By Richard Halstead, IJ reporter
BERKELEY - New legislation that would extend health care coverage to every resident of the state will be introduced early next year by Assemblyman Joe Nation, D-San Rafael, and Keith Richman, R-Granada Hills.
Nation and Richman announced their plans yesterday during a conference of health-care experts that they convened at the University of California at Berkeley. The conference, attended by more than 100 people, was one of five the assemblymen have mounted statewide to solicit advice on what their legislation should contain.
Nation said many of the details must still be resolved.
"Everyone would be guaranteed some basic package of coverage. The question is: What is that benefit level and how do you pay for it?" Nation said.
The plan is to require everyone in the state to have health care insurance, much like car insurance, Nation said. Bare bones coverage would be subsidized by the state.
"Anyone who wants more than that base package will have to pay more," he said.
Action is urgently needed, said Richman, who is a physician.
More than 6 million Californians, 25 percent of the population under the age of 65, lack health insurance, he said. Health-care costs are rising at double-digit rates. More than half of the state's hospitals are losing money.
"Emergency rooms throughout the state are closing, and trauma systems are on the brink of collapse," Richman said.
The bipartisan initiative comes soon after the repeal of state legislation that would have required medium and large businesses to provide health-care coverage for their workers. Businesses that opposed the new mandate, signed into law last year, spent millions to put Proposition 72 on the November ballot.
The Legislature could attempt to reinstitute the employer mandate and have Gov. Arnold Schwarzenegger veto it, Nation said.
"I'd rather do something productive," he said.
Nation said his and Richman's health care proposal would compete with legislation introduced last year by Sen. Sheila Kuehl, D-Santa Monica. Kuehl's plan differs from theirs because it proposes a centralized, single-payer approach, similar to the one used in Canada and the United Kingdom.
Supporters of the single-payer approach cite a study by the Lewin Group, which shows that $14 billion in administration costs could be saved by centralizing health care management. Supporters also contend that the cost of pharmaceuticals and medical equipment could be reduced by bulk purchasing.
The single-payer approach received scant discussion yesterday.
"I don't agree with their conclusions," Richard Scheffler, professor of health economics and public policy at UC Berkeley, said when asked about the Lewin Group's study.
Single-payer advocates often note that Canada spends less of its gross national product on health care than the United States while achieving better results, Scheffler said. Centralized management is not the reason, he said. Canada spends less on medical equipment than the United States, pays doctors less, and negotiates lower drug prices. That is the explanation, he said.
Contrary to popular opinion, the profits and administrative expenses of health maintenance organizations remained flat from 1997 to 2002 while premiums soared, said Dana Goldman, who supervises health economics for the RAND Corp.
Goldman attributes the rapid rise in health-care costs to the aging of the population and the increased use of medical technology. For example, Goldman says there are more magnetic resonance imaging machines in the Bay Area than all of Canada.
Helen Halpin, a professor of health policy at UC Berkeley, said most analysts would agree the single-payer approach is the most efficient way of delivering health care. But political opposition, particularly from insurance companies, makes it unlikely the single-payer approach will be implemented any time soon, Halpin said.
Marin Supervisor Susan Adams attended yesterday's conference. A supporter of the single-payer approach, Adams said she is skeptical the state's health care problems can be solved by a piecemeal approach. Adams has worked as a nurse practitioner and taught nursing at Dominican University.
Anmol Mahal, chairman of the California Medical Association's board, said anyone attempting to fix the nation's health care problems faces a big psychological hurdle.
"We still do not believe that death is the ultimate outcome of life," Mahal said. "We think it's preventable."
Thursday, December 2, 2004
Conforming loan limits to rise in '05
WASHINGTON, Nov 30 (Reuters)
U.S. mortgage finance giants Fannie Mae and Freddie Mac may boost their loan purchase limits to $359,650 from $333,700, their federal regulator said on Tuesday, lowering borrowing costs for buyers of more expensive homes.
