By Ryan Blessing - The Sun Staff
N. STONINGTON - As budget talks begin to heat up, local officials hope the town can retain Blue Cross & Blue Shield of Rhode Island as the health insurer for North Stonington employees.
As it stands, the company has signaled its intent to stop the practice of insuring out-of-state municipalities in the coming fiscal year, North Stonington First Selectman Nicholas H. Mullane II said.
'The new commissioner has taken the position that Blue Cross of Rhode Island should only cover people in their service area,' Mullane said.
About 125 to 150 town employees are covered through Blue Cross, Mullane said. Town employees regularly use facilities in Rhode Island, he said.
Should the town have to switch carriers, it would have options in Connecticut, such as Anthem Blue Cross. But charges would be much higher and no plan would be as attractive as Blue Cross, Mullane said.
'It has been a good deal all around for performance and service,' Mullane said. 'The pricing is better,' than other alternatives, he said.
Blue Cross of Rhode Island suffered a legal blow Thursday when the Rhode Island Supreme Court ruled that the state could award the contract for its employees' health insurance to UnitedHealthcare, over the objections of competitor Blue Cross & Blue Shield.
The contract covers some 52,000 state workers, retirees and their families. The state said it would save $25 million dollars by going with United, though Blue Cross disputed that number.
Blue Cross held the previous three-year contract, which expired at the end of the year, and sued after of UnitedHealthcare of New England won the new contract. Blue Cross spokesman Scott Fraser said the company was disappointed, but was moving on.
Mullane said he would like to have some idea in the comin
Sunday, February 6, 2005
Colleges Requiring Health Insurance
A growing number of public universities are requiring that students have student health insurance before they are admitted. The move is meant to save the uninsured from huge bills and college hospitals from getting stuck with the cost.
College administrators are finding that some students are forced to drop out when faced with big medical expenses.
More schools have started mandating the coverage in the past four years, although most public universities still leave the decision up to students. Ohio State University and the University of Toledo are two schools with the requirement.
Students who lack coverage must buy into a school's student health care plan or obtain their own insurance. Costs vary among schools. undergraduate students at UCLA paid $558 for a full year. The price is $1,200 this year at the University of Toledo.
College administrators are finding that some students are forced to drop out when faced with big medical expenses.
More schools have started mandating the coverage in the past four years, although most public universities still leave the decision up to students. Ohio State University and the University of Toledo are two schools with the requirement.
Students who lack coverage must buy into a school's student health care plan or obtain their own insurance. Costs vary among schools. undergraduate students at UCLA paid $558 for a full year. The price is $1,200 this year at the University of Toledo.
Colleges Requiring Health Insurance
A growing number of public universities are requiring that students have student health insurance before they are admitted. The move is meant to save the uninsured from huge bills and college hospitals from getting stuck with the cost.
College administrators are finding that some students are forced to drop out when faced with big medical expenses.
More schools have started mandating the coverage in the past four years, although most public universities still leave the decision up to students. Ohio State University and the University of Toledo are two schools with the requirement.
Students who lack coverage must buy into a school's student health care plan or obtain their own insurance. Costs vary among schools. undergraduate students at UCLA paid $558 for a full year. The price is $1,200 this year at the University of Toledo.
College administrators are finding that some students are forced to drop out when faced with big medical expenses.
More schools have started mandating the coverage in the past four years, although most public universities still leave the decision up to students. Ohio State University and the University of Toledo are two schools with the requirement.
Students who lack coverage must buy into a school's student health care plan or obtain their own insurance. Costs vary among schools. undergraduate students at UCLA paid $558 for a full year. The price is $1,200 this year at the University of Toledo.
Thursday, February 3, 2005
NJ state insurance commissionerresigns
Thursday, February 03, 2005
BY JOE DONOHUE
Star-Ledger Staff
After overseeing the most dramatic overhaul of the New Jersey auto insurance market in three decades, Holly Bakke is resigning as state banking and insurance commissioner, it was announced yesterday.
