ROSEVILLE, Minn.--(BUSINESS WIRE)--Aug. 9, 2004--Drive less, pay less--that's the simple concept behind TripSense(SM), a first of its kind usage-based auto insurance discount pilot program to be offered to 5,000 drivers in Minnesota beginning August 16 by the Progressive group of insurance companies, the third largest provider of auto insurance in the U.S. Program participants are eligible to receive a discount of up to 25 percent depending on how much, how fast and when they drive. Drivers interested in the program can contact the company at tripsense.progressive.com.
Customers who register a vehicle in the TripSense pilot program plug a data-logging device into a port in their car. The device, called TripSensor(TM), collects information about the vehicle's use, including how much, how fast and when they drive. Participants in the TripSense program will receive a five percent discount on the six-month premium for each registered vehicle. In subsequent policy periods, TripSense customers earn a five percent discount if they choose to upload their driving data to Progressive. Customers can also receive up to 20 percent more in discounts based on how much, how fast and when they drive. Sharing driving data with Progressive is always optional, but necessary to earn a discount in future policy terms.
Progressive tested this usage-based insurance discount program in Minnesota in early 2004 when it offered 250 drivers $25 to plug a data logging device into their vehicles to collect information for 30 days, upload their data to Progressive and complete a survey about the experience. In the test, a discount on future policy periods was not offered, but had it been, the average member of the test group would have been eligible for a 7.5 percent discount on the registered vehicle in the next policy period.
Monday, August 9, 2004
Insurers not to penalize soldiers for lapse in coverage
Atlanta (Aug. 9) - Insurance Commissioner John W. Oxendine has issued a directive urging Georgia auto insurance companies to reinstate active duty soldiers who may have let their coverage lapse while they were serving their country. As a result of the War on Terror, many Georgia citizens have been called to active duty, Oxendine said. Often Armed Services personnel are deployed on short notice with little time to address personal business affairs. I strongly encourage insurers writing private passenger automobile coverage in Georgia to support our troops by not penalizing them for a lapse in coverage upon completion of a tour of active duty. Oxendine said the insurers should reinstate any soldiers lapsed policies without penalty, and any new business from soldiers should be treated as if no lapse occurred. The directive, 04-EX-1, further asks insurers to respond to Oxendine's office to describe their procedures for implementing the directive.
HSA factsheet
August 9, 2004
Expanding Access and Increasing the Affordability of Health Insurance
Through Health Savings Accounts
Millions of Americans will get help with their out-of-pocket medical expenses through President Bush's support of health savings accounts (HSAs). The Medicare bill that President Bush signed into law establishes new tax-free savings accounts for individuals and groups who purchase affordable high-deductible health plans. Businesses and individuals who take advantage of these accounts will save substantial sums on health insurance premiums and gain more control over health care expenditures. The tax-free, portable accounts will help families pay their routine medical expenses and provide a tax-preferred means of saving for future health care needs.
New health insurance deductions will make coverage more affordable to millions of Americans whose employers don't provide health benefits. The President's proposal will allow individuals who establish HSAs to deduct the premiums they pay for their low-premium, high-deductible health insurance policies. This new deduction will be available to taxpayers whether or not they itemize. It will reduce the net cost of these policies and encourage the use of HSAs for saving for health care needs and making wise, cost-effective health care choices.
o HSAs are open to individuals covered by a high deductible health insurance plan. The annual deductible must be at least $1,000 for individual coverage, and at least $2,000 for family coverage. HSAs are a significant improvement over previous savings vehicles, which were limited to employees of small businesses and the self-employed and required health insurance policies with much higher deductibles. Individuals with existing medical savings accounts (MSAs) can either retain them or roll the amounts over into a new HSA. o Contributions to HSAs by individuals are deductible, even if the taxpayer does not itemize. Contributions by an employer are not included in the individual's taxable income. Individuals, their employers, or both can contribute tax-deductible funds each year up to the amount of the policy's annual deductible, subject to a cap of $2,600 for individuals and $5,150 for families. In addition, individuals over age 55 can make extra contributions to their accounts ($500 in 2004, increasing to $1000 by 2009) and still enjoy the same tax advantages. o The interest and investment earnings generated by the account are also not taxable while in the HSA.
Tens of thousands of individuals already are saving on their health care costs through HSAs. These accounts can save families thousands of dollars on their health insurance premiums. Individuals can deposit some or all of these savings into their tax-free accounts and use the money for current health care needs and to save for future medical expenses. Employers also can contribute to these accounts, which the employee controls. Instead of sending more money off to insurance companies in the form of higher premiums, families can keep their savings in an account that belongs to them, not to their employer or to an insurance company.
