Easing The Pain Of Expensive Health Care

Roughly 63% of all uninsured workers are either self-employed or work for firms with fewer than 100 employees, and only 47% of businesses with fewer than 500 employees offer health insurance, down from 58% in 1997. How can entrepreneurs ease the pain for themselves and their employees?

Mountain View, Calif.-based eHealth (nasdaq: EHTH - news - people ), an online health insurance brokerage, is trying to offer at least a smidge of relief with something called BusinessHSA. The new Web-based system lets employers set aside pre-tax contributions to employees' health savings accounts (HSAs), thus helping to defray costs while not offering a full-scale health benefits program. The service also gives employers a chance to help educate employees befuddled by the tortuously complicated health care market.

How Technology Can Help Trim Auto Insurance

By M.P. MCQUEENJune 26, 2008; Page D1


For years, drivers paid less for auto insurance if they reported low mileage. Now, insurers are using high-tech devices to track customers' habits, and offering deep discounts to those who not only drive less, but also cautiously.

In the U.S., Progressive Corp. and GMAC Insurance, a unit of GMAC Financial Services, are the first and the largest companies to roll out this type of plan. At least two smaller companies, including Unigard Insurance Co. of Bellevue, Wash., a unit of QBE Insurance Group of Australia, also are poised to start similar ones soon. Companies in Canada and Italy also have programs, and Hartford Financial Services Group Inc. is testing the same technology in Connecticut.
Drivers who participate in these plans have devices installed in their cars that, depending on the technology used, can track the number of miles driven, the speed at which cars are driven and even how often and how hard the brakes are used. By allowing their habits behind the wheel to be monitored, drivers get lower insurance rates -- or pay higher premiums if they're lead-footed road hogs.

Usage-based insurance pricing would mean an estimated two-thirds of households would pay less in premiums than they do now, according to a report by the Hamilton Project at the Brookings Institution, a think tank. Researchers Jason Bordoff and Pascal Noel calculated average savings at about $270 per car, per year. Some analysts and insurers believe that after a slow start, usage-based insurance could take off now that higher gas prices are forcing consumers to drive less anyway.

Proponents of these plans say they also have the potential to help ease traffic tie-ups and reduce carbon emissions by rewarding customers for driving less. Fewer miles on the road also means fewer accidents -- and fewer claims for insurers. With pay-as-you-drive insurance, drivers in the U.S. would reduce their mileage by about 8%, with $51.5 billion in social benefits mostly from reduced congestion and accidents, according to the Hamilton Project.

Later this month, Progressive says it will re-launch and expand its program, formerly known as "TripSense." Currently available only in Michigan, Minnesota and Oregon, TripSense subscribers get a special device that plugs into their car's diagnostic port -- the place mechanics plug into when troubleshooting. The Progressive device, however, keeps track of when, how far, and at what speed the car is driven. Every six months, drivers must remove the device and upload stored information to a computer and send it to the company.

When Progressive's new usage-based program, known as "MyRate," is launched, the technology will require less driver effort. This program uses a telematic device, which gathers driver data and wirelessly transmits it over a cellphone network. Progressive says it will also track how often and how hard drivers brake and use the braking information when calculating rates. This system doesn't include a global positioning system, so it won't track a driver's whereabouts. Drivers get back a periodic report that tells them how many miles they've logged and other feedback about their driving habits. Based on the data, they'll receive discounts ranging as high as 60%, depending on the state.


Bad-Driving Surcharge
But the device could raise rates for some drivers. In some states where it's permitted by law, drivers would be assessed a 9% surcharge for logging excessive miles or driving at high speeds with hard braking, said Richard Hutchinson, a general manager for Progressive.
Progressive, which has 7.1 million auto policies in force nationally, says 34% of its customers in Michigan, Minnesota and Oregon who signed up via telephone or Internet (instead of their agent) have been choosing the usage-based programs since 2004. The new plan is expected to be available in six more states by the end of this year and will also be sold by independent agents, the company said.

Brandon Biniecki, a 23-year-old information-technology support technician in Monroe, Mich., says he signed up for Progressive's usage-based program in 2006 for his Chevy Cobalt, a compact car. He drives less than 18,000 miles a year and currently receives a 5% or 10% discount from the company every six months, he says. Mr. Biniecki says he doesn't mind being monitored in return for saving money, but admits he might not have signed up if a global positioning system, or GPS, was involved.

"That would be an invasion of privacy, with someone being able to know where I am at any given point in time," he says.


OnStar
GM's OnStar technology, shown here, is used to gather driving data.
Other insurers include GPS in their monitoring devices. GMAC Insurance's Low-Mileage Discount Program with OnStar, which expanded to a total of 34 states last year, grants discounts to users of vehicles equipped with GM's GPS and communication systems. The company says that enrollments have increased 200% since last year, and that customer retention rates are higher for those using the device.