In a letter dated Feb. 1 to acting Gov. Richard Codey, Bakke said she is resigning effect March 1. She took office in March 2002 after being appointed by former Gov. James E. McGreevey.
"I appreciate that Commissioner Bakke stayed on during the transition, and I recognize the importance her family played in her decision to resign," said Codey. "Commissioner Bakke's commitment to improving insurance, banking and real estate services for New Jersey's consumers will be greatly missed."
Bakke said she was resigning to spend more time with her son, Christian.
As one of the longest serving commissioners, she said it often has been hard to strike a balance between her professional and family life. Codey mentioned the same dilemma when he opted not to run for governor earlier this week.
"That is going to change however as I spend more time with my son and again become involved in my community," she wrote. She did not mention her future work plans.
Banking and Insurance spokeswoman Jaimee Gilmartin said Bakke was unavailable for further comment yesterday. She said no decision has been made on a successor.
During her tenure, Bakke's most far-reaching accomplishment was to carry out a law enacted in 2003 that made it easier and more profitable for auto insurance companies to operate in the state. As a result, Mercury General and GEICO both have begun doing business here, several other companies are exploring the possibility and State Farm has dropped plans to leave.
Department officials contend that the resulting competition has led to $300 million in rate reductions and the hiring of 1,200 new agents. Under other reforms, 41,000 previously uninsured drivers now have coverage.
Bakke also implemented a law aimed at predatory lending, and took steps to make health insurance more affordable.
Magdalena Padilla, executive director of the Insurance Council of New Jersey, called Bakke's departure regrettable. "She's done so much for consumers, for the industry, for making New Jersey a better place to do business. That's the goal of every commissioner."
"She should be proud of the work that she's done," Padilla said.
Louis Beckerman, president of the Professional Insurance Agents of New Jersey, said Bakke has done a "great job. She walked into a situation where insurance companies didn't want to do business with the state. She recognized the problem and realized it's an issue of supply and demand, and got companies in, and now we're going to see the competition."
While Bakke insists that consumers are better off with more competition, some critics thought she made too many concessions to lure back companies. John Dyke, president of NJ Auto Agents Alliance, said she had become a "political liability during a gubernatorial election year."
"Many people view her as making a profitable auto insurance industry even more profitable. It may help availability for the short term until the profits dry up," he said, but added that he "wishes her the best."
BY JOE DONOHUE
Star-Ledger Staff
After overseeing the most dramatic overhaul of the New Jersey auto insurance market in three decades, Holly Bakke is resigning as state banking and insurance commissioner, it was announced yesterday.
In a letter dated Feb. 1 to acting Gov. Richard Codey, Bakke said she is resigning effect March 1. She took office in March 2002 after being appointed by former Gov. James E. McGreevey.
"I appreciate that Commissioner Bakke stayed on during the transition, and I recognize the importance her family played in her decision to resign," said Codey. "Commissioner Bakke's commitment to improving insurance, banking and real estate services for New Jersey's consumers will be greatly missed."
Bakke said she was resigning to spend more time with her son, Christian.
As one of the longest serving commissioners, she said it often has been hard to strike a balance between her professional and family life. Codey mentioned the same dilemma when he opted not to run for governor earlier this week.
"That is going to change however as I spend more time with my son and again become involved in my community," she wrote. She did not mention her future work plans.
Banking and Insurance spokeswoman Jaimee Gilmartin said Bakke was unavailable for further comment yesterday. She said no decision has been made on a successor.
During her tenure, Bakke's most far-reaching accomplishment was to carry out a law enacted in 2003 that made it easier and more profitable for auto insurance companies to operate in the state. As a result, Mercury General and GEICO both have begun doing business here, several other companies are exploring the possibility and State Farm has dropped plans to leave.
Department officials contend that the resulting competition has led to $300 million in rate reductions and the hiring of 1,200 new agents. Under other reforms, 41,000 previously uninsured drivers now have coverage.
Bakke also implemented a law aimed at predatory lending, and took steps to make health insurance more affordable.
