the average California family next year for health services and insurance by about $340 per family.
Exact funding breakdowns in Kuehl's legislation are still being tinkered with.
Industry likely to oppose
"If people can get past industry's propaganda, I think they'll see that this is really good for them," said McGuire, who was hired several weeks ago to serve as executive director of Health Care for All -- California, a grassroots organization backing universal coverage.
McGuire's past political efforts have included campaigns for gun control and safer cigarettes. He also serves as head of San Francisco General Hospital's Trauma Foundation, which seeks to prevent serious injuries.
"If people in the corporate world get religion and realize this is in their best interest, we could really have a chance," McGuire said of Kuehl's bill.
That may be true for many companies, but not for the health insurance business, which would be effectively decimated by creation of a single-payer system.
Bill Wehrle, acting president of the California Association of Health Plans, which represents about three dozen HMOs statewide, said people should be wary of single payer.
"There could be some amount of administrative savings under a single- payer system," he acknowledged. "It all depends on what trade-offs people are prepared to make to get savings."
Long waits in Canada
In Canada, for example, Wehrle said the country's single-payer plan has resulted in longer waits for treatment and lower pay for doctors.
"We think higher quality at lower cost is achieved when you have competition in the private sector," he said.
Perhaps, but a poll this week by Research America, a Virginia nonprofit organization focusing on medical issues, found that nearly two-thirds of respondents believe most Americans are not getting the health care they need.
And a study last month by the Kaiser Family Foundation revealed that 63 percent of adults believe that lowering the cost of health care and insurance should be a top priority for political leaders.
Kuehl said her bill stands a good chance of passage in the state Senate. The Assembly might be rougher sledding as the legislation's tax components are scrutinized by various committees.
As for what California's unabashedly pro-business governor might do when presented with a single-payer bill to sign, that's a whole other matter.
"We have to show him the data on who would save money here," Kuehl said. "Eight billion in savings is a lot."
It is. And with the stakes this high, an open mind on everyone's part isn't too much to ask for.
A pig in a poke? Quite possibly.
A lousy health care system? Definitely.
Boston University researchers released a study this week concluding that about half of all health care spending in the country is squandered on administrative waste, excessive pricing and fraud.
Yet Californians may soon have an alternative, at least if a state lawmaker succeeds in her latest effort to introduce universal health care.
State Sen. Sheila Kuehl, D-Santa Monica, told me Thursday that she plans to unveil her California Health Insurance Reliability Act on Feb. 23.
It will be Kuehl's third stab at getting a universal-care bill through the Legislature. But this time things are a little different.
For one thing, disenchantment with the existing health care system continues to grow among both ordinary people and businesses saddled with skyrocketing insurance premiums.
Meanwhile, advocates of universal coverage have brought a new level of seriousness to their cause by hiring a prominent political operative, Andrew McGuire, to spearhead fund-raising and lobbying efforts.
Less money, more coverage
And most importantly, a new report by the Lewin Group, a well-regarded health care consulting firm, finds that a system along the lines of what Kuehl is proposing would reduce health care spending in California by $8 billion next year alone.
It also would provide coverage for the nearly 6 million uninsured people statewide and result in lower costs for virtually all California companies now providing insurance to employees.
"This is an independent report proving that we can achieve universal coverage in California while reducing health spending," Kuehl said. "It's a very important development."
It's not a slam dunk, though. Kuehl acknowledged that almost as soon as she introduces her legislation this month, the insurance and drug industries will unleash all their political firepower to protect their interests.
"When they do, I plan to raise questions about the obscene profits these companies are making," Kuehl said. "I love a good fight."
Her bill would create a so-called single-payer health system in California -- the first in the nation (although similar efforts are under way in other states). Single-payer systems have existed in Canada and other nations for decades.
Under a single-payer system, any California resident could be treated by any doctor at any hospital anywhere in the state.
Commissioner to oversee
The state's medical resources would be overseen by a newly created health commissioner, who would ensure that money is spent wisely.
According to the report issued last month by Virginia's Lewin Group, funding for a California single-payer system could come in part from an 8.2 percent payroll tax for employers.