In order to receive a discount, the driver must subscribe to OnStar, which is generally free for the first 12 months to buyers of new GM cars, and costs $199 to $299 annually after that. New customers who agree to have odometer readings sent directly to GMAC Insurance will earn a 26% discount if they drive less than 15,000 miles annually. (Existing drivers earn discounts based on their actual mileage.) Even heavy drivers can still earn a 5% to 8% "safe driver" discount just for subscribing to the service. Low-mileage discounts increase in tiers as fewer miles are logged. For instance, someone who drives less than 2,500 miles a year can qualify for a 54% discount.

'I Didn't Believe It'
Don West, 74, a real-estate broker in Gresham, Ore., says he reluctantly switched his coverage to GMAC Insurance, leaving his longtime agent, a personal friend. Because he and his wife drove less than a combined 15,000 miles a year, their rate plummeted. Says Mr. West: "I was paying $2,000 a year in premiums for the Cadillac and the Hummer, and it dropped the premium the first year I was on GMAC to $886 dollars. I didn't believe it at first."
About 20,000 drivers currently participate in the GMAC low-mileage program with OnStar, says John O'Donnell, vice president of business development at GMAC Insurance, out of five million OnStar clients.

At this point, OnStar only relays odometer readings to GMAC Insurance, Mr. O'Donnell said. OnStar doesn't continuously track drivers' location and only pinpoints a car's whereabouts at certain times -- when the device is activated by a crash or the police receive a stolen-vehicle report, for example. "There is an opportunity to get other information, and as we do we will be able to correlate risk to actual driving behavior itself rather than more predictive factors," Mr. O'Donnell says.

Uninsured % Lowest in New England States

The New England states have the highest rate of health insurance coverage in the United States, while the Southwestern part of the country has the lowest rate of coverage, according to a recent study.

Only 11% of adults and 4% of children in New England are uninsured, compared with 30% of adults and 18% of children in the Southwest.

Nationally, about 17 % of Americans under age 65 were uninsured when the survey of 106,000 families was conducted from 2004- 2006.

Health Insurance Mandates Unhealthy

Health insurance costs are rising faster than Massachusetts businesses can afford and still, MA policymakers are considering measures that would push them even higher.

The House will consider a bill that would mandate unlimited coverage of mental health services, even though Massachusetts’ current mandate is among the most generous of any state in the nation.

Already, Massachusetts ranks among the states with the most mandated health benefits. While a case can be made for any one mandate, together they add significantly to the cost of health care.

When health insurance costs go up, employers bear the bulk of the increase, which leaves less money for companies to grow their businesses and create new jobs. This is particularly true for small businesses.

With health-care costs continuing to rise at double-digit rates, solutions need to focus on controlling those costs, not piling up more costs on employers.

Auto Insurance Fraud

From KPSP Local 2 News

California's Insurance Commissioner is warning drivers to be on alert for scam artists who stage auto collisions. It's a costly and potentially form of auto insurance fraud. One such scam, nicknamed the swoop and squat happens when two or three vehicles work as a team, to set up an "accident." The lead car cuts the victim off, and another car pulls up alongside the victim, so he/she has no choice but to rear-end the scam artist.

Insurance Commissioner Steve Poizner says even if no one gets hurt, insurance fraud hurts the consumer, in the form of higher auto insurance rates. He says, "Insurance fraud is like a $500 tax on every man, woman and child in California." Poizner says auto insurance fraud is a major part of the problem. The California Department of Insurance investigated 14,565 suspected automobile insurance fraud cases in 2006 and 2007.

Homeowners Insurance Rates in Texas

Texas has the highest home insurance rates in the nation, but rates can vary widely for different carriers. Comparing policies for a $100,000 home found that homeowners insurance premiums ranged from $500 to $1,200.

Despite the fact that Texas has had good weather since Hurricane Rita hit its coast three years ago, the state has not been able to draw enough companies to make the market more competitive.

State Farm, Allstate and Farmers Insurance control about 60% of the market, and if USAA and Travelers are added to the list, that's about 71 percent of the market share.

Insurance costs have either gone down or remained the same since the Legislature approved an insurance reform bill in 2003.

Individual Health Insurance in California

Individual health insurance rates for some California residents are going up 10 or 11 percent next year.

Jeff Aran has bought his own HMO policy from Kaiser Permanente since the mid-1980s. The last few years he's noticed his premiums are consistently 2 percent or 3 percent above the health insurance rates that the California Public Employees' Retirement System gets from the same Oakland-based health maintenance organization (Kaiser Permanente).

Aran and the 2.5 million Californians like him who buy individual health insurance may one day look back on 10% rate hikes as the good old days.

Individual & family policyholders have enjoyed slower premium increases from recent trends that have tamed medical costs a bit.

