By CLARE JELLICK
OF THE JOURNAL STAR
PEORIA - Employees of at least six local employers have received letters from an insurance company saying their names and Social Security numbers were on a server stolen from the company in March.
The cities of Peoria and East Peoria reported at least 1,500 employees, families and retirees have received letters from the company, Medical Excess, LLC. Some workers at District 150, the city of Pekin, Peoria County and Dental Arts Laboratory Inc. also have received letters, but it's unclear how many.
"We had people calling us saying, 'Is this legitimate?' People don't understand why some firm in California would suddenly be sending you a letter. It was very upsetting to some of our employees," said Pat Parsons, human resources director for the city of Peoria. He received a letter along with 1,350 other families and individuals who have city insurance.
Medical Excess sells excess insurance, which allows employers to protect themselves against employee medical costs above a certain amount.
Social Security numbers for about 970,000 people were lost when the server was stolen out of a Midwest office, but no one has reported misuse of data to date, said Chris Winans, a spokesman for parent company American International Group.
Employees' information had been submitted by 690 insurance brokers seeking excess insurance quotes for employers.
Thursday, June 29, 2006
Car Insurance - check before storms hit
By JIMMY SETTLE
The (Clarksville, Tenn.) Leaf-Chronicle
06/26/2006
From tornadoes, hurricanes and hailstorms to floods and wildfires, it's been a stormy year thus far across the nation. That's not only traumatizing, but terribly expensive.
For property owners, including auto owners, the combined price tag from all of these natural disasters is still soaring.
In fact, the first half-decade of the 21st century brought a steady rise in the number of vehicle losses because of natural disasters. That number nearly doubled in the five years between 2001 and 2005, according to ISO's Property Claim Services unit, which tracks insured property losses from catastrophes in the U.S., Puerto Rico and the U.S. Virgin Islands.
The number of reported claims for vehicle loss from natural disasters recorded by PCS increased steadily, from 485,150 claims in 2001 to 982,350 claims in 2005, for a total of 3.3 million losses over the past five years.
PCS's numbers track auto insurance claims on vehicles with insurance policies that include comprehensive coverage, which covers damages or loss due to natural disasters, catastrophes or events other than a collision with another car.
"Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they're making their purchase decision," said Lori Austin, branch manager of the Tenn-Tucky branch of the Better Business Bureau. "But too often, people shopping only for the lowest rates don't notice their lack of certain types of coverage until they try to make a claim."
The best advice, she said, is to know what your auto insurance covers and what you should do if your car is damaged in a storm by following these tips:
Be familiar with the details of your coverage. Don't wait to find out that your policy doesn't include comprehensive coverage, or won't automatically cover costs for emergency roadside assistance or a replacement rental car.
Report damage as soon as possible. If your car is not drivable, your agent or claims center may be able to save you time and money by having the car towed directly to the repair facility instead of to a temporary storage facility. In addition, arrangements may be made immediately to provide you with a replacement rental car, if your policy includes this coverage.
Know what your deductible is and any other additional charges before authorizing work. Expect your insurance adjuster, claims representative or repair facility appraiser to review the damage with you and explain the repair process, including the use of original or generic auto parts.
Before authorizing repairs, know what your deductible is. Also, be aware of any additional charges you will be expected to pay once repairs are complete.
Ask about warranties on repairs. Ask whether your insurer has a repair facility referral program that offers a written limited or lifetime repair warranty backed both by the repairer and insurer for as long as you own your vehicle.
Do business only with a reputable company. Obtain insurance from companies, independent brokers or direct marketers that have a proven track record of handling auto insurance claims effectively.
Get a referral or contact your BBB or state Department of Insurance.
According to the Insurance Information Institute, comprehensive coverage will reimburse you for loss due to damage caused by something other than a collision with another car or object, such as fire, falling objects, catastrophic storms, vandalism or contact with animals.
Flooding also is covered by auto insurance, as long as your policy includes comprehensive.
Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.
The (Clarksville, Tenn.) Leaf-Chronicle
06/26/2006
From tornadoes, hurricanes and hailstorms to floods and wildfires, it's been a stormy year thus far across the nation. That's not only traumatizing, but terribly expensive.
For property owners, including auto owners, the combined price tag from all of these natural disasters is still soaring.
In fact, the first half-decade of the 21st century brought a steady rise in the number of vehicle losses because of natural disasters. That number nearly doubled in the five years between 2001 and 2005, according to ISO's Property Claim Services unit, which tracks insured property losses from catastrophes in the U.S., Puerto Rico and the U.S. Virgin Islands.
The number of reported claims for vehicle loss from natural disasters recorded by PCS increased steadily, from 485,150 claims in 2001 to 982,350 claims in 2005, for a total of 3.3 million losses over the past five years.
PCS's numbers track auto insurance claims on vehicles with insurance policies that include comprehensive coverage, which covers damages or loss due to natural disasters, catastrophes or events other than a collision with another car.
"Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they're making their purchase decision," said Lori Austin, branch manager of the Tenn-Tucky branch of the Better Business Bureau. "But too often, people shopping only for the lowest rates don't notice their lack of certain types of coverage until they try to make a claim."
The best advice, she said, is to know what your auto insurance covers and what you should do if your car is damaged in a storm by following these tips:
Be familiar with the details of your coverage. Don't wait to find out that your policy doesn't include comprehensive coverage, or won't automatically cover costs for emergency roadside assistance or a replacement rental car.
Report damage as soon as possible. If your car is not drivable, your agent or claims center may be able to save you time and money by having the car towed directly to the repair facility instead of to a temporary storage facility. In addition, arrangements may be made immediately to provide you with a replacement rental car, if your policy includes this coverage.
Know what your deductible is and any other additional charges before authorizing work. Expect your insurance adjuster, claims representative or repair facility appraiser to review the damage with you and explain the repair process, including the use of original or generic auto parts.
Before authorizing repairs, know what your deductible is. Also, be aware of any additional charges you will be expected to pay once repairs are complete.
Ask about warranties on repairs. Ask whether your insurer has a repair facility referral program that offers a written limited or lifetime repair warranty backed both by the repairer and insurer for as long as you own your vehicle.
Do business only with a reputable company. Obtain insurance from companies, independent brokers or direct marketers that have a proven track record of handling auto insurance claims effectively.
Get a referral or contact your BBB or state Department of Insurance.
According to the Insurance Information Institute, comprehensive coverage will reimburse you for loss due to damage caused by something other than a collision with another car or object, such as fire, falling objects, catastrophic storms, vandalism or contact with animals.
Flooding also is covered by auto insurance, as long as your policy includes comprehensive.
Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.
Tuesday, June 27, 2006
Florida Health Insurance Comparison Site
The Florida Office of Insurance Regulation has launched a Web site to allow Floridians to compare Florida Health Insurance and search the benefits and premiums for small employer health plans offered in the state.
Small businesses can use the site to get a sample monthly cost to provide health insurance for their employees.
The 2005 legislature authorized the office to create a system to collect and display necessary data from insurers and health care providers so Floridians could make informed decisions about their health care and health insurance options.
"There is widespread agreement that if we are going to make health care more accessible and affordable we have to make our health care system more transparent," Insurance Commissioner Kevin McCarty said. "This new tool provides a giant step in that direction and will make it much easier for our consumers and businesses to shop for coverage."
The Web site allows small employers to view small group major medical health insurance rates for available standard, basic and high deductible health. Small businesses can enter the employees they employ in various categories and calculate an estimated monthly cost for their company.
In addition to searching for small group employer rates, the Web site is to have links for frequently asked questions on small employer heath insurance, links to various health insurance consumer guides and information for consumers to request assistance with the Web site or for information on health insurance.
The state government said it does not endorse or recommend any of the plans and encourages consumers to contact carriers directly if they are interested in any of the plans.
Small businesses can use the site to get a sample monthly cost to provide health insurance for their employees.
The 2005 legislature authorized the office to create a system to collect and display necessary data from insurers and health care providers so Floridians could make informed decisions about their health care and health insurance options.
"There is widespread agreement that if we are going to make health care more accessible and affordable we have to make our health care system more transparent," Insurance Commissioner Kevin McCarty said. "This new tool provides a giant step in that direction and will make it much easier for our consumers and businesses to shop for coverage."
The Web site allows small employers to view small group major medical health insurance rates for available standard, basic and high deductible health. Small businesses can enter the employees they employ in various categories and calculate an estimated monthly cost for their company.
In addition to searching for small group employer rates, the Web site is to have links for frequently asked questions on small employer heath insurance, links to various health insurance consumer guides and information for consumers to request assistance with the Web site or for information on health insurance.
The state government said it does not endorse or recommend any of the plans and encourages consumers to contact carriers directly if they are interested in any of the plans.
MIchigan Auto Insurance Cost Reduction BIll
Michigan drivers over the age of 50 may have some auto insurance discounts coming their way. The state house has passed two bills that would allow auto insurers to offer premium discounts for drivers over 50 who complete a certified traffic accident prevention course. It's meant to provide some relief for older Detroit drivers who pay higher premiums. The bills now move over to the state senate.
Friday, June 23, 2006
41.2M in U.S. Lacked Health Insurance Last Year
From KaiserNetwork.org
Approximately 41.2 million U.S. residents, or 14.2%, of the U.S. population, had no health insurance in 2005 at a specific point in time, demonstrating a small improvement over 2004, according to a survey published on Wednesday by the National Center for Health Statistics, Reuters reports (Reuters, 6/21). Study results were based on responses from 98,300 U.S. residents. According to the study:
29.2 million individuals, or 10% of the population, had been uninsured for more than a year at the time of the survey;
51.3 million people had been uninsured for at least part of the previous year (Mufson/Eilperin, Washington Post, 6/22);
About 6.5 million children, or 8.9% of individuals younger than age 18, lacked health insurance in 2005, about one-third fewer than eight years earlier, Bloomberg News/Los Angeles Times reports (Bloomberg News/Los Angeles Times, 6/22). In 1997, 15.4% of U.S. adults and 13.9% of U.S. children were uninsured;
Coverage varied by state, with Massachusetts having the lowest uninsured rate at 6% and Texas having the highest at 24%;
More than 70% of adults and 62% of children had private insurance coverage; and
Almost 30% of children and 11.5% of adults had some sort of public insurance such as SCHIP, Medicare or Medicaid (Reuters, 6/21).
Approximately 41.2 million U.S. residents, or 14.2%, of the U.S. population, had no health insurance in 2005 at a specific point in time, demonstrating a small improvement over 2004, according to a survey published on Wednesday by the National Center for Health Statistics, Reuters reports (Reuters, 6/21). Study results were based on responses from 98,300 U.S. residents. According to the study:
29.2 million individuals, or 10% of the population, had been uninsured for more than a year at the time of the survey;
51.3 million people had been uninsured for at least part of the previous year (Mufson/Eilperin, Washington Post, 6/22);
About 6.5 million children, or 8.9% of individuals younger than age 18, lacked health insurance in 2005, about one-third fewer than eight years earlier, Bloomberg News/Los Angeles Times reports (Bloomberg News/Los Angeles Times, 6/22). In 1997, 15.4% of U.S. adults and 13.9% of U.S. children were uninsured;
Coverage varied by state, with Massachusetts having the lowest uninsured rate at 6% and Texas having the highest at 24%;
More than 70% of adults and 62% of children had private insurance coverage; and
Almost 30% of children and 11.5% of adults had some sort of public insurance such as SCHIP, Medicare or Medicaid (Reuters, 6/21).
Florida Battles Car Insurance Fraud
Richard Burnett | Sentinel Staff Writer
Posted June 23, 2006
Florida's political leaders collided this spring over what to do about auto-insurance fraud.
Legislative proposals fell by the wayside or were vetoed by the governor. A few small measures await his signature. Meanwhile, a survey released this week indicates the problem here is as bad as ever.
Six cities in Florida -- more than from any other state -- made the latest ranking of the 25 cities with the most questionable auto-insurance claims last year, according to the National Insurance Crime Bureau, an insurance-industry group based in New York.
With 244 suspect cases in 2005 and early 2006, Orlando came in sixth, up two spots in this year's study, which is conducted annually. Miami came in third, with 588 cases. Tampa, Hialeah, Fort Lauderdale and Jacksonville also made the top 25 metro areas.
Industry officials say Florida has done a much better job recently of prosecuting auto fraud -- its conviction rate has been tops in the U.S. in recent years. But the problem refuses to go away.
"Florida has some of the worst auto-insurance fraud problems of any state," said Frank Quiggle, a spokesman for the Coalition Against Insurance Fraud, a watchdog group that comprises consumer advocates, insurers and law enforcement agencies.
"The fraud fighters have mounted an energetic response," he said, "but they need more effective tools to encourage prosecutions and increase the odds of conviction."
Florida's no-fault insurance law is widely blamed for the problem. It requires all car owners to carry $10,000 in personal-injury coverage, and it requires insurers to pay claims up to that amount regardless of who's at fault in an accident.
When the law was passed in 1971, it was intended to reduce the number of personal-injury lawsuits and a glut of uninsured drivers seeking medical treatment.
But insurers say the personal-injury protection, or PIP, law created a system that fraud rings have easily exploited over the years, staging accidents, operating sham injury-treatment clinics, and filing billions of dollars' worth of bogus medical claims. Such operations employ "runners" who recruit participants for staged collisions, and hire corrupt clinics to process the bogus medical claims.
Certain provisions of the Florida law are particularly troublesome, insurers say, such as the requirement that personal-injury claims must be paid within 30 days, which gives insurers little time to investigate suspicious cases.
Auto-insurance fraud generates losses of about $30 billion annually, including more than $1 billion a year in Florida alone, according to industry estimates. Those losses result in higher premiums for all auto-insurance customers, the industry says -- an additional $250 or more a year per customer.
A dozen other states also have PIP laws, and most of them have run into similar problems. Colorado, for example, repealed its PIP law three years ago, with mixed results: Auto-insurance rates fell an average of 20 percent or more, and new insurers entered the market, but health-insurance rates increased as hospitals ended up treating more uninsured motorists.
Insurers and consumer advocates have found some rare common ground in criticizing Florida's no-fault program. Both have pushed for legislation that would close the law's loopholes, step up enforcement efforts, and toughen sentences for those convicted of fraud.
The original PIP law was "a great idea -- to make people more responsible for their medical care," said Walter Dartland, a former assistant state attorney general who is now director of the Tallahassee-based Consumer Federation of the Southeast, a nonprofit advocacy group.
"But now all these people are jumping in and treating it like a gold mine, filing claim after claim for $10,000," he said. "Florida PIP law is just not going to work, unless we have strong anti-fraud efforts to root these people out, strong requirements as to who can provide PIP services, and mandatory sentencing -- not probation -- so they won't keep ripping people off."
Florida lawmakers have considered reforming or even killing the no-fault system. Five years ago, the Legislature stiffened penalties for those convicted of fraud, and tightened licensing requirements for injury clinics.
Legislators took up the issue again this year, with the no-fault law set to automatically expire in October 2007. They passed a controversial reform bill that would have extended the no-fault provisions to 2009 while providing some additional money to improve enforcement. Gov. Jeb Bush vetoed the measure, however, saying it didn't go far enough. With the law scheduled to sunset in about 15 months, the Legislature is expected to revisit the issue next spring.
Several other anti-fraud bills with ties to the no-fault program still await Bush's signature. One would try to bar the so-called runners from gaining access to police reports showing the names of traffic-accident victims. Another would toughen penalties for "paper accident fraud" -- an increasingly popular crime that relies on forged documents and claims involving fictitious accidents.
Florida regulators say they have made progress in fighting the problem. Hundreds of arrests have knocked many perpetrators out of action in recent years.
Almost 300 people have been jailed since mid-2005 on auto-fraud charges, up 43 percent from the previous 12-month period, according to the latest figures from the Florida Department of Financial Services. More than 200 cases resulted in convictions, up 150 percent from the year before, state officials say.
