Health insurance costs in Minneapolis are more expensive than those in many other large cities, according to a new report from eHealthInsurance.
The cost of an individual health insurance policy in Minneapolis ranked 38th among large cities, costing an average of $121.
The policy costs for an individual man and individual woman were $121 each, ranking 42nd and 35th, respectively.
"If individuals in San Francisco can get a health insurance policy for $58 a month, the public should be asking why someone in Minneapolis can't get a policy below $121 a month," said Twila Brase, president of the Citizens' Council on Health Care (CCHC), in a statement. "The difference is staggering."
The CCHC is an independent, free-market health care policy organization based in St. Paul.
Wednesday, July 6, 2005
Bay State's battle over car insurance rates
Governor Romeny wants to free Massachusetts from being one of the nation's last bastions of price controls.
By Alexander Dworkowitz | Contributor to The Christian Science Monitor
BOSTON – Michelle Brennan has given up driving to work. For the past year, the Boston executive has elected to take the train from her suburban home, effectively doubling the time of her commute, rather than continue driving.
The reason: She was tired of paying $1,500 a year for car insurance for her 20-year-old Mercedes. "They need to straighten the laws out so it makes more sense to own a vehicle," she says.
Like many of her fellow Massachusetts suburbanites, Ms. Brennan faces artificially high car insurance quotes. The commonwealth's unique system of price controls results in suburban drivers and most rural residents paying a bit more for insurance, while many city dwellers pay less.
Now Gov. Mitt Romney is pushing to change the nation's last bastion of auto insurance price controls. It is a battle of free enterprise versus protecting the inner-city poor - or even the middle class - with a little presidential politics thrown in.
Specifically, Governor Romney wants to eliminate the state's fixed and established rate system, which he frequently compares to something in the Soviet Union. But the fight for Mr. Romney, a Republican who is considering a presidential bid, has not been an easy one.
Instead, his reform campaign has been questioned by the legislature and derailed by the courts. In short, Massachusetts is stubbornly holding on to its title as the last garrison of auto insurance price controls.
In the 1950s, most states set "bureau rates" under a fixed-price system similar to what Massachusetts has now. But in the following decades, states gradually adopted more market-based approaches.
In 1998, New Jersey passed legislation that would end its fixed-rate system. The state has yet to implement the market-based approach, although it is expected to do so next year. The change will leave Massachusetts as the only state that retains a pure fixed rate.
Urban dwellers: take out the wallet
Like motorists in all other states, city drivers in Massachusetts pay significantly more than others. Accidents and car thefts are more common in cities, leading to significantly higher premiums.
But Massachusetts does not allow insurers to charge above a certain price. As a result, the Bay State forces insurers to take on high-risk customers they expect to lose money on, most of whom are urban dwellers.
To make up for their losses, the insurers charge their low-risk customers more. Massachusetts switched to a market-based system in the early 1970s, but insurance rates in the cities skyrocketed.
Consequently, the state returned to price controls. Romney hopes to avoid a spike in rates this time around by gradually implementing the plan over four years.
Too costly to own a car?
While other aspects of Romney's proposal are popular, the worry about a dramatic increase in urban car insurance premiums has lead to the stalling of the plan in the Democratic-controlled state legislature.
"For a person in an urban area, $1,500, $1,800, $2,000 is an affordable policy; $6,000 is not," says state Sen. Andrea Nuciforo Jr. (D) of Pittsfield. "We need to make sure we do it in a way that makes sure the product is not unaffordable for certain classes of drivers."
Mr. Nuciforo notes that Massachusetts has one of the lowest rates of uninsured drivers in the nation. If rates increase in the cities, he argues, the number of uninsured might increase as well.
Many economists, however, are less concerned about keeping car insurance affordable in cities. They see the end of price controls as encouraging more firms to enter the state, fostering more competition, and reducing inefficiencies in the market.
"Whenever the auto insurance system is used as some kind of income redistribution scheme, disaster always results," says Robert Hartwig, senior vice president and chief economist of the Insurance Information Institute, an industry group.
But the decisionmakers in Massachusetts are not economists. On June 20, a Massachusetts superior court ruled that Insurance Commissioner Julie Bowler lacked the authority to implement one of Romney's reforms. Romney had hoped to switch the state to an assigned-risk plan, which would have altered the system by which the state assigns costly drivers to insurers.
Why Bay State premiums are so high
Massachusetts has the fourth most expensive auto insurance rates in the nation, but not even reform advocates believe legislative action will significantly change the numbers.
The most expensive states for auto insurance are almost entirely in the Northeast, in part due to the region's high rate of accidents and high healthcare costs. Massachusetts, in fact, has the highest rate of car accidents in the country.
Instead, the advocates believe suburban and rural drivers will see modest decreases. Chris Goetcheus, a spokesman for the Massachusetts Division of Insurance, says changes will also allow insurers to offer product diversification, tailoring their policies to the needs of their customers.
"Our current system, it's just like the former Soviet Union," Mr. Goetcheus says. "You can have any pairs of shoes as you want, as long as they're red. That's our auto policy in Massachusetts."