Baby boomers are generally healthier than previous generations and lower-cost generic drugs have flooded the market. The wave of health insurance company mergers that swept the industry a few years ago has abated. Negative press has also put some pressure on health insurers to hold down premiums.

Individual health plan policy owners will be hardest hit. Health care insurers don't make much money on individual plans, which cost more to administer, he said. As a result, the insurers are more likely to significantly raise those premiums when times get tight.

New York Auto Insurance Rates

If you live in New York, your auto insurance rates could be following gas prices north.

Auto insurance companies in New York, which already charge the second-highest auto insurance rates in the nation, would be able to hike monthly premiums by as much as 5% a year without the state's okay under a bill quietly introduced last week.

A law allowing auto insurance companies to hike or cut rates by 10% lapsed years ago, and the Insurance Department has had to sign off on all rate changes since then.

Consumer advocates fear the new bill, which sponsors are pushing to pass before the legislative session ends this week, will ultimately drive up costs at a faster rate.

For years, under a different insurance committee chairman, the Assembly refused the attempts by Senate Republicans to go back to a flex rating system.

The New York Insurance Superintendent has indicated in the past he supports allowing New York Auto insurers to raise or lower rates without permission up to a certain point.

John McCain Health Care Reform

A "Call to Action"
John McCain believes we can and must provide access to health care for every American. He has proposed a comprehensive vision for achieving that. For too long, our nation's leaders have talked about reforming health care. Now is the time to act.

Americans Are Worried About Health Care Costs. The problems with health care are well known: it is too expensive and 47 million people living in the United States lack health insurance.

John McCain's Vision for Health Care Reform
John McCain Believes The Key To Health Care Reform Is To Restore Control To The Patients Themselves. We want a system of health care in which everyone can afford and acquire the treatment and preventative care they need. Health care should be available to all and not limited by where you work or how much you make. Families should be in charge of their health care dollars and have more control over care.

Making Health Insurance Innovative, Portable and AffordableJohn McCain Will Reform Health Care Making It Easier For Individuals And Families To Obtain Insurance. An important part of his plan is to use competition to improve the quality of health insurance with greater variety to match people's needs, lower prices, and portability. Families should be able to purchase health insurance nationwide, across state lines.

John McCain Will Reform The Tax Code To Offer More Choices Beyond Employer-Based Health Insurance Coverage. While still having the option of employer-based coverage, every family will receive a direct refundable tax credit - effectively cash - of $2,500 for individuals and $5,000 for families to offset the cost of insurance. Families will be able to choose the insurance provider that suits them best and the money would be sent directly to the insurance provider. Those obtaining innovative insurance that costs less than the credit can deposit the remainder in expanded Health Savings Accounts.

John McCain Proposes Making Insurance More Portable. Americans need insurance that follows them from job to job. They want insurance that is still there if they retire early and does not change if they take a few years off to raise the kids.John McCain Will Encourage And Expand The Benefits Of Health Savings Accounts (HSAs) For Families. When families are informed about medical choices, they are more capable of making their own decisions and often decide against unnecessary options. Health Savings Accounts take an important step in the direction of putting families in charge of what they pay for.A Specific Plan of Action: Ensuring Care for Higher Risk Patients John McCain's Plan Cares For The Traditionally Uninsurable. John McCain understands that those without prior group coverage and those with pre-existing conditions have the most difficulty on the individual market, and we need to make sure they get the high-quality coverage they need.

John McCain Will Work With States To Establish A Guaranteed Access Plan. As President, John McCain will work with governors to develop a best practice model that states can follow - a Guaranteed Access Plan or GAP - that would reflect the best experience of the states to ensure these patients have access to health coverage. One approach would establish a nonprofit corporation that would contract with insurers to cover patients who have been denied insurance and could join with other state plans to enlarge pools and lower overhead costs. There would be reasonable limits on premiums, and assistance would be available for Americans below a certain income level.John McCain Will Promote Proper Incentives. John McCain will work with Congress, the governors, and industry to make sure this approach is funded adequately and has the right incentives to reduce costs such as disease management, individual case management, and health and wellness programs.

A Specific Plan of Action: Lowering Health Care CostsJohn McCain Proposes A Number Of Initiatives That Can Lower Health Care Costs. If we act today, we can lower health care costs for families through common-sense initiatives. Within a decade, health spending will comprise twenty percent of our economy. This is taking an increasing toll on America's families and small businesses. Even Senators Clinton and Obama recognize the pressure skyrocketing health costs place on small business when they exempt small businesses from their employer mandate plans.

CHEAPER DRUGS: Lowering Drug Prices. John McCain will look to bring greater competition to our drug markets through safe re-importation of drugs and faster introduction of generic drugs.

CHRONIC DISEASE: Providing Quality, Cheaper Care For Chronic Disease. Chronic conditions account for three-quarters of the nation's annual health care bill. By emphasizing prevention, early intervention, healthy habits, new treatment models, new public health infrastructure and the use of information technology, we can reduce health care costs. We should dedicate more federal research to caring and curing chronic disease.

