Even if you're just leasing, most states still require auto insurance coverage. In fact, most times the bank or auto dealership that is financing the car require purchasing both collision and comprehensive coverage.
Depending on the state, additional auto insurance coverage required according to the laws. An example of additional auto insurance coverage that some states require is auto liability insurance, which will cover any damage to the vehicle that is caused by an accident with another car or object, that is out of one's control.
Monday, July 31, 2006
Thursday, July 27, 2006
Variations in auto insurance quotes
After putting local Washington auto insurance companies and agents to a test, obtaining dozens of auto insurance quotes, it is clear that shopping for new auto insurance right away is probbaly a good idea.
"It is a huge difference," said Washington Insurance Commissioner Mike Kreidler. "(It's a) huge variation, a lot more than I anticipated."
Even Washington's insurance commissioner was surprised by what we discovered about auto insurance.
KIRO 7 Consumer Investigators put together a comprehensive study with the help Eric Olsen.
Eric drives a '97 Jeep and has a spotless driving record. He got quotes from the five largest insurance companies in Washington
Quotes are all over the map. A Farmers agent wants $1,219 for a six-month policy while Pemco charges $570 -- less than half Farmers' price.
That's in Seattle. If you move to Issaquah, Pemco will only charge you only $380.
And we found more puzzling information: You can get wildly different quotes from the same company depending on what agent you talk to.
One Farmers agent gave Eric a quote of $763. Another Farmers agent quoted him $949 -- same driver, same address, same insurance companies, different quotes.
Eric called back to ask why the prices were so different.
"The agent that had given me the lower rate also factored in the fact I would be buying renters insurance in addition to my car insurance and you get a discount on your insurance when you buy both of those," he said.
However, the agent didn't mention any of that when Eric called for the quote.
"My guess is the insurance company, if they knew their agents were giving those kind of variations in quotes, would want to talk about doing some remedial training so everyone operated with the same set of rules," Kreidler said.
Something else in our survey really caught our eye. One Pemco agent wouldn't give Eric any quote at all.
While he has a spotless driving record, someone he lived with three years ago did not. Insurance companies have developed special technology to analyze nearly everything about your past.
You might call it guilt by association -- and it's all legal.
"You know, I have some real problems with that kind of use of information technology," Kreidler said. "I've gone to the legislature and asked for changes in law in order to try and bring out some limits. I want to go back and ask for more because quite frankly the insurance companies are asking for things that are private information, they don't relate to whether you are going to file a claim."
Some insurance companies only accept clients who are low risk. They tend to have the lowest rates. The companies that take bigger risks have more clients and usually higher rates.
One thing is for sure: it really pays to shop around for rates. Not only does it pay to get quotes from different insurance companies, sometimes it can pay to check different agents within the same company.
"It is a huge difference," said Washington Insurance Commissioner Mike Kreidler. "(It's a) huge variation, a lot more than I anticipated."
Even Washington's insurance commissioner was surprised by what we discovered about auto insurance.
KIRO 7 Consumer Investigators put together a comprehensive study with the help Eric Olsen.
Eric drives a '97 Jeep and has a spotless driving record. He got quotes from the five largest insurance companies in Washington
Quotes are all over the map. A Farmers agent wants $1,219 for a six-month policy while Pemco charges $570 -- less than half Farmers' price.
That's in Seattle. If you move to Issaquah, Pemco will only charge you only $380.
And we found more puzzling information: You can get wildly different quotes from the same company depending on what agent you talk to.
One Farmers agent gave Eric a quote of $763. Another Farmers agent quoted him $949 -- same driver, same address, same insurance companies, different quotes.
Eric called back to ask why the prices were so different.
"The agent that had given me the lower rate also factored in the fact I would be buying renters insurance in addition to my car insurance and you get a discount on your insurance when you buy both of those," he said.
However, the agent didn't mention any of that when Eric called for the quote.
"My guess is the insurance company, if they knew their agents were giving those kind of variations in quotes, would want to talk about doing some remedial training so everyone operated with the same set of rules," Kreidler said.
Something else in our survey really caught our eye. One Pemco agent wouldn't give Eric any quote at all.
While he has a spotless driving record, someone he lived with three years ago did not. Insurance companies have developed special technology to analyze nearly everything about your past.
You might call it guilt by association -- and it's all legal.
"You know, I have some real problems with that kind of use of information technology," Kreidler said. "I've gone to the legislature and asked for changes in law in order to try and bring out some limits. I want to go back and ask for more because quite frankly the insurance companies are asking for things that are private information, they don't relate to whether you are going to file a claim."
Some insurance companies only accept clients who are low risk. They tend to have the lowest rates. The companies that take bigger risks have more clients and usually higher rates.
One thing is for sure: it really pays to shop around for rates. Not only does it pay to get quotes from different insurance companies, sometimes it can pay to check different agents within the same company.
Wednesday, July 26, 2006
Short Term Health Insurance Alternative
From Forbes
Sarah Billik may be an adventurous 22-year-old, but she's not willing to take risks when it comes to her health or her bank account. Last June, she was dropped from her parent's health insurance plan after graduating from Oregon State University. Come August, she'll be covered again when she starts a beer brewing apprenticeship in Germany.
Rather than go uninsured for the month of July, she bought into an increasingly popular plan: short-term health insurance. Through eHealthInsurance.com, Billick paid Health Net (nyse: HNT - news - people ) a $12 application fee and $30 for one month's coverage. Says Billick: "It's $1 a day. I can handle that."
Short term health insurance plans are able to keep their monthly costs low because the deductibles are often so high. For someone like Billick, that means she must pay $2,500 out of pocket before her short-term health plan kicks in. And as with most-short term plans, prescriptions aren't covered under Billick's policy. That means a simple strep test and antibiotics could cost hundreds of dollars instead of the minimal co-pay for the doctor's visit and medicine under Cobra.
Sarah Billik may be an adventurous 22-year-old, but she's not willing to take risks when it comes to her health or her bank account. Last June, she was dropped from her parent's health insurance plan after graduating from Oregon State University. Come August, she'll be covered again when she starts a beer brewing apprenticeship in Germany.
Rather than go uninsured for the month of July, she bought into an increasingly popular plan: short-term health insurance. Through eHealthInsurance.com, Billick paid Health Net (nyse: HNT - news - people ) a $12 application fee and $30 for one month's coverage. Says Billick: "It's $1 a day. I can handle that."
Short term health insurance plans are able to keep their monthly costs low because the deductibles are often so high. For someone like Billick, that means she must pay $2,500 out of pocket before her short-term health plan kicks in. And as with most-short term plans, prescriptions aren't covered under Billick's policy. That means a simple strep test and antibiotics could cost hundreds of dollars instead of the minimal co-pay for the doctor's visit and medicine under Cobra.
MIchigan Drivers Pay too much for Auto Insurance
On average, four Michigan residents suffer catastrophic injuries each day in auto accidents.
That figure is based on a 2006 projection by the Michigan Catastrophic Claims Association, a group set up to cover lifetime care for those who are paralyzed or sustain other severe, permanent damage from crashes.
Nearly 20,000 auto insurance claims have been filed since 1978, when legislators created the private association as part of our state's pioneering no-fault approach to auto insurance. Almost three decades later, however, the compassion and fairness behind that vision is undercut by insurers' influence in the Legislature, judiciary and the claims association they run.
As a result, every Michigan driver and motorcyclist pays more than appears necessary to sustain a cash-rich catastrophic insurance fund while the same industry battles to limit or cut off benefits promised to any injured driver, passenger or pedestrians under the no-fault law. We're seeing a profit-driven betrayal of policyholders and callous treatment of accident survivors.
That figure is based on a 2006 projection by the Michigan Catastrophic Claims Association, a group set up to cover lifetime care for those who are paralyzed or sustain other severe, permanent damage from crashes.
Nearly 20,000 auto insurance claims have been filed since 1978, when legislators created the private association as part of our state's pioneering no-fault approach to auto insurance. Almost three decades later, however, the compassion and fairness behind that vision is undercut by insurers' influence in the Legislature, judiciary and the claims association they run.
As a result, every Michigan driver and motorcyclist pays more than appears necessary to sustain a cash-rich catastrophic insurance fund while the same industry battles to limit or cut off benefits promised to any injured driver, passenger or pedestrians under the no-fault law. We're seeing a profit-driven betrayal of policyholders and callous treatment of accident survivors.
Tuesday, July 25, 2006
Health Insurance Mandate Not Happening
The AFL-CIO’s attempt to begin forcing all employers to provide health insurance coverage has backfired.
A federal judge last week overturned a Maryland law aimed specifically at Wal-Mart. Under the so-called “Wal-Mart bill,” companies with more than 10,000 employees would have to spend at least 8 percent of payroll on health insurance for their employees or else pay the difference in fines. This was an attempt to drive a wedge that later could result in more widespread requirements for companies to provide health insurance.
But federal court nixed the labor federation’s grand plans, declaring that Congress actually meant it when it passed a law many years ago, known as ERISA, that protects national companies from the caprices of state insurance regulation.
A federal judge last week overturned a Maryland law aimed specifically at Wal-Mart. Under the so-called “Wal-Mart bill,” companies with more than 10,000 employees would have to spend at least 8 percent of payroll on health insurance for their employees or else pay the difference in fines. This was an attempt to drive a wedge that later could result in more widespread requirements for companies to provide health insurance.
But federal court nixed the labor federation’s grand plans, declaring that Congress actually meant it when it passed a law many years ago, known as ERISA, that protects national companies from the caprices of state insurance regulation.
Monday, July 24, 2006
California auto insurance groups sue state
Three insurance trade groups announced they have sued the California Department of Insurance to try to prevent the department from enforcing new auto insurance rating regulations.
The Association of California Insurance Companies, the American Insurance Association and the Personal Insurance Federation of California filed suit Wednesday in Sacramento Superior Court.
The groups represent more than 90% of drivers with auto insurance in California, and contend the regulations are unfair and would harm millions of California policyholders. The regulations will actually raise rates for 60% of California drivers so other motorists can pay less.
The Association of California Insurance Companies, the American Insurance Association and the Personal Insurance Federation of California filed suit Wednesday in Sacramento Superior Court.
The groups represent more than 90% of drivers with auto insurance in California, and contend the regulations are unfair and would harm millions of California policyholders. The regulations will actually raise rates for 60% of California drivers so other motorists can pay less.
Friday, July 21, 2006
Health Insurance for retirement
When you retire, some of your regular expenses are going to go down, but others will increase and topping the list will be health care costs.
Take health insurance coverage for example, before you retire, make sure you’ve got the resources necessary to deal with doctor’s visits and prescription drugs.
A 65-year-old couple retiring today will need, on average, $200,000 set aside to pay medical costs in retirement.
That number doesn’t include the cost of over-the-counter medicines, most dental procedures and – most importantly – long-term care (such as in-home health care or an extended stay in a nursing home).
To prepare yourself for the six-figure sums you might need to pay for health care, consider these suggestions.
* Stay healthy.
* Contribute to a Health Savings Account.
Keep in mind, though, that the contribution limits to HSAs are relatively low, so your savings will probably not grow enough to cover all, or even most, of your medical costs. But, every dollar can help.