Regulators acknowledge, however, that only a small fraction of the fraudsters out there are getting caught and convicted: According to the National Insurance Crime Bureau's latest figures, insurers identified almost 1,400 suspect auto-insurance claims in Florida in the past year.
"All law enforcement faces the same challenge -- you are never going to catch everyone," said Nine Banister, spokeswoman for the Department of Financial Services. "Personal-injury fraud is especially perplexing, in that the schemes often involve so many people."
Posted June 23, 2006
Florida's political leaders collided this spring over what to do about auto-insurance fraud.
Legislative proposals fell by the wayside or were vetoed by the governor. A few small measures await his signature. Meanwhile, a survey released this week indicates the problem here is as bad as ever.
Six cities in Florida -- more than from any other state -- made the latest ranking of the 25 cities with the most questionable auto-insurance claims last year, according to the National Insurance Crime Bureau, an insurance-industry group based in New York.
With 244 suspect cases in 2005 and early 2006, Orlando came in sixth, up two spots in this year's study, which is conducted annually. Miami came in third, with 588 cases. Tampa, Hialeah, Fort Lauderdale and Jacksonville also made the top 25 metro areas.
Industry officials say Florida has done a much better job recently of prosecuting auto fraud -- its conviction rate has been tops in the U.S. in recent years. But the problem refuses to go away.
"Florida has some of the worst auto-insurance fraud problems of any state," said Frank Quiggle, a spokesman for the Coalition Against Insurance Fraud, a watchdog group that comprises consumer advocates, insurers and law enforcement agencies.
"The fraud fighters have mounted an energetic response," he said, "but they need more effective tools to encourage prosecutions and increase the odds of conviction."
Florida's no-fault insurance law is widely blamed for the problem. It requires all car owners to carry $10,000 in personal-injury coverage, and it requires insurers to pay claims up to that amount regardless of who's at fault in an accident.
When the law was passed in 1971, it was intended to reduce the number of personal-injury lawsuits and a glut of uninsured drivers seeking medical treatment.
But insurers say the personal-injury protection, or PIP, law created a system that fraud rings have easily exploited over the years, staging accidents, operating sham injury-treatment clinics, and filing billions of dollars' worth of bogus medical claims. Such operations employ "runners" who recruit participants for staged collisions, and hire corrupt clinics to process the bogus medical claims.
Certain provisions of the Florida law are particularly troublesome, insurers say, such as the requirement that personal-injury claims must be paid within 30 days, which gives insurers little time to investigate suspicious cases.
Auto-insurance fraud generates losses of about $30 billion annually, including more than $1 billion a year in Florida alone, according to industry estimates. Those losses result in higher premiums for all auto-insurance customers, the industry says -- an additional $250 or more a year per customer.
A dozen other states also have PIP laws, and most of them have run into similar problems. Colorado, for example, repealed its PIP law three years ago, with mixed results: Auto-insurance rates fell an average of 20 percent or more, and new insurers entered the market, but health-insurance rates increased as hospitals ended up treating more uninsured motorists.
Insurers and consumer advocates have found some rare common ground in criticizing Florida's no-fault program. Both have pushed for legislation that would close the law's loopholes, step up enforcement efforts, and toughen sentences for those convicted of fraud.
The original PIP law was "a great idea -- to make people more responsible for their medical care," said Walter Dartland, a former assistant state attorney general who is now director of the Tallahassee-based Consumer Federation of the Southeast, a nonprofit advocacy group.
"But now all these people are jumping in and treating it like a gold mine, filing claim after claim for $10,000," he said. "Florida PIP law is just not going to work, unless we have strong anti-fraud efforts to root these people out, strong requirements as to who can provide PIP services, and mandatory sentencing -- not probation -- so they won't keep ripping people off."
Florida lawmakers have considered reforming or even killing the no-fault system. Five years ago, the Legislature stiffened penalties for those convicted of fraud, and tightened licensing requirements for injury clinics.
Legislators took up the issue again this year, with the no-fault law set to automatically expire in October 2007. They passed a controversial reform bill that would have extended the no-fault provisions to 2009 while providing some additional money to improve enforcement. Gov. Jeb Bush vetoed the measure, however, saying it didn't go far enough. With the law scheduled to sunset in about 15 months, the Legislature is expected to revisit the issue next spring.
Several other anti-fraud bills with ties to the no-fault program still await Bush's signature. One would try to bar the so-called runners from gaining access to police reports showing the names of traffic-accident victims. Another would toughen penalties for "paper accident fraud" -- an increasingly popular crime that relies on forged documents and claims involving fictitious accidents.
Florida regulators say they have made progress in fighting the problem. Hundreds of arrests have knocked many perpetrators out of action in recent years.
Almost 300 people have been jailed since mid-2005 on auto-fraud charges, up 43 percent from the previous 12-month period, according to the latest figures from the Florida Department of Financial Services. More than 200 cases resulted in convictions, up 150 percent from the year before, state officials say.
Regulators acknowledge, however, that only a small fraction of the fraudsters out there are getting caught and convicted: According to the National Insurance Crime Bureau's latest figures, insurers identified almost 1,400 suspect auto-insurance claims in Florida in the past year.
"All law enforcement faces the same challenge -- you are never going to catch everyone," said Nine Banister, spokeswoman for the Department of Financial Services. "Personal-injury fraud is especially perplexing, in that the schemes often involve so many people."
Thursday, June 22, 2006
Fewer US Kids Lack Health Insurance
From Bloomberg News
June 22, 2006
About 6.5 million American children lacked health insurance in 2005, about a third fewer than eight years earlier as states provided more coverage for the needy, the U.S. government estimated.
Still, about 41.2 million Americans, including about 1 in every 10 under age 18, had no health insurance last year, researchers for the Hyattsville, Md.-based National Center for Health Statistics said.
Although the uninsured made up about 14.2% of the U.S. population, only 8.9% of people under age 18 lacked coverage, the researchers wrote.
June 22, 2006
About 6.5 million American children lacked health insurance in 2005, about a third fewer than eight years earlier as states provided more coverage for the needy, the U.S. government estimated.
Still, about 41.2 million Americans, including about 1 in every 10 under age 18, had no health insurance last year, researchers for the Hyattsville, Md.-based National Center for Health Statistics said.
Although the uninsured made up about 14.2% of the U.S. population, only 8.9% of people under age 18 lacked coverage, the researchers wrote.
Auto Insurance and Domestic Partners
SANTA FE (AP) - Auto insurance policies may exclude domestic partners from coverage as family members because New Mexico has no law to the contrary.
A divided state Supreme Court made that ruling Tuesday.
Justice Edward Chavez wrote that if domestic partners are to enjoy automatic protections in insurance coverage equal to those enjoyed by married couples, it will be up to the Legislature to make that policy, rather than the courts.
The case involved a man and a woman, Charles Cline and Judith Davis, who had lived together since 1997.
After a serious accident, Davis filed a claim for underinsured motorist benefits under policies that listed Cline as the only named insured, and was denied.
The policies provided coverage to Cline and family members, defined as those related by blood, marriage or adoption who lived in the household, including wards or foster children.
The couple had argued that recent judicial, executive and legislative policies provided legal protections to domestic partners.
A divided state Supreme Court made that ruling Tuesday.
Justice Edward Chavez wrote that if domestic partners are to enjoy automatic protections in insurance coverage equal to those enjoyed by married couples, it will be up to the Legislature to make that policy, rather than the courts.
The case involved a man and a woman, Charles Cline and Judith Davis, who had lived together since 1997.
After a serious accident, Davis filed a claim for underinsured motorist benefits under policies that listed Cline as the only named insured, and was denied.
The policies provided coverage to Cline and family members, defined as those related by blood, marriage or adoption who lived in the household, including wards or foster children.
The couple had argued that recent judicial, executive and legislative policies provided legal protections to domestic partners.
Wednesday, June 21, 2006
Affordable Health Insurance for Children
Bakersfield ranks in the top 10 cities across the country for having affordable health insurance for kids, but some families are not taking advantage of it.
While health insurance may be less expensive for children in Bakersfield, Health Net of California says there are thousands of children across Kern County who do not have it.
Tiffini Thomas found herself and her family without health insurance when her husband switched jobs.
She said, “My husband had health insurance when he worked and then he lost that job. His current job couldn't afford it because it's really expensive.”
Thomas went on the internet and found policies just for her children.
“It is cheaper and more practical to get your kids when they're individuals. Thomas said. “They're the subscribers not the dependents.”
Families like Nely Covarrubias’s do not have coverage for their children. Her daughter is considered one of the estimated 33,000 children in Kern County who are not covered.
Covarrubias says, “He got fired from a job and so I’m out of insurance. So, I have to come to this clinic for my daughter and prenatal care because I’m pregnant, and for her shots and everything.”
Clinica Sierra Vista sees many patients who come for medical care without insurance.
“We have 150,000 people in this county on public insurance and we have about 50,000 people who are uninsured who are kids and 50,000 adults who are uninsured,” said CEO Steve Schilling of Clinica Sierra Vista.
“There are probably 200,000 people in Kern County who have no coverage,” he adds.
Meanwhile, there are 79 health insurance plans available for children in Kern County, according to Emily Fox, spokewoman for eHealthInsurance.
There are even some programs as low as $32 a child, per month.
Experts say the best thing people can do is look at a number of plans, determine what their child’s needs are and purchase the plan that works for them.
Going to websites like ehealthinsurance.com can offer several plans to consider. There are even programs to sign up for at county clinics or centers like Clinica Sierra Vista.
While health insurance may be less expensive for children in Bakersfield, Health Net of California says there are thousands of children across Kern County who do not have it.
Tiffini Thomas found herself and her family without health insurance when her husband switched jobs.
She said, “My husband had health insurance when he worked and then he lost that job. His current job couldn't afford it because it's really expensive.”
Thomas went on the internet and found policies just for her children.
“It is cheaper and more practical to get your kids when they're individuals. Thomas said. “They're the subscribers not the dependents.”
Families like Nely Covarrubias’s do not have coverage for their children. Her daughter is considered one of the estimated 33,000 children in Kern County who are not covered.
Covarrubias says, “He got fired from a job and so I’m out of insurance. So, I have to come to this clinic for my daughter and prenatal care because I’m pregnant, and for her shots and everything.”
Clinica Sierra Vista sees many patients who come for medical care without insurance.
“We have 150,000 people in this county on public insurance and we have about 50,000 people who are uninsured who are kids and 50,000 adults who are uninsured,” said CEO Steve Schilling of Clinica Sierra Vista.
“There are probably 200,000 people in Kern County who have no coverage,” he adds.
Meanwhile, there are 79 health insurance plans available for children in Kern County, according to Emily Fox, spokewoman for eHealthInsurance.
There are even some programs as low as $32 a child, per month.
Experts say the best thing people can do is look at a number of plans, determine what their child’s needs are and purchase the plan that works for them.
Going to websites like ehealthinsurance.com can offer several plans to consider. There are even programs to sign up for at county clinics or centers like Clinica Sierra Vista.
Tuesday, June 20, 2006
Small Business owners lacking health insurance
Kent Hoover Washington Bureau Chief
More than half of the owners of very small businesses have gone without health insurance at some point, according to an online member poll conducted by the National Association for the Self-Employed.
Cost is the biggest barrier to getting insurance, the survey found, but nearly a third of those who responded to the poll said they couldn't find simple, easy-to-read information about their health care options.
NASE recently launched an initiative that provides free information on how to choose a health plan and tips on keeping health care costs down.
Meanwhile, the American Medical Association has endorsed a proposal requiring individuals who make at least $49,000 a year to purchase a minimum level of health insurance. The mandate should be extended to lower-income individuals and families if Congress offers refundable tax credits or other health care subsidies, according to the AMA.
"Americans will be healthier because they will get the care they need when they need it," says Dr. Ardis Hoven, an AMA board member. "The societal benefits of having more people insured, leading healthier lives, would be enormous."
More than half of the owners of very small businesses have gone without health insurance at some point, according to an online member poll conducted by the National Association for the Self-Employed.
Cost is the biggest barrier to getting insurance, the survey found, but nearly a third of those who responded to the poll said they couldn't find simple, easy-to-read information about their health care options.
NASE recently launched an initiative that provides free information on how to choose a health plan and tips on keeping health care costs down.
Meanwhile, the American Medical Association has endorsed a proposal requiring individuals who make at least $49,000 a year to purchase a minimum level of health insurance. The mandate should be extended to lower-income individuals and families if Congress offers refundable tax credits or other health care subsidies, according to the AMA.
"Americans will be healthier because they will get the care they need when they need it," says Dr. Ardis Hoven, an AMA board member. "The societal benefits of having more people insured, leading healthier lives, would be enormous."
Auto Insurance Fraud Scheme
BY MARGARET F. BONAFIDE
TOMS RIVER BUREAU
MANCHESTER — Authorities have charged five people in connection with a scheme to destroy a car by arson and collect an insurance payment for the vehicle.
Charged with aggravated arson are Richard W. Wickward, 24, of Weymouth Drive; Harvey Webb, 23, of Hunter Boulevard; and Russell M. Morgan, 30, of Jefferson Avenue, all of Pemberton Township; and Sarah L. Sutton, 19, of Highland Avenue, Rumson.
Daniel T. Cselinacz, 23, of Old Bridge falsely reported the theft of his 2005 Subaru Impreza, according to the complaint signed by Manchester Detective Joseph T. Hankins.
Cselinacz was charged in May with theft by deception and criminal attempt relative to the insurance claim he filed on the vehicle, which police say he had arranged for destruction.
Sutton and Morgan were arrested June 12. Webb and Wickward were arrested June 13.
Cselinacz arranged on April 28 to have the three men and woman steal his car in Dover Township then take it to a wildlife refuge area in Manchester and burn it, according to the Ocean County Prosecutor's Office.
Morgan remained in the Ocean County Jail Monday in lieu of $50,000 bail.
Webb, Sutton and Wickward were released on $50,000 bail.
The jail had no record of Cselinacz being placed there. No bail was listed in the complaint against him.
Manchester Township police were also assisted by Dover Township, Old Bridge, Pemberton, and Rumson police, and the Monmouth County Prosecutor's Office.
TOMS RIVER BUREAU
MANCHESTER — Authorities have charged five people in connection with a scheme to destroy a car by arson and collect an insurance payment for the vehicle.
Charged with aggravated arson are Richard W. Wickward, 24, of Weymouth Drive; Harvey Webb, 23, of Hunter Boulevard; and Russell M. Morgan, 30, of Jefferson Avenue, all of Pemberton Township; and Sarah L. Sutton, 19, of Highland Avenue, Rumson.
Daniel T. Cselinacz, 23, of Old Bridge falsely reported the theft of his 2005 Subaru Impreza, according to the complaint signed by Manchester Detective Joseph T. Hankins.
Cselinacz was charged in May with theft by deception and criminal attempt relative to the insurance claim he filed on the vehicle, which police say he had arranged for destruction.
Sutton and Morgan were arrested June 12. Webb and Wickward were arrested June 13.
Cselinacz arranged on April 28 to have the three men and woman steal his car in Dover Township then take it to a wildlife refuge area in Manchester and burn it, according to the Ocean County Prosecutor's Office.
Morgan remained in the Ocean County Jail Monday in lieu of $50,000 bail.
Webb, Sutton and Wickward were released on $50,000 bail.
The jail had no record of Cselinacz being placed there. No bail was listed in the complaint against him.
Manchester Township police were also assisted by Dover Township, Old Bridge, Pemberton, and Rumson police, and the Monmouth County Prosecutor's Office.
Monday, June 19, 2006
Budget clock ticks on Health Insurance
JOSEPH D. BRYANT
News staff writer
A pending switch in health insurance carriers for thousands of Birmingham public employees increases the urgency in passing the city's 2007 budget on time, officials said.
The contract with United Healthcare, the current insurance provider, expires June 30 and coverage with the new company, Blue Cross/Blue Shield, is set to begin July 1.
The council had hoped to have a new spending plan in place by Tuesday to meet the provision of the mayor-council act and make provisions for the new insurance plan.