COORDINATED CARE: Promoting Coordinated Care. Coordinated care - with providers collaborating to produce the best health care - offers better outcomes at lower cost. We should pay a single bill for high-quality disease care which will make every single provider accountable and responsive to the patients' needs.

GREATER ACCESS AND CONVENIENCE: Expanding Access To Health Care. Families place a high value on quickly getting simple care. Government should promote greater access through walk-in clinics in retail outlets.

INFORMATION TECHNOLOGY: Greater Use Of Information Technology To Reduce Costs. We should promote the rapid deployment of 21st century information systems and technology that allows doctors to practice across state lines.

MEDICAID AND MEDICARE: Reforming The Payment System To Cut Costs. We must reform the payment systems in Medicaid and Medicare to compensate providers for diagnosis, prevention and care coordination. Medicaid and Medicare should not pay for preventable medical errors or mismanagement.

SMOKING: Promoting The Availability Of Smoking Cessation Programs. Most smokers would love to quit but find it hard to do so. Working with business and insurance companies to promote availability, we can improve lives and reduce chronic disease through smoking cessation programs.

STATE FLEXIBILITY: Encouraging States To Lower Costs. States should have the flexibility to experiment with alternative forms of access, coordinated payments per episode covered under Medicaid, use of private insurance in Medicaid, alternative insurance policies and different licensing schemes for providers.

TORT REFORM: Passing Medical Liability Reform. We must pass medical liability reform that eliminates lawsuits directed at doctors who follow clinical guidelines and adhere to safety protocols. Every patient should have access to legal remedies in cases of bad medical practice but that should not be an invitation to endless, frivolous lawsuits.

TRANSPARENCY: Bringing Transparency To Health Care Costs. We must make public more information on treatment options and doctor records, and require transparency regarding medical outcomes, quality of care, costs and prices. We must also facilitate the development of national standards for measuring and recording treatments and outcomes.Confronting the Long-Term Challenge John McCain Will Develop A Strategy For Meeting The Challenge Of A Population Needing Greater Long-Term Care. There have been a variety of state-based experiments such as Cash and Counseling or The Program of All-Inclusive Care for the Elderly (PACE) that are pioneering approaches for delivering care to people in a home setting. Seniors are given a monthly stipend which they can use to hire workers and purchase care-related services and goods. They can get help managing their care by designating representatives, such as relatives or friends, to help make decisions. It also offers counseling and bookkeeping services to assist consumers in handling their programmatic responsibilities.Setting the Record Straight: Covering Those With Pre-Existing ConditionsMYTH: Some Claim That Under John McCain's Plan, Those With Pre-Existing Conditions Would Be Denied Insurance.FACT: John McCain Supported The Health Insurance Portability And Accountability Act In 1996 That Took The Important Step Of Providing Some Protection Against Exclusion Of Pre-Existing Conditions. FACT: Nothing In John McCain's Plan Changes The Fact That If You Are Employed And Insured You Will Build Protection Against The Cost Of Any Pre-Existing Condition.

FACT: As President, John McCain Would Work With Governors To Find The Solutions Necessary To Ensure Those With Pre-Existing Conditions Are Able To Easily Access Care.Combating Autism in America John McCain is very concerned about the rising incidence of autism among America's children and has continually supported research into its causes and treatment.

5 Ways To Cut Car Insurance Costs

You can't fill your tank these days without feeling as if you've been kicked, simultaneously, in the gut and the bank account.

There's not much you can do about gas prices, but there is one thing you can do to cancel out rising car costs: Get a better deal on your auto insurance.

Competition has kept premiums low; and if you haven't revisited your policy in a while, you may have missed some money savers.

Try one (or more) of these methods to put your auto expenses in neutral.
Prune coverage on old cars

Once your vehicle is worth less than 10 times what you pay each year to insure it, get rid of comprehensive and collision. Find your car's estimated value at kbb.com.


Raise your deductible
The point of car insurance is to protect you from catastrophic costs (your emergency fund should cover stuff like dents and broken windows).

Raise your deductible from $200 to $1,000 and you could save more than 40% on premiums, says the Insurance Information Institute.


Nab discounts
Most insurers offer price cuts for such things as having anti-lock brakes; having been accident-free; having taken a defensive-driving course; and even for using the same insurer for your home policy. For more, see the auto insurance checklist at iii.org/individuals/auto.

These can take up to 25% off your premium. But your insurer won't come to you with them; call the company and ask what discounts it offers.


Dig up competing quotes
This is the most work but could have the greatest payoff. Go to naic.org to find your state insurance commission Web site, where you can download a car insurance buying guide.

This often lists scenarios (Mary is a 34-year-old married woman who drives a Chevy Tahoe) with sample rates from the biggest insurers in the state.