* Plan ahead for long-term care.
* Consider putting a long-term care protection plan in place.
* Boost your savings.
No one can predict the future. But by recognizing likely costs of health care during your retirement years, and by taking steps necessary to deal with these expenses, you can hopefully avoid some unhealthy surprises down the road.
Take health insurance coverage for example, before you retire, make sure you’ve got the resources necessary to deal with doctor’s visits and prescription drugs.
A 65-year-old couple retiring today will need, on average, $200,000 set aside to pay medical costs in retirement.
That number doesn’t include the cost of over-the-counter medicines, most dental procedures and – most importantly – long-term care (such as in-home health care or an extended stay in a nursing home).
To prepare yourself for the six-figure sums you might need to pay for health care, consider these suggestions.
* Stay healthy.
* Contribute to a Health Savings Account.
Keep in mind, though, that the contribution limits to HSAs are relatively low, so your savings will probably not grow enough to cover all, or even most, of your medical costs. But, every dollar can help.
* Plan ahead for long-term care.
* Consider putting a long-term care protection plan in place.
* Boost your savings.
No one can predict the future. But by recognizing likely costs of health care during your retirement years, and by taking steps necessary to deal with these expenses, you can hopefully avoid some unhealthy surprises down the road.
The Hartford sells auto insurance unit
The Hartford said Wednesday it has sold an auto insurance unit for $100 million that covers drivers with poor driving records (sometimes called non-standard auto insurance).
The Hartford said it sold its Omni Insurance Group to Independent Insurance Investments Inc., known as 4i's. Omni also insures drivers with limited driving experience or whose prior coverage has lapsed.
The company said it will continue to cover a broad range of customers through its Dimensions auto program, including the class of customers Omni insures. But the company said it does not consider insuring high-risk drivers a primary business.
The Hartford said it sold its Omni Insurance Group to Independent Insurance Investments Inc., known as 4i's. Omni also insures drivers with limited driving experience or whose prior coverage has lapsed.
The company said it will continue to cover a broad range of customers through its Dimensions auto program, including the class of customers Omni insures. But the company said it does not consider insuring high-risk drivers a primary business.
Thursday, July 20, 2006
San Diego Health Insurance Affordable
People in San Diego pay among the lowest rates in the country for individual health insurance for their children or families, according to a report this week by national health insurance broker eHealthinsurance.com
In March, eHealthInsurance, which represents 140 insurance underwriters, examined 5,000 stand-alone health plans offered in the country's 100 largest cities. The survey did not consider group policies offered through employers or the government.
The report was designed to encourage some of the nation's 46 million uninsured people to consider the affordability of health insurance, particularly for children.
In March, eHealthInsurance, which represents 140 insurance underwriters, examined 5,000 stand-alone health plans offered in the country's 100 largest cities. The survey did not consider group policies offered through employers or the government.
The report was designed to encourage some of the nation's 46 million uninsured people to consider the affordability of health insurance, particularly for children.
UnitedHealth Group Net income rises
July 19 (Bloomberg) -- UnitedHealth Group Inc., the biggest U.S. health insurance company by sales, said second-quarter earnings rose 26 percent driven by the government backed drug benefit program.
More than 5.7 million Americans ages 65 and older signed up for UnitedHealth's government-subsidized prescription drug coverage since the beginning of 2006 under the U.S. Medicare health program. The company captured 35 percent of the market, giving the drug benefit a prominent role in sales and earnings.
More than 5.7 million Americans ages 65 and older signed up for UnitedHealth's government-subsidized prescription drug coverage since the beginning of 2006 under the U.S. Medicare health program. The company captured 35 percent of the market, giving the drug benefit a prominent role in sales and earnings.
Wednesday, July 19, 2006
Health Insurance for chamber
Sherry Anne Rubiano
The Arizona Republic
Jul. 19, 2006 12:00 AM
Finding an affordable health insurance plan has been a challenge for Carol Lawson, who owns Sign*A*Rama in Glendale.
Lawson has switched her business' health insurance coverage several times in the past five years in search of the best service and price for her and her three employees.
She signed up for yet another plan, which is offered through a new partnership between Humana and the Glendale Chamber of Commerce that she expects will save her hundreds of dollars a year. advertisement
Humana, a health benefits company headquartered in Louisville, Ky., has partnered with the Glendale chamber and seven other chambers in the North and West Valley Chambers of Commerce alliance to offer the organizations' members a discounted small business health insurance program.
The Chamber of Commerce Health Benefit Solution will include health, dental and life insurance coverage to businesses belonging to participating chambers.
The alliance is made up of eight chambers, including the Glendale, Peoria, Northwest Valley, Southwest Valley and Buckeye Valley chambers, and represents more than 4,000 businesses.
Chamber members are eligible for the plan, but rates for each business vary.
Policies are effective starting next month.
Jennifer Willis, director of sales for Humana, said Humana recognized the need to offer a program for smaller companies.
"What we're finding is some small businesses choose not to cover because they can't afford it," Willis said.
She said the plans are tailored to be affordable for small businesses and will be offered for groups as small as two people.
Humana is offering three health plan options: traditional preferred provider organization plans, high-deductible health plans with optional health savings accounts, and CoverageFirst.
Humana representatives will host workshops to explain the plan and will offer wellness and health education programs, such as a health risk assessment, stress management and health resources, and CPR and first aid training, as part of the program.
Members who sign up will have access to a 24-hour nurse line and online services, such as a Web page where they can track claims online.
The Arizona Republic
Jul. 19, 2006 12:00 AM
Finding an affordable health insurance plan has been a challenge for Carol Lawson, who owns Sign*A*Rama in Glendale.
Lawson has switched her business' health insurance coverage several times in the past five years in search of the best service and price for her and her three employees.
She signed up for yet another plan, which is offered through a new partnership between Humana and the Glendale Chamber of Commerce that she expects will save her hundreds of dollars a year. advertisement
Humana, a health benefits company headquartered in Louisville, Ky., has partnered with the Glendale chamber and seven other chambers in the North and West Valley Chambers of Commerce alliance to offer the organizations' members a discounted small business health insurance program.
The Chamber of Commerce Health Benefit Solution will include health, dental and life insurance coverage to businesses belonging to participating chambers.
The alliance is made up of eight chambers, including the Glendale, Peoria, Northwest Valley, Southwest Valley and Buckeye Valley chambers, and represents more than 4,000 businesses.
Chamber members are eligible for the plan, but rates for each business vary.
Policies are effective starting next month.
Jennifer Willis, director of sales for Humana, said Humana recognized the need to offer a program for smaller companies.
"What we're finding is some small businesses choose not to cover because they can't afford it," Willis said.
She said the plans are tailored to be affordable for small businesses and will be offered for groups as small as two people.
Humana is offering three health plan options: traditional preferred provider organization plans, high-deductible health plans with optional health savings accounts, and CoverageFirst.
Humana representatives will host workshops to explain the plan and will offer wellness and health education programs, such as a health risk assessment, stress management and health resources, and CPR and first aid training, as part of the program.
Members who sign up will have access to a 24-hour nurse line and online services, such as a Web page where they can track claims online.
No Car Insurance No Mercy
From WomanMotorist.com
The winds of change are blowing in California, and if you are one of the nearly 3 million California motorists driving without automobile insurance, you better hold on to your hat.
A few years back, a young woman ran a red light and smashed into my car. She had small, weeping children by her side and no driver?s license. After a frantic phone call, her husband arrived with their insurance information scrawled on a rumpled piece of notebook paper.
I wrote down the information and dutifully reported the incident to my insurance company.
My insurance agent called me back within minutes. The policy information on the crumpled note was bogus. The woman who mangled my vehicle was uninsured.
Many of us shell out a seemingly endless stream of cash year after year in order to comply with mandatory auto insurance laws. We pay the bills and push back our dismay at spending such large sums on something we cannot immediately see or touch.
California legislators now are rolling out a three-phase plan with the sole intent of making uninsured motorists in California a thing of the past.
As of Jan. 1, insurance agencies are required to electronically submit evidence of financial responsibility to the DMV. If your insurance is discontinued for any reason, the DMV will be notified. They will then send you an unpleasant little note along with your registration renewal, requesting that you submit proof of financial responsibility before they will send your new registration.
If you are pulled over on or after July 1 of this year, the excuse that you left your car insurance card in your other pants will no longer fly. As of that date, law enforcement will have access to the current status of your insurance, as well.
The final ax will fall on October 6, 2006. As of that date, the California DMV will be required to suspend the registrations of uninsured motorists.
While some people undoubtedly choose to not have car insurance as some sort of snub to bureaucracy and authority, it's more likely that sky-high auto insurance premiums are simply out of reach for many lower-income drivers.
No worries, though. The state has that base covered for many Californians, as well. As of April 1, the California Low Cost Auto Insurance Program (CLCA), previously available only in Los Angeles and San Francisco counties, is being offered to low-income drivers in Alameda, Fresno, Orange, Riverside, San Bernardino and San Diego counties, as well.
The insurance is available from any licensed insurance agent at a cost of just over $300 per year. Lower-income drivers who meet the qualifying guidelines will be able to protect themselves and their families while complying with the law. More information about the program is available at the state Department of Insurance web site, www.insurance.ca.gov .
If you drive into Los Angeles County today, it is estimated that one in four people on the road with you are driving without insurance.
If the new laws work as they are designed to, that will soon not be the case.
The winds of change are blowing in California, and if you are one of the nearly 3 million California motorists driving without automobile insurance, you better hold on to your hat.
A few years back, a young woman ran a red light and smashed into my car. She had small, weeping children by her side and no driver?s license. After a frantic phone call, her husband arrived with their insurance information scrawled on a rumpled piece of notebook paper.
I wrote down the information and dutifully reported the incident to my insurance company.
My insurance agent called me back within minutes. The policy information on the crumpled note was bogus. The woman who mangled my vehicle was uninsured.
Many of us shell out a seemingly endless stream of cash year after year in order to comply with mandatory auto insurance laws. We pay the bills and push back our dismay at spending such large sums on something we cannot immediately see or touch.
California legislators now are rolling out a three-phase plan with the sole intent of making uninsured motorists in California a thing of the past.
As of Jan. 1, insurance agencies are required to electronically submit evidence of financial responsibility to the DMV. If your insurance is discontinued for any reason, the DMV will be notified. They will then send you an unpleasant little note along with your registration renewal, requesting that you submit proof of financial responsibility before they will send your new registration.
If you are pulled over on or after July 1 of this year, the excuse that you left your car insurance card in your other pants will no longer fly. As of that date, law enforcement will have access to the current status of your insurance, as well.
The final ax will fall on October 6, 2006. As of that date, the California DMV will be required to suspend the registrations of uninsured motorists.
While some people undoubtedly choose to not have car insurance as some sort of snub to bureaucracy and authority, it's more likely that sky-high auto insurance premiums are simply out of reach for many lower-income drivers.
No worries, though. The state has that base covered for many Californians, as well. As of April 1, the California Low Cost Auto Insurance Program (CLCA), previously available only in Los Angeles and San Francisco counties, is being offered to low-income drivers in Alameda, Fresno, Orange, Riverside, San Bernardino and San Diego counties, as well.