By Alexander Dworkowitz | Contributor to The Christian Science Monitor
BOSTON – Michelle Brennan has given up driving to work. For the past year, the Boston executive has elected to take the train from her suburban home, effectively doubling the time of her commute, rather than continue driving.
The reason: She was tired of paying $1,500 a year for car insurance for her 20-year-old Mercedes. "They need to straighten the laws out so it makes more sense to own a vehicle," she says.
Like many of her fellow Massachusetts suburbanites, Ms. Brennan faces artificially high car insurance quotes. The commonwealth's unique system of price controls results in suburban drivers and most rural residents paying a bit more for insurance, while many city dwellers pay less.
Now Gov. Mitt Romney is pushing to change the nation's last bastion of auto insurance price controls. It is a battle of free enterprise versus protecting the inner-city poor - or even the middle class - with a little presidential politics thrown in.
Specifically, Governor Romney wants to eliminate the state's fixed and established rate system, which he frequently compares to something in the Soviet Union. But the fight for Mr. Romney, a Republican who is considering a presidential bid, has not been an easy one.
Instead, his reform campaign has been questioned by the legislature and derailed by the courts. In short, Massachusetts is stubbornly holding on to its title as the last garrison of auto insurance price controls.
In the 1950s, most states set "bureau rates" under a fixed-price system similar to what Massachusetts has now. But in the following decades, states gradually adopted more market-based approaches.
In 1998, New Jersey passed legislation that would end its fixed-rate system. The state has yet to implement the market-based approach, although it is expected to do so next year. The change will leave Massachusetts as the only state that retains a pure fixed rate.
Urban dwellers: take out the wallet
Like motorists in all other states, city drivers in Massachusetts pay significantly more than others. Accidents and car thefts are more common in cities, leading to significantly higher premiums.
But Massachusetts does not allow insurers to charge above a certain price. As a result, the Bay State forces insurers to take on high-risk customers they expect to lose money on, most of whom are urban dwellers.
To make up for their losses, the insurers charge their low-risk customers more. Massachusetts switched to a market-based system in the early 1970s, but insurance rates in the cities skyrocketed.
Consequently, the state returned to price controls. Romney hopes to avoid a spike in rates this time around by gradually implementing the plan over four years.
Too costly to own a car?
While other aspects of Romney's proposal are popular, the worry about a dramatic increase in urban car insurance premiums has lead to the stalling of the plan in the Democratic-controlled state legislature.
"For a person in an urban area, $1,500, $1,800, $2,000 is an affordable policy; $6,000 is not," says state Sen. Andrea Nuciforo Jr. (D) of Pittsfield. "We need to make sure we do it in a way that makes sure the product is not unaffordable for certain classes of drivers."
Mr. Nuciforo notes that Massachusetts has one of the lowest rates of uninsured drivers in the nation. If rates increase in the cities, he argues, the number of uninsured might increase as well.
Many economists, however, are less concerned about keeping car insurance affordable in cities. They see the end of price controls as encouraging more firms to enter the state, fostering more competition, and reducing inefficiencies in the market.
"Whenever the auto insurance system is used as some kind of income redistribution scheme, disaster always results," says Robert Hartwig, senior vice president and chief economist of the Insurance Information Institute, an industry group.
But the decisionmakers in Massachusetts are not economists. On June 20, a Massachusetts superior court ruled that Insurance Commissioner Julie Bowler lacked the authority to implement one of Romney's reforms. Romney had hoped to switch the state to an assigned-risk plan, which would have altered the system by which the state assigns costly drivers to insurers.
Why Bay State premiums are so high
Massachusetts has the fourth most expensive auto insurance rates in the nation, but not even reform advocates believe legislative action will significantly change the numbers.
The most expensive states for auto insurance are almost entirely in the Northeast, in part due to the region's high rate of accidents and high healthcare costs. Massachusetts, in fact, has the highest rate of car accidents in the country.
Instead, the advocates believe suburban and rural drivers will see modest decreases. Chris Goetcheus, a spokesman for the Massachusetts Division of Insurance, says changes will also allow insurers to offer product diversification, tailoring their policies to the needs of their customers.
"Our current system, it's just like the former Soviet Union," Mr. Goetcheus says. "You can have any pairs of shoes as you want, as long as they're red. That's our auto policy in Massachusetts."
Family pet can get a health insurance policy
More than 71 million U.S. households have a cat or dog, and Americans spend $18 billion a year for veterinary care.
Pet health insurance is growing fast.
Pet policies are similar to your own health insurance -- they have annual premiums and deductibles and offer different coverage plans. Depending on the company, you can get plans for different species of varying ages and lifestyles -- that is, animals kept indoors vs. outdoors.
Policies can cover annual checkups, routine office visits, vaccinations, preventive medications, spaying or neutering, treatments for accidents or illness, tests, lab fees and flea control. Most policies cost $7 to $20 a month per animal for basic coverage.
The American Veterinary Medical Association endorses the idea of pet health insurance.