Pick the example closest to you and the five insurers with the lowest rates. Call them for quotes.
If the state guide doesn't list insurers, get the five best quotes at insweb.com, but note that the site doesn't include State Farm.

Next, check with an independent agent (get a name at iiaba.net) to see if any insurers you haven't checked can beat your top five.


Sidestep hassle
Make sure any insurer with a better quote is legit. Vet it via your state's insurance commission site; look especially for the ratio of complaints to number of policies written.


By Joe Light, Money Magazine

Graduates Get Creative To Find Health Insurance

This year, 1.4 million graduates are tossing their mortarboard caps into the sky and receiving bachelor's degrees. Almost immediately, many will face another rite of passage: getting dropped from their parents' health insurance.

Most group health plans cover employees' children until the age of 19 -- or often up to 23 if they are full-time students. After that, many young adults must put together their own health safety net. But with the economy weakening, and entry-level jobs that offer health coverage harder to find, some recent graduates are coming up with creative ways to protect themselves.

Phillip Ngo was removed from his father's workplace health insurance when he graduated from New York University last year. So the 22-year-old came up with an idea to get back on his parent's plan -- going back to college without ever setting foot in a classroom.

Even though he had a bachelor's degree, Mr. Ngo enrolled as an online student at his hometown City College of San Francisco, a two-year college. Two days later, he presented proof of enrollment and a class schedule to his father's insurance company, which put him back on the plan.

Young adults are the fastest-growing group of the uninsured, according to 2006 U.S. Census data. And one in three -- or 13.7 million -- Americans aged 19 to 29 lacks health insurance, according to the Commonwealth Fund.

At least 18 states have enacted laws that require insurers to allow parents to extend coverage for older dependents, often whether they are in college or not. A few other states have similar laws, but with various restrictions. Although a family's premium might go up, coverage is now available in most of these states for dependents up to age 23 or 25. In New Jersey, the upper limit is age 30.

But for young adults who don't live in any of these states, or who aren't claimed by their parents as dependents, college graduation can bring a scramble for health coverage. Some recent graduates shop online for the cheapest policy they can find, which often comes with a high deductible. Other people temporarily extend the coverage they previously had under their parents' plan through the federally mandated Cobra program, which often comes at a steep price. Some graduates go without insurance altogether and hope for the best.
Ineligible for Extension

Ryan Todd, 24, was removed from her parents' policy after graduating from DePauw University in 2006. She currently lives with her parents in California, which allows young adults to continue their health coverage after they graduate. But the state restricts this extended coverage to people who are disabled, making Ms. Todd ineligible.

Ms. Todd works as a freelance costume designer in Southern California. Later this year, she will be eligible for membership in a union that offers health coverage. Meanwhile, Ms. Todd has arranged a patchwork of temporary solutions. She occasionally text messages her symptoms for minor ailments to a doctor friend and gets his advice. She takes advantage of free services at Planned Parenthood. And she considers herself fortunate to be healthy. "I don't even make enough money to move out of my parents' house, let alone afford health insurance," Ms. Todd says.

Going without coverage isn't an option for some people. Cole Murray was diagnosed as an infant with aortic stenosis, a congenital heart defect. He has had five open-heart surgeries and two pacemakers and spent 10 days in a coma when he was 19. His medical costs in 2003 alone totaled $750,000, covered through his parents' insurance.

Mr. Murray's family lives in Indiana, and when he graduated from Columbia College in Chicago with a degree in film, he took advantage of his home state's law that allowed him to remain on his parents' policy an extra year. Now, Mr. Murray is paying $476 a month for Cobra coverage, which extends his parents' coverage until January, when he turns 25. Cobra is a federal law that provides continuation of group health coverage that otherwise might be terminated.
"Most people can spend a couple of years without health insurance, but I don't have that option," he says. Mr. Murray moved to Los Angeles last fall to pursue a career in film. If he doesn't line up a job with health coverage in the next few months, Mr. Murray says he will move back to his home town and look for any job that offers insurance.

Laura Roeder, 23, opted for a high-deductible policy after she graduated from University of Texas at Austin and started her own freelance Web design business in Chicago. She pays $60 a month for coverage through Humana Inc. But since none of her medical expenses under $5,000 are covered under the policy, she avoids routine visits to the doctor. She copes with colds and the flu by ingesting high-dosage vitamin C drinks.

"I'm going to stay self-employed," she says. "And [health insurance] is not suddenly going to become affordable."

Mr. Ngo says that after graduating from New York University with a theater degree, he "bounced around" between unpaid and low-paid internships and personal-assistant jobs in New York City. None offered health coverage. While uninsured, Mr. Ngo says he contracted a nasty flu. But fearing a big bill, he opted not to seek care. Although he got well on his own, the experience scared him.

Mr. Ngo says he got the idea to enroll in a community college in order to get back on his parent's coverage after hearing about the plan from a friend. "I never did anything for class," Mr. Ngo says. "For me, 300 bucks for a semester's health insurance was a good deal. So I thought why the hell not?"