Americans from all income levels are taking advantage of HSAs. eHealthInsurance, an Internet-based insurance brokerage that offers coverage in the individuals and small firms throughout the country, last week published an analysis of people who had purchased HSAs through its internet portal over the first six months of this year. Key findings of small sample include:
o The majority of HSA purchasers (52 percent) were 40 years of age or older. o Nearly half of HSA purchasers (49 percent) were families with children. o Two-fifths of HSA purchasers (41 percent) had incomes of $50,000 or less. o Three of ten HSA purchasers (30 percent) had previously been uninsured
HSAs provide a much more affordable, consumer-friendly product for businesses to offer their employees.
o The National Federation of Independent Businesses (NFIB) says that "some small businesses have saved up to 42 percent" on their health care costs through these products. NFIB also says that HSAs "will help reduce the number of uninsured Americans by allowing small businesses and their employees more choice in the current small group market." o Testifying at a Congressional hearing last March, Kate Sullivan of the US Chamber of Commerce said, "Enactment last year of HSAs came at a critical time for America's employers and working families, due to the increasing difficulties of affordable family health coverage. HSAs offer a great deal, not only to small business, but to workers at any point in their lives."
Expanding Access and Increasing the Affordability of Health Insurance
Through Health Savings Accounts
Millions of Americans will get help with their out-of-pocket medical expenses through President Bush's support of health savings accounts (HSAs). The Medicare bill that President Bush signed into law establishes new tax-free savings accounts for individuals and groups who purchase affordable high-deductible health plans. Businesses and individuals who take advantage of these accounts will save substantial sums on health insurance premiums and gain more control over health care expenditures. The tax-free, portable accounts will help families pay their routine medical expenses and provide a tax-preferred means of saving for future health care needs.
New health insurance deductions will make coverage more affordable to millions of Americans whose employers don't provide health benefits. The President's proposal will allow individuals who establish HSAs to deduct the premiums they pay for their low-premium, high-deductible health insurance policies. This new deduction will be available to taxpayers whether or not they itemize. It will reduce the net cost of these policies and encourage the use of HSAs for saving for health care needs and making wise, cost-effective health care choices.
o HSAs are open to individuals covered by a high deductible health insurance plan. The annual deductible must be at least $1,000 for individual coverage, and at least $2,000 for family coverage. HSAs are a significant improvement over previous savings vehicles, which were limited to employees of small businesses and the self-employed and required health insurance policies with much higher deductibles. Individuals with existing medical savings accounts (MSAs) can either retain them or roll the amounts over into a new HSA. o Contributions to HSAs by individuals are deductible, even if the taxpayer does not itemize. Contributions by an employer are not included in the individual's taxable income. Individuals, their employers, or both can contribute tax-deductible funds each year up to the amount of the policy's annual deductible, subject to a cap of $2,600 for individuals and $5,150 for families. In addition, individuals over age 55 can make extra contributions to their accounts ($500 in 2004, increasing to $1000 by 2009) and still enjoy the same tax advantages. o The interest and investment earnings generated by the account are also not taxable while in the HSA.
Tens of thousands of individuals already are saving on their health care costs through HSAs. These accounts can save families thousands of dollars on their health insurance premiums. Individuals can deposit some or all of these savings into their tax-free accounts and use the money for current health care needs and to save for future medical expenses. Employers also can contribute to these accounts, which the employee controls. Instead of sending more money off to insurance companies in the form of higher premiums, families can keep their savings in an account that belongs to them, not to their employer or to an insurance company.
Americans from all income levels are taking advantage of HSAs. eHealthInsurance, an Internet-based insurance brokerage that offers coverage in the individuals and small firms throughout the country, last week published an analysis of people who had purchased HSAs through its internet portal over the first six months of this year. Key findings of small sample include:
o The majority of HSA purchasers (52 percent) were 40 years of age or older. o Nearly half of HSA purchasers (49 percent) were families with children. o Two-fifths of HSA purchasers (41 percent) had incomes of $50,000 or less. o Three of ten HSA purchasers (30 percent) had previously been uninsured
HSAs provide a much more affordable, consumer-friendly product for businesses to offer their employees.
o The National Federation of Independent Businesses (NFIB) says that "some small businesses have saved up to 42 percent" on their health care costs through these products. NFIB also says that HSAs "will help reduce the number of uninsured Americans by allowing small businesses and their employees more choice in the current small group market." o Testifying at a Congressional hearing last March, Kate Sullivan of the US Chamber of Commerce said, "Enactment last year of HSAs came at a critical time for America's employers and working families, due to the increasing difficulties of affordable family health coverage. HSAs offer a great deal, not only to small business, but to workers at any point in their lives."
Thursday, August 5, 2004
More people now buy individual health insurance policies
Results of a new study show that the country's three-year-old recession has not only stripped away jobs, but employees' ability to access to employer-sponsored health insurance coverage as well.