"We are pushing to be ready for Tuesday because of the health insurance issue," said Council President Carole Smitherman. "That put a whole new light on things."
Insurance changes are usually part of the budget approval.
"There are a couple of resolutions that have to be passed to accept the insurance carrier," said Acting Finance Director Michael Johnson.
Johnson said his department could avoid a lapse in health care coverage if the council approves a budget at least by June 27.
The council has held several budget work sessions, including a four-hour meeting Saturday and one planned today.
"It sounds to me like it would be incumbent upon us to pass a budget by the 27th," said Councilwoman Valerie Abbott. "This puts more of a sense of urgency than it has been before, because there's nothing worse than having your health insurance expire."
Abbott and other council members said their budget preparation was slowed by Mayor Bernard Kincaid's delay in presenting his budget and his refusal to give detailed financial information electronically.
News staff writer
A pending switch in health insurance carriers for thousands of Birmingham public employees increases the urgency in passing the city's 2007 budget on time, officials said.
The contract with United Healthcare, the current insurance provider, expires June 30 and coverage with the new company, Blue Cross/Blue Shield, is set to begin July 1.
The council had hoped to have a new spending plan in place by Tuesday to meet the provision of the mayor-council act and make provisions for the new insurance plan.
"We are pushing to be ready for Tuesday because of the health insurance issue," said Council President Carole Smitherman. "That put a whole new light on things."
Insurance changes are usually part of the budget approval.
"There are a couple of resolutions that have to be passed to accept the insurance carrier," said Acting Finance Director Michael Johnson.
Johnson said his department could avoid a lapse in health care coverage if the council approves a budget at least by June 27.
The council has held several budget work sessions, including a four-hour meeting Saturday and one planned today.
"It sounds to me like it would be incumbent upon us to pass a budget by the 27th," said Councilwoman Valerie Abbott. "This puts more of a sense of urgency than it has been before, because there's nothing worse than having your health insurance expire."
Abbott and other council members said their budget preparation was slowed by Mayor Bernard Kincaid's delay in presenting his budget and his refusal to give detailed financial information electronically.
High Point Auto Insurance shows genereosity
Press Release
RED BANK, N.J., June 19 /PRNewswire/ -- High Point, one of the top New Jersey auto insurers, is reaching out to one of its customers in their time of need. The family, who resides in Bergenfield, New Jersey, is battling significant medical problems including blindness, a hearing disability and cancer. As a result, Extreme Makeover, the popular show on ABC that assists families in need, is rebuilding their home to make it larger and more friendly to their challenging needs. The show will air this summer.
High Point Auto Insurance is the insurance company for the family's current homeowners and automobile insurance. The employees at High Point came together and held a fundraiser for this family. The company's charitable foundation will match all High Point employee donations.
"High Point employees are known for their generosity and as an organization, we support several local and national charitable organizations. This particular situation really hit home since one of our customers is having a difficult time. I'm proud of the employees here at High Point who are helping to raise funds for this very worthy cause," said Jim Tignanelli, President of the High Point group of insurance companies.
RED BANK, N.J., June 19 /PRNewswire/ -- High Point, one of the top New Jersey auto insurers, is reaching out to one of its customers in their time of need. The family, who resides in Bergenfield, New Jersey, is battling significant medical problems including blindness, a hearing disability and cancer. As a result, Extreme Makeover, the popular show on ABC that assists families in need, is rebuilding their home to make it larger and more friendly to their challenging needs. The show will air this summer.
High Point Auto Insurance is the insurance company for the family's current homeowners and automobile insurance. The employees at High Point came together and held a fundraiser for this family. The company's charitable foundation will match all High Point employee donations.
"High Point employees are known for their generosity and as an organization, we support several local and national charitable organizations. This particular situation really hit home since one of our customers is having a difficult time. I'm proud of the employees here at High Point who are helping to raise funds for this very worthy cause," said Jim Tignanelli, President of the High Point group of insurance companies.
Friday, June 16, 2006
Health Coverage Expanded
By KIT WAGAR
The Star’s Jefferson City correspondent
Missouri officials filed regulations Thursday that soften last year’s health-care cuts by allowing more families to qualify for state-funded health coverage for their children.
The Department of Social Services estimated that the change would allow 5,418 children who were dropped from the program last year to become eligible again.
Gov. Matt Blunt said he directed the department to make the change to expand access to health care and make the Children’s Health Insurance Program more equitable and affordable for moderate-income families.
The program, known as CHIP, is an extension of the state’s Medicaid program that offers health coverage for children in families that earn too much to qualify for Medicaid. A year ago, before the Medicaid cuts took effect, CHIP covered 93,730 Missouri children from families with income up to three times the federal poverty level.
But last year, the legislature, as part of the restructuring and downsizing of Medicaid, instituted monthly premiums for all participants in CHIP with income of more than 150 percent of the poverty level. The law disqualified families if the parents had access to “affordable insurance.”
It defined affordable as less than $342 a month. That amount was scheduled to increase to $375 next month.
The new regulations, which take effect July 1, attempt to set the affordability level at roughly 9 percent of the income of a family of three. It would lower the affordability level for most families in the program to $209 or $255 a month.
In January, Joel Ferber, who handles health issues for Legal Services of Eastern Missouri, published a study that blamed the current affordable insurance rule for many children losing insurance.
A single mother making $20,000 a year could insure her child through CHIP for $17 a month. But she would be disqualified if her employer offered insurance that cost anything less than $375 a month.
The program, therefore, expected her to put out 23 percent of her income for private insurance before turning to a state program. It essentially rewarded people for earning less or for taking jobs that offered no health insurance.
Because the poverty level rises with family size, smaller families would be expected to pay a larger percentage of their income than large families. For example, that single mother with one child would be disqualified if she could buy insurance for less than $209 a month, or 13 percent of her income.
A family of five could qualify with income of $35,200 if insurance was not available at the same $209 a month, or 7 percent of the family’s income.
Deborah Scott, spokeswoman for the Department of Social Services, said officials tried to craft a system that was fair. To be equal at every income level would require a complicated graduated scale and the statute is not written that way, she said.
“This is a vast improvement over the previous system and makes insurance more available to more children,” Scott said.
The change is expected to cost state taxpayers about $1.8 million a year.
The Star’s Jefferson City correspondent
Missouri officials filed regulations Thursday that soften last year’s health-care cuts by allowing more families to qualify for state-funded health coverage for their children.
The Department of Social Services estimated that the change would allow 5,418 children who were dropped from the program last year to become eligible again.
Gov. Matt Blunt said he directed the department to make the change to expand access to health care and make the Children’s Health Insurance Program more equitable and affordable for moderate-income families.
The program, known as CHIP, is an extension of the state’s Medicaid program that offers health coverage for children in families that earn too much to qualify for Medicaid. A year ago, before the Medicaid cuts took effect, CHIP covered 93,730 Missouri children from families with income up to three times the federal poverty level.
But last year, the legislature, as part of the restructuring and downsizing of Medicaid, instituted monthly premiums for all participants in CHIP with income of more than 150 percent of the poverty level. The law disqualified families if the parents had access to “affordable insurance.”
It defined affordable as less than $342 a month. That amount was scheduled to increase to $375 next month.
The new regulations, which take effect July 1, attempt to set the affordability level at roughly 9 percent of the income of a family of three. It would lower the affordability level for most families in the program to $209 or $255 a month.
In January, Joel Ferber, who handles health issues for Legal Services of Eastern Missouri, published a study that blamed the current affordable insurance rule for many children losing insurance.
A single mother making $20,000 a year could insure her child through CHIP for $17 a month. But she would be disqualified if her employer offered insurance that cost anything less than $375 a month.
The program, therefore, expected her to put out 23 percent of her income for private insurance before turning to a state program. It essentially rewarded people for earning less or for taking jobs that offered no health insurance.
Because the poverty level rises with family size, smaller families would be expected to pay a larger percentage of their income than large families. For example, that single mother with one child would be disqualified if she could buy insurance for less than $209 a month, or 13 percent of her income.
A family of five could qualify with income of $35,200 if insurance was not available at the same $209 a month, or 7 percent of the family’s income.
Deborah Scott, spokeswoman for the Department of Social Services, said officials tried to craft a system that was fair. To be equal at every income level would require a complicated graduated scale and the statute is not written that way, she said.
“This is a vast improvement over the previous system and makes insurance more available to more children,” Scott said.
The change is expected to cost state taxpayers about $1.8 million a year.
Choosing an Auto Insurance Company
These days, you can’t go five minutes while watching television without seeing the little lizard that is the mascot of GEICO's insurance company. On top of that, there are so many different types of auto insurance companies that it makes it nearly impossible to decide which is the best type of coverage for you.
So, what do you do? How do you narrow it down? First, ask around. Start by questioning your friends or family members about where they go for auto insurance, how much the rates are, and how intensively the agent covers the important details. Make a list of the insurance company’s names and contact information and grab a notebook to keep your own records of the premiums and deductibles.
Next, go to where you can get coverage: an agent in your neighborhood an insurance company that is online and has an 800 number. Many people recommend going directly to an agent instead of dealing with a direct market company because they are more thorough in configuring what type of coverage is best for which person or family.
The bonus to getting car insurance through a direct market company is the convenience, which is quite possibly the reason it’s so popular. Many insurance companies offer free quotes for coverage that a person can get in a short phone call or by spending a few minutes on the Internet typing in important information. Coverage can often be purchased online, and some insurance companies provide rate quotes for a handful of other insurance providers at the same time to give clients more options and comparison.
To save money when buying auto insurance, make sure to shop around and get as many insurance quotes as you can from as many different providers as possible. Second, get the highest deductible that you feel comfortable with, because the higher the deductible, the lower your premium and monthly payments will be. Many insurance companies offer multicar discounts, better rates for good drivers, and discounts for safety features like air bags, so that’s something else to keep in mind.
So, what do you do? How do you narrow it down? First, ask around. Start by questioning your friends or family members about where they go for auto insurance, how much the rates are, and how intensively the agent covers the important details. Make a list of the insurance company’s names and contact information and grab a notebook to keep your own records of the premiums and deductibles.
Next, go to where you can get coverage: an agent in your neighborhood an insurance company that is online and has an 800 number. Many people recommend going directly to an agent instead of dealing with a direct market company because they are more thorough in configuring what type of coverage is best for which person or family.
The bonus to getting car insurance through a direct market company is the convenience, which is quite possibly the reason it’s so popular. Many insurance companies offer free quotes for coverage that a person can get in a short phone call or by spending a few minutes on the Internet typing in important information. Coverage can often be purchased online, and some insurance companies provide rate quotes for a handful of other insurance providers at the same time to give clients more options and comparison.
To save money when buying auto insurance, make sure to shop around and get as many insurance quotes as you can from as many different providers as possible. Second, get the highest deductible that you feel comfortable with, because the higher the deductible, the lower your premium and monthly payments will be. Many insurance companies offer multicar discounts, better rates for good drivers, and discounts for safety features like air bags, so that’s something else to keep in mind.
Thursday, June 15, 2006
AMA wants Health Insurance Mandatory
June 15, 2006 2:28 p.m. EST
Richard Rittierodt - All Headline News Contributor
Chicago, IL (AHN) - According to the American Medical Association, Americans that can afford to buy health insurance should be required to do so.
They are pushing for legislation that would make it mandatory for anyone that has an income that is 500 percent of the federal poverty level.
So, any individual making $49,000 or more would be required to buy health insurance. According to the AMA, those individuals make up about 11 percent of the uninsured.
Due to that, society has to pay higher taxes and higher premiums because those individuals elect not to pay for insurance.
Dr. Ardis Hoven, an AMA board member, said, "Young, relatively healthy people who elect not to have health insurance create an excessive amount of cost to the health care system."
Richard Rittierodt - All Headline News Contributor
Chicago, IL (AHN) - According to the American Medical Association, Americans that can afford to buy health insurance should be required to do so.
They are pushing for legislation that would make it mandatory for anyone that has an income that is 500 percent of the federal poverty level.
So, any individual making $49,000 or more would be required to buy health insurance. According to the AMA, those individuals make up about 11 percent of the uninsured.
Due to that, society has to pay higher taxes and higher premiums because those individuals elect not to pay for insurance.
Dr. Ardis Hoven, an AMA board member, said, "Young, relatively healthy people who elect not to have health insurance create an excessive amount of cost to the health care system."
USAA cuts car insurance rates
By Travis E. Poling
Express-News Business Writer
USAA is trimming its auto insurance rates in the San Antonio area by an average of 5 percent and up to 15 percent for some drivers.
A spokesman for the San Antonio-based insurance and financial services company said the reductions stem from improvements in productivity. Driving the company cost-savings are USAA members using the company Web site to conduct business and freeing up customer service staff to deal with more complex issues.
While premium reductions vary, USAA customers will save an average of $85 a year. There are about 99,000 USAA members living in the San Antonio area.
Competition in the auto insurance industry in Texas has led several companies to cut their rates in recent months as Texas Insurance Commissioner Mike Geeslin encouraged drivers to shop around.
Last month, State Farm announced that it would cut auto rates in Texas by an average of 2.6 beginning in July and give discounts of 5 percent to 12 percent for people auto and homeowners insurance through the company.
Express-News Business Writer
USAA is trimming its auto insurance rates in the San Antonio area by an average of 5 percent and up to 15 percent for some drivers.
A spokesman for the San Antonio-based insurance and financial services company said the reductions stem from improvements in productivity. Driving the company cost-savings are USAA members using the company Web site to conduct business and freeing up customer service staff to deal with more complex issues.
While premium reductions vary, USAA customers will save an average of $85 a year. There are about 99,000 USAA members living in the San Antonio area.
Competition in the auto insurance industry in Texas has led several companies to cut their rates in recent months as Texas Insurance Commissioner Mike Geeslin encouraged drivers to shop around.
Last month, State Farm announced that it would cut auto rates in Texas by an average of 2.6 beginning in July and give discounts of 5 percent to 12 percent for people auto and homeowners insurance through the company.
Auto Insuance bill media blitz
By JON CHESTO
The Patriot Ledger
An industry-backed coalition has been ramping up its efforts to drive auto insurance reform at the State House before lawmakers adjourn for the year from formal sessions on July 31.
The Massachusetts Insurance Federation launched its latest advertising blitz a week ago, hitting TV and radio stations with ads that feature a couple who become perplexed by the lack of insurance choices during a conversation with their agent. The ads encourage frustrated motorists to call their lawmakers at the State House.
The ads will likely run for at least another four days, said Jim Harrington executive director of the insurance group and a spokesman for the affiliated Fairness for Good Drivers coalition.
‘‘If we continue to run paid media, we’re hoping the general consumer out there agrees with us and makes a call to a legislator suggesting they would like their state rep or state senator to look favorably on reform,’’ he said.
The Legislature’s financial services committee, under the leadership of co-chairman Rep. Ron Mariano of Quincy, endorsed legislation last week that aims to bring significantly more competition to the state’s highly regulated auto insurance market - a move backed by many insurance companies.
But a few insurers aren’t on board. Commerce Insurance of Webster and Arbella Insurance of Quincy have been funding a separate group, the Massachusetts Coalition for Affordable Auto Insurance for All, aimed at preventing such drastic changes. While that group has in the past countered pro-reform ads with its advertisements, the group has no plans to do so right now, spokesman Doug Bailey said.
That’s partly because the Senate co-chairman of the financial services committee, Andrea Nuciforo of Pittsfield, is adamantly opposed to Mariano’s reform bill; Nuciforo worries that many good drivers will see their premiums jump significantly after certain state regulations are removed.
‘‘For the Legislature to pass (the bill), it would need a lot of work,’’ Bailey said. ‘‘The likelihood it would get done in time (before July 31) seems remote.’’
The Patriot Ledger
An industry-backed coalition has been ramping up its efforts to drive auto insurance reform at the State House before lawmakers adjourn for the year from formal sessions on July 31.