In March, Mr. Ngo got a job as an assistant to a Broadway producer in New York. After 90 days on the job, he qualified for his employer's health insurance, for which he pays $32 a month. He withdrew from the community college, receiving incompletes for his classes.

Posted in the WSJ June 17, 2008

Health Insurance Companies rated by AMA

The AMA will return the favor of the health insurance industry by rating the business practices of health insurance plans that it says can slow payments to doctors and often confuse consumers.

The national physicians group will provide a report card that examines the timeliness and accuracy of claims processing of 7 national health insurance companies, as well as Medicare.

While the report card is aimed at helping doctors negotiate contracts with health insurers and reducing claims-related costs, the AMA said it also could lead to improvements in consumers' understanding of their medical bills and how medical care is priced.

Kentucky & Indiana Insurance Rates

Kentucky and and Inidana residents are having a tough time with rising gas prices like everybody else but may find some savings when insurance bills arrive.

Auto insurance rates in Kentucky and Indiana are expected to fall for a second year, and homeowners insurance rates should rise only slightly after years of steeper climbs.

Competition among insurance carriers and a small amount of weather damage in recent years appear to be driving the trend.

The average auto insurance premium in Kentucky already has dropped 0.4% in 2008, on top of a 1.3% decline in 2007, according to the state Office of Insurance.

Private insurance carriers are becoming more savvy about how they project risk, with a growing number placing emphasis on a person’s credit score.

That can mean lower rates for some people, but not everyone.

Insurance rates also follow a cyclical pattern, with rates that fluctuate based on the level of claims from natural disasters and other events. Insurance rates skyrocketed after the Sept. 11, 2001, terrorist attacks, followed by much smaller increases in recent years.

In 2005 auto insurance premiums in Kentucky were the 26th most expensive nationally, while Indiana’s were 41st. Kentucky was 39th for homeowners insurance, and Indiana was 36th. The priciest states were New Jersey for auto and Texas for homes. The cheapest were North Dakota for auto and Idaho for homes.

People Need Good Health Insurance

A recent study has shown that when Ohio residents buy individual health insurance or through other groups (other than employers) they usually don't have very good health insurance coverage.

The report shows, "We need to not only insure more people, but we also need good health insurance," Connecticut Attorney General Richard Blumenthal said.

Besides the 47 million uninsured Americans, the Commonwealth Fund reported this week that another 25 million have inadequate coverage, while still spending a disproportionally high amount on health insurance.

Most Americans have group coverage, but the individual health insurance market of 27 million is growing as employers drop their health plans or hire more independent contractors without benefits

Auto Insurance and $4 Gas Prices

Car owners who are changing their driving habits because of soaring gas prices may be able to save a few dollars on auto insurance.

Major auto insurers including State Farm Mutual Insurance Cos., Travelers Cos. and Farmers Insurance Group say that drivers who log less than about 7,500 miles a year may be eligible for "low mileage" programs that reduce premiums an average of about 10% to 12%. State Farm's program earns drivers discounts ranging from 12% to 18%, says spokesman Dick Luedke.
Car owners who drive more than that but less than they used to -- perhaps because they have started using public transportation or walking to work -- may also save on premiums, according to a study by the Consumer Federation of America. The group released a study Tuesday showing consumers could save 5% to 15%, amounting to $47 to $142 a year based on 2005 rates, when the average U.S. premium was $949, by cutting their mileage enough to drop into a different ratings category, say, from "drive to work" to "pleasure driving," says J. Robert Hunter, insurance director for the Consumer Federation of America.

"Most insurance companies have a scale, and you pay more based on how much you drive. Each time you drive more, they charge you more," Mr. Hunter says. Depending on ratings factors allowed by state regulators, the savings can be even greater, he says.
In California, for example, companies charge motorists based mainly on their driving history and miles driven, so driving more or fewer miles significantly affects the premium drivers there pay. Consumers should inform their agents of any big changes in their driving habits, says Mr. Hunter.

A few insurers in some states also give discounts to drivers who enroll in programs that use an installed monitoring device to track driving habits. The insurers charge drivers according to when, how, and how many miles they drive, so that those who log fewer miles pay less.
Progressive Group of Insurance Cos. pioneered its "MyRate" program, formerly known as "TripSense," in Minnesota, Oregon and Michigan several years ago, and anticipates rolling it out in six more states in the next few months, pending regulatory approval. In those states, drivers get a 25% discount off regular rates for participating. The discount is expected to be even larger in the expanded program, says Richard Hutchinson, usage-based insurance general manager. Progressive also offers a low-mileage discount in four states. Since July 2007, GMAC Insurance from General Motors Corp. has offered eligible On-Star subscribers who drive less than 15,000 miles savings of up to 54% on their premiums, including an automatic 11% discount. The program is available in 34 states.