The tax would replace all current health care benefits paid for workers, dependents and retirees. Lewin estimates that this change would result in a 16 percent average saving in 2006 for all employers now offering health benefits.
Meanwhile, salaried workers would pay a 3.8 percent payroll tax that would replace all existing insurance premiums, deductibles and co-pays.
According to Lewin's projections, this would reduce the $2,788 expected to be paid by the average California family next year for health services and insurance by about $340 per family.
Exact funding breakdowns in Kuehl's legislation are still being tinkered with.
Industry likely to oppose
"If people can get past industry's propaganda, I think they'll see that this is really good for them," said McGuire, who was hired several weeks ago to serve as executive director of Health Care for All -- California, a grassroots organization backing universal coverage.
McGuire's past political efforts have included campaigns for gun control and safer cigarettes. He also serves as head of San Francisco General Hospital's Trauma Foundation, which seeks to prevent serious injuries.
"If people in the corporate world get religion and realize this is in their best interest, we could really have a chance," McGuire said of Kuehl's bill.
That may be true for many companies, but not for the health insurance business, which would be effectively decimated by creation of a single-payer system.
Bill Wehrle, acting president of the California Association of Health Plans, which represents about three dozen HMOs statewide, said people should be wary of single payer.
"There could be some amount of administrative savings under a single- payer system," he acknowledged. "It all depends on what trade-offs people are prepared to make to get savings."
Long waits in Canada
In Canada, for example, Wehrle said the country's single-payer plan has resulted in longer waits for treatment and lower pay for doctors.
"We think higher quality at lower cost is achieved when you have competition in the private sector," he said.
Perhaps, but a poll this week by Research America, a Virginia nonprofit organization focusing on medical issues, found that nearly two-thirds of respondents believe most Americans are not getting the health care they need.
And a study last month by the Kaiser Family Foundation revealed that 63 percent of adults believe that lowering the cost of health care and insurance should be a top priority for political leaders.
Kuehl said her bill stands a good chance of passage in the state Senate. The Assembly might be rougher sledding as the legislation's tax components are scrutinized by various committees.
As for what California's unabashedly pro-business governor might do when presented with a single-payer bill to sign, that's a whole other matter.
"We have to show him the data on who would save money here," Kuehl said. "Eight billion in savings is a lot."
It is. And with the stakes this high, an open mind on everyone's part isn't too much to ask for.
Thursday, February 10, 2005
Blue Cross surplus not excessive
Four insurance carriers hold $4 billion in combined surplus
Thursday, February 10, 2005
By Pamela Gaynor, Pittsburgh Post-Gazette
More than two years after beginning an investigation, state Insurance Commissioner M. Diane Koken said yesterday that she had determined that the $4 billion in combined financial surpluses held by the state's four Blue Cross carriers was not excessive.
The announcement came just two days after Gov. Ed Rendell unveiled an agreement under which the Blues, including Pittsburgh-based Highmark Inc., would fund $1 billion worth of charitable activity over the next six years, mostly to expand coverage for the uninsured.
Highmark holds $2.2 billion of the Blues' combined surplus, according to state Insurance Department documents.
Koken insisted that the governor's agreement and her decision were unrelated, despite critics who had suggested they were linked and even though some of the insurers' individual surpluses at the end of 2003 exceeded levels the Insurance Department had earlier signaled would "likely" be deemed excessive.
"Our analysis of these surplus levels was extremely thorough and truly unprecedented in its scope," Koken said, adding that the agreement Rendell struck with the Blues "had no bearing on our decision."
"I do realize," she conceded, "that many will be disappointed in hearing that there is no excess surplus."
A little more than a year ago when the Insurance Department ordered the Blues to disclose their surpluses, it had indicated that any amounts above 650 percent of risk-based capital probably would be deemed excessive.
Risk-based capital essentially represents money that insurers keep in reserve to protect against unforeseen losses beyond that which they keep on hand to pay ordinary claims.