The insurance is available from any licensed insurance agent at a cost of just over $300 per year. Lower-income drivers who meet the qualifying guidelines will be able to protect themselves and their families while complying with the law. More information about the program is available at the state Department of Insurance web site, www.insurance.ca.gov .
If you drive into Los Angeles County today, it is estimated that one in four people on the road with you are driving without insurance.
If the new laws work as they are designed to, that will soon not be the case.
Tuesday, July 18, 2006
Retiree Health Insurance Change
RALEIGH, N.C. The General Assembly has decided to take away a big benefit from future state employees, public school teachers and legislators.
Lawmakers agreed tonight to extend the amount of time state employees would have to work before receiving free health coverage for themselves when they retire.
The law now allows workers with only five years of service to get that benefit when they turn 60.
The bill extends that wait to 20 years of service.
The measure heads to Governor Easley's desk after the Senate unanimously agreed to House changes.
Lawmakers say the change is designed to encourage healthy workers to stay with the government or the public schools and discourage people from working for the state for a few years and quitting.
The bill is considered a first step toward catching up with the state's unfunded health care liability for current and future retirees. Those obligations toward retirees outpaces money set aside by more than 13 (B) billion dollars.
Lawmakers agreed tonight to extend the amount of time state employees would have to work before receiving free health coverage for themselves when they retire.
The law now allows workers with only five years of service to get that benefit when they turn 60.
The bill extends that wait to 20 years of service.
The measure heads to Governor Easley's desk after the Senate unanimously agreed to House changes.
Lawmakers say the change is designed to encourage healthy workers to stay with the government or the public schools and discourage people from working for the state for a few years and quitting.
The bill is considered a first step toward catching up with the state's unfunded health care liability for current and future retirees. Those obligations toward retirees outpaces money set aside by more than 13 (B) billion dollars.
California Auto Insurance Rates
The time has long passed for California's auto insurance companies to base their rates not on where people live but on how they drive.
Proposition 103 mandated as much back in 1988, but peer pressure by the insurance industry has prevented any individual insurers from breaking from the ranks. Finally, this oligopoly appears to be fracturing. The Automobile Club of Southern California, the state's fourth-largest auto insurer with 1 million customers, announced recently that it would base its rates primarily on how safely its customers drive, and how much they drive. The Automobile Club of Northern California, the sixth-largest insurer, is joining its southern cousin in making the change. This is a significant victory for Insurance Commissioner John Garamendi, who has been battling the insurers for years, although it is unclear whether other insurers will follow suit.
Auto insurance rates in California are all over the map, since they are largely based on a person's ZIP code. A report by Consumers Union found that a 22-year-old woman with a good driving record would pay much higher rates if she lived in a largely Hispanic or African American neighborhood instead of a largely white one. While other factors might account for this disparity, it is obvious that current rates don't adequately reward individual drivers who are careful and use their cars sparingly.
Garamendi will leave office this year, so it could be up to his successor -- either Cruz Bustamante or Steve Poizner -- to continue this fight. If more insurance companies are pressured to reform their rates, motorists will be able to shop around and use the market to pressure the holdouts.
Proposition 103 mandated as much back in 1988, but peer pressure by the insurance industry has prevented any individual insurers from breaking from the ranks. Finally, this oligopoly appears to be fracturing. The Automobile Club of Southern California, the state's fourth-largest auto insurer with 1 million customers, announced recently that it would base its rates primarily on how safely its customers drive, and how much they drive. The Automobile Club of Northern California, the sixth-largest insurer, is joining its southern cousin in making the change. This is a significant victory for Insurance Commissioner John Garamendi, who has been battling the insurers for years, although it is unclear whether other insurers will follow suit.
Auto insurance rates in California are all over the map, since they are largely based on a person's ZIP code. A report by Consumers Union found that a 22-year-old woman with a good driving record would pay much higher rates if she lived in a largely Hispanic or African American neighborhood instead of a largely white one. While other factors might account for this disparity, it is obvious that current rates don't adequately reward individual drivers who are careful and use their cars sparingly.
Garamendi will leave office this year, so it could be up to his successor -- either Cruz Bustamante or Steve Poizner -- to continue this fight. If more insurance companies are pressured to reform their rates, motorists will be able to shop around and use the market to pressure the holdouts.
Monday, July 17, 2006
Requiring Health Insurance
By Fred Lucas
THE NEWS-TIMES
Health insurance in Connecticut could be mandatory in the same way as car insurance.
Lawmakers are in the early stages of mimicking the Massachusetts law that took effect this month requiring all Massachusetts residents to buy health insurance.
The theory is if everybody buys insurance, the pool will expand and prices will fall.
Many people opt not to buy health insurance because they are young, healthy, can't afford it, or feel they don't need it. However, when the uninsured are treated in hospitals, the costs are passed on to the public, officials say.
"In 2007, this is going to be the biggest issue facing the Democratic caucus and facing the legislature," said House Speaker James Amann, D-Milford. "Our model will be close to the Massachusetts model. But it will also have school clinics and dental clinics."
Amann started a Healthy Kids Connecticut task force last year to hammer out a plan. It includes doctors, lawyers, and representatives of the insurance industry, business and labor.
Massachusetts Gov. Mitt Romney, a Republican, put together a similar task force and was able to pass a proposal through his state's largely Democratic legislature.
The Healthy Kids task force will meet with representatives from Romney's office in August.
Amann believes a free enterprise system is better than a universal health care system, saying people in Canada and England can't get treatment for certain conditions under those government-controlled health care systems.
"Massachusetts had an outstanding bill in many ways," Amann said. "What we want to do is make sure it would be sustainable here."
The Universal Health Care Foundation of Connecticut recently commissioned a study that found a state-administered health care plan would maximize government purchasing power to negotiate rates. Still, the group is not opposed to the Massachusetts-style plan.
"Massachusetts is doing what it believes is right for the state. Connecticut has to do the same," said Janet Davenport, spokeswoman for the foundation. "Similar to other states, Connecticut continues to compare and contrast proposals to see what will work given our specific needs."
Not everyone is on board with the concept.
"Before we duplicate it, we might want to see if it's a good idea and how it works out," said Eric George, associate counsel for the Connecticut Business and Industry Association as well as a member of the Healthy Kids Connecticut task force.
George said health care costs are a huge burden on business, and have increased at a faster rate than inflation.
However, to reduce costs, the state must reduce mandates on health insurance companies, such as requiring coverage for mental health services, infertility and chiropractic treatment, George said.
"If you don't address the cost drivers, you are just shifting the cost," George said.
But what happened in Massachusetts is better than a government-run system, said state Sen. Andrew Roraback, a Goshen Republican whose district includes Brookfield and New Milford.
"Connecticut is not going to convert to a government-run program," Roraback said. "Connecticut needs to do a better job providing basic coverage for people with no insurance. None of us can sit on our hands and wait for a solution from Washington, D.C."
THE NEWS-TIMES
Health insurance in Connecticut could be mandatory in the same way as car insurance.
Lawmakers are in the early stages of mimicking the Massachusetts law that took effect this month requiring all Massachusetts residents to buy health insurance.
The theory is if everybody buys insurance, the pool will expand and prices will fall.
Many people opt not to buy health insurance because they are young, healthy, can't afford it, or feel they don't need it. However, when the uninsured are treated in hospitals, the costs are passed on to the public, officials say.
"In 2007, this is going to be the biggest issue facing the Democratic caucus and facing the legislature," said House Speaker James Amann, D-Milford. "Our model will be close to the Massachusetts model. But it will also have school clinics and dental clinics."
Amann started a Healthy Kids Connecticut task force last year to hammer out a plan. It includes doctors, lawyers, and representatives of the insurance industry, business and labor.
Massachusetts Gov. Mitt Romney, a Republican, put together a similar task force and was able to pass a proposal through his state's largely Democratic legislature.
The Healthy Kids task force will meet with representatives from Romney's office in August.
Amann believes a free enterprise system is better than a universal health care system, saying people in Canada and England can't get treatment for certain conditions under those government-controlled health care systems.
"Massachusetts had an outstanding bill in many ways," Amann said. "What we want to do is make sure it would be sustainable here."
The Universal Health Care Foundation of Connecticut recently commissioned a study that found a state-administered health care plan would maximize government purchasing power to negotiate rates. Still, the group is not opposed to the Massachusetts-style plan.
"Massachusetts is doing what it believes is right for the state. Connecticut has to do the same," said Janet Davenport, spokeswoman for the foundation. "Similar to other states, Connecticut continues to compare and contrast proposals to see what will work given our specific needs."
Not everyone is on board with the concept.
"Before we duplicate it, we might want to see if it's a good idea and how it works out," said Eric George, associate counsel for the Connecticut Business and Industry Association as well as a member of the Healthy Kids Connecticut task force.
George said health care costs are a huge burden on business, and have increased at a faster rate than inflation.
However, to reduce costs, the state must reduce mandates on health insurance companies, such as requiring coverage for mental health services, infertility and chiropractic treatment, George said.
"If you don't address the cost drivers, you are just shifting the cost," George said.
But what happened in Massachusetts is better than a government-run system, said state Sen. Andrew Roraback, a Goshen Republican whose district includes Brookfield and New Milford.
"Connecticut is not going to convert to a government-run program," Roraback said. "Connecticut needs to do a better job providing basic coverage for people with no insurance. None of us can sit on our hands and wait for a solution from Washington, D.C."
New Auto Insurance Regulations for CA
SACRAMENTO – The following is a statement from California Insurance Commissioner John Garamendi:
“Today is an important day for drivers in California. The Office of Administrative Law (OAL) has approved my regulations requiring insurers to place more weight on how safely you drive than on where you live when setting rates. This was the hope of voters who passed the landmark Proposition 103 in 1988 to end Zip code discrimination. I commend the OAL and Governor Schwarzenegger for moving the approval process along expeditiously.
“Insurers will now have 30 days to submit new rating plans to my office that comply with the new regulations. From that point they will have a two-year phase-in period to fully implement their plans.
“As I stated earlier, today's action finally realizes the promise Californians sought when they voted for Proposition 103. Until now, insurers have been able to set rates based primarily on Zip codes or other optional factors, rather than on the three mandatory factors of Prop. 103: driving record, annual miles driven and driving experience. No more.
“I strongly encourage all insurers to follow the example of the Auto Club of Southern California in working with the Department to implement the regulations immediately, and in a manner that benefits their policyholders.”
“Today is an important day for drivers in California. The Office of Administrative Law (OAL) has approved my regulations requiring insurers to place more weight on how safely you drive than on where you live when setting rates. This was the hope of voters who passed the landmark Proposition 103 in 1988 to end Zip code discrimination. I commend the OAL and Governor Schwarzenegger for moving the approval process along expeditiously.
“Insurers will now have 30 days to submit new rating plans to my office that comply with the new regulations. From that point they will have a two-year phase-in period to fully implement their plans.
“As I stated earlier, today's action finally realizes the promise Californians sought when they voted for Proposition 103. Until now, insurers have been able to set rates based primarily on Zip codes or other optional factors, rather than on the three mandatory factors of Prop. 103: driving record, annual miles driven and driving experience. No more.