Magdalena Padilla, executive director of the Insurance Council of New Jersey, called Bakke's departure regrettable. "She's done so much for consumers, for the industry, for making New Jersey a better place to do business. That's the goal of every commissioner."
"She should be proud of the work that she's done," Padilla said.
Louis Beckerman, president of the Professional Insurance Agents of New Jersey, said Bakke has done a "great job. She walked into a situation where insurance companies didn't want to do business with the state. She recognized the problem and realized it's an issue of supply and demand, and got companies in, and now we're going to see the competition."
While Bakke insists that consumers are better off with more competition, some critics thought she made too many concessions to lure back companies. John Dyke, president of NJ Auto Agents Alliance, said she had become a "political liability during a gubernatorial election year."
"Many people view her as making a profitable auto insurance industry even more profitable. It may help availability for the short term until the profits dry up," he said, but added that he "wishes her the best."
Health Insurance for students?
Several public universities across the United States have begun mandating that students have a health insurance plan before enrolling in classes. At schools such as the University of Connecticut, Ohio State University and the University of California, students who do not already have a health insurance plan must purchase one of their own, or a plan through the university.
Virginia Tech only requires international students to purchase a health plan, according to the Student Insurance website. However, Tech has health insurance plans available through GM-Southwest.
Old Dominion University has gone in the opposite direction and no longer offers health insurance plans because only 400 out of 20,000 students have taken advantage of the offer, despite the fact that approximately 4,000 students do not have health insurance, according to the Associated Press.
Tech’s stance on this matter, falling between the extremes of Old Dominion University and Ohio State University, is the proper course of action. By providing access to health insurance options and not mandating a health insurance purchase, the university is giving students an opportunity to take care of themselves. The university also does not risk denying a quality education based on the cost of health insurance.
Virtually all private colleges and universities require health insurance plans upon admission. That is fine for a private school, but public schools are supposed to have cheaper tuition and fees. By adding a health plan requirement, the public schools are taking a step toward elitism and losing their identity. In an era when tuition is climbing at state universities, this is one additional cost that is not necessary for students.
There are many larger implications to this move. By requiring students to purchase expensive health insurance, public universities risk limiting the population that is able to attain a quality higher education. By doing so, the margin between the elite and the non-elite in society risks growing larger.
The universities that are mandating health insurance for students should focus on another problem. Around 45 million people in the United States do not have health insurance, many of whom also do not have a college education. Rather than attempt to save money, these universities could be researching ways to address this staggering problem.
Universities across America should promote the purchase of health insurance. Health insurance should not be an obstacle for students who want a quality education.
Virginia Tech only requires international students to purchase a health plan, according to the Student Insurance website. However, Tech has health insurance plans available through GM-Southwest.
Old Dominion University has gone in the opposite direction and no longer offers health insurance plans because only 400 out of 20,000 students have taken advantage of the offer, despite the fact that approximately 4,000 students do not have health insurance, according to the Associated Press.
Tech’s stance on this matter, falling between the extremes of Old Dominion University and Ohio State University, is the proper course of action. By providing access to health insurance options and not mandating a health insurance purchase, the university is giving students an opportunity to take care of themselves. The university also does not risk denying a quality education based on the cost of health insurance.
Virtually all private colleges and universities require health insurance plans upon admission. That is fine for a private school, but public schools are supposed to have cheaper tuition and fees. By adding a health plan requirement, the public schools are taking a step toward elitism and losing their identity. In an era when tuition is climbing at state universities, this is one additional cost that is not necessary for students.
There are many larger implications to this move. By requiring students to purchase expensive health insurance, public universities risk limiting the population that is able to attain a quality higher education. By doing so, the margin between the elite and the non-elite in society risks growing larger.
The universities that are mandating health insurance for students should focus on another problem. Around 45 million people in the United States do not have health insurance, many of whom also do not have a college education. Rather than attempt to save money, these universities could be researching ways to address this staggering problem.
Universities across America should promote the purchase of health insurance. Health insurance should not be an obstacle for students who want a quality education.
Tuesday, February 1, 2005
Ohio touts low auto insurance rate increases
Ohio saw its lowest increases in homeowner and auto insurance rates in four years in 2004, the Ohio Insurance Department said Tuesday.