The Massachusetts Insurance Federation launched its latest advertising blitz a week ago, hitting TV and radio stations with ads that feature a couple who become perplexed by the lack of insurance choices during a conversation with their agent. The ads encourage frustrated motorists to call their lawmakers at the State House.
The ads will likely run for at least another four days, said Jim Harrington executive director of the insurance group and a spokesman for the affiliated Fairness for Good Drivers coalition.
‘‘If we continue to run paid media, we’re hoping the general consumer out there agrees with us and makes a call to a legislator suggesting they would like their state rep or state senator to look favorably on reform,’’ he said.
The Legislature’s financial services committee, under the leadership of co-chairman Rep. Ron Mariano of Quincy, endorsed legislation last week that aims to bring significantly more competition to the state’s highly regulated auto insurance market - a move backed by many insurance companies.
But a few insurers aren’t on board. Commerce Insurance of Webster and Arbella Insurance of Quincy have been funding a separate group, the Massachusetts Coalition for Affordable Auto Insurance for All, aimed at preventing such drastic changes. While that group has in the past countered pro-reform ads with its advertisements, the group has no plans to do so right now, spokesman Doug Bailey said.
That’s partly because the Senate co-chairman of the financial services committee, Andrea Nuciforo of Pittsfield, is adamantly opposed to Mariano’s reform bill; Nuciforo worries that many good drivers will see their premiums jump significantly after certain state regulations are removed.
‘‘For the Legislature to pass (the bill), it would need a lot of work,’’ Bailey said. ‘‘The likelihood it would get done in time (before July 31) seems remote.’’
Wednesday, June 14, 2006
Floridians without Health Insurance
NIALA BOODHOO
The Miami Herald
Number of Floridians without health insurance on the rise, study finds
The fastest-growing industries in Florida are the ones least likely to offer its employees health care coverage, according to a new study released today by Florida International University's Research Institute on Social and Economic Policy.
Construction, retail and leisure and hospitality are all industries each with at least 300,000 workers without health insurance. In the construction industry, which has accounted for a significant proportion of the new jobs throughout Florida, more than 40 percent of workers are uninsured.
Low-wage, nonunion and workers in small business were least likely to have health care coverage.
In all, more than 18 percent of Florida's population does not have health insurance, more than 3 million people, according to the report, which was based on government data.
That's one of the highest rates of uninsured in the country - Florida ranks 46 out of the 50 states and the District of Columbia.
The Miami Herald
Number of Floridians without health insurance on the rise, study finds
The fastest-growing industries in Florida are the ones least likely to offer its employees health care coverage, according to a new study released today by Florida International University's Research Institute on Social and Economic Policy.
Construction, retail and leisure and hospitality are all industries each with at least 300,000 workers without health insurance. In the construction industry, which has accounted for a significant proportion of the new jobs throughout Florida, more than 40 percent of workers are uninsured.
Low-wage, nonunion and workers in small business were least likely to have health care coverage.
In all, more than 18 percent of Florida's population does not have health insurance, more than 3 million people, according to the report, which was based on government data.
That's one of the highest rates of uninsured in the country - Florida ranks 46 out of the 50 states and the District of Columbia.
Car Insurance Scam
BY MARYANN SPOTO
Star-Ledger Staff
A Monmouth County grand jury has indicted 16 people on charges they participated in a classic-car financing scam to bilk car insurance companies out of nearly $583,000, authorities said yesterday.
The alleged participants used vehicle identification numbers from nearly junk cars, insured them as classic cars at inflated values, and then planned to report them stolen and share in the insurance proceeds, Monmouth County Prosecutor Luis Valentin said.
One of the suspects actually collected on a claim, getting a check for $39,000 from an insurance company for a car that was worth a couple thousand dollars at the most, the prosecutor said.
Valentin identified the main scam artist as Paul J. Brennan, 43, of Manasquan, who worked at two used-car dealerships in Point Pleasant through which he allegedly made the financing deals.
The prosecutor said Brennan used vehicle identification numbers from shells of cars that belonged to unsuspecting owners and used that information to make lease agreements at inflated prices.
"Each person would report (them) stolen, and the proceeds would be shared by and among the co-conspirators," Valentin said.
He said the actual value of the vehicles ranged from $100 to several thousand dollars, but they were inflated to values of between $20,000 and $75,000. In all, the fraudulent leases totaled $582,913, he said.
An investigation started in October 2002, when a representative from a local auto leasing company with offices in Marlboro reported to township police that 11 leases written by Brennan appeared to be fake, the prosecutor said.
As the probe widened, Marlboro detectives and investigators from the prosecutor's special prosecutions unit learned the leases were generated through Wheels of Time and Shore Classics car dealerships in Point Pleasant, where Brennan worked, Valentin said.
The indictment, returned June 5, charged the following people in addition to Brennan with theft by deception and conspiracy to commit theft by deception: Brennan's brother, Anthony Brennan, 48, of Elizabeth; Daryl Colatrella, 33, and his brother, John Colatrella, 43, both of Wall; Gregory Christon, 50, of Point Pleasant; Salvatore Badalmente, 35, formerly of Woodbury; John Gebala, 48, of Toms River; and John Catania, 39, formerly of Marlboro.
Also charged with theft by deception and conspiracy to commit theft by deception were Jennifer Gilarmo, 53, of Fort Lee; Jeffrey Rankin, 36, of Freehold; Luigi Carulli, 31, of North Plainfield; Tanya Banks, 40, of Roselle; Greg Matarazzo, 49, of Wall; Mounir Guiruis, 41, of Edison; Frank DiComo, 41, of Woodbridge; and Michael Calabrese, 56, of Toms River.
Paul Brennan was charged with 15 counts of theft by deception.
The conspiracy charge carries a penalty of up to 10 years in prison; the theft by deception offense is punishable by up to five years' imprisonment.
All but one of the suspects has been arrested and posted bail, Valentin said.
Badalmente was found in Georgia, where authorities are making arrangements to serve him with the warrant. Catania was in Allenwood Federal Prison in Pennsylvania when authorities lodged the complaint, the prosecutor said.
Star-Ledger Staff
A Monmouth County grand jury has indicted 16 people on charges they participated in a classic-car financing scam to bilk car insurance companies out of nearly $583,000, authorities said yesterday.
The alleged participants used vehicle identification numbers from nearly junk cars, insured them as classic cars at inflated values, and then planned to report them stolen and share in the insurance proceeds, Monmouth County Prosecutor Luis Valentin said.
One of the suspects actually collected on a claim, getting a check for $39,000 from an insurance company for a car that was worth a couple thousand dollars at the most, the prosecutor said.
Valentin identified the main scam artist as Paul J. Brennan, 43, of Manasquan, who worked at two used-car dealerships in Point Pleasant through which he allegedly made the financing deals.
The prosecutor said Brennan used vehicle identification numbers from shells of cars that belonged to unsuspecting owners and used that information to make lease agreements at inflated prices.
"Each person would report (them) stolen, and the proceeds would be shared by and among the co-conspirators," Valentin said.
He said the actual value of the vehicles ranged from $100 to several thousand dollars, but they were inflated to values of between $20,000 and $75,000. In all, the fraudulent leases totaled $582,913, he said.
An investigation started in October 2002, when a representative from a local auto leasing company with offices in Marlboro reported to township police that 11 leases written by Brennan appeared to be fake, the prosecutor said.
As the probe widened, Marlboro detectives and investigators from the prosecutor's special prosecutions unit learned the leases were generated through Wheels of Time and Shore Classics car dealerships in Point Pleasant, where Brennan worked, Valentin said.
The indictment, returned June 5, charged the following people in addition to Brennan with theft by deception and conspiracy to commit theft by deception: Brennan's brother, Anthony Brennan, 48, of Elizabeth; Daryl Colatrella, 33, and his brother, John Colatrella, 43, both of Wall; Gregory Christon, 50, of Point Pleasant; Salvatore Badalmente, 35, formerly of Woodbury; John Gebala, 48, of Toms River; and John Catania, 39, formerly of Marlboro.
Also charged with theft by deception and conspiracy to commit theft by deception were Jennifer Gilarmo, 53, of Fort Lee; Jeffrey Rankin, 36, of Freehold; Luigi Carulli, 31, of North Plainfield; Tanya Banks, 40, of Roselle; Greg Matarazzo, 49, of Wall; Mounir Guiruis, 41, of Edison; Frank DiComo, 41, of Woodbridge; and Michael Calabrese, 56, of Toms River.
Paul Brennan was charged with 15 counts of theft by deception.
The conspiracy charge carries a penalty of up to 10 years in prison; the theft by deception offense is punishable by up to five years' imprisonment.
All but one of the suspects has been arrested and posted bail, Valentin said.
Badalmente was found in Georgia, where authorities are making arrangements to serve him with the warrant. Catania was in Allenwood Federal Prison in Pennsylvania when authorities lodged the complaint, the prosecutor said.
Tuesday, June 13, 2006
Health Insurance Should Be Required
By LINDSEY TANNER AP Medical Writer
CHICAGO — The nation's largest doctors group said Tuesday that Americans who can afford health insurance should be required to buy it, a recommendation aimed particularly at young adults who tend to postpone coverage.
The American Medical Association adopted the recommendation at its annual meeting, vowing to lobby for federal legislation that would mandate health insurance first for people whose income is greater than 500 percent of the federal poverty level.
That means the law would apply to individuals who earn at least $49,000 annually and families of four with an income of at least $100,000. Those individuals and families account for about 11 percent of the nation's 46 million uninsured, or about 5 million Americans, the AMA said.
The policy suggests that those who don't buy a minimum of catastrophic health insurance and coverage for preventive health services be held accountable, possibly through tax penalties that would create revenue to help lower-income people buy insurance.
An AMA council report that prompted the policy said the "free-rider" problem forces society to pay higher taxes and insurance premiums for care given to those who don't bother to get insurance.
"Young, relatively healthy people who elect not to have health insurance create an excessive amount of cost to the health care system," said Dr. Ardis Hoven, an AMA board member.
The AMA said it also would push for tax credits or other subsidies to help people earning less than 500 percent of the poverty level obtain health insurance. It then would seek to require them to buy health insurance, too.
"The societal benefits of having more people insured, leading healthier lives, would be enormous," Hoven said.
The council report was among more than 250 proposals presented at the annual meeting, where AMA delegates decide what policies to add to the group's lobbying agenda. This year's five-day meeting ends Wednesday.
CHICAGO — The nation's largest doctors group said Tuesday that Americans who can afford health insurance should be required to buy it, a recommendation aimed particularly at young adults who tend to postpone coverage.
The American Medical Association adopted the recommendation at its annual meeting, vowing to lobby for federal legislation that would mandate health insurance first for people whose income is greater than 500 percent of the federal poverty level.
That means the law would apply to individuals who earn at least $49,000 annually and families of four with an income of at least $100,000. Those individuals and families account for about 11 percent of the nation's 46 million uninsured, or about 5 million Americans, the AMA said.
The policy suggests that those who don't buy a minimum of catastrophic health insurance and coverage for preventive health services be held accountable, possibly through tax penalties that would create revenue to help lower-income people buy insurance.
An AMA council report that prompted the policy said the "free-rider" problem forces society to pay higher taxes and insurance premiums for care given to those who don't bother to get insurance.
"Young, relatively healthy people who elect not to have health insurance create an excessive amount of cost to the health care system," said Dr. Ardis Hoven, an AMA board member.
The AMA said it also would push for tax credits or other subsidies to help people earning less than 500 percent of the poverty level obtain health insurance. It then would seek to require them to buy health insurance, too.
"The societal benefits of having more people insured, leading healthier lives, would be enormous," Hoven said.
The council report was among more than 250 proposals presented at the annual meeting, where AMA delegates decide what policies to add to the group's lobbying agenda. This year's five-day meeting ends Wednesday.
Job, Education as Auto Insurance Pricing Criteria in N.J.
June 13, 2006
Insurance industry representatives urged New Jersey lawmakers not to restrict car insurers' use of certain rating variables including occupation and education in the pricing of auto insurance policies, insisting that the freedom to experiment with rating factors is an essential part of a competitive marketplace.
The insurers' urgings came during a Senate Commerce Committee hearing convened by Sen. Nia Gill, D-Essex. Gill has sponsored a bill that would ban auto insurance companies from taking education and occupation into account when setting auto insurance rates.
Five auto insurance companies in the state consider jobs and education when setting prices, according to The Associated Press.
Assemblyman Neil Cohen, D-Union, has sponsored an Assembly version of the bill. "How does what a person does for a living or where they went to school have any bearing on what kind of driver they are?" Cohen asked. "Using that information to affect what insurance rates motorists receive is discriminatory and should be halted immediately."
However, insurance industry representatives told the lawmakers that consumers benefit when insurers compete by utilizing a variety of rating criteria.
"Competition is about permitting insurers to determine risk they will undertake and permitting consumers to choose the insurance company they want to do business with," Richard Stokes, regional manager and counsel Property Casualty Insurers Association of America.
Stokes said insurers should be allowed to consider underwriting and rating criteria that are objective and supported by statistical evidence. "A company's ability to properly underwrite risks is a critical component of a company's ability to succeed in the market," he told lawmakers. "When insurers are able to more accurately predict losses, the consumers are benefited with lower rates, more choices in the marketplace and greater market stability."
Paul Tetrault, Northeast state affairs manager for the National Association of Mutual Insurance Companies, also opposed restrictions on insurers' ability to underwrite freely.
"Underwriting, involving the assessment, analysis and pricing of risk, is the most fundamental function of insurance. Insurers need to be able to engage in this function as freely as possible in order for insurance markets to work properly, which ultimately benefits consumers and society in general Limitations and restrictions on underwriting freedom stifle innovation and thereby hamper competition, ultimately harming consumers and society in general," Tetrault testified.
Source: Insurance Journal
Insurance industry representatives urged New Jersey lawmakers not to restrict car insurers' use of certain rating variables including occupation and education in the pricing of auto insurance policies, insisting that the freedom to experiment with rating factors is an essential part of a competitive marketplace.
The insurers' urgings came during a Senate Commerce Committee hearing convened by Sen. Nia Gill, D-Essex. Gill has sponsored a bill that would ban auto insurance companies from taking education and occupation into account when setting auto insurance rates.
Five auto insurance companies in the state consider jobs and education when setting prices, according to The Associated Press.
Assemblyman Neil Cohen, D-Union, has sponsored an Assembly version of the bill. "How does what a person does for a living or where they went to school have any bearing on what kind of driver they are?" Cohen asked. "Using that information to affect what insurance rates motorists receive is discriminatory and should be halted immediately."
However, insurance industry representatives told the lawmakers that consumers benefit when insurers compete by utilizing a variety of rating criteria.
"Competition is about permitting insurers to determine risk they will undertake and permitting consumers to choose the insurance company they want to do business with," Richard Stokes, regional manager and counsel Property Casualty Insurers Association of America.
Stokes said insurers should be allowed to consider underwriting and rating criteria that are objective and supported by statistical evidence. "A company's ability to properly underwrite risks is a critical component of a company's ability to succeed in the market," he told lawmakers. "When insurers are able to more accurately predict losses, the consumers are benefited with lower rates, more choices in the marketplace and greater market stability."
Paul Tetrault, Northeast state affairs manager for the National Association of Mutual Insurance Companies, also opposed restrictions on insurers' ability to underwrite freely.
"Underwriting, involving the assessment, analysis and pricing of risk, is the most fundamental function of insurance. Insurers need to be able to engage in this function as freely as possible in order for insurance markets to work properly, which ultimately benefits consumers and society in general Limitations and restrictions on underwriting freedom stifle innovation and thereby hamper competition, ultimately harming consumers and society in general," Tetrault testified.
Source: Insurance Journal
Monday, June 12, 2006
Health Insuance Program Stalls
Washington Post
One of the biggest benefit programs planned for federal employees and retirees in years -- enhanced dental and vision benefits -- is having trouble getting off the drawing boards.
Last month, the Office of Personnel Management announced it had selected 10 vendors for the new Federal Employee Dental and Vision Program, scheduled to start Dec. 31. Last week, the OPM quietly informed congressional committees that it had decided to take a fresh look at the bids.