Yesterday, Koken said the complicated determination would cap the Blues surpluses at 750 percent of risk-based capital for Highmark and Philadelphia's Independence Blue Cross, and at 950 percent of risk-based capital for Harrisburg's Capital Blue Cross, and Blue Cross of Northeastern Pennsylvania.
Koken said the decision to raise the caps above 650 percent was made after reviewing what other states had done. She said the only state the Insurance Department found to have set a cap on risk-based capital was Michigan, at 1,000 percent.
Critics had said that even 650 percent of risk-based capital was too much surplus. They pointed to findings from the National Association of Insurance Commissioners, a trade group that Koken serves as president, that surpluses could be as little as 250 percent of risk-based capital before there was cause for concern.
Koken said yesterday that that level and other thresholds bandied about represented either hazard levels or other minimums. "We're not looking to have our Blues in financially hazardous condition."
Under Koken's determination, carriers would be required to submit plans for distributing surpluses that exceeded the ceilings.
Koken's determination also set ranges under which the carriers' surpluses would be deemed "sufficient" and said carriers whose surpluses were within those ranges would not be permitted to factor monetary allowances for certain risks into their requests for premium increases when their surpluses were within those ranges.
Koken said the Insurance Department was legally prohibited from disclosing the risk-based capital levels of the individual Blues, but that it would review them annually.
Highmark, which reported last year that its 2003 surplus represented 645 percent of risk-based capital, said Koken's findings validated the insurer's contention that its surplus was appropriate, but added that the company was disappointed that the insurance commissioner had not set its ceiling at 950 percent of risk-based capital.
Highmark had requested the 950 percent level when it disclosed its surplus to the Insurance Department last year. The carrier said it still had not yet weighed what effect Koken's determination would have on its business and said it would examine its options after doing so.
However, some business interests and social activists said that while they were still examining the particulars of Koken's determination, they had little difficulty concluding it was related to the Blues' agreement to help fund Rendell's plan for expanding coverage for the uninsured.
"If the governor could have put that kind of fix in for the Super Bowl, the Eagles would have won," said Cliff Shannon, executive director of SMC Small Business Councils.
"They didn't even feel the need to put a decent interval of time between the $1 billion 'payoff' and the announcement that everything is all OK with the surplus. It's just not right."
Beth McConnell, director of Pennsylvania Public Interest Research Group, also said she was dubious of claims that the two state decisions were unrelated.
Thursday, February 10, 2005
By Pamela Gaynor, Pittsburgh Post-Gazette
More than two years after beginning an investigation, state Insurance Commissioner M. Diane Koken said yesterday that she had determined that the $4 billion in combined financial surpluses held by the state's four Blue Cross carriers was not excessive.
The announcement came just two days after Gov. Ed Rendell unveiled an agreement under which the Blues, including Pittsburgh-based Highmark Inc., would fund $1 billion worth of charitable activity over the next six years, mostly to expand coverage for the uninsured.
Highmark holds $2.2 billion of the Blues' combined surplus, according to state Insurance Department documents.
Koken insisted that the governor's agreement and her decision were unrelated, despite critics who had suggested they were linked and even though some of the insurers' individual surpluses at the end of 2003 exceeded levels the Insurance Department had earlier signaled would "likely" be deemed excessive.
"Our analysis of these surplus levels was extremely thorough and truly unprecedented in its scope," Koken said, adding that the agreement Rendell struck with the Blues "had no bearing on our decision."
"I do realize," she conceded, "that many will be disappointed in hearing that there is no excess surplus."
A little more than a year ago when the Insurance Department ordered the Blues to disclose their surpluses, it had indicated that any amounts above 650 percent of risk-based capital probably would be deemed excessive.
Risk-based capital essentially represents money that insurers keep in reserve to protect against unforeseen losses beyond that which they keep on hand to pay ordinary claims.
Yesterday, Koken said the complicated determination would cap the Blues surpluses at 750 percent of risk-based capital for Highmark and Philadelphia's Independence Blue Cross, and at 950 percent of risk-based capital for Harrisburg's Capital Blue Cross, and Blue Cross of Northeastern Pennsylvania.