The 10-largest insurance companies active in Ohio last year raised premiums on homeowner policies less than 2 percent, the department said, after hiking rates 10.3 percent the year before.
Auto insurance rates rose about 0.2 percent in 2004, after gaining about 4 percent in 2003.
Some companies even lowered their insurance rates for 2004, the department said. The state expects moderate increases in insurance rates for 2005.
The 10-largest insurance companies active in Ohio last year raised premiums on homeowner policies less than 2 percent, the department said, after hiking rates 10.3 percent the year before.
Auto insurance rates rose about 0.2 percent in 2004, after gaining about 4 percent in 2003.
Some companies even lowered their insurance rates for 2004, the department said. The state expects moderate increases in insurance rates for 2005.
GOP taking aim at health insurance
WASHINGTON — Emboldened by their success at the polls, the Bush administration and Republican leaders in Congress believe they have a new opportunity to move the nation away from the system of employer-provided health insurance that has covered most working Americans for the past half-century.
In its place, they want to erect a system in which workers, instead of looking to employers for health insurance, would take personal responsibility for protecting themselves and their families: They would buy high-deductible "catastrophic" insurance policies to cover major medical needs, then pay routine costs with money set aside in tax-sheltered health savings accounts.
Elements of that approach have been on the conservative agenda for years, but what has suddenly put it on the fast track is GOP confidence that the political balance of power has changed. With Democratic strength reduced, President Bush, Senate Majority Leader Bill Frist, R-Tenn., and House Ways and Means Committee Chairman Bill Thomas, R-Calif., are pushing for action.
Supporters of the new approach, who see it as part of Bush's "ownership society," say workers and their families would become more careful users of health care if they had to pay the bills. Also, they say, the lower premiums on high-deductible plans would make coverage affordable for the uninsured and for small businesses.
Critics say the Republican approach is really an attempt to shift the risks, massive costs and knotty problems of health care from employers to individuals. And they say the GOP is moving forward with far less public attention or debate than have surrounded Bush's plans to overhaul Social Security.
Indeed, Bush's health-insurance agenda is far more developed than his Social Security plans and is advancing at a rapid clip through a combination of actions by government, insurers, employers and individuals.
Health savings accounts (HSAs) have already been approved as part of the 2003 Medicare prescription-drug bill, and as of Sept. 30, about 440,000 people had signed up. And more than one-quarter of employers say they are likely to offer them as an option.
The accounts are available only to people who buy high-deductible health insurance, either through an employer or individually. Consumers can set aside, tax-free, an amount equal to their deductible. Employers can contribute to workers' HSAs but do not have to. Unused balances can be rolled over from year to year, and employees take their HSAs with them when they switch jobs.
The idea that losing one's job would not automatically mean losing protection for medical costs has bipartisan appeal. "Portability" was a key feature of President Clinton's ill-fated health-care proposal.
But the GOP approach is significantly different. Whereas Clinton would have required all employers to chip in for universal health insurance, Bush wants to leave responsibility primarily to individuals.
"This is certainly getting a lot of attention from employers," said Jack Rodgers, a health-care analyst for PricewaterhouseCoopers LLP.
One reason is potential cost savings to employers.
A typical catastrophic health-insurance plan carries an annual deductible of about $1,600 for an individual when purchased through a large employer. That means the worker pays the first $1,600 of health-care expenses. By contrast, under the more comprehensive employer-provided health-insurance programs common today, the company begins to pay after about $300 in expenses have been incurred.
Sen. Ron Wyden, D-Ore., agrees with Bush that individuals should take more responsibility for controlling health-care costs, but he is skeptical that HSAs, coupled with high-deductible insurance, will prove workable as a substitute for the present system.
"I think the American people are going to want more of a safety net than the administration has been willing to commit to this far," Wyden said.
Despite the record budget deficit, Bush last week proposed additional tax breaks and subsidies for HSAs, particularly for low-income families. He also called for a tax credit to help small businesses offer the plans to their employees. The low-income aid would be worth up to $3,000 per family.