We will have a new assessment of the current bids that we have before us," said Dan Blair , deputy director at the OPM. "A new contracting officer is in place."
The reassessment of the bids was triggered by a protest filed by Blue Cross and Blue Shield at the Government Accountability Office, a congressional auditing agency that often handles contractor complaints. The protest became "moot," Blair said, when the OPM decided to reassess the process used to select the dental and vision vendors.
Blue Cross had sought to offer dental and vision packages, but was named by the OPM on May 5 as a vendor only for vision benefits in the new program.
"I don't think anything necessarily went wrong," Blair said when asked about the Blue Cross protest. But he acknowledged that the protest "suggested we could have had some improvements" and said the OPM wanted to ensure "that the new program gets off in a manner in which Congress intended."
Federal employees and retirees have eagerly awaited improved dental and vision benefits for several years. According to testimony at congressional hearings, the government offers meager dental and vision coverage to its workers, with reimbursement levels and annual maximum benefits that are much less than those provided by private-sector employers.
Sen. Susan Collins (R-Maine) and Rep. Thomas M. Davis III (R-Va.) sponsored the legislation, passed in late 2004, to create the new program. They sold it to other lawmakers largely because the program requires enrollees to pay all premium costs and does not rely on taxpayer dollars. Despite the lack of a government contribution, Collins said she expected that the OPM would be able to use the government's purchasing clout to obtain affordable group rates for employees and retirees.
In a statement, the OPM said it reopened the vendor selection process "to reaffirm the integrity of the procurement process" and to put OPM in the best possible position to negotiate for reasonably priced dental benefits.
The review "sets us back a bit, but we have every intention of meeting our time deadline," Blair said.
A Blue Cross spokeswoman said the insurance company had no comment on the bid protest or related issues.
The OPM's schedule has called for allowing federal employees and retirees to sign up for enhanced dental and vision benefits as part of the enrollment period for the federal employee health insurance program. The sign-up period starts Nov. 13.
One of the biggest benefit programs planned for federal employees and retirees in years -- enhanced dental and vision benefits -- is having trouble getting off the drawing boards.
Last month, the Office of Personnel Management announced it had selected 10 vendors for the new Federal Employee Dental and Vision Program, scheduled to start Dec. 31. Last week, the OPM quietly informed congressional committees that it had decided to take a fresh look at the bids.
We will have a new assessment of the current bids that we have before us," said Dan Blair , deputy director at the OPM. "A new contracting officer is in place."
The reassessment of the bids was triggered by a protest filed by Blue Cross and Blue Shield at the Government Accountability Office, a congressional auditing agency that often handles contractor complaints. The protest became "moot," Blair said, when the OPM decided to reassess the process used to select the dental and vision vendors.
Blue Cross had sought to offer dental and vision packages, but was named by the OPM on May 5 as a vendor only for vision benefits in the new program.
"I don't think anything necessarily went wrong," Blair said when asked about the Blue Cross protest. But he acknowledged that the protest "suggested we could have had some improvements" and said the OPM wanted to ensure "that the new program gets off in a manner in which Congress intended."
Federal employees and retirees have eagerly awaited improved dental and vision benefits for several years. According to testimony at congressional hearings, the government offers meager dental and vision coverage to its workers, with reimbursement levels and annual maximum benefits that are much less than those provided by private-sector employers.
Sen. Susan Collins (R-Maine) and Rep. Thomas M. Davis III (R-Va.) sponsored the legislation, passed in late 2004, to create the new program. They sold it to other lawmakers largely because the program requires enrollees to pay all premium costs and does not rely on taxpayer dollars. Despite the lack of a government contribution, Collins said she expected that the OPM would be able to use the government's purchasing clout to obtain affordable group rates for employees and retirees.
In a statement, the OPM said it reopened the vendor selection process "to reaffirm the integrity of the procurement process" and to put OPM in the best possible position to negotiate for reasonably priced dental benefits.
The review "sets us back a bit, but we have every intention of meeting our time deadline," Blair said.
A Blue Cross spokeswoman said the insurance company had no comment on the bid protest or related issues.
The OPM's schedule has called for allowing federal employees and retirees to sign up for enhanced dental and vision benefits as part of the enrollment period for the federal employee health insurance program. The sign-up period starts Nov. 13.
Car Insurance Law catches some by surprise
OKLAHOMA CITY
AP
A law designed to catch uninsured motorists instead has caused mostly innocent Oklahomans to have their drivers' licenses suspended.
The law passed in the early 1990s requires insurance companies to notify the state Department of Public Safety whenever a customer cancels an insurance policy within 180 days of it being issued.
Then, the department sends a notice stating that the person's driver's license will be suspended within 30 days unless proof of insurance is provided.
The goal was to catch people who would purchase insurance to obtain license tags, then drop the insurance.
Instead, the law entrapped people who cancel their insurance for legitimate reasons, such as selling their car or changing insurance providers.
Governor Brad Henry signed a law on Friday that will require the Department of Public Safety to implement an online vehicle insurance verification system by July 1st, 2008. Department officials say the new system would allow them to "zero in" on uninsured motorists and leave the law-abiding ones alone.
AP
A law designed to catch uninsured motorists instead has caused mostly innocent Oklahomans to have their drivers' licenses suspended.
The law passed in the early 1990s requires insurance companies to notify the state Department of Public Safety whenever a customer cancels an insurance policy within 180 days of it being issued.
Then, the department sends a notice stating that the person's driver's license will be suspended within 30 days unless proof of insurance is provided.
The goal was to catch people who would purchase insurance to obtain license tags, then drop the insurance.
Instead, the law entrapped people who cancel their insurance for legitimate reasons, such as selling their car or changing insurance providers.
Governor Brad Henry signed a law on Friday that will require the Department of Public Safety to implement an online vehicle insurance verification system by July 1st, 2008. Department officials say the new system would allow them to "zero in" on uninsured motorists and leave the law-abiding ones alone.
Friday, June 9, 2006
Gov. Romney, in San Diego, touts Mass. health insurance law
By Keith Darcé
UNION-TRIBUNE STAFF WRITER
June 9, 2006
Lawmakers in California and other states who are grappling with health insurance reform should model their efforts after a new Massachusetts law that requires everyone in the state to obtain medical insurance by July 2007, Massachusetts Gov. Mitt Romney said yesterday in San Diego.
Gov. Mitt Romney
“People always ask me, 'How much of this can be applied in our state?' Well, I don't have a precise answer to that, but a good portion can,” Romney told a gathering of health insurance managers at the San Diego Convention Center.
Measures containing portions of the Massachusetts law have been proposed in California but have either failed to become law or were rejected by voters. In recent days, however, Gov. Arnold Schwarzenegger has suggested that the Massachusetts law could serve as a road map for insurance reform in California.
“Other states are going to learn from us,” Romney said during the opening session of America's Health Insurance Plans' annual conference and trade show. “Some will find that the things we have done don't apply to them. Others will find that they are pretty helpful.
“States will take what we have done and do one better,” he predicted.
Romney, a Republican and a likely contender for his party's presidential nomination in 2008, spearheaded the bipartisan effort in Massachusetts to insure about 500,000 residents who didn't have health coverage.
UNION-TRIBUNE STAFF WRITER
June 9, 2006
Lawmakers in California and other states who are grappling with health insurance reform should model their efforts after a new Massachusetts law that requires everyone in the state to obtain medical insurance by July 2007, Massachusetts Gov. Mitt Romney said yesterday in San Diego.
Gov. Mitt Romney
“People always ask me, 'How much of this can be applied in our state?' Well, I don't have a precise answer to that, but a good portion can,” Romney told a gathering of health insurance managers at the San Diego Convention Center.
Measures containing portions of the Massachusetts law have been proposed in California but have either failed to become law or were rejected by voters. In recent days, however, Gov. Arnold Schwarzenegger has suggested that the Massachusetts law could serve as a road map for insurance reform in California.
“Other states are going to learn from us,” Romney said during the opening session of America's Health Insurance Plans' annual conference and trade show. “Some will find that the things we have done don't apply to them. Others will find that they are pretty helpful.
“States will take what we have done and do one better,” he predicted.
Romney, a Republican and a likely contender for his party's presidential nomination in 2008, spearheaded the bipartisan effort in Massachusetts to insure about 500,000 residents who didn't have health coverage.
Auto Insurance reform
By Jim O’Sullivan/ State House News Service
Thursday, June 8, 2006 - Updated: 09:41 AM EST
Highly regulated auto insurers would gain increasing amounts of freedom to compete for customers over the next five years, under legislation that a Beacon Hill committee endorsed Monday.
The bill proposed by the Committee on Financial Services, all its support coming from the panel’s House side, repeals the state law that has long provided for state-set rates and gives insurers the authority to change rates from year to year within so-called flex bands ranging from plus or minus 5 percent in the first year to plus or minus 10 percent in the last year.
After five years, insurers would need only to prove to state regulators that their proposed rates are not "excessive, inadequate or unfairly discriminatory."
The bill also proposes wider latitude for insurers to rate drivers, spells out the insurance commissioner’s authority to adopt an assigned plan for high risk drivers, and mandates a 5 percent rate reduction in 2007 for good drivers while freezing bodily injury and personal injury protection rates in 2007 and 2008 for all drivers.
Committee members say it’s the most sweeping reform in decades. House chairman Ronald Mariano acknowledged that the bill faces some Senate opposition, but refused to rule out chances of its passage this session. "I’m not going to sit here and say it’s dead this year."
In a press conference packed with lobbyists and staffers, Mariano said, "This isn’t about saving. This is about trying to make us look more like other states in the union so companies will be able to look at us and say our model can work in Massachusetts, our business model, our business plan can work here."
Under the state’s current system, the Division of Insurance annually sets rates. Critics say the heavy degree of regulation discourages companies from writing private passenger policies. The committee said the number of such companies has plummeted from 55 in 1990 to 18.
The bill quickly met with opposition. The committee’s Senate chair, Sen. Andrea Nuciforo (D-Pittsfield), ripped it as "one of the most consumer unfriendly measures I have seen in quite some time. Terribly unfair to youthful drivers, urban drivers, and seniors."
"My sense is that this will not drive down rates, that it will increase rates, certainly for young people," said Rep. Anne Paulsen (D-Belmont), sponsor of competing legislation in the same committee. She added,
"I think this simply moves money around in Massachusetts."
MassPIRG, a left-leaning consumer advocacy group, said in a statement the bill would "lead to discriminatory underwriting and pricing practices and does little to address [the] root case of our high premiums."
But the Romney administration expressed support.
"This is a very positive development and we look forward to working with Chairman Mariano and other members of the Legislature to bring more competition and lower rates to the Massachusetts auto insurance system," said Romney spokesman Felix Browne.
Thursday, June 8, 2006 - Updated: 09:41 AM EST
Highly regulated auto insurers would gain increasing amounts of freedom to compete for customers over the next five years, under legislation that a Beacon Hill committee endorsed Monday.
The bill proposed by the Committee on Financial Services, all its support coming from the panel’s House side, repeals the state law that has long provided for state-set rates and gives insurers the authority to change rates from year to year within so-called flex bands ranging from plus or minus 5 percent in the first year to plus or minus 10 percent in the last year.
After five years, insurers would need only to prove to state regulators that their proposed rates are not "excessive, inadequate or unfairly discriminatory."
The bill also proposes wider latitude for insurers to rate drivers, spells out the insurance commissioner’s authority to adopt an assigned plan for high risk drivers, and mandates a 5 percent rate reduction in 2007 for good drivers while freezing bodily injury and personal injury protection rates in 2007 and 2008 for all drivers.
Committee members say it’s the most sweeping reform in decades. House chairman Ronald Mariano acknowledged that the bill faces some Senate opposition, but refused to rule out chances of its passage this session. "I’m not going to sit here and say it’s dead this year."
In a press conference packed with lobbyists and staffers, Mariano said, "This isn’t about saving. This is about trying to make us look more like other states in the union so companies will be able to look at us and say our model can work in Massachusetts, our business model, our business plan can work here."
Under the state’s current system, the Division of Insurance annually sets rates. Critics say the heavy degree of regulation discourages companies from writing private passenger policies. The committee said the number of such companies has plummeted from 55 in 1990 to 18.
The bill quickly met with opposition. The committee’s Senate chair, Sen. Andrea Nuciforo (D-Pittsfield), ripped it as "one of the most consumer unfriendly measures I have seen in quite some time. Terribly unfair to youthful drivers, urban drivers, and seniors."
"My sense is that this will not drive down rates, that it will increase rates, certainly for young people," said Rep. Anne Paulsen (D-Belmont), sponsor of competing legislation in the same committee. She added,
"I think this simply moves money around in Massachusetts."
MassPIRG, a left-leaning consumer advocacy group, said in a statement the bill would "lead to discriminatory underwriting and pricing practices and does little to address [the] root case of our high premiums."
But the Romney administration expressed support.
"This is a very positive development and we look forward to working with Chairman Mariano and other members of the Legislature to bring more competition and lower rates to the Massachusetts auto insurance system," said Romney spokesman Felix Browne.
Thursday, June 8, 2006
Affordable Health Insurance for 65+
Q&A
Jim Miller
"Savvy Senior"
DEAR SAVVY SENIOR: Can you help me locate affordable health insurance? I will be retiring soon and need to find some health coverage to last me until I'm eligible for Medicare at age 65. Any ideas? - Insurance Shopping Cindy
DEAR CINDY: For those who don't have health insurance - because of an early retirement, layoff, divorce or a preexisting medical condition - options are available. Here are some different avenues to look into.
COBRA: Depending on how long you need coverage, one possible option is to purchase a policy under COBRA (Consolidated Omnibus Budget Reconciliation Act), a federal law that allows you continued coverage under your former employer's insurance for up to 18 months. (Spouses, divorced spouses, widows, widowers and dependent children can be covered for up to 36 months).
To be eligible for COBRA, your company must employ at least 20 workers. With COBRA you pay the entire premium yourself, plus 2 percent in administrative costs - which means a big price hike if your employer was subsidizing your premiums.
To learn more, contact the U.S. Department of Labor's Employee Benefits Security Administration at 866-444-3272 or visit www.dol.gov/ebsa. Note that many states require smaller companies (fewer than 20 employees) to offer some type of continuation of coverage to employees. For a database of health care coverage options by state, visit www.nahu.org/consumer/healthcare.
Individual Policies: Buying an individual health insurance policy is another option to consider but keep in mind that you must buy a policy sold in your home state. In the vast majority of states, health insurance costs are based on the applicant's health history and can be very expensive. Any preexisting condition such as heart disease, diabetes, cancer, etc., can drastically increase your premiums or can nix your chances of being accepted at all.
Some states, however, require individual health insurers to offer everyone a plan, a mandate known as "guaranteed issue." To compare policies, visit www.ehealthinsurance.com.
If you need some additional help, contact a licensed independent insurance agent in your state at www.nahu.org/consumer/findagent.cfm.
Savvy tip: If you're denied coverage because of a serious preexisting medical condition, you may still be able to get coverage from a state-assigned risk pool. Thirty-three states currently provide high-risk pool coverage which you can apply for through an insurance agent or directly to the state.
Coverage costs more than private coverage because all the people in the pool have serious medical problems, but rates are capped generally between 125 and 200 percent of the average individual market premium.
Jim Miller
"Savvy Senior"
DEAR SAVVY SENIOR: Can you help me locate affordable health insurance? I will be retiring soon and need to find some health coverage to last me until I'm eligible for Medicare at age 65. Any ideas? - Insurance Shopping Cindy
DEAR CINDY: For those who don't have health insurance - because of an early retirement, layoff, divorce or a preexisting medical condition - options are available. Here are some different avenues to look into.
COBRA: Depending on how long you need coverage, one possible option is to purchase a policy under COBRA (Consolidated Omnibus Budget Reconciliation Act), a federal law that allows you continued coverage under your former employer's insurance for up to 18 months. (Spouses, divorced spouses, widows, widowers and dependent children can be covered for up to 36 months).
