WASHINGTON (AP)
President Bush continues to push for limits on jury awards for medical mistakes with a visit Wednesday to an Illinois county near St. Louis, Missouri, where the White House says frivolous lawsuits have run amok.
Bush says large malpractice awards have driven up the cost of business so high that doctors have to close their businesses or scale back services.
Exhibit A in Bush's case is Madison County, across the Mississippi River from St. Louis, named the country's top "judicial hellhole" by the American Tort Reform Association last year because of its reputation for big awards.
Lawyers in the area say the legal situation has been exaggerated and Bush is demonizing the county even though large malpractice awards have been scarce. Leading Democrats in Congress say the number of doctors practicing in Illinois has risen in recent years, despite higher malpractice insurance rates that they say are driven by the state's weak insurance regulation.
Bush was personalizing his point by meeting with a neurosurgeon, an obstetrician gynecologist and a pregnant woman who had to change doctors repeatedly because so many were going out of business, White House spokesman Scott McClellan said.
"We don't want to have to see pregnant mothers having their OB/GYN doctor go out of business or move to another area because they can't afford to practice their medicine," McClellan said. "We want them to be able to get the care they need when they need it."
Caps on damage awards of varying types have been implemented in 27 states, but a proposed federal cap, though successful in the House, was defeated because of Democratic opposition in the Senate.
Republicans strengthened their majorities in both chambers and intend to work again with Bush to impose a nationwide cap on pain and suffering awards.
McClellan said Bush will urge Congress to pass medical liability reform that will end "these junk lawsuits."
But the lawyers who win those awards for malpractice victims and other opponents of Bush's initiative say the real problem is insurers who look to raise premiums and, consequently, their bottom line. They also use personal stories to tell their side, such as a woman who said doctors switched her test results and mistakenly told her she had breast cancer before amputating both her breasts. She is featured in a $250,000 television ad buy in the St. Louis and Washington markets to coincide with Bush's visit.
McClellan on Tuesday brushed aside questions about whether Bush would examine rising malpractice insurance rates. McClellan blamed "unlimited and unpredictable liability awards" for raising the cost of health insurance premiums and making insurance too expensive for some Americans.
Bush says tort reform is a key part of his plan to lower health care costs and help the more than 40 million uninsured Americans obtain coverage. Democrats in Congress say that won't amount to much savings, pointing to a year-old Congressional Budget Office report that said malpractice costs amount to only about 2 percent of overall health care spending.
Wednesday, January 5, 2005
Tuesday, January 4, 2005
Auto Insurance Rates continue to rise
With the year 2003 in the history books, auto insurance rates looked to have continued their upward trend during the year, and are expected to increase throughout 2004.
Consumers at InsWeb, and consumers shopping for auto insurance in general, continue to see their premiums increase. During the period of the first quarter of 2000 (when InsWeb began tracking pricing data) through the second quarter of 2003, prices increased 54 percent (according to the InsWeb Auto Insurance Index).
After nearly a decade of only modest price increases, auto insurance prices started trending sharply upward in 2000.
Reasons for the increases include rising claims costs driven primarily by medical costs, significantly higher vehicle repair costs, rising jury awards, insurance fraud and abuse, as well as increasing auto theft.
According to data from the InsWeb Auto Insurance Index, as a whole, prices for auto insurance nationwide in 2002 increased by approximately 11 percent over the prior year. For example, the average price quoted for a six-month auto insurance policy on InsWeb's marketplace during 2002 was $1,350 compared to $1,200 during 2001. And experts at the Insurance Information Institute (III) project that prices rose by approximately 8.5 percent in 2003.
Just because it is a new year does not mean consumers can expect prices to level out or decrease. However, the percentage by which prices increase may start to decline a bit. The III speculates auto insurance rates will rise by about 6 percent in 2004, as opposed to the 8.5 percent projection in 2003 and 11 percent increase (according to the InsWeb Index) in 2002.
What Can Consumers Do? 'The Index suggests that prices continue to rise, and that consumers could save hundreds of dollars by shopping for their insurance.