The enterprises are permitted to adjust their loan purchase caps once a year by the rate of change in the October average U.S. house price from the same month a year earlier. The average U.S. home price rose last month by 8.5 percent to $264,540 from $243,756 in October 2003, the Federal Housing Finance Board said earlier.
Home buyers who borrow under the enterprises' purchase ceiling, known as the conforming loan limit, can get mortgages with interest rates about a half-percentage point lower than for bigger loans.
Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) last year erred in determining their loan limit. The change for 2005 was calculated from $331,400, the enterprises' regulator, the Office of Federal Housing Enterprise Oversight, said in a statement.
U.S. mortgage finance giants Fannie Mae and Freddie Mac may boost their loan purchase limits to $359,650 from $333,700, their federal regulator said on Tuesday, lowering borrowing costs for buyers of more expensive homes.
The enterprises are permitted to adjust their loan purchase caps once a year by the rate of change in the October average U.S. house price from the same month a year earlier. The average U.S. home price rose last month by 8.5 percent to $264,540 from $243,756 in October 2003, the Federal Housing Finance Board said earlier.
Home buyers who borrow under the enterprises' purchase ceiling, known as the conforming loan limit, can get mortgages with interest rates about a half-percentage point lower than for bigger loans.
Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) last year erred in determining their loan limit. The change for 2005 was calculated from $331,400, the enterprises' regulator, the Office of Federal Housing Enterprise Oversight, said in a statement.
Answers sought on fradulaent loans
By James Tyson
Bloomberg News
Three U.S. lawmakers want Fannie Mae Chief Executive Officer Franklin Raines to explain by mid-January why the company failed to disclose the sale of fraudulent loans by one of its authorized lenders.
Fannie Mae, the biggest source of money for U.S. home mortgages, was ordered by a federal judge in October to forfeit $6.5 million for failing to inform the Government National Mortgage Association (Ginnie Mae), a government agency, about the sale.
"We are very concerned that the U.S. taxpayers may have been put at risk," the three Republican members of the House Financial Services Committee said in a letter dated yesterday to Seattle native Raines and released by the panel.
The lawmakers are U.S. Rep. Richard Baker, D-La.; Rep. Sue Kelly, R-N.Y.; and Rep. Robert Ney, R-Ohio.
A spokesman for Fannie Mae, Brian Faith, declined to comment. Fannie Mae was chartered by Congress to buy mortgage loans from lenders, thereby expanding funding for home mortgages.
The U.S. District Court in Charlotte, N.C., issued its order in October in a sealed ruling after concluding that Fannie Mae sold back fraudulent loans by First Beneficial Mortgage of Charlotte without notifying regulators of the fraud.
First Beneficial subsequently resold some of the loans to Ginnie Mae, which lost about $30 million as a result of the purchase, according to The Wall Street Journal.
"Understanding that Fannie Mae was created to provide liquidity to the U.S. mortgage market, it is our hope that Fannie Mae would actively seek to prevent such fraud," the lawmakers said, requesting a reply from Raines by Jan. 14.
The legislators asked Raines to identify the Fannie Mae executives who knew about the fraudulent loans and who approved First Beneficial Mortgage as an authorized lender.
Bloomberg News
Three U.S. lawmakers want Fannie Mae Chief Executive Officer Franklin Raines to explain by mid-January why the company failed to disclose the sale of fraudulent loans by one of its authorized lenders.
Fannie Mae, the biggest source of money for U.S. home mortgages, was ordered by a federal judge in October to forfeit $6.5 million for failing to inform the Government National Mortgage Association (Ginnie Mae), a government agency, about the sale.
"We are very concerned that the U.S. taxpayers may have been put at risk," the three Republican members of the House Financial Services Committee said in a letter dated yesterday to Seattle native Raines and released by the panel.
The lawmakers are U.S. Rep. Richard Baker, D-La.; Rep. Sue Kelly, R-N.Y.; and Rep. Robert Ney, R-Ohio.
A spokesman for Fannie Mae, Brian Faith, declined to comment. Fannie Mae was chartered by Congress to buy mortgage loans from lenders, thereby expanding funding for home mortgages.