"Health savings accounts all aim at empowering people to make decisions for themselves, owning their own health-care plan," Bush said. Consumer-driven decision-making is more likely to control costs than having bills paid by a third party, such as an employer, he added.
"If a third party makes that payment, [the consumer] never gets to ask the question [about cost]," Bush said. "He just accepts the decision. And all of a sudden, when you have consumers starting to ask questions about cost, it is a governor on cost, at the very minimum."
Critics say that Bush's vision represents wishful thinking at best, and at worst, a perilous new direction in national health policy.
"One danger with this is that people will not get needed care because they want to save a few thousand bucks," said Rep. Pete Stark, D-Calif., a leading Democratic lawmaker who focuses on health care.
"Health care isn't like buying a Chevrolet," Stark added, disputing Bush's assertion that individual patients can be empowered to control costs. "You can go to Consumer Reports and read about the new Malibu, but if I asked you to describe a regimen of chemotherapy for someone who has colon cancer, you'd be out of gas.
"We are talking about highly technical services that 99 percent of the public doesn't even know how to spell the names of," he said. "Secondly, there is no uniformity within the medical community as to what services ought to be used. It's a 'by guess and by gosh' sort of practice."
The combination of HSAs and catastrophic insurance is too new for any definitive data on how consumers are faring.
A study released Thursday by the Commonwealth Fund found that people with high-deductible policies were more likely to have trouble paying medical bills than those in traditional insurance plans. They were also more likely to skip care because of cost. The study did not look at the combination of high-deductible plans with HSAs, but it cautioned that the savings accounts might not solve all the problems.
Many experts believe HSAs could quickly become one of the main ways to obtain health insurance for people working in small companies or buying coverage on their own.
Workers at large companies with standard health plans may be less likely to experiment with HSAs, although many large employers are already requiring their workers to shoulder a larger share of health-insurance costs. The existence of a government-sanctioned alternative to the traditional system might accelerate that trend.
But even the most ardent backers of HSAs concede that the country is not fully ready for them. They say critics such as Stark are correct to point out that there is very little information available to consumers for comparing the costs of various medical options.
In a recent article in the New England Journal of Medicine, Frist called for what would amount to an information revolution in health care. Within the next decade, he said, patients should be able to gain online access to performance rankings and prices for doctors and hospitals.
"Increased access to more accurate information about care and pricing will make possible ... the transformation of the health-care system," Frist wrote. "Whether selecting their physician, hospital or health plan, consumers must be able to choose what best meets their needs."
In its place, they want to erect a system in which workers, instead of looking to employers for health insurance, would take personal responsibility for protecting themselves and their families: They would buy high-deductible "catastrophic" insurance policies to cover major medical needs, then pay routine costs with money set aside in tax-sheltered health savings accounts.
Elements of that approach have been on the conservative agenda for years, but what has suddenly put it on the fast track is GOP confidence that the political balance of power has changed. With Democratic strength reduced, President Bush, Senate Majority Leader Bill Frist, R-Tenn., and House Ways and Means Committee Chairman Bill Thomas, R-Calif., are pushing for action.
Supporters of the new approach, who see it as part of Bush's "ownership society," say workers and their families would become more careful users of health care if they had to pay the bills. Also, they say, the lower premiums on high-deductible plans would make coverage affordable for the uninsured and for small businesses.
Critics say the Republican approach is really an attempt to shift the risks, massive costs and knotty problems of health care from employers to individuals. And they say the GOP is moving forward with far less public attention or debate than have surrounded Bush's plans to overhaul Social Security.
Indeed, Bush's health-insurance agenda is far more developed than his Social Security plans and is advancing at a rapid clip through a combination of actions by government, insurers, employers and individuals.
Health savings accounts (HSAs) have already been approved as part of the 2003 Medicare prescription-drug bill, and as of Sept. 30, about 440,000 people had signed up. And more than one-quarter of employers say they are likely to offer them as an option.