To be eligible for COBRA, your company must employ at least 20 workers. With COBRA you pay the entire premium yourself, plus 2 percent in administrative costs - which means a big price hike if your employer was subsidizing your premiums.
To learn more, contact the U.S. Department of Labor's Employee Benefits Security Administration at 866-444-3272 or visit www.dol.gov/ebsa. Note that many states require smaller companies (fewer than 20 employees) to offer some type of continuation of coverage to employees. For a database of health care coverage options by state, visit www.nahu.org/consumer/healthcare.
Individual Policies: Buying an individual health insurance policy is another option to consider but keep in mind that you must buy a policy sold in your home state. In the vast majority of states, health insurance costs are based on the applicant's health history and can be very expensive. Any preexisting condition such as heart disease, diabetes, cancer, etc., can drastically increase your premiums or can nix your chances of being accepted at all.
Some states, however, require individual health insurers to offer everyone a plan, a mandate known as "guaranteed issue." To compare policies, visit www.ehealthinsurance.com.
If you need some additional help, contact a licensed independent insurance agent in your state at www.nahu.org/consumer/findagent.cfm.
Savvy tip: If you're denied coverage because of a serious preexisting medical condition, you may still be able to get coverage from a state-assigned risk pool. Thirty-three states currently provide high-risk pool coverage which you can apply for through an insurance agent or directly to the state.
Coverage costs more than private coverage because all the people in the pool have serious medical problems, but rates are capped generally between 125 and 200 percent of the average individual market premium.
Higher Gas Prices = Lower Auto Insurance Rates
Higher gas prices could have some positive impact on your wallet. If you find yourself driving less to save on the high price of gas, you could wind up saving money on your car insurance.
A recent analysis by the Consumer Federation of America indicated that drivers could save an average of five to 10 percent on their auto insurance rates if they reduced their annual mileage.
"Many insurance companies look at how much you drive each year," said Dave Roush, CEO of Insurance.com, "and a small change in your yearly mileage could result in big savings."
Insurance companies consider whether or not a driver is using a car for business or pleasure, and even reducing the number of miles driven to work each week could result in savings.
The report uses the example of simply reducing miles driven each week from 200 to 175. This small annual mileage reduction from 10,400 to 9,100 could make a big difference to auto insurance rates.
Drivers can cut down on their mileage by car-pooling for work, making fewer trips, or consolidating errands into one trip.
"Insurance companies often use 10,000 miles as a price point in determining auto insurance rates," Roush said. "If you drive less than 10,000 miles annually, you could see a savings of about 5 percent on your premium."
Less driving means less exposure to situations that could result in an accident. This results in fewer claims, encouraging insurers to lower rates.
J. Robert Hunter, director of insurance for the Consumer Federation of America, suggested that it's a good idea if "consumers who are driving less shop around before renewing their policy."
Roush agreed with Hunter's advice. "It's important to regularly confirm you're getting the best deal from your auto insurance. You might find that you've saved several hundred dollars just by spending a few minutes comparing rates," Roush said.
A recent analysis by the Consumer Federation of America indicated that drivers could save an average of five to 10 percent on their auto insurance rates if they reduced their annual mileage.
"Many insurance companies look at how much you drive each year," said Dave Roush, CEO of Insurance.com, "and a small change in your yearly mileage could result in big savings."
Insurance companies consider whether or not a driver is using a car for business or pleasure, and even reducing the number of miles driven to work each week could result in savings.
The report uses the example of simply reducing miles driven each week from 200 to 175. This small annual mileage reduction from 10,400 to 9,100 could make a big difference to auto insurance rates.
Drivers can cut down on their mileage by car-pooling for work, making fewer trips, or consolidating errands into one trip.
"Insurance companies often use 10,000 miles as a price point in determining auto insurance rates," Roush said. "If you drive less than 10,000 miles annually, you could see a savings of about 5 percent on your premium."
Less driving means less exposure to situations that could result in an accident. This results in fewer claims, encouraging insurers to lower rates.
J. Robert Hunter, director of insurance for the Consumer Federation of America, suggested that it's a good idea if "consumers who are driving less shop around before renewing their policy."
Roush agreed with Hunter's advice. "It's important to regularly confirm you're getting the best deal from your auto insurance. You might find that you've saved several hundred dollars just by spending a few minutes comparing rates," Roush said.
Tuesday, June 6, 2006
Health Insurance Tax Deductions Help Entrepreneurs
Deducting the cost of health insurance premiums may keep self-employed entrepreneurs in business, according to a study released by the Office of Advocacy of the U.S. Small Business Administration. The study shows that the health insurance deduction for the self-employed has decreased the likelihood of entrepreneurial exit by 10.8 percent for single filers and 64.9 percent for married filers.
“Access to healthcare continues to be the top issue for small business,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “This study will help Congress and the administration as they consider policies that help small business and strengthen the economy.”
Dr. Tami Gurley-Calvez wrote the study, Health Insurance Deductibility and Entrepreneurial Survival, with funding from the Office of Advocacy. It examines how the introduction of tax deductibility for self-employed health insurance premiums affects the chances of entrepreneurial exit. Among the study’s findings:
* The presence of the health insurance deduction decreases the probability that a self-employed entrepreneur will choose to exit the entrepreneurial sector by 10.8 percent for single filers.
* For married filers, the presence of the health insurance deduction decreases the rate of exit from entrepreneurship by 64.9 percent.
* The absolute dollar amount of the health insurance premium deduction also influences the probability of exit from entrepreneurial activities. For single filers a 10 percent increase in the dollar amount of the deduction reduces the probability of exit by 10.6 percent. For married filers the probably of exit is only reduced by 1.2 percent.
The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
“Access to healthcare continues to be the top issue for small business,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “This study will help Congress and the administration as they consider policies that help small business and strengthen the economy.”
Dr. Tami Gurley-Calvez wrote the study, Health Insurance Deductibility and Entrepreneurial Survival, with funding from the Office of Advocacy. It examines how the introduction of tax deductibility for self-employed health insurance premiums affects the chances of entrepreneurial exit. Among the study’s findings:
* The presence of the health insurance deduction decreases the probability that a self-employed entrepreneur will choose to exit the entrepreneurial sector by 10.8 percent for single filers.
* For married filers, the presence of the health insurance deduction decreases the rate of exit from entrepreneurship by 64.9 percent.
* The absolute dollar amount of the health insurance premium deduction also influences the probability of exit from entrepreneurial activities. For single filers a 10 percent increase in the dollar amount of the deduction reduces the probability of exit by 10.6 percent. For married filers the probably of exit is only reduced by 1.2 percent.
The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
Minimun car insurance
Associated Press
ORANGEBURG, S.C. - A bill raising the minimum amount of liability insurance drivers must carry could force providers to increase their lowest premiums seven to 18 percent.
Gov. Mark Sanford has not said whether he will sign the bill, which passed the House last week. The legislation increases the minimum liability coverage that drivers are required to buy to $25,000 for bodily injury for each person injured in a wreck, $50,000 for all people injured and $25,000 to cover property damage.
The existing requirements are $15,000, $30,000 and $10,000, respectively.
Sen. Gerald Malloy, D-Hartsville, who added the amendment on the Senate floor, said the increase was needed to bring the state's minimum rates closer to North Carolina and Georgia.
Sanford's spokesman Joel Sawyer said the increases were rejected in a House subcommittee out of concerns for rates increases and a lack of information the change was needed.
The governor has until midnight Tuesday to sign or veto the bill.
"We're still weighing the merits of the bill, but we have grave concerns about the process," Sawyer said, "when the president of the South Carolina Trial Lawyers Association can personally champion a bill that he and those he represents stand to benefit from financially."
Malloy, the group's president, called the comments "disingenuous and laughable," saying he has done only limited work tied to auto accidents.
Allison Love, executive director of Insurance News Service, said a survey of numerous insurance agencies revealed premiums for minimum liability insurance would jump 7 to 18 percent, or $32 to $100 a year.
Robert Herlong, vice president and regional manager for the Property Casualty Insurers Association of America, called the increase "very disruptive to the market."
"We simply don't think it's the government's place to tell someone how much insurance they should have to buy," Herlong said. "Insurance is purchased solely to protect one's assets. I'm afraid a substantial number of them will think, 'I have nothing to lose ... so I'm going to sneak by and go without insurance.'"
About 20 percent of South Carolina Farm Bureau Insurance's policy holders carry minimum liability insurance, said spokeswoman Susan Merrill. Some of those customers could see rates increase by as much as $118 a year, she said.
"The folks who carry minimum liability are those who can least afford an increase in insurance costs," Merrill said.
Merril was concerned that "such a significant change in social policy was made so hastily on the floor of the Senate and House."
"We certainly support a detailed, thorough review of this state's minimum liability requirements. We just think a little more time should have been spent on the subject," she said.
But Patricia Brown, owner of Crossroads Insurance Agency in Orangeburg, said raising the limits is a good idea, saying her company already requires customers to purchase at least $25,000 in property liability insurance.
Customers "want the bare minimum until there's an accident, and then they want to know why we didn't sell them more," she said. "If the state minimum requirements are higher, then they don't have any choice."
ORANGEBURG, S.C. - A bill raising the minimum amount of liability insurance drivers must carry could force providers to increase their lowest premiums seven to 18 percent.
Gov. Mark Sanford has not said whether he will sign the bill, which passed the House last week. The legislation increases the minimum liability coverage that drivers are required to buy to $25,000 for bodily injury for each person injured in a wreck, $50,000 for all people injured and $25,000 to cover property damage.
The existing requirements are $15,000, $30,000 and $10,000, respectively.
Sen. Gerald Malloy, D-Hartsville, who added the amendment on the Senate floor, said the increase was needed to bring the state's minimum rates closer to North Carolina and Georgia.
Sanford's spokesman Joel Sawyer said the increases were rejected in a House subcommittee out of concerns for rates increases and a lack of information the change was needed.
The governor has until midnight Tuesday to sign or veto the bill.
"We're still weighing the merits of the bill, but we have grave concerns about the process," Sawyer said, "when the president of the South Carolina Trial Lawyers Association can personally champion a bill that he and those he represents stand to benefit from financially."
Malloy, the group's president, called the comments "disingenuous and laughable," saying he has done only limited work tied to auto accidents.
Allison Love, executive director of Insurance News Service, said a survey of numerous insurance agencies revealed premiums for minimum liability insurance would jump 7 to 18 percent, or $32 to $100 a year.
Robert Herlong, vice president and regional manager for the Property Casualty Insurers Association of America, called the increase "very disruptive to the market."
"We simply don't think it's the government's place to tell someone how much insurance they should have to buy," Herlong said. "Insurance is purchased solely to protect one's assets. I'm afraid a substantial number of them will think, 'I have nothing to lose ... so I'm going to sneak by and go without insurance.'"
About 20 percent of South Carolina Farm Bureau Insurance's policy holders carry minimum liability insurance, said spokeswoman Susan Merrill. Some of those customers could see rates increase by as much as $118 a year, she said.
"The folks who carry minimum liability are those who can least afford an increase in insurance costs," Merrill said.
Merril was concerned that "such a significant change in social policy was made so hastily on the floor of the Senate and House."
"We certainly support a detailed, thorough review of this state's minimum liability requirements. We just think a little more time should have been spent on the subject," she said.
But Patricia Brown, owner of Crossroads Insurance Agency in Orangeburg, said raising the limits is a good idea, saying her company already requires customers to purchase at least $25,000 in property liability insurance.
Customers "want the bare minimum until there's an accident, and then they want to know why we didn't sell them more," she said. "If the state minimum requirements are higher, then they don't have any choice."
Monday, June 5, 2006
High-deductible health insurance plans
By KEVIN FREKING
Associated Press
WASHINGTON - Individual Health insurance policies that require consumers to pay for all their initial medical expenses are becoming a popular option as Americans try to cut down on their insurance costs.
The number of people purchasing high-deductible plans jumped from about 3 million in January 2005 to as much as 6 million by January 2006, the Government Accountability Office said last week.
Individuals purchasing such policies usually pay lower monthly premiums because they agree to bear a greater share of the cost of their health care. The policies are often coupled with health savings accounts, which allow consumers to set aside money tax-free. They can then use that money to pay for medical expenses not picked up by the insurer or to save it for retirement.
The policies paired with health savings accounts must have a minimum deductible of $1,050 for single coverage and $2,100 for family coverage. The Bush administration has aggressively pushed to make such accounts more popular.
The GAO said that the rising cost of health care coverage is the primary reason more employers offer the plans. It noted that analysts believe more employers will join the trend if costs keep rising significantly.
Associated Press
WASHINGTON - Individual Health insurance policies that require consumers to pay for all their initial medical expenses are becoming a popular option as Americans try to cut down on their insurance costs.
The number of people purchasing high-deductible plans jumped from about 3 million in January 2005 to as much as 6 million by January 2006, the Government Accountability Office said last week.
Individuals purchasing such policies usually pay lower monthly premiums because they agree to bear a greater share of the cost of their health care. The policies are often coupled with health savings accounts, which allow consumers to set aside money tax-free. They can then use that money to pay for medical expenses not picked up by the insurer or to save it for retirement.
The policies paired with health savings accounts must have a minimum deductible of $1,050 for single coverage and $2,100 for family coverage. The Bush administration has aggressively pushed to make such accounts more popular.
The GAO said that the rising cost of health care coverage is the primary reason more employers offer the plans. It noted that analysts believe more employers will join the trend if costs keep rising significantly.
car insurance would increase
By WENDY JEFFCOAT, T&D Staff Writer
Sunday, June 04, 2006
As Gov. Mark Sanford considers whether to sign a bill increasing the minimum amount of car insurance drivers must carry, many insurers worry that higher costs will cause people to hit the road without any coverage at all.
“We simply don’t think it’s the government’s place to tell someone how much insurance they should have to buy,” said Robert Herlong, vice president and regional manager for the Property Casualty Insurers Association of America. “This bill would be like sticking a stick in the eye of thousands of motorists.
“Insurance is purchased solely to protect one’s assets. I’m afraid a substantial number of them will think, ‘I have nothing to lose ... so I’m going to sneak by and go without insurance.’”
Sanford has yet to sign or veto the bill. Governor’s office spokesman Joel Sawyer said Friday that Sanford was still reviewing the bill on its merits, although there are questions about the process since Sen. Gerald Malloy, D-Hartsville, “ramrodded” the bill through.
“We did not like the way this was done by amending the bill in the last days of the session,” Herlong said. “I feel like if most lawmakers knew how this would impact rates, they would not have voted in favor of it. We have asked the governor to veto it. I know they’ve given it proper consideration.”
The bill calls for the basic automobile liability insurance limits on bodily injury liability claims to be increased from $15,000 to $25,000 for one person and from $30,000 to $50,000 for all persons injured in an accident.
House Bill 4622 also would increase property damage claims limit from $10,000 to $25,000.
Allison Love, executive director of Insurance News Service, said a survey of numerous insurance agencies revealed premiums for minimum liability insurance would increase between 7 and 18 percent, or $32-$100 annually, based on the driver and company if the bill becomes law.
“It’s very disruptive to the market,” Herlong said.
Some claim the bill is needed to protect South Carolina drivers from underinsured drivers, while others say it will increase the cost of insurance coverage, possibly leading to more uninsured drivers.
Sawyer said trial lawyers — pointing out that Malloy serves as head of the S.C. Trial Lawyers Association — will benefit from the bill because people will be carrying more insurance.
“It’s a perfect example of what’s wrong with the legislative process in South Carolina when someone who will benefit personally can ramrod it through” the General Assembly, he said.
Malloy blasted those claims, saying Sawyer’s comments were preposterous.
“That’s a shot in the air,” he said of the claims that trial lawyers will benefit from the increase in minimum liability premiums and that he “ramrodded” the bill through the General Assembly. “I think its disingenuous and laughable. I think it’s a display of the lack of curiosity as to why things are done.