“I strongly encourage all insurers to follow the example of the Auto Club of Southern California in working with the Department to implement the regulations immediately, and in a manner that benefits their policyholders.”
Friday, July 14, 2006
Employer-Sponsored Health Insurance trends
"Employer-Sponsored Health Insurance -- Riding the Health Care Tiger," New England Journal of Medicine:
According to Blumenthal, one of the main strategies used by employers and insurers to address cost and quality concerns is shifting costs to employees by reducing benefits or dropping health insurance entirely. He says the other main strategy is to make larger reforms to the health care system by supporting consumer-directed care, pay-for-performance programs, disease-management efforts, wellness programs and other initiatives. Blumenthal predicts that the percentage of U.S. employers offering health insurance will fall below 50% in the next 20 years, while the role of government in insuring U.S. residents will increase "incrementally".
According to Blumenthal, one of the main strategies used by employers and insurers to address cost and quality concerns is shifting costs to employees by reducing benefits or dropping health insurance entirely. He says the other main strategy is to make larger reforms to the health care system by supporting consumer-directed care, pay-for-performance programs, disease-management efforts, wellness programs and other initiatives. Blumenthal predicts that the percentage of U.S. employers offering health insurance will fall below 50% in the next 20 years, while the role of government in insuring U.S. residents will increase "incrementally".
The Insurance Broker
By Susan Saksida
Is it better to buy insurance from an agent or from and independent insurance broker? This is the $4 billion dollar question as this is approximately what was paid in insurance commission in 2005 for all insurance products. About half of this relates to auto insurance premium.
For those of you who don't know the difference, an agent represents one insurance company and a broker represents several. I use both an agent and a broker to buy my insurance products. My agent is a professional agent, so apart from the fact that he represents only one insurance company he operates and is compensated in the same manner as a broker. I have no idea if I would like dealing with a call centre agent but the few times that I've had to speak to them, they've been pleasant and professional.
This is not the conclusion that my broker or the Independent Brokers Association of Canada wants you to reach. They've made a big effort to convince you that your best choice is a broker because of their independence, objectivity and advocacy on your behalf, even price. Take a look at their website at www.ibac.ca and they will explain all of their advantages. This sounds impressive but just like an agent, a broker's job is to sell you insurance first. What you should be looking for is complete transparency in your insurance transaction and to judge this, you need to know how a broker operates.
How independent is your broker?
While it is true that an independent broker is not an employee of an insurance company, they still represent only a limited number of companies and each dictates the type of client they want and the premium level they expect to reach. Although the broker may offer more selection than an agent, your choice may still be limited because of other factors. Ask your broker to explain the company affiliations and target markets of the companies represented and you may be surprised to find that of the eight or nine companies, only one or two are actually interested in insuring you.
Beware of brokers who give you exorbitantly high quotes with only one or two low quotes. These are filler quotes to make the lower priced one look better. Obtaining quotes is automated and not the lengthy process that it used to be, so don't be afraid to ask your broker for more quotes at different deductibles or limits to compare pricing options. A good broker will disclose affiliations and explain target marketing and if they know that you can't get a good price from the companies they represent, they will refer you elsewhere.
Is your broker objective?
If you are happy with your current insurance company, why move? Although rare, your broker may recommend that you change companies because there is solvency or reputation issue and this is done to protect you. Other times your broker may recommend you change solely for their own financial benefit because they can earn more commission with the new company. You should also be aware that brokers and insurance companies do cancel the service contracts between each other, which means that you must change to another insurance company of find a new broker if don't want to change.
Always ask your broker to explain why they are recommending the move and how it benefits you? If your premium remains the same but your broker will receive more compensation, you may be fine with the change but you should still know that this is the reason. Not surprisingly, there are some advantages to being a long-time insured which you may lose when you move companies. Ask your broker to provide you with a written explanation why the change will benefit you and what they will do for you in the event of a dispute over premium or claims with the new company that may have been avoided with your current company.
Is your broker a good advocate on your behalf?
Insurance companies take the complaints of some brokers very seriously and will respond quickly, but this is not true for all brokers. If your broker is inexperienced in claims, their advocacy on your behalf may be well intentioned but weak. Also, some brokers can be very selective about which complaints they will pursue aggressively and although your position is correct, they may be reluctant to upset the insurance company.
A good broker who knows claims will explain when you are wrong and will give you reasons why and if you are right, they will advocate strongly on your behalf. Ask your broker about their specific claims experience or who in their office will be your advocate. In serious disputes with your insurance company, ask that all communication between the broker and the company be in writing and copied to you. Too often advocacy consists of one or two phone calls and a documented refusal by the insurance company in your client file, which simply is not adequate.
How is your broker compensated?
Brokers are now beginning to disclose their compensation which is a good thing. Don't be shy to ask your broker about the compensation received on your business. Currently average auto commission levels run between 10% -12% plus bonus, plus incentives which can add 5% or higher. Commission for auto is somewhat regulated but it is not for some personal property and most commercial insurance, which can run as high as 30%. Savvy clients are negotiating fixed service fees for certain policies and allowing their broker to receive commission for others. Speak to your broker to determine if this will work for you.
At the end of the day, who you buy auto insurance from is often dictated by the company you choose; some only sell through brokers and others use agents exclusively. Your best advantage is to be a knowledgeable consumer.
Is it better to buy insurance from an agent or from and independent insurance broker? This is the $4 billion dollar question as this is approximately what was paid in insurance commission in 2005 for all insurance products. About half of this relates to auto insurance premium.
For those of you who don't know the difference, an agent represents one insurance company and a broker represents several. I use both an agent and a broker to buy my insurance products. My agent is a professional agent, so apart from the fact that he represents only one insurance company he operates and is compensated in the same manner as a broker. I have no idea if I would like dealing with a call centre agent but the few times that I've had to speak to them, they've been pleasant and professional.
This is not the conclusion that my broker or the Independent Brokers Association of Canada wants you to reach. They've made a big effort to convince you that your best choice is a broker because of their independence, objectivity and advocacy on your behalf, even price. Take a look at their website at www.ibac.ca and they will explain all of their advantages. This sounds impressive but just like an agent, a broker's job is to sell you insurance first. What you should be looking for is complete transparency in your insurance transaction and to judge this, you need to know how a broker operates.
How independent is your broker?
While it is true that an independent broker is not an employee of an insurance company, they still represent only a limited number of companies and each dictates the type of client they want and the premium level they expect to reach. Although the broker may offer more selection than an agent, your choice may still be limited because of other factors. Ask your broker to explain the company affiliations and target markets of the companies represented and you may be surprised to find that of the eight or nine companies, only one or two are actually interested in insuring you.
Beware of brokers who give you exorbitantly high quotes with only one or two low quotes. These are filler quotes to make the lower priced one look better. Obtaining quotes is automated and not the lengthy process that it used to be, so don't be afraid to ask your broker for more quotes at different deductibles or limits to compare pricing options. A good broker will disclose affiliations and explain target marketing and if they know that you can't get a good price from the companies they represent, they will refer you elsewhere.
Is your broker objective?
If you are happy with your current insurance company, why move? Although rare, your broker may recommend that you change companies because there is solvency or reputation issue and this is done to protect you. Other times your broker may recommend you change solely for their own financial benefit because they can earn more commission with the new company. You should also be aware that brokers and insurance companies do cancel the service contracts between each other, which means that you must change to another insurance company of find a new broker if don't want to change.
Always ask your broker to explain why they are recommending the move and how it benefits you? If your premium remains the same but your broker will receive more compensation, you may be fine with the change but you should still know that this is the reason. Not surprisingly, there are some advantages to being a long-time insured which you may lose when you move companies. Ask your broker to provide you with a written explanation why the change will benefit you and what they will do for you in the event of a dispute over premium or claims with the new company that may have been avoided with your current company.
Is your broker a good advocate on your behalf?
Insurance companies take the complaints of some brokers very seriously and will respond quickly, but this is not true for all brokers. If your broker is inexperienced in claims, their advocacy on your behalf may be well intentioned but weak. Also, some brokers can be very selective about which complaints they will pursue aggressively and although your position is correct, they may be reluctant to upset the insurance company.
A good broker who knows claims will explain when you are wrong and will give you reasons why and if you are right, they will advocate strongly on your behalf. Ask your broker about their specific claims experience or who in their office will be your advocate. In serious disputes with your insurance company, ask that all communication between the broker and the company be in writing and copied to you. Too often advocacy consists of one or two phone calls and a documented refusal by the insurance company in your client file, which simply is not adequate.
How is your broker compensated?
Brokers are now beginning to disclose their compensation which is a good thing. Don't be shy to ask your broker about the compensation received on your business. Currently average auto commission levels run between 10% -12% plus bonus, plus incentives which can add 5% or higher. Commission for auto is somewhat regulated but it is not for some personal property and most commercial insurance, which can run as high as 30%. Savvy clients are negotiating fixed service fees for certain policies and allowing their broker to receive commission for others. Speak to your broker to determine if this will work for you.
At the end of the day, who you buy auto insurance from is often dictated by the company you choose; some only sell through brokers and others use agents exclusively. Your best advantage is to be a knowledgeable consumer.
Thursday, July 13, 2006
Health Insurance for domestic partners
By Mark Pitsch
The Courier-Journal
The University of Louisville is considering offering health insurance benefits to the non-married domestic partners of U of L employees.
The school would be the first public university in the state to do so, said John Drees, a university spokesman.
Gay and lesbian as well as heterosexual partners would be eligible, he said.
According to the Human Rights Campaign, a Washington, D.C.-based gay and lesbian rights group, 298 universities across the country offer health insurance benefits to domestic partners.
U of L trustees are scheduled to vote Thursday on whether to authorize President James R. Ramsey “to take appropriate action for the inclusion of domestic partners” in the university’s employee health insurance benefit policy.
Further details of the proposal weren’t immediately available.
The trustee meetings are scheduled to begin at 1 p.m. They are held in the Jefferson Room of Grawemeyer Hall.
Read full coverage in Thursday’s Courier-Journal.
The Courier-Journal
The University of Louisville is considering offering health insurance benefits to the non-married domestic partners of U of L employees.
The school would be the first public university in the state to do so, said John Drees, a university spokesman.
Gay and lesbian as well as heterosexual partners would be eligible, he said.
According to the Human Rights Campaign, a Washington, D.C.-based gay and lesbian rights group, 298 universities across the country offer health insurance benefits to domestic partners.
U of L trustees are scheduled to vote Thursday on whether to authorize President James R. Ramsey “to take appropriate action for the inclusion of domestic partners” in the university’s employee health insurance benefit policy.
Further details of the proposal weren’t immediately available.
The trustee meetings are scheduled to begin at 1 p.m. They are held in the Jefferson Room of Grawemeyer Hall.
Read full coverage in Thursday’s Courier-Journal.
AAA sets pace for auto insurance companies
Should drivers have to pay dramatically more for auto insurance simply because they live in Palm Springs rather than La Quinta or Palm Desert?
They shouldn't. That's why we were heartened to hear AAA plans to base rates primarily on a person's driving record, miles spent annually on the road and years of driving experience rather than ZIP codes. We hope other insurance companies follow suit.
Monday's move - affecting about a million policyholders across the state - finally begins to fulfill Proposition 103's mandate. And state voters approved the proposition in 1988.