Several insurers, including Travelers and Farmers Insurance Group, a unit of Zurich Financial Services, also have rolled out discounts for drivers who switch to hybrid and other gas-saving vehicles. Since 2005, Travelers recently started offering a 10% discount on most coverages for owners of hybrid or other gas-saving cars in 44 states. The company says that hybrid-car owners are generally good risks. Farmers also offers an average 5% discount nationally on all major coverages including liability and property damage, says spokesman Jerry Davies.

Mercury Cuts California Auto Insurance Rates

Mercury General Corp., today is expected to announce rate cuts for about 1.7 million of its California automobile insurance and homeowner insurance customers, mainly in Southern California.

The owners of 1.5 million cars will shave 3% off their annual bills, about $30 per vehicle, according to the California Department of Insurance. Savings statewide should total $41 million a year. Mercury is the third-largest auto insurer in California, with 9.7% of the market.

The auto insurance rate reductions were based partially on new state criteria that downplay the importance of the ZIP Code where a car is typically parked overnight. The cut took effect in May but had not been announced, the department said.

California has had the country's most heavily regulated insurance business since voters approved Proposition 103 in 1988.

Mercury's new rates for homeowner insurance, which take effect in August, will drop by 10% for 224,000 customers. That represents individual savings of about $100 a year for homes in Southern California and $83 elsewhere in the state.

Renters' premiums will drop by 33%, saving approximately $85 a year for Mercury's customers in Southern California and slightly less in other parts of the state, the department said. The company is the state's eighth-largest homeowner carrier, covering about 3% of insured dwellings.

The savings should be a big help for renters, about 40% of California's population, especially those who may have lost their previous homes to foreclosure because of the sub-prime mortgage crisis, the department said.

Under Poizner, savings from a number of automobile insurance rate reductions totaled about $1 billion for 2007 and so far in 2008. Homeowners' savings during the same period were $558 million, the Department of Insurance said.

Mercury's cuts in auto insurance rates are in line with recent industry trends in California. For the last few years, insurance companies have earned strong profits with declines in accident frequency and severity.

Homeowners' rates also declined under pressure from regulators but may be poised to rise again, industry analysts said. The state's three biggest companies, covering more than half of insured homes, have requests for rate hikes pending.

The Underinsured

From Business Week

The number of American adults who had inadequate health insurance coverage rose 60% from 2003 to 2007, from 16 million to more than 25 million people.

Hardest hit were families with middle and higher incomes, those whose income was 200 percent above the federal poverty level or those with an annual income of $40,000 or more, a new report by The Commonwealth Fund found.

The report is published in the June 10 issue of Health Affairs.

To make their estimates, the researchers conducted a national survey in 2007 of 3,501 adults. They found that among adults aged 19 to 64, 25.2 million were "underinsured." That number was based on out-of-pocket health-care costs as a proportion of income.

People who are underinsured are people who have health insurance but spend 10 percent or more of their income on out-of-pocket medical expenses. For people below 200 percent of the federal poverty level, being underinsured means spending more than 5 percent of income on out-of-pocket medical costs.

Being underinsured also means paying deductibles of 5 percent or more of family income.

The researchers found that people who were underinsured were more likely to go without needed health care and have problems paying medical bills, compared with people who have adequate health insurance.

In fact, 53 percent of the underinsured and 68 percent of those without health insurance had to forgo needed medical care, such as not seeing a doctor when sick, not filling prescriptions, and not getting recommended diagnostic tests or treatments. "The underinsured look a lot like the uninsured," Schoen said.

Among the underinsured, 45 percent reported having difficulty paying bills, being contacted by collection agencies for unpaid bills, and curtailing their way of life to pay their medical bills, compared with 21 percent of people with adequate health insurance.

Also, underinsured people were more likely to have insurance plans that limit payments. They were also more likely to have high deductibles. For example, one quarter of underinsured people had deductibles of $1,000 or more, the report found.

However, premiums for the underinsured were similar to or higher than those paid by people with adequate insurance, the researchers found.

Is Health Insurance a Societal Obligation?

Forty-five million uninsured Americans prompted the Senate Finance Committee to discuss ways to reform health care, listening to recommendations that could help to provide insurance coverage to the uninsured. According to panelists, the uninsured are shut out of the system due to increasingly high health care costs, high insurance rates, and partial coverage.

Ron Williams, the CEO of Aetna, told the committee that lowering insurance rates will require lowering the cost of health care since the price of insurance reflects on the cost of treatment. Williams also said universal participation in health insurance is necessary to lower prices and help those in need, comparing societal assistance in health care to food taxes that help feed the hungry. He noted that patients seeking coverage after being diagnosed with a serious illness is not insurance but in fact a way of financing treatment, suggesting that measures be taken to combat reactionary purchases of health insurance. Williams also said that grouping people by methods other than risk factors would allow for an even distribution of healthy and unhealthy and prevent costs from skyrocketing due to an influx of customers needing high remittances.