Consumers at InsWeb, and consumers shopping for auto insurance in general, continue to see their premiums increase. During the period of the first quarter of 2000 (when InsWeb began tracking pricing data) through the second quarter of 2003, prices increased 54 percent (according to the InsWeb Auto Insurance Index).
After nearly a decade of only modest price increases, auto insurance prices started trending sharply upward in 2000.
Reasons for the increases include rising claims costs driven primarily by medical costs, significantly higher vehicle repair costs, rising jury awards, insurance fraud and abuse, as well as increasing auto theft.
According to data from the InsWeb Auto Insurance Index, as a whole, prices for auto insurance nationwide in 2002 increased by approximately 11 percent over the prior year. For example, the average price quoted for a six-month auto insurance policy on InsWeb's marketplace during 2002 was $1,350 compared to $1,200 during 2001. And experts at the Insurance Information Institute (III) project that prices rose by approximately 8.5 percent in 2003.
Just because it is a new year does not mean consumers can expect prices to level out or decrease. However, the percentage by which prices increase may start to decline a bit. The III speculates auto insurance rates will rise by about 6 percent in 2004, as opposed to the 8.5 percent projection in 2003 and 11 percent increase (according to the InsWeb Index) in 2002.
What Can Consumers Do? 'The Index suggests that prices continue to rise, and that consumers could save hundreds of dollars by shopping for their insurance.
Childrens Health Insurance in FLorida
January is open enrollment month for low-income parents to get their children into KidCare subsidized health insurance For Florida residents.
Despite Gov. Bush and the Legislature taking credit last spring for increasing the number of KidCare slots, current enrollment in the program is at 2003 levels.
With no state money allocated to advertise this opportunity of open enrollment, the program is using community groups to get the word out. A streamlining of enrollment/eligibility requirements to just one proof of income, passed in the December legislative special session, should make it easier for parents enrolling their kids.
Kids will be enrolled on a first-come, first-serve basis until the enrollment cap is reached.
Despite Gov. Bush and the Legislature taking credit last spring for increasing the number of KidCare slots, current enrollment in the program is at 2003 levels.
With no state money allocated to advertise this opportunity of open enrollment, the program is using community groups to get the word out. A streamlining of enrollment/eligibility requirements to just one proof of income, passed in the December legislative special session, should make it easier for parents enrolling their kids.
Kids will be enrolled on a first-come, first-serve basis until the enrollment cap is reached.
Monday, January 3, 2005
Mass. Finalizes Auto Insurance Residual Market Operating Rules
Massachusetts Insurance Commissioner Julianne Bowler has issued clarifications and minor revisions to her November decision creating a new auto insurance residual market, assigned risk plan to be known as the Massachusetts Automobile Insurance Plan (MAIP).
The new plan went into effect Jan. 1, 2005 and is to result in full implementation by Jan. 1, 2008.
'In keeping with Governor Romney's goal of restructuring this troubled market, I have acted with my regulatory authority and presided over an open and constructive six month process to achieve necessary consumer protections and fairness to all insurers who will offer coverage in Massachusetts going forward,' Bowler said.
The MAIP will place high risk drivers with insurers in proportion to insurers' voluntary market share, ending the assignment of involuntary agents' policyholders to insurers through a complicated subscription formula that critics claimed was inequitable and contributed to insurers' reluctance to write in the state.
Among the revisions is one allowing insureds being placed in the residual market to submit a statement that they have been declined coverage in the voluntary market, rather than requiring the insurer to issue a letter of declination. Bowler, however, retained the requirement that consumers be informed why they are declined in the voluntary market.
Several insurers had protested the MAIP rule that prohibits placement of risks receiving group discounts in the residual market. Bowler, however, upheld this rule, which critics say could reduce or end companies' willingness to offer group discounts.
She also declined to implement penalties for insurers withdrawing from the private passenger market.
The new plan went into effect Jan. 1, 2005 and is to result in full implementation by Jan. 1, 2008.
'In keeping with Governor Romney's goal of restructuring this troubled market, I have acted with my regulatory authority and presided over an open and constructive six month process to achieve necessary consumer protections and fairness to all insurers who will offer coverage in Massachusetts going forward,' Bowler said.