Insurance companies have long fought the change through the courts, saying ZIP codes are an essential factor in assessing risks and costs. Granted, where one lives has some bearing on the potential for an accident and auto thefts. Communities with more inexperienced drivers and heavily traveled roads often do see high accident rates. Some communities suffer higher crime rates.
But by far what determines if one will file an insurance claim are other factors. More experienced drivers usually have low accident rates as they are better able to avoid and respond to a road hazard, both state and national transportation statistics show. In addition, those who drive more miles usually have high accident rates as they put themselves in harm's way more frequently.
Indeed, many people go years without an accident despite living in an area where collisions are frequent. Requiring that good driver to pay a higher rate hardly is fair or equitable.
Under insurance companies' current policies, ZIP codes can dramatically affect rates. In a quick survey of one insurance company, annual rates were higher by $326 in Palm Springs than in Palm Desert's 92255 delivery area, even though the lone variable was the ZIP code of one's residence. Living in La Quinta alone resulted in rates $228 lower than Palm Springs.
The differences are even wider in other areas of California, with annual rates hundreds of dollars apart in adjoining ZIP codes.
Certainly ZIP codes need to play a role in the formula for determining insurance rates. But they shouldn't be the primary factor.
In our computer age, rates easily can be based on an individual driver's characteristics rather than on a simple, generalized factor like ZIP codes.
It's time for other insurance companies to quit fighting Proposition 103 and follow AAA's move.
They shouldn't. That's why we were heartened to hear AAA plans to base rates primarily on a person's driving record, miles spent annually on the road and years of driving experience rather than ZIP codes. We hope other insurance companies follow suit.
Monday's move - affecting about a million policyholders across the state - finally begins to fulfill Proposition 103's mandate. And state voters approved the proposition in 1988.
Insurance companies have long fought the change through the courts, saying ZIP codes are an essential factor in assessing risks and costs. Granted, where one lives has some bearing on the potential for an accident and auto thefts. Communities with more inexperienced drivers and heavily traveled roads often do see high accident rates. Some communities suffer higher crime rates.
But by far what determines if one will file an insurance claim are other factors. More experienced drivers usually have low accident rates as they are better able to avoid and respond to a road hazard, both state and national transportation statistics show. In addition, those who drive more miles usually have high accident rates as they put themselves in harm's way more frequently.
Indeed, many people go years without an accident despite living in an area where collisions are frequent. Requiring that good driver to pay a higher rate hardly is fair or equitable.
Under insurance companies' current policies, ZIP codes can dramatically affect rates. In a quick survey of one insurance company, annual rates were higher by $326 in Palm Springs than in Palm Desert's 92255 delivery area, even though the lone variable was the ZIP code of one's residence. Living in La Quinta alone resulted in rates $228 lower than Palm Springs.
The differences are even wider in other areas of California, with annual rates hundreds of dollars apart in adjoining ZIP codes.
Certainly ZIP codes need to play a role in the formula for determining insurance rates. But they shouldn't be the primary factor.
In our computer age, rates easily can be based on an individual driver's characteristics rather than on a simple, generalized factor like ZIP codes.
It's time for other insurance companies to quit fighting Proposition 103 and follow AAA's move.
Tuesday, July 11, 2006
Health Insurance expansion to reach 95,000
RYAN KEITH
Associated Press
SPRINGFIELD, Ill. - State officials predicted Tuesday that 95,000 children would sign up for the state's All Kids health insurance program in its first year, nearly double what they initially expected.
Despite the larger enrollment, the program's $45 million budget will not have to be increased, state officials say.
"Our budget will more than cover the cost of all of these enrollments," said Kathleen Strand, a spokeswoman for the Department of Healthcare and Family Services. "We had to put a conservative estimate out there. Everything is on track."
Lawmakers greeted the new estimate cautiously, with some questioning whether the numbers would add up.
Strand said about 45,000 children have signed up so far. About 40,000 of those would have qualified for existing health programs but had never signed up. An additional 5,000 children would not be eligible for any government health care if All Kids didn't exist, she said.
That imbalance should shrink as the program attracts more families who can't afford private insurance but don't qualify for other government programs, she said.
All Kids, which debuted July 1, is the nation's first program meant to ensure every child has access to some health insurance coverage. It was approved last year by the Democrat-led Legislature along partisan lines and expected to have 50,000 enrollees in the first year.
It was created mainly to reach families making between $40,000 and $80,000 a year - too much to qualify for state-provided health coverage but not enough to afford private insurance.
Strand said the early enrollees are primarily in that income range.
The new, 95,000 estimate is based on agency projections and trends seen in other programs, she said.
"We're happy about the way the enrollments are trending," Strand said. "Now we are going to be able to exceed our goals within our budget, which is a good situation to be in."
Robyn Gabel, executive director of the Illinois Maternal and Child Health Coalition, said the numbers are an accurate reflection of hard work by the state and community providers to reach an estimated 250,000 Illinois kids who now lack coverage.
"As long as the outreach is kept up and the media is kept up, I think that we will be that much closer to insuring every child in the state," Gabel said.
Lawmakers from both parties said the numbers raise budget questions.
The program is supposed to be supported by co-payments from enrollees and by cutting health costs in other parts of the state budget. But many of the people enrolled so far are poor enough that they pay little for their care, and the cost-cutting switch to managed care is still under way.
Two Senate Republicans and members of the legislative Joint Committee on Administrative Rules who asked for the numbers said they would review them closely, with one saying they should be audited to determine their legitimacy.
"How in the world, if your numbers are accurate, are you going to pay for it?" asked Sen. Brad Burzynski, R-Clare.
Two top Democratic budget negotiators said they believe the administration's claims that the All Kids budget will work. But one cautioned that such a large enrollment boost puts pressure on the state to make sure there's enough money to cover everyone.
"Any time you start a new program, you're really taking a stab in the dark at how it's going to go," said Rep. Gary Hannig, D-Litchfield.
Associated Press
SPRINGFIELD, Ill. - State officials predicted Tuesday that 95,000 children would sign up for the state's All Kids health insurance program in its first year, nearly double what they initially expected.
Despite the larger enrollment, the program's $45 million budget will not have to be increased, state officials say.
"Our budget will more than cover the cost of all of these enrollments," said Kathleen Strand, a spokeswoman for the Department of Healthcare and Family Services. "We had to put a conservative estimate out there. Everything is on track."
Lawmakers greeted the new estimate cautiously, with some questioning whether the numbers would add up.
Strand said about 45,000 children have signed up so far. About 40,000 of those would have qualified for existing health programs but had never signed up. An additional 5,000 children would not be eligible for any government health care if All Kids didn't exist, she said.
That imbalance should shrink as the program attracts more families who can't afford private insurance but don't qualify for other government programs, she said.
All Kids, which debuted July 1, is the nation's first program meant to ensure every child has access to some health insurance coverage. It was approved last year by the Democrat-led Legislature along partisan lines and expected to have 50,000 enrollees in the first year.
It was created mainly to reach families making between $40,000 and $80,000 a year - too much to qualify for state-provided health coverage but not enough to afford private insurance.
Strand said the early enrollees are primarily in that income range.
The new, 95,000 estimate is based on agency projections and trends seen in other programs, she said.
"We're happy about the way the enrollments are trending," Strand said. "Now we are going to be able to exceed our goals within our budget, which is a good situation to be in."
Robyn Gabel, executive director of the Illinois Maternal and Child Health Coalition, said the numbers are an accurate reflection of hard work by the state and community providers to reach an estimated 250,000 Illinois kids who now lack coverage.
"As long as the outreach is kept up and the media is kept up, I think that we will be that much closer to insuring every child in the state," Gabel said.
Lawmakers from both parties said the numbers raise budget questions.
The program is supposed to be supported by co-payments from enrollees and by cutting health costs in other parts of the state budget. But many of the people enrolled so far are poor enough that they pay little for their care, and the cost-cutting switch to managed care is still under way.
Two Senate Republicans and members of the legislative Joint Committee on Administrative Rules who asked for the numbers said they would review them closely, with one saying they should be audited to determine their legitimacy.
"How in the world, if your numbers are accurate, are you going to pay for it?" asked Sen. Brad Burzynski, R-Clare.
Two top Democratic budget negotiators said they believe the administration's claims that the All Kids budget will work. But one cautioned that such a large enrollment boost puts pressure on the state to make sure there's enough money to cover everyone.
"Any time you start a new program, you're really taking a stab in the dark at how it's going to go," said Rep. Gary Hannig, D-Litchfield.
Auto Insurance trade groups vow to fight rate increases
The Associated Press
LOS ANGELES — A trade organization representing some of the state's largest auto insurers said it will keep fighting proposed rate-setting rules despite a decision by the Automobile Club of Southern California to honor them.
"The fact that one company has taken an action doesn't really diminish those arguments" against the rules, Rex Frazier, president of the Personal Insurance Federation of California, said Monday.
The Automobile Club of Southern California _ the state's No. 4 auto insurance carrier _ announced Monday that it will base its rates on safety and driving frequency rather than primarily on where a driver lives.
The plan, to take effect Dec. 1, would cut some $133 million from the annual bills of the club's nearly 1 million California policyholders.
The move would comply with the 18-year-old voter-approved Proposition 103, which required rates primarily be tied to a person's driving record, number of years licensed and total miles driven each year rather than the ZIP code where a vehicle is registered.
Insurance Commissioner John Garamendi announced in December that he would propose regulations to fulfill the aims of the initiative.
Sam Sorich, president of the Association of California Insurance Companies, said his group will still consider suing to block Garamendi's proposed rules if they survive a current state legal review.
The rules violate state insurance law and raise rates for people outside heavily populated cities, Sorich argued. The association represents several insurers, including No.5-ranked Allstate Corp.
The Automobile Club of Northern California said it would follow the lead of its Southern California organization and change its rate-setting procedure once the new rules were in place.
LOS ANGELES — A trade organization representing some of the state's largest auto insurers said it will keep fighting proposed rate-setting rules despite a decision by the Automobile Club of Southern California to honor them.
"The fact that one company has taken an action doesn't really diminish those arguments" against the rules, Rex Frazier, president of the Personal Insurance Federation of California, said Monday.
The Automobile Club of Southern California _ the state's No. 4 auto insurance carrier _ announced Monday that it will base its rates on safety and driving frequency rather than primarily on where a driver lives.
The plan, to take effect Dec. 1, would cut some $133 million from the annual bills of the club's nearly 1 million California policyholders.
The move would comply with the 18-year-old voter-approved Proposition 103, which required rates primarily be tied to a person's driving record, number of years licensed and total miles driven each year rather than the ZIP code where a vehicle is registered.
Insurance Commissioner John Garamendi announced in December that he would propose regulations to fulfill the aims of the initiative.
Sam Sorich, president of the Association of California Insurance Companies, said his group will still consider suing to block Garamendi's proposed rules if they survive a current state legal review.
The rules violate state insurance law and raise rates for people outside heavily populated cities, Sorich argued. The association represents several insurers, including No.5-ranked Allstate Corp.
The Automobile Club of Northern California said it would follow the lead of its Southern California organization and change its rate-setting procedure once the new rules were in place.