Koken said the decision to raise the caps above 650 percent was made after reviewing what other states had done. She said the only state the Insurance Department found to have set a cap on risk-based capital was Michigan, at 1,000 percent.
Critics had said that even 650 percent of risk-based capital was too much surplus. They pointed to findings from the National Association of Insurance Commissioners, a trade group that Koken serves as president, that surpluses could be as little as 250 percent of risk-based capital before there was cause for concern.
Koken said yesterday that that level and other thresholds bandied about represented either hazard levels or other minimums. "We're not looking to have our Blues in financially hazardous condition."
Under Koken's determination, carriers would be required to submit plans for distributing surpluses that exceeded the ceilings.
Koken's determination also set ranges under which the carriers' surpluses would be deemed "sufficient" and said carriers whose surpluses were within those ranges would not be permitted to factor monetary allowances for certain risks into their requests for premium increases when their surpluses were within those ranges.
Koken said the Insurance Department was legally prohibited from disclosing the risk-based capital levels of the individual Blues, but that it would review them annually.
Highmark, which reported last year that its 2003 surplus represented 645 percent of risk-based capital, said Koken's findings validated the insurer's contention that its surplus was appropriate, but added that the company was disappointed that the insurance commissioner had not set its ceiling at 950 percent of risk-based capital.
Highmark had requested the 950 percent level when it disclosed its surplus to the Insurance Department last year. The carrier said it still had not yet weighed what effect Koken's determination would have on its business and said it would examine its options after doing so.
However, some business interests and social activists said that while they were still examining the particulars of Koken's determination, they had little difficulty concluding it was related to the Blues' agreement to help fund Rendell's plan for expanding coverage for the uninsured.
"If the governor could have put that kind of fix in for the Super Bowl, the Eagles would have won," said Cliff Shannon, executive director of SMC Small Business Councils.
"They didn't even feel the need to put a decent interval of time between the $1 billion 'payoff' and the announcement that everything is all OK with the surplus. It's just not right."
Beth McConnell, director of Pennsylvania Public Interest Research Group, also said she was dubious of claims that the two state decisions were unrelated.
National Study Reveals Significant Savings For Insurance Consumers Who Shop Around
Content Provided By Progressive Insurance Through InsWeb.com
U.S. drivers could save an average of $481 every six months on auto insurance if they took the time to compare rates, but most drivers don't shop around for auto insurance on a regular basis, according to information from Progressive Auto Insurance.
The findings, which focus on auto insurance rate variance - or the average spread between the highest and lowest six-month rates available for new policies - are based on rate information provided to nearly 700,000 consumers, living in 46 states and the District of Columbia, who called Progressive between March 1, 1998 and March 31, 1999. Each consumer received comparison rates for Progressive and up to three other leading auto insurers in their market. Rate information was obtained from public filings with each state's department of insurance.
Specifically, six-month rates varied an average of $481 across the country. That means the same driver could receive a quote of $1,256 for a six-month auto insurance policy from one company, and a quote of $775 for the identical policy from another company. On a state-by-state basis, average six-month rates varied more than $500 in 13 states -- Arizona, California, Delaware, Illinois, Kentucky, Louisiana, Maryland, Minnesota, Nevada, Oklahoma, Oregon, Tennessee and Texas -- and in the District of Columbia.The most dramatic variances were in Kentucky and Texas. The average six-month variance in Kentucky, based on calculations for more than 13,000 consumers in that state, was $711. In Texas, the average six-month variance was $705, based on calculations for 64,000 Texans. The study also found that rates varied least in New York and Vermont, where average six-month variances were $192 and $210 respectively. The chart below shows savings available in major U.S. markets, based on the average rate variances in each:
National Average Average Six-Month Rate Variance
$481
Baltimore $764
Houston $838
Dallas/Ft. Worth $722
Chicago $634
Philadelphia $595
Los Angeles $616
Washington, D.C. $587
Miami $555
San Francisco $514
Atlanta $454
Detroit $469
New York City $241
Many Drivers Unaware Of Variances Because They Don't Shop Around
In a separate study, Progressive commissioned Millward Brown, a national research firm, to conduct interviews with 1,800 drivers during November 1998. The results revealed that the majority of drivers are unaware of how extensively rates vary. In fact, 65 percent of those polled thought that comparable auto insurance policies would vary by no more than $250 in a six-month period. Furthermore, almost 60 percent of consumers surveyed had not contacted an insurance company or agent to obtain rate information in more than two years.