The accounts are available only to people who buy high-deductible health insurance, either through an employer or individually. Consumers can set aside, tax-free, an amount equal to their deductible. Employers can contribute to workers' HSAs but do not have to. Unused balances can be rolled over from year to year, and employees take their HSAs with them when they switch jobs.
The idea that losing one's job would not automatically mean losing protection for medical costs has bipartisan appeal. "Portability" was a key feature of President Clinton's ill-fated health-care proposal.
But the GOP approach is significantly different. Whereas Clinton would have required all employers to chip in for universal health insurance, Bush wants to leave responsibility primarily to individuals.
"This is certainly getting a lot of attention from employers," said Jack Rodgers, a health-care analyst for PricewaterhouseCoopers LLP.
One reason is potential cost savings to employers.
A typical catastrophic health-insurance plan carries an annual deductible of about $1,600 for an individual when purchased through a large employer. That means the worker pays the first $1,600 of health-care expenses. By contrast, under the more comprehensive employer-provided health-insurance programs common today, the company begins to pay after about $300 in expenses have been incurred.
Sen. Ron Wyden, D-Ore., agrees with Bush that individuals should take more responsibility for controlling health-care costs, but he is skeptical that HSAs, coupled with high-deductible insurance, will prove workable as a substitute for the present system.
"I think the American people are going to want more of a safety net than the administration has been willing to commit to this far," Wyden said.
Despite the record budget deficit, Bush last week proposed additional tax breaks and subsidies for HSAs, particularly for low-income families. He also called for a tax credit to help small businesses offer the plans to their employees. The low-income aid would be worth up to $3,000 per family.
"Health savings accounts all aim at empowering people to make decisions for themselves, owning their own health-care plan," Bush said. Consumer-driven decision-making is more likely to control costs than having bills paid by a third party, such as an employer, he added.
"If a third party makes that payment, [the consumer] never gets to ask the question [about cost]," Bush said. "He just accepts the decision. And all of a sudden, when you have consumers starting to ask questions about cost, it is a governor on cost, at the very minimum."
Critics say that Bush's vision represents wishful thinking at best, and at worst, a perilous new direction in national health policy.
"One danger with this is that people will not get needed care because they want to save a few thousand bucks," said Rep. Pete Stark, D-Calif., a leading Democratic lawmaker who focuses on health care.
"Health care isn't like buying a Chevrolet," Stark added, disputing Bush's assertion that individual patients can be empowered to control costs. "You can go to Consumer Reports and read about the new Malibu, but if I asked you to describe a regimen of chemotherapy for someone who has colon cancer, you'd be out of gas.
"We are talking about highly technical services that 99 percent of the public doesn't even know how to spell the names of," he said. "Secondly, there is no uniformity within the medical community as to what services ought to be used. It's a 'by guess and by gosh' sort of practice."
The combination of HSAs and catastrophic insurance is too new for any definitive data on how consumers are faring.
A study released Thursday by the Commonwealth Fund found that people with high-deductible policies were more likely to have trouble paying medical bills than those in traditional insurance plans. They were also more likely to skip care because of cost. The study did not look at the combination of high-deductible plans with HSAs, but it cautioned that the savings accounts might not solve all the problems.
Many experts believe HSAs could quickly become one of the main ways to obtain health insurance for people working in small companies or buying coverage on their own.
Workers at large companies with standard health plans may be less likely to experiment with HSAs, although many large employers are already requiring their workers to shoulder a larger share of health-insurance costs. The existence of a government-sanctioned alternative to the traditional system might accelerate that trend.
But even the most ardent backers of HSAs concede that the country is not fully ready for them. They say critics such as Stark are correct to point out that there is very little information available to consumers for comparing the costs of various medical options.
In a recent article in the New England Journal of Medicine, Frist called for what would amount to an information revolution in health care. Within the next decade, he said, patients should be able to gain online access to performance rankings and prices for doctors and hospitals.
"Increased access to more accurate information about care and pricing will make possible ... the transformation of the health-care system," Frist wrote. "Whether selecting their physician, hospital or health plan, consumers must be able to choose what best meets their needs."
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