Monday, July 10, 2006
Auto Insurance Rates in Colorado lowered by Progressive
Progressive Auto Insurance announced today that it is lowering auto insurance premiums in Colorado by an average of 7.4 percent for new and existing customers effective June 30 and August 9, respectively.
"Progressive Direct bases rates on market conditions and our expected cost of doing business. We adjust rates as needed to ensure our policies are accurately priced," said Colorado Product Manager Michele Strub-Heer, Progressive Direct. "We continue to see lower claims costs, especially injury claims costs, as a result of the change from no-fault to tort so we're pleased to pass those savings on to drivers here."
This is the fifth time Progressive Direct has lowered its rates since July 2003 when auto insurance reforms took effect, for a cumulative reduction of nearly 30 percent.
"Progressive Direct bases rates on market conditions and our expected cost of doing business. We adjust rates as needed to ensure our policies are accurately priced," said Colorado Product Manager Michele Strub-Heer, Progressive Direct. "We continue to see lower claims costs, especially injury claims costs, as a result of the change from no-fault to tort so we're pleased to pass those savings on to drivers here."
This is the fifth time Progressive Direct has lowered its rates since July 2003 when auto insurance reforms took effect, for a cumulative reduction of nearly 30 percent.
Health Insurance in Ohio pays more for physical than mental illness
AP
COLUMBUS, Ohio - Some Ohio families struggling with mental illness are discovering that health insurance doesn't pay nearly as much to cover their bills as it would for physical ailments.
In Ohio, insurance companies usually cover no more than 20 mental health visits and 10 hospital days a year for hundreds of thousands of families. The maximum coverage for general health is typically $1 million over a lifetime, compared to $10,000 for mental health.
About 500,000 Ohio residents are affected by mental illnesses every year, said Laura Moskow Sigal, executive director of the Mental Health Association of Franklin County.
For Susan and Donald Mikolic, treating bipolar disorder in both of their teenage sons and other mental health problems in the family, including their own depression, has created $500,000 in debt over the past decade. They have had to sell their suburban Cleveland house, and have paid as much as $500 a week, mostly from their own pocket, so all four of them could see a psychiatrist.
"If my child had leukemia, we would not have lost our home. We would not be broke," said Susan Mikolic, a former nurse.
Some Ohio lawmakers have tried to prevent insurers from restricting coverage for mental health. In 35 states, insurers are required to cover mental illnesses the same as physical ones.
But insurance companies and small business owners argue that such coverage would increase their costs.
"Legislators have considered bills mandating insurance coverage for diabetes, maternity hospital stays, birth control, osteoporosis, infant formula and mental-health parity," said William Fitzgibbon, director of the Ohio Chamber of Commerce's Small Business Council. "Although each mandate may be viewed as an attractive, expedient solution for a particular health problem, the cumulative economic cost is staggering."
Advocates say the increase in costs would be less than 1 percent, based on other states' experience.
"The arguments against parity are only justifications for the discrimination of the mentally ill because they are seen as having less political clout and power than people without these illnesses," said Terry Russell, former executive director of the Ohio chapter of the National Alliance for the Mentally Ill.
Gov. Bob Taft opposes bills that would require parity in coverage, spokesman Mark Rickel said. Taft called for a moratorium on new health care mandates on businesses two years ago.
Denise Nichols of Maineville, northeast of Cincinnati, said her medical bills added up to $47,478 last year for treatment of several physical problems, including a heart attack and a torn ligament in her ankle. She paid $1,673 toward those bills.
But Nichols, 46, who has bipolar disorder, paid $1,910 of her total $3,071 in psychiatric bills.
State Rep. Jon Peterson of Delaware and Sen. Robert Spada of North Royalton, both Republicans, introduced bills last year to require employers to offer insurance that includes coverage of mental illnesses that are biologically based, such as major depression and schizophrenia. Both have stalled in the legislature.
Spada's son, James, was hospitalized in a mental health ward in 2003 and later diagnosed with bipolar disorder.
"It's time insurance companies treat a sick mind the same they would a sick heart," Spada said.
COLUMBUS, Ohio - Some Ohio families struggling with mental illness are discovering that health insurance doesn't pay nearly as much to cover their bills as it would for physical ailments.
In Ohio, insurance companies usually cover no more than 20 mental health visits and 10 hospital days a year for hundreds of thousands of families. The maximum coverage for general health is typically $1 million over a lifetime, compared to $10,000 for mental health.
About 500,000 Ohio residents are affected by mental illnesses every year, said Laura Moskow Sigal, executive director of the Mental Health Association of Franklin County.
For Susan and Donald Mikolic, treating bipolar disorder in both of their teenage sons and other mental health problems in the family, including their own depression, has created $500,000 in debt over the past decade. They have had to sell their suburban Cleveland house, and have paid as much as $500 a week, mostly from their own pocket, so all four of them could see a psychiatrist.
"If my child had leukemia, we would not have lost our home. We would not be broke," said Susan Mikolic, a former nurse.
Some Ohio lawmakers have tried to prevent insurers from restricting coverage for mental health. In 35 states, insurers are required to cover mental illnesses the same as physical ones.
But insurance companies and small business owners argue that such coverage would increase their costs.
"Legislators have considered bills mandating insurance coverage for diabetes, maternity hospital stays, birth control, osteoporosis, infant formula and mental-health parity," said William Fitzgibbon, director of the Ohio Chamber of Commerce's Small Business Council. "Although each mandate may be viewed as an attractive, expedient solution for a particular health problem, the cumulative economic cost is staggering."
Advocates say the increase in costs would be less than 1 percent, based on other states' experience.
"The arguments against parity are only justifications for the discrimination of the mentally ill because they are seen as having less political clout and power than people without these illnesses," said Terry Russell, former executive director of the Ohio chapter of the National Alliance for the Mentally Ill.
Gov. Bob Taft opposes bills that would require parity in coverage, spokesman Mark Rickel said. Taft called for a moratorium on new health care mandates on businesses two years ago.
Denise Nichols of Maineville, northeast of Cincinnati, said her medical bills added up to $47,478 last year for treatment of several physical problems, including a heart attack and a torn ligament in her ankle. She paid $1,673 toward those bills.
But Nichols, 46, who has bipolar disorder, paid $1,910 of her total $3,071 in psychiatric bills.
State Rep. Jon Peterson of Delaware and Sen. Robert Spada of North Royalton, both Republicans, introduced bills last year to require employers to offer insurance that includes coverage of mental illnesses that are biologically based, such as major depression and schizophrenia. Both have stalled in the legislature.
Spada's son, James, was hospitalized in a mental health ward in 2003 and later diagnosed with bipolar disorder.
"It's time insurance companies treat a sick mind the same they would a sick heart," Spada said.
Friday, July 7, 2006
Health Insurance Coverage lacking for some
By Michelle L. Start
mstart@news-press.com
Originally posted on July 07, 2006
It's a bill Leslee Botello wasn't expecting: $7,000 to treat her son's broken knuckle at Lehigh Regional Medical Center's emergency room.
Botello has health insurance and was told it would cover the hospital visit because the hospital was part of her insurer's medical-care network.
"I pay $600 a month to have health insurance and I don't make that much money," said Botello, 37, of Lehigh Acres.
Pat Schoeni, executive director for the National Coalition on Health Care, said stories like Botello's are more common.
"This is why we need health insurance reform," she said. "This is not happening to just poor people. It's the middle-class people who are suffering. The reason people ought to care is that it can happen to any of them."
While there is help available for the uninsured, those with insurance do not qualify for much, if anything, in the way of assistance. Reduced costs for prompt payment and, sometimes, payment plans are the only options available.
The coalition is a nonprofit, nonpartisan organization that focuses on improving health care.
Costs rising
A study prepared by PricewaterhouseCoopers on behalf of America's Health Insurance Plans found that higher use of services, increased consumer demand, new and more intensive medical treatments as well as aging and unhealthy lifestyles all contribute to the rising costs of health insurance.
America's Health Insurance Plans is a national association representing nearly 1,300 health insurance companies.
"It is getting to the point that people in the middle class are having to decide if they buy health insurance or if they pay for housing, food and all of those other things," Schoeni said. "It is becoming more and more of an issue for a lot of people."
The skyrocketing costs are leading more people to drop insurance, change their lifestyles or file for bankruptcy. Schoeni said that nearly half the people who have filed for bankruptcy have listed medical bills as a contributing factor.
While Botello's son was at the hospital for less than three hours in late April, the total bill exceeded $21,000. Her portion of that, after insurance kicked in their share of costs, was $7,000.
Botello called relatives, begging them to lend her $3,200, which the hospital agreed to accept as payment-in-full.
Officials with Lehigh Regional Medical Center declined to comment on the case, as well as anything insurance-related, citing concerns it might ruin the hospital's relationship with insurance carriers.
They said, however, the hospital is a for-profit center and, therefore, does not have many of the programs to help offset costs as other area hospitals.
Coverage at risk
Already 45 million Americans have no health coverage and the 255 million who do have it are at risk of losing it, according to Schoeni.
The statistics have Lee Memorial Health System president and chief executive officer Jim Nathan pushing for reform. At board meetings, Nathan speaks about the impact of the uninsured and underinsured on Lee County's medical care.
"Most of our programs are geared toward the uninsured. We don't (typically) discount for insured patients," said Billie Jo Debolt, system director for business services at Lee Memorial Hospital. "But, we do have some programs, like our prompt payment discount. If the bill is paid in full within 30 days, it can be 30 percent of the balance. We have sliding-scale discounts based on a person's income. If a person falls within 300 percent of federal poverty guidelines, they may be entitled to a 40 percent discount. If they fall within 400 percent, there may be a 30 percent discount."
mstart@news-press.com
Originally posted on July 07, 2006
It's a bill Leslee Botello wasn't expecting: $7,000 to treat her son's broken knuckle at Lehigh Regional Medical Center's emergency room.
Botello has health insurance and was told it would cover the hospital visit because the hospital was part of her insurer's medical-care network.
"I pay $600 a month to have health insurance and I don't make that much money," said Botello, 37, of Lehigh Acres.
Pat Schoeni, executive director for the National Coalition on Health Care, said stories like Botello's are more common.
"This is why we need health insurance reform," she said. "This is not happening to just poor people. It's the middle-class people who are suffering. The reason people ought to care is that it can happen to any of them."
While there is help available for the uninsured, those with insurance do not qualify for much, if anything, in the way of assistance. Reduced costs for prompt payment and, sometimes, payment plans are the only options available.
The coalition is a nonprofit, nonpartisan organization that focuses on improving health care.
Costs rising
A study prepared by PricewaterhouseCoopers on behalf of America's Health Insurance Plans found that higher use of services, increased consumer demand, new and more intensive medical treatments as well as aging and unhealthy lifestyles all contribute to the rising costs of health insurance.
America's Health Insurance Plans is a national association representing nearly 1,300 health insurance companies.
"It is getting to the point that people in the middle class are having to decide if they buy health insurance or if they pay for housing, food and all of those other things," Schoeni said. "It is becoming more and more of an issue for a lot of people."
The skyrocketing costs are leading more people to drop insurance, change their lifestyles or file for bankruptcy. Schoeni said that nearly half the people who have filed for bankruptcy have listed medical bills as a contributing factor.