The MAIP will place high risk drivers with insurers in proportion to insurers' voluntary market share, ending the assignment of involuntary agents' policyholders to insurers through a complicated subscription formula that critics claimed was inequitable and contributed to insurers' reluctance to write in the state.
Among the revisions is one allowing insureds being placed in the residual market to submit a statement that they have been declined coverage in the voluntary market, rather than requiring the insurer to issue a letter of declination. Bowler, however, retained the requirement that consumers be informed why they are declined in the voluntary market.
Several insurers had protested the MAIP rule that prohibits placement of risks receiving group discounts in the residual market. Bowler, however, upheld this rule, which critics say could reduce or end companies' willingness to offer group discounts.
She also declined to implement penalties for insurers withdrawing from the private passenger market.
California Health Insurance enrollment up
By The Times-Standard
More than 3,000 local children have enrolled in health insurance programs over the last three years with the help of local clinics' outreach efforts.
The North Coast Clinics Network, a nonprofit consortium of community health centers in Humboldt, Del Norte and Trinity counties, recently reviewed Healthy Families enrollment statistics compiled by Maximus, the program's new administrative vendor.
Since September of 2001, when the network began its outreach program, 3,262 children have enrolled onto the Healthy Families program in Humboldt, Del Norte and Trinity counties. Disenrollment and "aging out" can causes lack of retention, but Healthy Families enrollment has increased by 50 percent since the network began outreach activities. As of December, 2,880 children -- over 8 percent of all North Coast kids -- are covered by Healthy Families. In addition, 1,563 more children are enrolled in Medi-Cal for children than when the network began its program -- an 11 percent increase.
Healthy Families is a low-cost health plan with dental, vision and medical health benefits for uninsured children in low-income working families. Family incomes up to 250 percent of the federal poverty level ($47,125 for a family of 4) may qualify. Medi-Cal for Children is generally no-cost health coverage with full benefits for uninsured children, but has a lower income threshold than Healthy Families.
North Coast Clinics Network staff worked to enroll children in these programs through outreach at community events, through direct enrollment assistance, through helping families appeal erroneous plan determinations and through providing support to other community agencies working to help enroll children of their own staff or clients.
More than 3,000 local children have enrolled in health insurance programs over the last three years with the help of local clinics' outreach efforts.
The North Coast Clinics Network, a nonprofit consortium of community health centers in Humboldt, Del Norte and Trinity counties, recently reviewed Healthy Families enrollment statistics compiled by Maximus, the program's new administrative vendor.
Since September of 2001, when the network began its outreach program, 3,262 children have enrolled onto the Healthy Families program in Humboldt, Del Norte and Trinity counties. Disenrollment and "aging out" can causes lack of retention, but Healthy Families enrollment has increased by 50 percent since the network began outreach activities. As of December, 2,880 children -- over 8 percent of all North Coast kids -- are covered by Healthy Families. In addition, 1,563 more children are enrolled in Medi-Cal for children than when the network began its program -- an 11 percent increase.
Healthy Families is a low-cost health plan with dental, vision and medical health benefits for uninsured children in low-income working families. Family incomes up to 250 percent of the federal poverty level ($47,125 for a family of 4) may qualify. Medi-Cal for Children is generally no-cost health coverage with full benefits for uninsured children, but has a lower income threshold than Healthy Families.
North Coast Clinics Network staff worked to enroll children in these programs through outreach at community events, through direct enrollment assistance, through helping families appeal erroneous plan determinations and through providing support to other community agencies working to help enroll children of their own staff or clients.
Sunday, January 2, 2005
Amica tops in customer service
By MARC HUMBERT
Associated Press Writer
January 2, 2005, 10:53 AM EST
ALBANY, N.Y. -- A relatively small insurer in the New York market, Amica Mutual Insurance Co., ranks best in the state Insurance Department's annual list based on automobile insurance complaints.
The state's largest auto insurer, Allstate, ranked 32nd among the 49 companies rated.
The department considers the list a tool for consumers interested in measuring customer service when they are selecting an automobile insurer.
"When buying insurance, price, of course, is important, but the service an auto insurer provides should not be overlooked," said state Insurance Superintendent Gregory Serio as he released the 2004 rankings.