The U.S. District Court in Charlotte, N.C., issued its order in October in a sealed ruling after concluding that Fannie Mae sold back fraudulent loans by First Beneficial Mortgage of Charlotte without notifying regulators of the fraud.
First Beneficial subsequently resold some of the loans to Ginnie Mae, which lost about $30 million as a result of the purchase, according to The Wall Street Journal.
"Understanding that Fannie Mae was created to provide liquidity to the U.S. mortgage market, it is our hope that Fannie Mae would actively seek to prevent such fraud," the lawmakers said, requesting a reply from Raines by Jan. 14.
The legislators asked Raines to identify the Fannie Mae executives who knew about the fraudulent loans and who approved First Beneficial Mortgage as an authorized lender.
NJ drivers receive dividend
Acting Governor Richard J. Codey and Banking and Insurance Commissioner Holly C. Bakke today announced that nearly $300 million has been returned to more than two million policyholders since the auto insurance reforms became law.
New Jersey Manufacturers Insurance Company (NJM), the state's second largest personal auto insurer, reported it will issue a $59 million special dividend. The monies are currently being sent to more than 360,000 NJM policyholders across New Jersey and continuing through mid-December.
"The competitive, consumer-driven marketplace we created is working for New Jersey drivers," Acting Governor Codey said. "NJM's checks to policyholders are another payment on a promise made to consumers two years ago. Consumers asked for premium and coverage options and companies are finally able to provide both."
Before the reforms, due to New Jersey's historically unpredictable marketplace, NJM held a large reserve to guard against unanticipated losses in the state's mechanism for paying individual medical claims over $75,000. Now that the reform law has provided long-term and reliable funding for these claims, NJM is releasing this reserve directly to policyholders in this dividend.
"The Automobile Insurance Competition and Choice Act has alleviated the strain on both policyholders and employees at NJM," said NJM President and CEO Anthony G. Dickson. "Instead of insurers leaving, this market is stabilizing, and motorists can now shop around based on each company's reputation for financial strength, quality service, coverage options, rating systems, and demonstrated commitment to the New Jersey marketplace."
The percentage rate of the company's special dividend will vary. Long-term policyholders with NJM will receive an average return of $173, while those who enrolled in NJM after 2001 will receive an average return of $94.
"The success of the auto reforms have brought great results for New Jersey drivers. Instead of receiving rate increases in the mail, more than 40 percent of the market are seeing dividend checks, rate reductions and solicitations for their business," Commissioner Bakke said. "Three years ago good drivers were stranded and could not get policies at any price. Now they have choices in coverage and cost."
In April, NJM opened a new 57,000 square-foot office in Hammonton. The facility currently employs 149 workers.
Since the reforms were enacted, the following companies returned money to policyholders in the form of rate reductions or dividends:
* USAA Group issued a 4.9 percent rate reduction for 2.4 percent of New Jersey's drivers;* State Farm Indemnity issued a total of four rate reductions for 11 percent of New Jersey's drivers;* AllstateNJ issued a special dividend for 6 percent of the market;* A Liberty Mutual Group company issued a 4.5 percent rate reduction, while another issued a dividend for 7.5 percent of New Jersey's drivers; and* NJM's announcement, combined with a 0.8 percent rate reduction earlier this year, went to 13.8 percent of New Jersey's drivers.
New Jersey Manufacturers Insurance Company (NJM), the state's second largest personal auto insurer, reported it will issue a $59 million special dividend. The monies are currently being sent to more than 360,000 NJM policyholders across New Jersey and continuing through mid-December.
"The competitive, consumer-driven marketplace we created is working for New Jersey drivers," Acting Governor Codey said. "NJM's checks to policyholders are another payment on a promise made to consumers two years ago. Consumers asked for premium and coverage options and companies are finally able to provide both."
Before the reforms, due to New Jersey's historically unpredictable marketplace, NJM held a large reserve to guard against unanticipated losses in the state's mechanism for paying individual medical claims over $75,000. Now that the reform law has provided long-term and reliable funding for these claims, NJM is releasing this reserve directly to policyholders in this dividend.