While Botello's son was at the hospital for less than three hours in late April, the total bill exceeded $21,000. Her portion of that, after insurance kicked in their share of costs, was $7,000.
Botello called relatives, begging them to lend her $3,200, which the hospital agreed to accept as payment-in-full.
Officials with Lehigh Regional Medical Center declined to comment on the case, as well as anything insurance-related, citing concerns it might ruin the hospital's relationship with insurance carriers.
They said, however, the hospital is a for-profit center and, therefore, does not have many of the programs to help offset costs as other area hospitals.
Coverage at risk
Already 45 million Americans have no health coverage and the 255 million who do have it are at risk of losing it, according to Schoeni.
The statistics have Lee Memorial Health System president and chief executive officer Jim Nathan pushing for reform. At board meetings, Nathan speaks about the impact of the uninsured and underinsured on Lee County's medical care.
"Most of our programs are geared toward the uninsured. We don't (typically) discount for insured patients," said Billie Jo Debolt, system director for business services at Lee Memorial Hospital. "But, we do have some programs, like our prompt payment discount. If the bill is paid in full within 30 days, it can be 30 percent of the balance. We have sliding-scale discounts based on a person's income. If a person falls within 300 percent of federal poverty guidelines, they may be entitled to a 40 percent discount. If they fall within 400 percent, there may be a 30 percent discount."
cheap auto insurance?
by Mark Lyne
Cheap Car Insurance – What You Don’t Know Can Destroy You & Your Family!
“How can a low price on car insurance be bad?”
“Car insurance is car insurance, right? – If I am comparing $80/month at Insurer 1 and $70/month at Insurer 2 – why would I ever want to pay the higher amount?”
“Why should I understand those pesky numbers?”
All valid questions – although, if you have ever found yourself asking them (or a version of them) you should be downright scared, and concerned that you do not understand how your car insurance works.
One of the most dangerous positions in this life to find yourself in is one where find out too late that you “didn’t know something that you thought you knew” or you “didn’t know something that the law or ‘status quo’ thinks you should know”.
Let’s imagine …
You are driving along, as you do every day, heading to work and being the extremely conscientious driver you know yourself to be. You are NOT putting your make-up on; You are NOT talking on your cell phone; You are NOT fiddling with the radio; You are, in fact, paying close attention to the road and your surroundings.
While speaking to the police on the side of the road, you describe the incident:
Somebody pulled out into the right lane from a parking lot going about 30MPH, forcing the car already there to cross into my lane in front of me, for some reason, immediately after entering my lane they slammed on their brakes and I smashed into them!
Now, I am no police officer, nor do I play one on TV, but my guess is the accident as described is your fault. Fortunately, in our example, nobody is seriously hurt during the accident. For the sake of this article, lets admit that, while driving, things can happen very quickly and through no apparent fault of our own, we can be found legally “at fault” due to some other persons mistake.
What Do The Numbers Mean and Why Should I Understand Them?
In Texas, the State minimum required coverage to demonstrate financial responsibility is 20/40/15. We have all seen these numbers over and over again, but you would be surprised how many people have no idea what they mean.
Each number is in thousands and is the maximum coverage you would receive – so 20 means up to $20,000, 40 means up to $40,000, and 15 means up to $15,000. The first number is the per person bodily injury number in thousands. The second number is the total bodily injury per accident and the last number is the amount of property damage covered.
In our example above, let’s say that the person you hit received $10,000 in bodily injury. They were alone in the car and nobody else was hurt as a result of you hitting them. Their bodily injury would be covered because it is less than the $20,000 maximum per person limit, and also under the $40,000 per accident limit. However, they were driving a used 2006 Honda Odyssey Mini-van (a very popular model last year). This van is worth approximately $37,000. Now, depending on the speed you hit the van and how many airbags were deployed, let’s say the repair bill was somewhere in the neighborhood of $18,000. Based on your coverages, if you were carrying the Texas State minimum required, your insurance company would pay up to $15,000 and you would be responsible for $3,000.
How can a low price on car insurance be bad?
It is conceivable that our accident above would involve more than one car, or more than one person (in our example above, if the vehicle was a mini-van, it is likely that there would be at least 3 passengers). In the event that your maximum coverages do not cover the loss you may receive judgments to pay whatever balances are left over after your coverages have been exhausted.
In our example above, if the mini-van had 3 passengers and because you hit it, the driver swerved and hit another vehicle which had 2 passengers. If we leave everything the same so each person has $10,000 bodily injury and each vehicle sustains $18,000 damage. What would the numbers be?
5 people x $10,000 = $50,000
2 vehicles x $18,000 = $36,000
4 of the 5 people would be covered by your state minimum policy because everybody was under the $20,000 per person limit, but you maxed out your per accident bodily injury at $40,000, so you would need to take care of the 5th person on your own.
Next, your property damage coverage would pay for $15,000 leaving the remaining $21,000 to you.
Now, in both cases if the two vehicles in the accident were carrying uninsured/underinsured motorist coverage, their insurance company would take care of the excess bodily injury, and property damage costs not covered by your policy. The insurance company would then come after you to subrogate (make themselves whole) – and, believe me – the insurance companies KNOW how to get their money back… all $31,000 of it!
Questions to be considered when weighing that lower priced policy:
• Would an extra bill for $31,000 put a strain on your family?
• What would the wage garnishment cost us per month for a large judgment?
• Which is easier to afford? An extra $30/month, or a judgment for $3,000 - $31,000?
This is an example of how a low price can be bad – if your agent or company never takes the time to explain why the price is lower than the competitor, it is possible that they are “low-balling” your coverages rather than ensuring that you have the best policy and leverage of your insurance dollar.
Hopefully, this will help you steer clear of situations where you “don’t know what you don’t know” and you will be able to make a more informed decision.
Cheap Car Insurance – What You Don’t Know Can Destroy You & Your Family!
“How can a low price on car insurance be bad?”
“Car insurance is car insurance, right? – If I am comparing $80/month at Insurer 1 and $70/month at Insurer 2 – why would I ever want to pay the higher amount?”
“Why should I understand those pesky numbers?”
All valid questions – although, if you have ever found yourself asking them (or a version of them) you should be downright scared, and concerned that you do not understand how your car insurance works.
One of the most dangerous positions in this life to find yourself in is one where find out too late that you “didn’t know something that you thought you knew” or you “didn’t know something that the law or ‘status quo’ thinks you should know”.
Let’s imagine …
You are driving along, as you do every day, heading to work and being the extremely conscientious driver you know yourself to be. You are NOT putting your make-up on; You are NOT talking on your cell phone; You are NOT fiddling with the radio; You are, in fact, paying close attention to the road and your surroundings.
While speaking to the police on the side of the road, you describe the incident:
Somebody pulled out into the right lane from a parking lot going about 30MPH, forcing the car already there to cross into my lane in front of me, for some reason, immediately after entering my lane they slammed on their brakes and I smashed into them!
Now, I am no police officer, nor do I play one on TV, but my guess is the accident as described is your fault. Fortunately, in our example, nobody is seriously hurt during the accident. For the sake of this article, lets admit that, while driving, things can happen very quickly and through no apparent fault of our own, we can be found legally “at fault” due to some other persons mistake.
What Do The Numbers Mean and Why Should I Understand Them?
In Texas, the State minimum required coverage to demonstrate financial responsibility is 20/40/15. We have all seen these numbers over and over again, but you would be surprised how many people have no idea what they mean.
Each number is in thousands and is the maximum coverage you would receive – so 20 means up to $20,000, 40 means up to $40,000, and 15 means up to $15,000. The first number is the per person bodily injury number in thousands. The second number is the total bodily injury per accident and the last number is the amount of property damage covered.
In our example above, let’s say that the person you hit received $10,000 in bodily injury. They were alone in the car and nobody else was hurt as a result of you hitting them. Their bodily injury would be covered because it is less than the $20,000 maximum per person limit, and also under the $40,000 per accident limit. However, they were driving a used 2006 Honda Odyssey Mini-van (a very popular model last year). This van is worth approximately $37,000. Now, depending on the speed you hit the van and how many airbags were deployed, let’s say the repair bill was somewhere in the neighborhood of $18,000. Based on your coverages, if you were carrying the Texas State minimum required, your insurance company would pay up to $15,000 and you would be responsible for $3,000.
How can a low price on car insurance be bad?
It is conceivable that our accident above would involve more than one car, or more than one person (in our example above, if the vehicle was a mini-van, it is likely that there would be at least 3 passengers). In the event that your maximum coverages do not cover the loss you may receive judgments to pay whatever balances are left over after your coverages have been exhausted.
In our example above, if the mini-van had 3 passengers and because you hit it, the driver swerved and hit another vehicle which had 2 passengers. If we leave everything the same so each person has $10,000 bodily injury and each vehicle sustains $18,000 damage. What would the numbers be?
5 people x $10,000 = $50,000
2 vehicles x $18,000 = $36,000
4 of the 5 people would be covered by your state minimum policy because everybody was under the $20,000 per person limit, but you maxed out your per accident bodily injury at $40,000, so you would need to take care of the 5th person on your own.
Next, your property damage coverage would pay for $15,000 leaving the remaining $21,000 to you.
Now, in both cases if the two vehicles in the accident were carrying uninsured/underinsured motorist coverage, their insurance company would take care of the excess bodily injury, and property damage costs not covered by your policy. The insurance company would then come after you to subrogate (make themselves whole) – and, believe me – the insurance companies KNOW how to get their money back… all $31,000 of it!
Questions to be considered when weighing that lower priced policy:
• Would an extra bill for $31,000 put a strain on your family?
• What would the wage garnishment cost us per month for a large judgment?
• Which is easier to afford? An extra $30/month, or a judgment for $3,000 - $31,000?
This is an example of how a low price can be bad – if your agent or company never takes the time to explain why the price is lower than the competitor, it is possible that they are “low-balling” your coverages rather than ensuring that you have the best policy and leverage of your insurance dollar.
Hopefully, this will help you steer clear of situations where you “don’t know what you don’t know” and you will be able to make a more informed decision.
Thursday, July 6, 2006
Mexico Tourist Auto Insurance
From Insurance Journal
Flagstaff, Arizona - As the premium volume for Mexico tourist insurance continues to boom, fueled by an increase in the Hispanic market and escalating tourism to Mexico, another well-respected insurer has entered the market.
ABA Seguros, GMAC's Mexico Insurance subsidiary, announced recently that they have developed a specialty in this area and are seeking producers throughout the USA to market the ABA/GMAC Mexico Tourist auto program to Hispanics and Tourists who drive to Mexico to visit relatives or vacation.
The ABA/GMAC Mexico Insurance program offers special coverages not typically available from other Mexico Insurers. Generous commissions are available. Producers seeking appointments should visit www.mexicoinsuranceonline.com, the website which is operated by International Insurance Group, Inc, a leading Third Party Administrator offering US insurance companies, agents, and brokers with a facility to quickly and easily place online Mexico coverage for their policyholders and customers.
Flagstaff, Arizona - As the premium volume for Mexico tourist insurance continues to boom, fueled by an increase in the Hispanic market and escalating tourism to Mexico, another well-respected insurer has entered the market.