“This was something that was contemplated, was discussed, was put before the full body. It gained full support. That’s why it was passed by both bodies and one body (the senate) twice. There was a full opportunity for a debate.”
He said the limits on liability insurance were outdated, having been set in 1974, with the exception of the property damage minimum requirements, which were increased in 1997.
“We are still operating from a 1974 standard,” Malloy said. “The full legislative body had an opportunity to review it, question it, discuss it, and apparently they had the view that we were outdated.”
He said sister states North Carolina and Georgia currently have higher minimum liability requirements than South Carolina.
“The more liability that a person is required to have, the less underinsured coverage a not-at-fault party would have to have,” Malloy said.
He said lawyers, instead of benefitting from individuals carrying more insurance, may be hurt by the increase because people will have more money to settle claims through insurance companies without bringing a lawyer into the mix.
Bruce White, State Farm Insurance spokesman, said historically State Farm has not supported increasing premiums for customers with minimum benefits, but added that the company will have no choice but to abide by the law — if the new requirements become law.
Not all insurance agents and companies are against the bill. Patricia Brown, owner of Crossroads Insurance Agency in Orangeburg, said she thinks the heightened minimum is an excellent idea.
“Of course, my (customers) are going to fuss because their premiums are going to go up,” she said. “But I think it’s a wonderful idea.”
Brown applauded North Carolina’s insurance system and said it works so much better than South Carolina’s — namely because of the higher minimum requirements.
“They (customers) want the bare minimum until there’s an accident,” she said, “ and then they want to know why we didn’t sell them more. If the state minimum requirements are higher, then they don’t have any choice.”
She said customers who have had to bear the burden of being hit by people with too little insurance will benefit greatly from the increase as well.
Brown said her agency already requires customers to purchase at least $25,000 in property liability insurance, simply because so many cars are worth more than $10,000.
“We can (already) set the limits where the bare minimum we write is 25-50-25, so if they don’t want it, they have no choice but to go somewhere else,” she said. “I think it would be a wonderful idea. I’m all for it.”
But South Carolina Farm Bureau Insurance’s Corporate Communications Director Susan Merrill said Farm Bureau isn’t sold on the idea.
Merrill said the increase will affect approximately 20 percent of the company’s policy holders carrying minimum liability insurance. The premium for some insured customers could increase by as much as $118 per year.
“The folks who carry minimum liability are those who can least afford an increase in insurance costs,” she said, and they may choose to drive uninsured instead of pay more. “If they can only afford 15-30-10, you wonder if they can afford the increased premiums that come with raising the limit to 25-50-25.”
Merrill said once additional money is available, more attorney’s will become involved. And that will will have a long-term impact on all drivers.
“Such a significant change in social policy was made so hastily on the floor of the senate and house,” she said. “We certainly support a detailed, thorough review of this state’s minimum liability requirements.
“We just think a little more time should have been spent on the subject.”
Sunday, June 04, 2006
As Gov. Mark Sanford considers whether to sign a bill increasing the minimum amount of car insurance drivers must carry, many insurers worry that higher costs will cause people to hit the road without any coverage at all.
“We simply don’t think it’s the government’s place to tell someone how much insurance they should have to buy,” said Robert Herlong, vice president and regional manager for the Property Casualty Insurers Association of America. “This bill would be like sticking a stick in the eye of thousands of motorists.
“Insurance is purchased solely to protect one’s assets. I’m afraid a substantial number of them will think, ‘I have nothing to lose ... so I’m going to sneak by and go without insurance.’”
Sanford has yet to sign or veto the bill. Governor’s office spokesman Joel Sawyer said Friday that Sanford was still reviewing the bill on its merits, although there are questions about the process since Sen. Gerald Malloy, D-Hartsville, “ramrodded” the bill through.
“We did not like the way this was done by amending the bill in the last days of the session,” Herlong said. “I feel like if most lawmakers knew how this would impact rates, they would not have voted in favor of it. We have asked the governor to veto it. I know they’ve given it proper consideration.”
The bill calls for the basic automobile liability insurance limits on bodily injury liability claims to be increased from $15,000 to $25,000 for one person and from $30,000 to $50,000 for all persons injured in an accident.
House Bill 4622 also would increase property damage claims limit from $10,000 to $25,000.
Allison Love, executive director of Insurance News Service, said a survey of numerous insurance agencies revealed premiums for minimum liability insurance would increase between 7 and 18 percent, or $32-$100 annually, based on the driver and company if the bill becomes law.
“It’s very disruptive to the market,” Herlong said.
Some claim the bill is needed to protect South Carolina drivers from underinsured drivers, while others say it will increase the cost of insurance coverage, possibly leading to more uninsured drivers.
Sawyer said trial lawyers — pointing out that Malloy serves as head of the S.C. Trial Lawyers Association — will benefit from the bill because people will be carrying more insurance.
“It’s a perfect example of what’s wrong with the legislative process in South Carolina when someone who will benefit personally can ramrod it through” the General Assembly, he said.
Malloy blasted those claims, saying Sawyer’s comments were preposterous.
“That’s a shot in the air,” he said of the claims that trial lawyers will benefit from the increase in minimum liability premiums and that he “ramrodded” the bill through the General Assembly. “I think its disingenuous and laughable. I think it’s a display of the lack of curiosity as to why things are done.
“This was something that was contemplated, was discussed, was put before the full body. It gained full support. That’s why it was passed by both bodies and one body (the senate) twice. There was a full opportunity for a debate.”
He said the limits on liability insurance were outdated, having been set in 1974, with the exception of the property damage minimum requirements, which were increased in 1997.
“We are still operating from a 1974 standard,” Malloy said. “The full legislative body had an opportunity to review it, question it, discuss it, and apparently they had the view that we were outdated.”
He said sister states North Carolina and Georgia currently have higher minimum liability requirements than South Carolina.
“The more liability that a person is required to have, the less underinsured coverage a not-at-fault party would have to have,” Malloy said.
He said lawyers, instead of benefitting from individuals carrying more insurance, may be hurt by the increase because people will have more money to settle claims through insurance companies without bringing a lawyer into the mix.
Bruce White, State Farm Insurance spokesman, said historically State Farm has not supported increasing premiums for customers with minimum benefits, but added that the company will have no choice but to abide by the law — if the new requirements become law.
Not all insurance agents and companies are against the bill. Patricia Brown, owner of Crossroads Insurance Agency in Orangeburg, said she thinks the heightened minimum is an excellent idea.
“Of course, my (customers) are going to fuss because their premiums are going to go up,” she said. “But I think it’s a wonderful idea.”
Brown applauded North Carolina’s insurance system and said it works so much better than South Carolina’s — namely because of the higher minimum requirements.
“They (customers) want the bare minimum until there’s an accident,” she said, “ and then they want to know why we didn’t sell them more. If the state minimum requirements are higher, then they don’t have any choice.”
She said customers who have had to bear the burden of being hit by people with too little insurance will benefit greatly from the increase as well.
Brown said her agency already requires customers to purchase at least $25,000 in property liability insurance, simply because so many cars are worth more than $10,000.
“We can (already) set the limits where the bare minimum we write is 25-50-25, so if they don’t want it, they have no choice but to go somewhere else,” she said. “I think it would be a wonderful idea. I’m all for it.”
But South Carolina Farm Bureau Insurance’s Corporate Communications Director Susan Merrill said Farm Bureau isn’t sold on the idea.
Merrill said the increase will affect approximately 20 percent of the company’s policy holders carrying minimum liability insurance. The premium for some insured customers could increase by as much as $118 per year.
“The folks who carry minimum liability are those who can least afford an increase in insurance costs,” she said, and they may choose to drive uninsured instead of pay more. “If they can only afford 15-30-10, you wonder if they can afford the increased premiums that come with raising the limit to 25-50-25.”
Merrill said once additional money is available, more attorney’s will become involved. And that will will have a long-term impact on all drivers.
“Such a significant change in social policy was made so hastily on the floor of the senate and house,” she said. “We certainly support a detailed, thorough review of this state’s minimum liability requirements.
“We just think a little more time should have been spent on the subject.”
Friday, June 2, 2006
Health Insurance for every child
By SHELLY YANOFF
Fourteen years ago, Pennsylvania took giant steps to create CHIP, the Children's Health Insurance Program.
Since then, our CHIP has become the model health-insurance program for children nationwide. Now our state is on the verge, we hope, of taking another giant step - to cover all kids with health insurance.
Thanks to Pennsylvania's leadership on enrolling children in health insurance, 96 percent of the commonwealth's children already are insured through CHIP, Medicaid or private plans.
That is an incredible feat. Unfortunately, even with the success of CHIP, more than 133,000 children in Pennsylvania remain uninsured. That means they are less likely to be immunized or to receive regular check-ups - and they are more likely to use the emergency room, an expensive option that drives up the cost of health care for everybody.
Of these children, more than 25,000 have no insurance options. Their parents work for small or mid-sized companies that no longer offer health insurance to their employees, or charge exorbitant premiums that families can't afford to pay.
However, we still want the children of these families to receive health benefits - it is good for the children, the families, their communities - and, ultimately, for the whole state.
Pennsylvania now has the opportunity to again become a leader in children's health care. For the first time, we have a chance to enroll every child in the commonwealth in health insurance - under the Cover All Kids proposal in Gov. Rendell's proposed budget for next year.
There's no visible opposition to Covering All Kids - and the legislation to enact it has bipartisan support - including that of Rep. George Kenney, a Philadelphia Republican, who has been an active supporter of children's health issues. But this is Pennsylvania, in an election year - and the legislature and the governor have tough decisions to make.
We hope they will come together to champion keeping kids healthy.
Cover All Kids asks for just $4.4 million next year to begin to provide children with access to needed health services. The cost is expected to rise to $50 million by 2010 in order to enroll children currently eligible but not enrolled in Medicaid and CHIP and all 25,000 children with no current insurance options.
That's a hefty sum - but in reality, it's a minuscule part of our state's budget and a small price to pay for our children's health.
We either pay now to keep children healthy, or we'll pay much more later - in lost productivity and for treating serious illness that might have been prevented with timely medical care. The choice is ours.
In a survey conducted earlier this year, 96 percent Pennsylvanians said it was somewhat or very important to them provide health insurance for uninsured kids.
Make sure the legislature gets that message: Tell your lawmakers - Democrat and Republican - that health care is essential for every Pennsylvania child.
Whether they live in cities, suburbs, farms or small towns, it's time to Cover All Kids.
It's up to us as caring parents and responsible citizens to "remember the future." Don't let this opportunity to provide universal health insurance and access to medical care to every Pennsylvania child slip away.
Fourteen years ago, Pennsylvania took giant steps to create CHIP, the Children's Health Insurance Program.
Since then, our CHIP has become the model health-insurance program for children nationwide. Now our state is on the verge, we hope, of taking another giant step - to cover all kids with health insurance.
Thanks to Pennsylvania's leadership on enrolling children in health insurance, 96 percent of the commonwealth's children already are insured through CHIP, Medicaid or private plans.
That is an incredible feat. Unfortunately, even with the success of CHIP, more than 133,000 children in Pennsylvania remain uninsured. That means they are less likely to be immunized or to receive regular check-ups - and they are more likely to use the emergency room, an expensive option that drives up the cost of health care for everybody.
Of these children, more than 25,000 have no insurance options. Their parents work for small or mid-sized companies that no longer offer health insurance to their employees, or charge exorbitant premiums that families can't afford to pay.
However, we still want the children of these families to receive health benefits - it is good for the children, the families, their communities - and, ultimately, for the whole state.
Pennsylvania now has the opportunity to again become a leader in children's health care. For the first time, we have a chance to enroll every child in the commonwealth in health insurance - under the Cover All Kids proposal in Gov. Rendell's proposed budget for next year.
There's no visible opposition to Covering All Kids - and the legislation to enact it has bipartisan support - including that of Rep. George Kenney, a Philadelphia Republican, who has been an active supporter of children's health issues. But this is Pennsylvania, in an election year - and the legislature and the governor have tough decisions to make.
We hope they will come together to champion keeping kids healthy.
Cover All Kids asks for just $4.4 million next year to begin to provide children with access to needed health services. The cost is expected to rise to $50 million by 2010 in order to enroll children currently eligible but not enrolled in Medicaid and CHIP and all 25,000 children with no current insurance options.
That's a hefty sum - but in reality, it's a minuscule part of our state's budget and a small price to pay for our children's health.
We either pay now to keep children healthy, or we'll pay much more later - in lost productivity and for treating serious illness that might have been prevented with timely medical care. The choice is ours.
In a survey conducted earlier this year, 96 percent Pennsylvanians said it was somewhat or very important to them provide health insurance for uninsured kids.
Make sure the legislature gets that message: Tell your lawmakers - Democrat and Republican - that health care is essential for every Pennsylvania child.
Whether they live in cities, suburbs, farms or small towns, it's time to Cover All Kids.
It's up to us as caring parents and responsible citizens to "remember the future." Don't let this opportunity to provide universal health insurance and access to medical care to every Pennsylvania child slip away.
State Auto Insurance Offers Policyholders Identity Theft Protection Program
Press Release
COLUMBUS, Ohio--(BUSINESS WIRE)--June 1, 2006--
The State Auto Insurance Companies announced today they will be providing their homeowner insurance policy holders and farmowner policyholders with their new Identity Theft Protection Program. Partnering with Arizona-based Identity Theft 911, policyholders will have a full-range of services at their fingertips, at no additional cost. Augmenting the program of identity fraud-related resolution, State Auto policyholders will also receive assistance in recovering or re-creating missing personal identification after the occurrence of a natural disaster or other mishap. In addition, State Auto will provide an endorsement, Identity Fraud Expense reimbursement coverage, also at no additional cost.
This coverage provides up to $15,000 to reimburse for expenses incurred as a direct result of identity fraud. Some of the expenses covered include costs for obtaining notary service on fraud affidavits or similar documents, costs for certified mailings and lost income resulting from time off work to meet with law enforcement or credit agencies - up to $200 per day or $5,000 total.
Identity Fraud Resolution Services
"Identity theft is a serious crime, one that robs people of time, dignity and security. Among the services we can provide our customers, this is one of the most important," said State Auto Director of Corporate Sales John Petrucci. "That's why we are pleased with this opportunity to partner with Identity Theft 911, a leader in identity theft resolution and education."
The services provided through Identity Theft 911 offer a personal advocate who works one-on-one to direct and assist policyholders through the challenges of identity and credit restoration. Some highlights of the services include:
-- Access to proactive educational materials at http://idtheft.stateauto.com
-- Placing credit file fraud alerts with all three major credit bureaus
-- Completing the Federal Trade Commission Fraud Victim Affidavit
-- Resolution of account takeover and true identity theft, as well as assistance for policyholder inquiries
-- A full year of credit monitoring and fraud monitoring
-- All services apply to immediate family members
"State Auto is one of the largest insurers in the U.S., working across 27 states. The company was named by Forbes Magazine as the Best Managed Company in the insurance industry and was also listed among the 26 Best Managed Companies in America. It is an honor to partner with them," said Sheryl Christenson, CEO of Identity Theft 911. "The fact that State Auto has recognized the need to protect their policyholders against America's fastest-growing crime, and is willing to offer it for at no additional cost, demonstrates their commitment and loyalty to their customers."
Identity Disaster Response
Identity Theft 911 will also help disaster victims obtain emergency identity authentication and verification, as well as access to their financial accounts. Identity Theft 911 will work with government agencies and institutions to reclaim documents such as birth certificates, driver's licenses, passports and Social Security cards, as well as checks and credit/debit cards.
"In a crisis situation, such as a tornado, flood, hurricane, fire, or even a terrorist attack, individuals are often left stranded with no means to identify themselves or access their finances," said Christenson. "The Identity Disaster Response program will help facilitate the arduous process of getting people back on their feet."