Mark Hall, a professor at Wake Forest University, agreed with Williams’s idea of grouping customers into pools without determining risk factors. Hall said that one percent of the American population uses almost 25 percent of federal expenditures on health care while half the population uses four percent. Hall said that pooling would allow natural statistics to have an effect on health prices by preventing concentration of the sick. Raymond Arth, a small business owner from Ohio, urged the committee to be conscious of small business owners. Arth said that small business owners desire to provide health insurance to employees but that increasing renewal figures make it difficult financially.

eHealthinsurance.com Joins Partnership

A partnership was announced this morning by eHealthinsurance and a small business advocacy group that seeks to fix a serious the small business problem: the lack of health insurance.

EHealthinsurance has partnered with the National Federation of Independent Business to offer a customized technology designed to facilitate the use of HSAs.

EHealthinsurance represents nearly 200 individual health insurance carriers and has about 9,000 to 10,000 different health insurance plans listed on its site.

EHealth Senior Vice President Sam Gibbs said the Mountain View, Calif.-based company began noticing that over the last 15 months many small businesses were no longer purchasing group health insurance plans and instead were signing up for individual coverage.

EHealth has created a tool that encourages a business owner to contribute to an employee's HSA. For example, if a company has 10 employees, the business owner may decide that he could contribute $500 per employee per year toward HSAs.

Individuals are not penalized if they use HSA funds to pay for qualified medical expenses and any unused funds can be rolled over if they are not used by the end of the calender year.

Presidential Health Care Debat

The candidates' early emphasis on health care is a promising start to the presidential race.
Presumptive Democratic nominee Barack Obama opened his historic race for the presidency last week in Southwest Virginia with a promise: affordable health care for all.
A sign in front of him stated the pledge as he spoke before an enthusiastic crowd in Bristol. He talked at length about his plan for universal health insurance coverage.
John McCain's campaign quickly fired a shot at it and countered with the presumptive Republican nominee's ideas for health care reform.
Fantastic.
The candidates need to pound this issue hard -- not so much to work out details as to give it the momentum it must have in January, when a new president takes office. He will have to persuade Congress to act so that all Americans are assured access to health care.
Voters have heard the promise before. The Clinton administration tried to deliver on it and failed. The urgency has grown only greater in the intervening years.
Obama says he will accept no campaign contributions from registered lobbyists or political action committees -- part of the change he promises in Washington's status quo. Commendable. By that he is saying that on a host of seemingly intractable problems, such as health care for all, he will put the broader interests of society over the special interests of big donors.
But only Congress can enact laws that might resolve these issues, and members of Congress have made no such pledge.
To pass landmark health care legislation, lawmakers will have to see in the November election results a voter mandate. Only then will the next president be able to lead a reform movement and succeed.
America is facing peril on many fronts this election year: It is bogged down in war, reeling from high gasoline prices, worrying seriously at last about climate change. And looming over all, still too little noticed, the Bush White House's extraordinary claims to power. They threaten the Constitution's protections that guard the people against government abuses and their government against an imperial presidency.
Among its litany of new ills, the chronic crisis of having hundreds of millions of Americans uninsured and underinsured should rank high on voters' agenda. Even then, comprehensive reform will be a daunting challenge.
Charles Edwards, a 95-year-old from Union Hall, went to Bristol Thursday to give Obama a maple walking stick and, unwittingly, some good medicine for the campaign.
"If members of Congress don't pass my health care bill, I'm ready," the candidate joked. "I'll whup 'em."
They're due for a lickin'.

Taken from the Roanoke Times

State Farm Lowers Auto Insurance Rates

State Farm insurance says it's lowering auto insurance rates in Louisiana by an average of 2.5% at the end of June.

State Farm says the rate rolll-back represents an annual savings of $22.4 million to its Louisiana customers. State Farm insures about one in every three cars in Louisiana.

Company vice president Rob Stewart says the reduction is due to a better claims experience in the state.

Premiums for collision and comprehensive coverages are decreasing the most. The cost of the liability and medical payments coverages will go up for some and down for others.

The new rates are effective June 30.

Health Insurance Companies Rated by Providers

Providers are now rating the health insurance companies and according to recent reports, Aetna is doing better than other big health insurance plans.

There are several sources now available that rate health insurance companies, each with their own approach. One of the more intriguing is published by the Verden Group (tracks the policy changes that carriers make on a daily basis, alerting providers "to any administrative and clinical policy, procedure and reimbursement changes occurring in the networks in which you participate, at the time these changes are occurring.)

In contrast, athenahealth's payer rating system, PayerView(sm) is designed to evaluate the "ease of doing business with a payer."

In these reports, Aetna & CIGNA performed well while Health Net fared the worst