"The Automobile Insurance Competition and Choice Act has alleviated the strain on both policyholders and employees at NJM," said NJM President and CEO Anthony G. Dickson. "Instead of insurers leaving, this market is stabilizing, and motorists can now shop around based on each company's reputation for financial strength, quality service, coverage options, rating systems, and demonstrated commitment to the New Jersey marketplace."
The percentage rate of the company's special dividend will vary. Long-term policyholders with NJM will receive an average return of $173, while those who enrolled in NJM after 2001 will receive an average return of $94.
"The success of the auto reforms have brought great results for New Jersey drivers. Instead of receiving rate increases in the mail, more than 40 percent of the market are seeing dividend checks, rate reductions and solicitations for their business," Commissioner Bakke said. "Three years ago good drivers were stranded and could not get policies at any price. Now they have choices in coverage and cost."
In April, NJM opened a new 57,000 square-foot office in Hammonton. The facility currently employs 149 workers.
Since the reforms were enacted, the following companies returned money to policyholders in the form of rate reductions or dividends:
* USAA Group issued a 4.9 percent rate reduction for 2.4 percent of New Jersey's drivers;* State Farm Indemnity issued a total of four rate reductions for 11 percent of New Jersey's drivers;* AllstateNJ issued a special dividend for 6 percent of the market;* A Liberty Mutual Group company issued a 4.5 percent rate reduction, while another issued a dividend for 7.5 percent of New Jersey's drivers; and* NJM's announcement, combined with a 0.8 percent rate reduction earlier this year, went to 13.8 percent of New Jersey's drivers.
Wednesday, December 1, 2004
The Insurance Industry Attracts Top Talent Using "Niche" Job Sites
The internet has become an extremely powerful employment advertising tool. In contrast to conventional advertising, the internet offers users much broader reach. Results are delivered faster and at less expense than most traditional advertising methods. Today, many recruiters and employers consider ‘on-line’ job advertising an integral part of their daily recruiting process. The question is how to utilize on-line recruiting to achieve the best results.
The use of ‘niche’ or specialized job boards is on the rise. Marketing and advertising of these ‘niche’ sites is highly targeted toward the professionals and employees of the specific industry it serves, attracting a significantly increased number of job seekers, having the experience and specialized skills, particular to that industry. .
InsuranceWorkForce.com, a leading ‘niche’ insurance job site, also utilizes a valuable cross-posting partnership with TopUSAJobs.com, a national top job board having the fourth largest listing of USA jobs on the internet, to cross-posting all of it’s job ads, resulting in substantially greater ad exposure for it’s customers.
Barbara Krueger, founder and CEO of this insurance-only job site, is also an industry veteran. With more than 25 years in the business, she understands the recruiting challenges faced when it comes to attracting and hiring the kind of talent and top notch professionals particular to the insurance industry. "We’re working hard to be the industry’s first choice in employment advertising. A virtual one stop insurance job site, linking employers and recruiters with job seekers that have the experience and specialized training necessary to get the job done, says Krueger."
The site offers job posting, several fee based cross-posting options, free job search, automated job alerts, industry resume database, salary surveys, career center and more. Job seekers are always free to search and post their resume. Employers and recruiters pay a fee to post job opportunities and access the resume database.
The use of ‘niche’ or specialized job boards is on the rise. Marketing and advertising of these ‘niche’ sites is highly targeted toward the professionals and employees of the specific industry it serves, attracting a significantly increased number of job seekers, having the experience and specialized skills, particular to that industry. .
InsuranceWorkForce.com, a leading ‘niche’ insurance job site, also utilizes a valuable cross-posting partnership with TopUSAJobs.com, a national top job board having the fourth largest listing of USA jobs on the internet, to cross-posting all of it’s job ads, resulting in substantially greater ad exposure for it’s customers.
Barbara Krueger, founder and CEO of this insurance-only job site, is also an industry veteran. With more than 25 years in the business, she understands the recruiting challenges faced when it comes to attracting and hiring the kind of talent and top notch professionals particular to the insurance industry. "We’re working hard to be the industry’s first choice in employment advertising. A virtual one stop insurance job site, linking employers and recruiters with job seekers that have the experience and specialized training necessary to get the job done, says Krueger."