Due to mounting job losses and the increased cost of insurance premiums, 9 million fewer Americans received health insurance coverage through their employers in 2003 than in 2001, according to the Washington, D.C.-based Center for Studying Health System Change. The study's results indicate that Americans are being forced to turn from their employers to the government to help subsidize their health insurance needs.
In total, the center surveyed 25,400 families and found that the ratio of Americans under the age of 65 that receive their coverage from their employers dropped 4 percent -- from 67 to 63 percent -- over the three years studied. The principal cause: a drop from 84.2 percent to 81.4 percent in the number of families with at least one employed worker, the study said.
The study also found that the ability to access employer-sponsored coverage through one's own or a family member's job dropped from 80.4 percent to 78.2 percent, as the soaring insurance premiums has caused employers to restrict access to or even eliminate health insurance programs altogether.
On the flip side, the study found than more Americans are finding relief through public programs like Medicaid and state-sponsored insurance programs for children.
Due to mounting job losses and the increased cost of insurance premiums, 9 million fewer Americans received health insurance coverage through their employers in 2003 than in 2001, according to the Washington, D.C.-based Center for Studying Health System Change. The study's results indicate that Americans are being forced to turn from their employers to the government to help subsidize their health insurance needs.
In total, the center surveyed 25,400 families and found that the ratio of Americans under the age of 65 that receive their coverage from their employers dropped 4 percent -- from 67 to 63 percent -- over the three years studied. The principal cause: a drop from 84.2 percent to 81.4 percent in the number of families with at least one employed worker, the study said.
The study also found that the ability to access employer-sponsored coverage through one's own or a family member's job dropped from 80.4 percent to 78.2 percent, as the soaring insurance premiums has caused employers to restrict access to or even eliminate health insurance programs altogether.
On the flip side, the study found than more Americans are finding relief through public programs like Medicaid and state-sponsored insurance programs for children.
EZlynx web portal now delivers real-time auto insuruance quotes
Independent insurance distributors in seven western states now can get accurate Safeco Auto and Home quotes without leaving their EZLynx Web portal (www.ezlynx.com).
In insurance industry parlance, this is "real-time" quoting - an elusive, but much-desired capability for independent distributors. Without real-time quoting, agents type customer information into comparative rating systems and then bridge to each carrier Web site to complete questions unique to each company's application process. EZLynx, the real-time rating system created by Webcetera, removes the bridging step, cutting independent distributors' work time by as much as half.
EZLynx is available in Arizona, California, Colorado, Nevada, Oregon, Texas and Washington. More states are expected to launch by year end.
In insurance industry parlance, this is "real-time" quoting - an elusive, but much-desired capability for independent distributors. Without real-time quoting, agents type customer information into comparative rating systems and then bridge to each carrier Web site to complete questions unique to each company's application process. EZLynx, the real-time rating system created by Webcetera, removes the bridging step, cutting independent distributors' work time by as much as half.
EZLynx is available in Arizona, California, Colorado, Nevada, Oregon, Texas and Washington. More states are expected to launch by year end.
Massachusetts Auto Insurance plan splits coalition
Attorney General Thomas F. Reilly's proposal to modify the plan for assigning high-risk drivers among Massachusetts automobile insurers has split the once-united front for auto insurance reform. The plan before Insurance Commissioner Julianne M. Bowler would assign drivers no company wants to insure voluntarily to companies on a random basis based on market share. Reilly backs the plan but has proposed limiting the discretion of companies in making assignments, requiring that drivers with a clean driving record for three years be excluded. An estimated 70 percent of the Massachusetts drivers would qualify. Reilly's proposal has the support of two critics of the overall plan -- consumer advocates and Commerce Insurance of Webster, the state's largest auto insurer. But a coalition representing nearly every other auto insurer has come out against Reilly's amendment, urging Bowler to approve the overall plan as is while continuing to study Reilly's proposal. Bowler is expected to rule this month.
Wednesday, August 4, 2004
New Statistics on Individual Health Insurance Market
The Kaiser Family Foundation held a briefing with eHealthInsurance on the individual market on August 2. An important new report, "Update on Individual Health Insurance," was issued in conjunction with the briefing. This report provides some baseline information on the individual market so policy makers can have a point of reference instead of just relying on impressions and anecdotes when discussing individual coverage. The data in the report is based on actual sales made through eHealthInsurance, and includes information on age of the buyers, premiums paid by age and region, retention, and cost-sharing provisions. It finds, for instance, that nearly half of purchasers keep their policies in force for two years or more, with older buyers likely to keep it longer than younger ones. It also finds that premiums are quite affordable. The average is $147/mo for individuals, ranging from $87/mo for someone under 18 in the North Central region to $299/mo for someone over age 45 in New England. For families the average is $278/mo, ranging from $101/mo for an under-18 head of household to $542/mo for someone over age 45, both in the New England/Mid-Atlantic region.
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