COLUMBUS, Ohio--(BUSINESS WIRE)--June 1, 2006--
The State Auto Insurance Companies announced today they will be providing their homeowner insurance policy holders and farmowner policyholders with their new Identity Theft Protection Program. Partnering with Arizona-based Identity Theft 911, policyholders will have a full-range of services at their fingertips, at no additional cost. Augmenting the program of identity fraud-related resolution, State Auto policyholders will also receive assistance in recovering or re-creating missing personal identification after the occurrence of a natural disaster or other mishap. In addition, State Auto will provide an endorsement, Identity Fraud Expense reimbursement coverage, also at no additional cost.
This coverage provides up to $15,000 to reimburse for expenses incurred as a direct result of identity fraud. Some of the expenses covered include costs for obtaining notary service on fraud affidavits or similar documents, costs for certified mailings and lost income resulting from time off work to meet with law enforcement or credit agencies - up to $200 per day or $5,000 total.
Identity Fraud Resolution Services
"Identity theft is a serious crime, one that robs people of time, dignity and security. Among the services we can provide our customers, this is one of the most important," said State Auto Director of Corporate Sales John Petrucci. "That's why we are pleased with this opportunity to partner with Identity Theft 911, a leader in identity theft resolution and education."
The services provided through Identity Theft 911 offer a personal advocate who works one-on-one to direct and assist policyholders through the challenges of identity and credit restoration. Some highlights of the services include:
-- Access to proactive educational materials at http://idtheft.stateauto.com
-- Placing credit file fraud alerts with all three major credit bureaus
-- Completing the Federal Trade Commission Fraud Victim Affidavit
-- Resolution of account takeover and true identity theft, as well as assistance for policyholder inquiries
-- A full year of credit monitoring and fraud monitoring
-- All services apply to immediate family members
"State Auto is one of the largest insurers in the U.S., working across 27 states. The company was named by Forbes Magazine as the Best Managed Company in the insurance industry and was also listed among the 26 Best Managed Companies in America. It is an honor to partner with them," said Sheryl Christenson, CEO of Identity Theft 911. "The fact that State Auto has recognized the need to protect their policyholders against America's fastest-growing crime, and is willing to offer it for at no additional cost, demonstrates their commitment and loyalty to their customers."
Identity Disaster Response
Identity Theft 911 will also help disaster victims obtain emergency identity authentication and verification, as well as access to their financial accounts. Identity Theft 911 will work with government agencies and institutions to reclaim documents such as birth certificates, driver's licenses, passports and Social Security cards, as well as checks and credit/debit cards.
"In a crisis situation, such as a tornado, flood, hurricane, fire, or even a terrorist attack, individuals are often left stranded with no means to identify themselves or access their finances," said Christenson. "The Identity Disaster Response program will help facilitate the arduous process of getting people back on their feet."
Thursday, June 1, 2006
STATE FARM'S HOME RATES MAY RISE 39% NEAR COAST
By PURVA PATEL
Houston Chronicle
The cost of insurance for thousands of Texas homeowners insured by State Farm is about to go up.
And if you live near the coast, it's going to soar.
The state's largest home insurer filed rate hikes Wednesday with the Texas Department of Insurance that will boost premiums for all of its Texas consumers an average 10.7 percent to cover anticipated expenses and an additional average 9.1 percent to cover the cost of reinsurance.
Reinsurance, the coverage an insurance company buys as a backup to pay for its losses after a catastrophe, is becoming more expensive in the wake of last year's hurricanes, tripling in some cases.
Just last month, Allstate indicated it also plans to raise rates because of rising reinsurance costs.
The pain of State Farm's hikes will fall hardest on counties closer to the Gulf of Mexico, such as Galveston, Harris and Fort Bend, because of the area's hurricane exposure, the company said.
Counties further inland, such as Travis and Dallas, don't face as much threat from hurricanes and therefore not as much risk to the insurance company.
The hike related to reinsurance alone could be as much as an average 39 percent in Harris County and an average 36 percent in Galveston County, State Farm spokeswoman Sophie Harbert said.
She couldn't say how much the company's reinsurance costs rose, but said the cost is being directly passed on to consumers.
Harbert also wouldn't release the average dollar increase each customer would experience because rates will vary depending on where the homeowners live, the deductibles chosen, how much coverage they have, and what discounts they qualify for.
For instance, the company also announced Wednesday that it would boost a discount for customers that have their home and car insured by State Farm to 12 percent from 5 percent. About 80 percent of the company's homeowners customers also have auto insurance with the company.
The rates will be implemented Aug. 1 for new customers and upon renewal for existing customers starting Oct.1. Auto customers will see a statewide average rate cut of 2.6 percent beginning July 17.
The state Insurance Department will review the rates and has the power to challenge them if it deems them excessive, unreasonable or discriminatory, said Jerry Hagins, a department spokesman.
"It will undergo a strict review, and we will begin right away," he said.
Consumer groups were displeased the company filed for a rate hike in the midst of a 2-year-old court battle over a state order to reduce its rates 12 percent. The company has defended its rates as fair and competitive.
"Before they start asking to increase their rates, State Farm needs to pay back the money they already owe," said Alex Winslow, executive director of the consumer group Texas Watch. "I hope Insurance Commissioner (Mike) Geeslin will see this rate increase for what it is and send it back to the scrap heap it came from."
Allstate, the state's second-largest insurer, dropped rates 4.8 percent earlier this year as part of a court case but plans to file a rate increase this summer to cover rising reinsurance costs, said spokesman Joe McCormick.
Allstate also recently said it was dropping windstorm coverage for coastal residents and no longer taking new customers in some Texas counties as it seeks to lower its exposure to hurricane losses in the wake of hurricanes Rita and Katrina.
Reinsurance for companies selling insurance to homeowners has increased 100 to 300 percent, said Jerry Johns, president for the industry trade group Southwestern Insurance Information Service.
"Insurers in Texas are literally at the mercy of reinsurers and must charge higher rates to offset these rising costs," Johns said.
Houston Chronicle
The cost of insurance for thousands of Texas homeowners insured by State Farm is about to go up.
And if you live near the coast, it's going to soar.
The state's largest home insurer filed rate hikes Wednesday with the Texas Department of Insurance that will boost premiums for all of its Texas consumers an average 10.7 percent to cover anticipated expenses and an additional average 9.1 percent to cover the cost of reinsurance.
Reinsurance, the coverage an insurance company buys as a backup to pay for its losses after a catastrophe, is becoming more expensive in the wake of last year's hurricanes, tripling in some cases.
Just last month, Allstate indicated it also plans to raise rates because of rising reinsurance costs.
The pain of State Farm's hikes will fall hardest on counties closer to the Gulf of Mexico, such as Galveston, Harris and Fort Bend, because of the area's hurricane exposure, the company said.
Counties further inland, such as Travis and Dallas, don't face as much threat from hurricanes and therefore not as much risk to the insurance company.
The hike related to reinsurance alone could be as much as an average 39 percent in Harris County and an average 36 percent in Galveston County, State Farm spokeswoman Sophie Harbert said.
She couldn't say how much the company's reinsurance costs rose, but said the cost is being directly passed on to consumers.
Harbert also wouldn't release the average dollar increase each customer would experience because rates will vary depending on where the homeowners live, the deductibles chosen, how much coverage they have, and what discounts they qualify for.
For instance, the company also announced Wednesday that it would boost a discount for customers that have their home and car insured by State Farm to 12 percent from 5 percent. About 80 percent of the company's homeowners customers also have auto insurance with the company.
The rates will be implemented Aug. 1 for new customers and upon renewal for existing customers starting Oct.1. Auto customers will see a statewide average rate cut of 2.6 percent beginning July 17.
The state Insurance Department will review the rates and has the power to challenge them if it deems them excessive, unreasonable or discriminatory, said Jerry Hagins, a department spokesman.
"It will undergo a strict review, and we will begin right away," he said.
Consumer groups were displeased the company filed for a rate hike in the midst of a 2-year-old court battle over a state order to reduce its rates 12 percent. The company has defended its rates as fair and competitive.
"Before they start asking to increase their rates, State Farm needs to pay back the money they already owe," said Alex Winslow, executive director of the consumer group Texas Watch. "I hope Insurance Commissioner (Mike) Geeslin will see this rate increase for what it is and send it back to the scrap heap it came from."
Allstate, the state's second-largest insurer, dropped rates 4.8 percent earlier this year as part of a court case but plans to file a rate increase this summer to cover rising reinsurance costs, said spokesman Joe McCormick.
Allstate also recently said it was dropping windstorm coverage for coastal residents and no longer taking new customers in some Texas counties as it seeks to lower its exposure to hurricane losses in the wake of hurricanes Rita and Katrina.
Reinsurance for companies selling insurance to homeowners has increased 100 to 300 percent, said Jerry Johns, president for the industry trade group Southwestern Insurance Information Service.
"Insurers in Texas are literally at the mercy of reinsurers and must charge higher rates to offset these rising costs," Johns said.
From MSNBC
Inflated health insurance prices are putting the squeeze on your budget, but are consumer-directed plans the way to go?
Six years ago, Jim Noon paid 100 percent of the $100 monthly health insurance premium for each of his 11 employees and their families. After premiums rose sharply, the owner of Centennial Container Inc. in Denver began requiring employees to pay for spouses and children. Costs kept climbing. Noon, 50, began increasing the deductible, eventually to $2,000 for individuals and $4,000 for families. He still paid $400 per month for each employee. Says Noon, whose $2 million company sells cardboard boxes and shipping supplies, "We had a poor insurance plan, but we were putting more and more money into it."
Last year, Noon tried a health savings account, one of the consumer-directed health plans that are the industry's latest cost-control effort. The plan premium pays for insurance and also puts money into a savings account where it draws interest and is available for withdrawal for future medical expenses. Only high-deductible plans are eligible for HSAs, but HSAs have significantly lower premiums than comparable insurance plans.
Other consumer-directed plans featuring medical flexible spending accounts, or FSAs, have had limited acceptance because of a use-it-or-lose-it provision: FSA funds not spent the year they are set aside are forfeited. HSA funds roll over from year to year and build up.
The hope is that employees will build up enough in HSA accounts to pay their future medical bills and, because they are spending their own money, will make more cost-conscious health-care decisions. The insurance companies pay out less because of the higher deductibles, so they reduce premiums. Only half of Noon's employees are taking advantage of the HSA, and Noon pays the same amount because he contributes the money he saves on premiums into the employees' HSAs. He thinks he's offering employees a better value, and he hopes HSAs will become widespread and eventually reduce health-care costs for everyone. Says Noon, "I think it's terrific."
What Will It Really Cost?
Similar enthusiasm about anything related to health insurance is hard to find. Premiums for small employers rose 9.2 percent last year, according to the Kaiser Family Foundation. That was a slower rate of increase than the 11.2 percent rise in 2004 and the 13.9 percent rise in 2003.
But Gary Claxton, vice president of the Menlo Park, California, health research organization, says it probably doesn't signify a major change of direction: "We've had really high growth the last couple of years, and the system is a bit self-regulating." He says since insurers have had some really good years, prices aren't rising as fast as before.
The number of smaller employers with company-sponsored health plans also fell. Sixty-one percent of firms with 10 to 49 employees had plans in 2004, but only 58 percent did last year, according to a survey by consulting firm Mercer Health & Benefits. That trend, if prolonged, could hurt entrepreneurs' ability to hire talented employees, says Kerry Finnegan, a Chicago-based executive in Mercer's small-business segment: "Health benefits are identified in every survey as one of the key incentives for attracting talent."
Entrepreneurs are, unfortunately, at a disadvantage. One reason is that big employers who don't like the deals insurers offer can opt out by self-insuring, which is less viable for small employers. "If you're Ford, with 300,000 employees, you don't need an insurance company to spread the risk," Claxton says. Even companies with a few thousand or a few hundred employees--not enough to self-insure--are better-equipped to play the health-insurance game because they can hire specialists and offer a variety of benefits with cafeteria plans, Claxton says.
The entrepreneurs left holding the health-insurance bag still sometimes find that, even though they pay more than others, the insurance industry isn't interested in serving them. David Wilner pays 80 percent of the $300 monthly premiums for each of his six employees at Rhino Imaging LLC, his $1.3 million New York City document management company. Wilner feels it's important to be as good to employees as possible. "I know if I were working for someone and didn't have health insurance, it would really impact my life," says the 30-year-old entrepreneur. He also wants to offer dental coverage, but can't until he has 10 employees. "I had my health insurance guy look, and he said there's really nothing I could do," Wilner says. "I was shocked by that."
more
Inflated health insurance prices are putting the squeeze on your budget, but are consumer-directed plans the way to go?
Six years ago, Jim Noon paid 100 percent of the $100 monthly health insurance premium for each of his 11 employees and their families. After premiums rose sharply, the owner of Centennial Container Inc. in Denver began requiring employees to pay for spouses and children. Costs kept climbing. Noon, 50, began increasing the deductible, eventually to $2,000 for individuals and $4,000 for families. He still paid $400 per month for each employee. Says Noon, whose $2 million company sells cardboard boxes and shipping supplies, "We had a poor insurance plan, but we were putting more and more money into it."
Last year, Noon tried a health savings account, one of the consumer-directed health plans that are the industry's latest cost-control effort. The plan premium pays for insurance and also puts money into a savings account where it draws interest and is available for withdrawal for future medical expenses. Only high-deductible plans are eligible for HSAs, but HSAs have significantly lower premiums than comparable insurance plans.
Other consumer-directed plans featuring medical flexible spending accounts, or FSAs, have had limited acceptance because of a use-it-or-lose-it provision: FSA funds not spent the year they are set aside are forfeited. HSA funds roll over from year to year and build up.
The hope is that employees will build up enough in HSA accounts to pay their future medical bills and, because they are spending their own money, will make more cost-conscious health-care decisions. The insurance companies pay out less because of the higher deductibles, so they reduce premiums. Only half of Noon's employees are taking advantage of the HSA, and Noon pays the same amount because he contributes the money he saves on premiums into the employees' HSAs. He thinks he's offering employees a better value, and he hopes HSAs will become widespread and eventually reduce health-care costs for everyone. Says Noon, "I think it's terrific."
What Will It Really Cost?
Similar enthusiasm about anything related to health insurance is hard to find. Premiums for small employers rose 9.2 percent last year, according to the Kaiser Family Foundation. That was a slower rate of increase than the 11.2 percent rise in 2004 and the 13.9 percent rise in 2003.
But Gary Claxton, vice president of the Menlo Park, California, health research organization, says it probably doesn't signify a major change of direction: "We've had really high growth the last couple of years, and the system is a bit self-regulating." He says since insurers have had some really good years, prices aren't rising as fast as before.
The number of smaller employers with company-sponsored health plans also fell. Sixty-one percent of firms with 10 to 49 employees had plans in 2004, but only 58 percent did last year, according to a survey by consulting firm Mercer Health & Benefits. That trend, if prolonged, could hurt entrepreneurs' ability to hire talented employees, says Kerry Finnegan, a Chicago-based executive in Mercer's small-business segment: "Health benefits are identified in every survey as one of the key incentives for attracting talent."
Entrepreneurs are, unfortunately, at a disadvantage. One reason is that big employers who don't like the deals insurers offer can opt out by self-insuring, which is less viable for small employers. "If you're Ford, with 300,000 employees, you don't need an insurance company to spread the risk," Claxton says. Even companies with a few thousand or a few hundred employees--not enough to self-insure--are better-equipped to play the health-insurance game because they can hire specialists and offer a variety of benefits with cafeteria plans, Claxton says.
The entrepreneurs left holding the health-insurance bag still sometimes find that, even though they pay more than others, the insurance industry isn't interested in serving them. David Wilner pays 80 percent of the $300 monthly premiums for each of his six employees at Rhino Imaging LLC, his $1.3 million New York City document management company. Wilner feels it's important to be as good to employees as possible. "I know if I were working for someone and didn't have health insurance, it would really impact my life," says the 30-year-old entrepreneur. He also wants to offer dental coverage, but can't until he has 10 employees. "I had my health insurance guy look, and he said there's really nothing I could do," Wilner says. "I was shocked by that."
more
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