ABA Seguros, GMAC's Mexico Insurance subsidiary, announced recently that they have developed a specialty in this area and are seeking producers throughout the USA to market the ABA/GMAC Mexico Tourist auto program to Hispanics and Tourists who drive to Mexico to visit relatives or vacation.
The ABA/GMAC Mexico Insurance program offers special coverages not typically available from other Mexico Insurers. Generous commissions are available. Producers seeking appointments should visit www.mexicoinsuranceonline.com, the website which is operated by International Insurance Group, Inc, a leading Third Party Administrator offering US insurance companies, agents, and brokers with a facility to quickly and easily place online Mexico coverage for their policyholders and customers.
Health Insurance break likely but may not last
Howard Fischer
Capitol Media Services
Small Arizona businesses and their employees who have no health insurance may get some state help, but it could be temporary.
Gov. Janet Napolitano has signed legislation providing state tax credits to health insurance companies that write policies for those who do not have coverage. The credits would cover half the cost of premiums, up to $1,000 a year for individuals and $3,000 for families.
But the insurers would not keep the money: House Bill 2177 requires them to discount their premiums by the same amount.
Rep. Doug Quelland, R-Phoenix, said the idea is to help the estimated 1.1 million Arizonans, more than one out of every six residents, who do not have health insurance.
Quelland said that perhaps half of those people are choosing not to spend the money. But he said the other half would like insurance but make too much to qualify for state-paid coverage while not earning enough to be able to afford the premiums themselves.
This subsidy, available to businesses with between two and 25 employees as well as individuals who are employed there, would last a maximum of three years. After that, the person or company would have to either absorb the full cost or decide whether to go without insurance.
Quelland, however, said he doubts that most of those who will get the state help will choose the latter because they will recognize the benefit of having coverage.
"Maybe sometime in that three years they actually used it and they might see some value to it," he said. But he conceded that might not be the universal response, with others concluding they really don't need insurance and, if they have a major illness, they will go to a hospital emergency room.
The new law could reduce state revenues up to $5 million a year, the maximum of tax credits for insurers allowed annually. But Quelland, who had originally sought $20 million, said he hopes the program proves such a success that lawmakers will expand it next year.
Capitol Media Services
Small Arizona businesses and their employees who have no health insurance may get some state help, but it could be temporary.
Gov. Janet Napolitano has signed legislation providing state tax credits to health insurance companies that write policies for those who do not have coverage. The credits would cover half the cost of premiums, up to $1,000 a year for individuals and $3,000 for families.
But the insurers would not keep the money: House Bill 2177 requires them to discount their premiums by the same amount.
Rep. Doug Quelland, R-Phoenix, said the idea is to help the estimated 1.1 million Arizonans, more than one out of every six residents, who do not have health insurance.
Quelland said that perhaps half of those people are choosing not to spend the money. But he said the other half would like insurance but make too much to qualify for state-paid coverage while not earning enough to be able to afford the premiums themselves.
This subsidy, available to businesses with between two and 25 employees as well as individuals who are employed there, would last a maximum of three years. After that, the person or company would have to either absorb the full cost or decide whether to go without insurance.
Quelland, however, said he doubts that most of those who will get the state help will choose the latter because they will recognize the benefit of having coverage.
"Maybe sometime in that three years they actually used it and they might see some value to it," he said. But he conceded that might not be the universal response, with others concluding they really don't need insurance and, if they have a major illness, they will go to a hospital emergency room.
The new law could reduce state revenues up to $5 million a year, the maximum of tax credits for insurers allowed annually. But Quelland, who had originally sought $20 million, said he hopes the program proves such a success that lawmakers will expand it next year.
Wednesday, July 5, 2006
Higher Car Insurance for latinos
According to a new study if you live in a Latino or African American neighborhood expect to pay more for car insurance. No matter how you put it minorities always have it bad, whether it’s getting pulled over by the police for "driving while being brown" or in this case having to pay more to drive.
After dissecting the price among the state's three largest auto insurance company in more than 500 ZIP codes, Consumers Union found car insurance in black neighborhoods costs 37.5 percent to 83.5 percent more than in communities dominated by non-Hispanic whites. That means the biggest auto insurers would charge a good driver an additional $537 to $974 per year for moving from a mostly white to black neighborhood, according to Consumers Union, the nonprofit group that publishes Consumer Reports magazine.
Good drivers living in Hispanic neighborhoods aren't hit quite as hard. Consumers Union concluded the pricing increase in California's Hispanic communities ranged from $103 to $214 annually, or 7.9 percent to 18.4 percent.
After dissecting the price among the state's three largest auto insurance company in more than 500 ZIP codes, Consumers Union found car insurance in black neighborhoods costs 37.5 percent to 83.5 percent more than in communities dominated by non-Hispanic whites. That means the biggest auto insurers would charge a good driver an additional $537 to $974 per year for moving from a mostly white to black neighborhood, according to Consumers Union, the nonprofit group that publishes Consumer Reports magazine.
Good drivers living in Hispanic neighborhoods aren't hit quite as hard. Consumers Union concluded the pricing increase in California's Hispanic communities ranged from $103 to $214 annually, or 7.9 percent to 18.4 percent.
Buying Individual Health Insurance
Suzanne Hoholik
THE COLUMBUS DISPATCH
Most people never think about shopping for health insurance. It’s one of those benefits that come with your job. The details — co-pays, deductibles and premiums — are left to employers.
But as health-care costs grow more burdensome for employers, buying individual policies could become more commonplace.
Four years ago, Bob Judson and his employer, Lifestyle Communities Pavilion, realized that adding him to the company’s policy would increase premiums.
He is 59; the average employee there is 25, and only two are older than 30. Younger people are cheaper to insure.
Judson, the part-time chief financial officer for the Arena District concert venue, "saw all the bills come across my desk," he said. "But I didn’t want to be without insurance."
So both sides agreed Judson would find his own.
"They give me money to buy insurance; they write a check to the insurance company each month," Judson said.
He went to Larry Link, of InsuranceLink Agency in Worthington, who worked up several quotes. Judson bought a catastrophic-coverage policy from Anthem Blue Cross and Blue Shield.
Monthly premiums are about $300 with a $5,000 deductible. Judson and his wife pay out-of-pocket for doctor’s visits and get a break on prescription drugs.
It worked for Judson, but with increasing corporate layoffs, early buyouts and workers going out on their own, many don’t know where to look for health insurance.
Ann Womer Benjamin, director of the Ohio Department of Insurance, said people can call her office to find licensed health-insurance agents.
"The big problem with individual coverage (is that) typically it’s more expensive than group coverage, and it is medically underwritten, where group coverage is not," she said.
"If a person has a pre-existing health condition, that will be taken into consideration by health insurers. That may mean higher rates, or coverage will be denied."
Individuals also can shop online for policies. Some Web sites compare health-insurance companies that offer premiums varying from $80 a month to $1,100 a month.
"Most people want a $500 deductible with an office visit co-pay and drug card," said Link, the insurance agent. "My guess is they think it’s about $200 a month for a husband, wife and two kids."
It’s closer to $600.
Link creates a list of plans with costs from several companies to give his clients options. The plans can include a healthsavings account and a catastrophic-coverage, high-deductible policy.
Individuals fill out applications that are sent to insurance companies; a decision usually takes a couple of weeks.
"The key to individual insurance is if you’re healthy," Link said.
He said he sells to young professionals with six-figure incomes who work for themselves, widows who don’t qualify for Medicare and parents buying policies for their children who have graduated.
Companies understand wading through policies can be confusing and rely on agents and brokers to explain the details to consumers, said Hugh Hammond, Anthem’s senior vice president for individual sales.
"There are a lot of people who need to be helped through the process to understand co-pays, out-of-pocket costs," he said.
"We’re trying to make products easy to understand."
Insurance premiums rose 9 percent last year, says the Kaiser Family Foundation, a nonprofit research group.
As premiums continue to rise, more employees will buy individual policies, Link said.
" ‘These health-insurance rates are getting high,’ some people in a group will say; ‘I’m going to pick up the phone and buy my own insurance,’ " he said.
"Or, employers who can’t pay it anymore give employees a $200-a-month raise and let them go buy their own insurance."
THE COLUMBUS DISPATCH
Most people never think about shopping for health insurance. It’s one of those benefits that come with your job. The details — co-pays, deductibles and premiums — are left to employers.
But as health-care costs grow more burdensome for employers, buying individual policies could become more commonplace.
Four years ago, Bob Judson and his employer, Lifestyle Communities Pavilion, realized that adding him to the company’s policy would increase premiums.
He is 59; the average employee there is 25, and only two are older than 30. Younger people are cheaper to insure.
Judson, the part-time chief financial officer for the Arena District concert venue, "saw all the bills come across my desk," he said. "But I didn’t want to be without insurance."
So both sides agreed Judson would find his own.
"They give me money to buy insurance; they write a check to the insurance company each month," Judson said.
He went to Larry Link, of InsuranceLink Agency in Worthington, who worked up several quotes. Judson bought a catastrophic-coverage policy from Anthem Blue Cross and Blue Shield.
Monthly premiums are about $300 with a $5,000 deductible. Judson and his wife pay out-of-pocket for doctor’s visits and get a break on prescription drugs.
It worked for Judson, but with increasing corporate layoffs, early buyouts and workers going out on their own, many don’t know where to look for health insurance.
Ann Womer Benjamin, director of the Ohio Department of Insurance, said people can call her office to find licensed health-insurance agents.
"The big problem with individual coverage (is that) typically it’s more expensive than group coverage, and it is medically underwritten, where group coverage is not," she said.
"If a person has a pre-existing health condition, that will be taken into consideration by health insurers. That may mean higher rates, or coverage will be denied."
Individuals also can shop online for policies. Some Web sites compare health-insurance companies that offer premiums varying from $80 a month to $1,100 a month.
"Most people want a $500 deductible with an office visit co-pay and drug card," said Link, the insurance agent. "My guess is they think it’s about $200 a month for a husband, wife and two kids."
It’s closer to $600.
Link creates a list of plans with costs from several companies to give his clients options. The plans can include a healthsavings account and a catastrophic-coverage, high-deductible policy.
Individuals fill out applications that are sent to insurance companies; a decision usually takes a couple of weeks.
"The key to individual insurance is if you’re healthy," Link said.
He said he sells to young professionals with six-figure incomes who work for themselves, widows who don’t qualify for Medicare and parents buying policies for their children who have graduated.
Companies understand wading through policies can be confusing and rely on agents and brokers to explain the details to consumers, said Hugh Hammond, Anthem’s senior vice president for individual sales.
"There are a lot of people who need to be helped through the process to understand co-pays, out-of-pocket costs," he said.
"We’re trying to make products easy to understand."
Insurance premiums rose 9 percent last year, says the Kaiser Family Foundation, a nonprofit research group.
As premiums continue to rise, more employees will buy individual policies, Link said.
" ‘These health-insurance rates are getting high,’ some people in a group will say; ‘I’m going to pick up the phone and buy my own insurance,’ " he said.
"Or, employers who can’t pay it anymore give employees a $200-a-month raise and let them go buy their own insurance."
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