The site offers job posting, several fee based cross-posting options, free job search, automated job alerts, industry resume database, salary surveys, career center and more. Job seekers are always free to search and post their resume. Employers and recruiters pay a fee to post job opportunities and access the resume database.
Chubb gets subpoena
WASHINGTON (Dow Jones/AP)
The Securities and Exchange Commission has subpoenaed The Chubb Corp. in a "fact-finding inquiry" regarding loss-mitigation insurance products.
The Warren, N.J., company said Tuesday in a filing with the SEC that the subpoena was similar to one Chubb received from New York state Attorney General Eliot Spitzer.
Chubb has earlier disclosed inquiries by other prosecutors and insurance regulators also have made inquiries that were previously disclosed.
Chubb said in the filing that it got the SEC subpoena on Monday. The company said it believes the probe also involves other companies, "and that Chubb has not been singled out in being asked to provide information to the SEC."
Chubb said it intends to cooperate fully with the SEC and other investigators.
Spitzer and other regulators have been investigating allegations of conflicts of interest in the insurance industry.
Shares of Chubb were at $76.50 in early trading Wednesday, up 29 cents, or 0.4 percent, on the New York Stock Exchange.
The Securities and Exchange Commission has subpoenaed The Chubb Corp. in a "fact-finding inquiry" regarding loss-mitigation insurance products.
The Warren, N.J., company said Tuesday in a filing with the SEC that the subpoena was similar to one Chubb received from New York state Attorney General Eliot Spitzer.
Chubb has earlier disclosed inquiries by other prosecutors and insurance regulators also have made inquiries that were previously disclosed.
Chubb said in the filing that it got the SEC subpoena on Monday. The company said it believes the probe also involves other companies, "and that Chubb has not been singled out in being asked to provide information to the SEC."
Chubb said it intends to cooperate fully with the SEC and other investigators.
Spitzer and other regulators have been investigating allegations of conflicts of interest in the insurance industry.
Shares of Chubb were at $76.50 in early trading Wednesday, up 29 cents, or 0.4 percent, on the New York Stock Exchange.
CA confirms defeat of prop 72
Associated Press
SACRAMENTO - After a mistaken report on its Web site late Tuesday, the secretary of state's office Wednesday confirmed the defeat of Proposition 72, the ballot measure that would have required employers to pay for at least 80 percent of their employees' health insurance. Officials said a faulty vote report from San Diego County caused the state's elections Web site to incorrectly report a come-from-behind victory for the Nov. 2 ballot measure that requires large and midsize employers to help pay for employee health insurance.
"It was wrong. It's been corrected," said Caren Daniels-Meade, a spokeswoman for Secretary of State Kevin Shelley.
Proposition 72 trailed 51 percent to 49 percent on election night, but the Web site late Tuesday listed the final results as 50.5 percent for the measure and 49.5 percent against.
Counties had until Tuesday to count absentee and provisional ballots and turn in the results to state election officials.
Daniels-Meade said state election officials would change the results on the Web site Wednesday morning.
SACRAMENTO - After a mistaken report on its Web site late Tuesday, the secretary of state's office Wednesday confirmed the defeat of Proposition 72, the ballot measure that would have required employers to pay for at least 80 percent of their employees' health insurance. Officials said a faulty vote report from San Diego County caused the state's elections Web site to incorrectly report a come-from-behind victory for the Nov. 2 ballot measure that requires large and midsize employers to help pay for employee health insurance.
"It was wrong. It's been corrected," said Caren Daniels-Meade, a spokeswoman for Secretary of State Kevin Shelley.
Proposition 72 trailed 51 percent to 49 percent on election night, but the Web site late Tuesday listed the final results as 50.5 percent for the measure and 49.5 percent against.
Counties had until Tuesday to count absentee and provisional ballots and turn in the results to state election officials.
Daniels-Meade said state election officials would change the results on the Web site Wednesday morning.
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