Ralph Nader, well-known consumer advocate, commented on the findings, "It's surprising that so few people take the time to shop around when the premium varies so greatly between companies. Clearly, consumers need to be aware of these differences and they need to shop around to make sure they are getting the best value for their auto insurance dollar."
"Nationally, the auto insurance market is very competitive with more than 300 companies offering coverage in any given market," said Moira Lardakis, Progressive division president. "Because no single insurance company will always offer the lowest rates for everyone, the best way to manage auto insurance costs is to shop around for the best combination of rates and service. Consumers can't benefit from the competitive market unless they shop around."
U.S. drivers could save an average of $481 every six months on auto insurance if they took the time to compare rates, but most drivers don't shop around for auto insurance on a regular basis, according to information from Progressive Auto Insurance.
The findings, which focus on auto insurance rate variance - or the average spread between the highest and lowest six-month rates available for new policies - are based on rate information provided to nearly 700,000 consumers, living in 46 states and the District of Columbia, who called Progressive between March 1, 1998 and March 31, 1999. Each consumer received comparison rates for Progressive and up to three other leading auto insurers in their market. Rate information was obtained from public filings with each state's department of insurance.
Specifically, six-month rates varied an average of $481 across the country. That means the same driver could receive a quote of $1,256 for a six-month auto insurance policy from one company, and a quote of $775 for the identical policy from another company. On a state-by-state basis, average six-month rates varied more than $500 in 13 states -- Arizona, California, Delaware, Illinois, Kentucky, Louisiana, Maryland, Minnesota, Nevada, Oklahoma, Oregon, Tennessee and Texas -- and in the District of Columbia.The most dramatic variances were in Kentucky and Texas. The average six-month variance in Kentucky, based on calculations for more than 13,000 consumers in that state, was $711. In Texas, the average six-month variance was $705, based on calculations for 64,000 Texans. The study also found that rates varied least in New York and Vermont, where average six-month variances were $192 and $210 respectively. The chart below shows savings available in major U.S. markets, based on the average rate variances in each:
National Average Average Six-Month Rate Variance
$481
Baltimore $764
Houston $838
Dallas/Ft. Worth $722
Chicago $634
Philadelphia $595
Los Angeles $616
Washington, D.C. $587
Miami $555
San Francisco $514
Atlanta $454
Detroit $469
New York City $241
Many Drivers Unaware Of Variances Because They Don't Shop Around
In a separate study, Progressive commissioned Millward Brown, a national research firm, to conduct interviews with 1,800 drivers during November 1998. The results revealed that the majority of drivers are unaware of how extensively rates vary. In fact, 65 percent of those polled thought that comparable auto insurance policies would vary by no more than $250 in a six-month period. Furthermore, almost 60 percent of consumers surveyed had not contacted an insurance company or agent to obtain rate information in more than two years.
Ralph Nader, well-known consumer advocate, commented on the findings, "It's surprising that so few people take the time to shop around when the premium varies so greatly between companies. Clearly, consumers need to be aware of these differences and they need to shop around to make sure they are getting the best value for their auto insurance dollar."
"Nationally, the auto insurance market is very competitive with more than 300 companies offering coverage in any given market," said Moira Lardakis, Progressive division president. "Because no single insurance company will always offer the lowest rates for everyone, the best way to manage auto insurance costs is to shop around for the best combination of rates and service. Consumers can't benefit from the competitive market unless they shop around."
Florida Health Quote Announces Additional Insurance Services
Press release
(PRWEB) February 10, 2005 -- Florida Health Quote, the world-wide-web’s newest independent resource for Florida residents searching for a greater variety of affordable health insurance plans and options recently announced its intention to broaden its already extensive healthcare insurance quoting services so that consumers will now be able to choose between at least forty-six national insurance carriers, receive more personalized local agency introductions and get both quotes for and information on a wider swath of specific insurance plans—including but not limited to their life insurance, disability, temporary and long term care insurance needs.