The rankings are based on complaints to the department by consumers that were upheld in 2003.
The number of complaints upheld is measured against the total premiums charged by the company to produce a complaint ratio _ the lower it is, the better.
Serio noted that New Yorkers spent more than $10 billion on auto insurance in 2003. He said the average complaint ratio for all companies was 0.27 per $1 million in premiums.
Amica, which had premiums in New York of just $99 million for 2003, had a complaint ratio of 0.01, according to Serio. Lowest rated was Leucadia with an 18.78 ratio.
Allstate, with $1.7 billion in premiums, had an 0.22 complaint ratio.
Among the 10 largest auto insurers in the state, New York Central Mutual (ninth largest) came out the best, ranked at 12th. The second largest firm operating in New York, Geico, ranked 38th while the third largest firm, State Farm, ranked 15th.
The complete list of rankings are available at the department's Web site: http://www.ins.state.ny.us or consumers can have it mailed to them by calling the department's toll-free line at 1-800-342-3736 and asking for publication No. 6.
Associated Press Writer
January 2, 2005, 10:53 AM EST
ALBANY, N.Y. -- A relatively small insurer in the New York market, Amica Mutual Insurance Co., ranks best in the state Insurance Department's annual list based on automobile insurance complaints.
The state's largest auto insurer, Allstate, ranked 32nd among the 49 companies rated.
The department considers the list a tool for consumers interested in measuring customer service when they are selecting an automobile insurer.
"When buying insurance, price, of course, is important, but the service an auto insurer provides should not be overlooked," said state Insurance Superintendent Gregory Serio as he released the 2004 rankings.
The rankings are based on complaints to the department by consumers that were upheld in 2003.
The number of complaints upheld is measured against the total premiums charged by the company to produce a complaint ratio _ the lower it is, the better.
Serio noted that New Yorkers spent more than $10 billion on auto insurance in 2003. He said the average complaint ratio for all companies was 0.27 per $1 million in premiums.
Amica, which had premiums in New York of just $99 million for 2003, had a complaint ratio of 0.01, according to Serio. Lowest rated was Leucadia with an 18.78 ratio.
Allstate, with $1.7 billion in premiums, had an 0.22 complaint ratio.
Among the 10 largest auto insurers in the state, New York Central Mutual (ninth largest) came out the best, ranked at 12th. The second largest firm operating in New York, Geico, ranked 38th while the third largest firm, State Farm, ranked 15th.
The complete list of rankings are available at the department's Web site: http://www.ins.state.ny.us or consumers can have it mailed to them by calling the department's toll-free line at 1-800-342-3736 and asking for publication No. 6.
Saturday, January 1, 2005
Free Car Insurance with VW purchase
By Jeff Green
Of Bloomberg News
Volkswagen AG, in its third straight year of declining U.S. sales, will offer free auto insurance in Illinois and Wisconsin to attract buyers, dealers said.
The German automaker from Tuesday through March 31 will test the program by offering 12 months of free insurance to people with valid driver's licenses who buy or lease new Golfs, Beetle coupes and Beetle convertibles, according to Illinois and Wisconsin dealers. Volkswagen spokesman Tony Fouladpour wouldn't comment on the program.
''It's definitely original and unique, and I think it will be a lure for college graduates and first-time buyers,'' said Harry Nesbitt, sales manager at D'Arcy Volkswagen in Joliet, Ill. ''It's a way to get people in the dealership without sounding like everyone else.''
Automakers in the United States boosted incentive spending 7.2 percent last year, with rebates as high as $8,000 on some models, to lure shoppers conditioned to expect deals. Volkswagen turned to low-interest loans and reduce-priced leases in March for the first time in several years to boost demand as its models aged.
Volkswagen's U.S. sales fell 17.6 percent through November. Bayerische Motoren Werke AG, based in Munich, this year may outsell Volkswagen, of Wolfsburg, Germany, for only the second time since Volkswagen entered the United States in 1949.
Zimbrick Volkswagen in Middleton, Wis., has ordered more Beetle and Golf models in expectation that the offer will increase sales, said sales manager Amy Wach. The program, open only to residents of states where it's offered, won't hurt the resale value of the models as higher rebates do, she said.