These newest insurance quote service offerings are intended to exemplify Florida Health Quote’s long standing high standards of practice and ongoing dedication to a goal of keeping itself receptive to Floridian’s general health insurance needs and retain its place as the most accessible spot to shop for affordable insurance plans on the web. In addition to an expanded variety of individual healthcare quoting services, Florida Health Quote now plans to offer Florida’s consumer’s an additional range of health insurance information—to be presented in concert with a series of regular articles dealing with such topics as:
Temporary Health, Whole & Term Life as well as Senior and Longer Term Care Insurance programs, the relative benefits and downsides of and comparisons between the various national-carriers, and even on the impact of smoking on individual insurance eligibility.
“Until now Florida’s web-consumer population has been fairly limited in terms of the variety of directed responses to their specific healthcare needs they could expect from the larger online insurance providers so our latest sortie of health insurance information and quote customization alternatives has literally been a sea change of benefits,” said Florida Health Quote designer Mark Styrczula, “We’ve absolutely committed ourselves to improving Floridian’s level of health insurance provider choices, and of course hope that other internet-based insurance providers follow suite as we continue to build both our local agency outreach programs and health insurer services information library."
“Everyone here at Florida Health Quote has been working exceptionally hard to make sure these healthcare plan quote upgrades would be ready and online for 2005 and we’re especially proud of the improved relationships with a large number of Florida’s independent local insurance agencies as a result of our attention to the need to partner visitors with both the best health and medical-insurance plans and the most qualified agents for their concerns. The local agents we’ve spoken to since our newest programs went live have definitely been impressed by our improved capacity to quote not only accurately but immediately and then direct visitors to the Florida Insurance Agency best suited to doing the job for them."
(PRWEB) February 10, 2005 -- Florida Health Quote, the world-wide-web’s newest independent resource for Florida residents searching for a greater variety of affordable health insurance plans and options recently announced its intention to broaden its already extensive healthcare insurance quoting services so that consumers will now be able to choose between at least forty-six national insurance carriers, receive more personalized local agency introductions and get both quotes for and information on a wider swath of specific insurance plans—including but not limited to their life insurance, disability, temporary and long term care insurance needs.
These newest insurance quote service offerings are intended to exemplify Florida Health Quote’s long standing high standards of practice and ongoing dedication to a goal of keeping itself receptive to Floridian’s general health insurance needs and retain its place as the most accessible spot to shop for affordable insurance plans on the web. In addition to an expanded variety of individual healthcare quoting services, Florida Health Quote now plans to offer Florida’s consumer’s an additional range of health insurance information—to be presented in concert with a series of regular articles dealing with such topics as:
Temporary Health, Whole & Term Life as well as Senior and Longer Term Care Insurance programs, the relative benefits and downsides of and comparisons between the various national-carriers, and even on the impact of smoking on individual insurance eligibility.
“Until now Florida’s web-consumer population has been fairly limited in terms of the variety of directed responses to their specific healthcare needs they could expect from the larger online insurance providers so our latest sortie of health insurance information and quote customization alternatives has literally been a sea change of benefits,” said Florida Health Quote designer Mark Styrczula, “We’ve absolutely committed ourselves to improving Floridian’s level of health insurance provider choices, and of course hope that other internet-based insurance providers follow suite as we continue to build both our local agency outreach programs and health insurer services information library."
“Everyone here at Florida Health Quote has been working exceptionally hard to make sure these healthcare plan quote upgrades would be ready and online for 2005 and we’re especially proud of the improved relationships with a large number of Florida’s independent local insurance agencies as a result of our attention to the need to partner visitors with both the best health and medical-insurance plans and the most qualified agents for their concerns. The local agents we’ve spoken to since our newest programs went live have definitely been impressed by our improved capacity to quote not only accurately but immediately and then direct visitors to the Florida Insurance Agency best suited to doing the job for them."
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