Every $1 worth of incentives on a new vehicle takes away about $1.05 from the value of the car if the customer tries to sell it three years later, said Art Spinella, whose CNW Marketing Research in Bandon, Ore., tracks auto-top incentive programs. Rebates cut the value of used models because buyers are paying less for the new car or truck, he said.
General Motors Corp., the world's largest automaker, has also been varying its ways of luring buyers this year. Its offers have included overnight test drives, 72-hour sales and a program tied to the U.S. federal interest rate increase that allowed buyers to lock in an interest rate this year on a car or truck purchase five years in the future.
''People just aren't motivated by incentives anymore,'' said Spinella. ''People expect to get a $4,000 rebate no matter what.''
The Volkswagen program would be the first insurance giveaway by an automaker, he said. If the program is successful ''other automakers will follow, no question. This could be a new trend for the industry,'' Spinella said.
Only about 7 percent of customers this month said they buy sooner or decide to purchase a new car instead of used because of increased rebates, compared with 20 percent in 1990, he said. In addition, 23 percent of buyers say they don't buy new because of the high price of insurance, Spinella said, citing CNW consumer surveys.
Among people likely to buy a Volkswagen Beetle or Golf, the average insurance premium is $846 a year, according to insurance data compiled by CNW. Dealers said the program won't be restricted based on driving records.
Of Bloomberg News
Volkswagen AG, in its third straight year of declining U.S. sales, will offer free auto insurance in Illinois and Wisconsin to attract buyers, dealers said.
The German automaker from Tuesday through March 31 will test the program by offering 12 months of free insurance to people with valid driver's licenses who buy or lease new Golfs, Beetle coupes and Beetle convertibles, according to Illinois and Wisconsin dealers. Volkswagen spokesman Tony Fouladpour wouldn't comment on the program.
''It's definitely original and unique, and I think it will be a lure for college graduates and first-time buyers,'' said Harry Nesbitt, sales manager at D'Arcy Volkswagen in Joliet, Ill. ''It's a way to get people in the dealership without sounding like everyone else.''
Automakers in the United States boosted incentive spending 7.2 percent last year, with rebates as high as $8,000 on some models, to lure shoppers conditioned to expect deals. Volkswagen turned to low-interest loans and reduce-priced leases in March for the first time in several years to boost demand as its models aged.
Volkswagen's U.S. sales fell 17.6 percent through November. Bayerische Motoren Werke AG, based in Munich, this year may outsell Volkswagen, of Wolfsburg, Germany, for only the second time since Volkswagen entered the United States in 1949.
Zimbrick Volkswagen in Middleton, Wis., has ordered more Beetle and Golf models in expectation that the offer will increase sales, said sales manager Amy Wach. The program, open only to residents of states where it's offered, won't hurt the resale value of the models as higher rebates do, she said.
Every $1 worth of incentives on a new vehicle takes away about $1.05 from the value of the car if the customer tries to sell it three years later, said Art Spinella, whose CNW Marketing Research in Bandon, Ore., tracks auto-top incentive programs. Rebates cut the value of used models because buyers are paying less for the new car or truck, he said.
General Motors Corp., the world's largest automaker, has also been varying its ways of luring buyers this year. Its offers have included overnight test drives, 72-hour sales and a program tied to the U.S. federal interest rate increase that allowed buyers to lock in an interest rate this year on a car or truck purchase five years in the future.
''People just aren't motivated by incentives anymore,'' said Spinella. ''People expect to get a $4,000 rebate no matter what.''
The Volkswagen program would be the first insurance giveaway by an automaker, he said. If the program is successful ''other automakers will follow, no question. This could be a new trend for the industry,'' Spinella said.
Only about 7 percent of customers this month said they buy sooner or decide to purchase a new car instead of used because of increased rebates, compared with 20 percent in 1990, he said. In addition, 23 percent of buyers say they don't buy new because of the high price of insurance, Spinella said, citing CNW consumer surveys.
Among people likely to buy a Volkswagen Beetle or Golf, the average insurance premium is $846 a year, according to insurance data compiled by CNW. Dealers said the program won't be restricted based on driving records.
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