Veterinary Pet Insurance, a national company, provides quotes at www.PetInsurance.com. For information, talk to your veterinarian.
Pet health insurance is growing fast.
Pet policies are similar to your own health insurance -- they have annual premiums and deductibles and offer different coverage plans. Depending on the company, you can get plans for different species of varying ages and lifestyles -- that is, animals kept indoors vs. outdoors.
Policies can cover annual checkups, routine office visits, vaccinations, preventive medications, spaying or neutering, treatments for accidents or illness, tests, lab fees and flea control. Most policies cost $7 to $20 a month per animal for basic coverage.
The American Veterinary Medical Association endorses the idea of pet health insurance.
Veterinary Pet Insurance, a national company, provides quotes at www.PetInsurance.com. For information, talk to your veterinarian.
Tuesday, July 5, 2005
Little change in health coverage
More than 9% of U.S. children and 14% of all Americans lacked health insurance in 2004, new data show.
The report, from the National Center for Health Statistics, shows a slight improvement in insurance coverage for children but suggests no increase in the number of adults covered.
"In 2004, over 90% of America's children had health insurance at the time of the interview — a steady rise from the first report in 1997," the NCHS, part of the federal Centers for Disease Control and Prevention, said.
"In 2004, 9.4% of children — 7 million children under 18 years of age — were without health insurance. In contrast, in 1997, about 14% — 10 million children — lacked coverage."
The report says nearly 70% of U.S. children rely on health insurance from state and federal sources, mostly through the State Children's Health Insurance Program. However, adults are doing no better than they did in 1997, the study found.
"Overall, 14.6% of the population — 42.1 million Americans of all ages — was without current health insurance coverage in 2004, about the same level as in 1997," the NCHS said.
The report, from the National Center for Health Statistics, shows a slight improvement in insurance coverage for children but suggests no increase in the number of adults covered.
"In 2004, over 90% of America's children had health insurance at the time of the interview — a steady rise from the first report in 1997," the NCHS, part of the federal Centers for Disease Control and Prevention, said.
"In 2004, 9.4% of children — 7 million children under 18 years of age — were without health insurance. In contrast, in 1997, about 14% — 10 million children — lacked coverage."
The report says nearly 70% of U.S. children rely on health insurance from state and federal sources, mostly through the State Children's Health Insurance Program. However, adults are doing no better than they did in 1997, the study found.
"Overall, 14.6% of the population — 42.1 million Americans of all ages — was without current health insurance coverage in 2004, about the same level as in 1997," the NCHS said.
Finding the cheapest health plans
SAN FRANCISCO (MarketWatch) -- Monthly premiums for individual health plans vary widely across the country, but Columbus, Ohio, and many California cities offer some of the lowest rates for young men and women, according to a new study.
The online broker eHealthInsurance examined 4,000 health plans from 140 insurance companies in the 50 most populous metro areas in the nation. The company screened the plans for those with no more than $1,000 deductibles and 20% patient coinsurance, based on an applicant who's a healthy, single 30-year-old man or woman.
That profile fits about 10 million people, or 22% of the 45 million uninsured in the United States, said Bob Hurley, vice president for customer care at eHealthInsurance in Mountain View, Calif. Visit the site.
"They have a mindset of being invincible, and this is the time of year when they get very active and unfortunately experience accidents," he said.
"They go out and jump on their mountain bike and don't realize when they crash or fall it can be a $10,000 to $12,000 occurrence to fix a broken leg or arm," Hurley said. "This group doesn't realize that health insurance can be affordable."
Columbus appeared on both the men's and women's list of 10 cities with the lowest premiums because it has a large number of insurers competing for business in that market, he said.
California cities had a decisive lead because the Golden State also has vigorous competition, as well as a high percentage of lower-cost health maintenance organizations (HMOs) relative to preferred provider plans (PPOs), he said.
"The dominance of HMOs in the state historically over the last 10 to 15 years has driven pricing to very aggressive levels," Hurley said.
California also benefits from a "health culture," where residents are more likely to manage their body weight through healthy lifestyles and state policy restricts smoking in public places. Those factors result in less use of the health-care system and lower premiums, he said.
Where the low premiums are
The top 10 cities for single men to buy health insurance, based on the lowest quote for monthly premiums found among plans with $1,000 deductibles, according to eHealthInsurance:
Columbus, Ohio: $52.38
Mesa, Ariz.: $53.13
Tucson, Ariz.: $53.15
Long Beach, Calif.: $54
Omaha, Neb.: $54.62
Sacramento, Calif.: $56
Fresno, Calif.: $56
San Diego: $57
San Jose, Calif.: $58
San Francisco: $58
Top 10 cities for single women to buy health insurance, based on the lowest quote found among plans with $1,000 deductible:
Long Beach, Calif.: $54
Sacramento: $56
Fresno: $56
San Diego: $57
San Jose: $58
San Francisco: $58
Oakland, Calif.: $58
Los Angeles: $63
Columbus: $63.86
Mesa: $64.77
Gender differences
Some states require insurers to rate men and women equally while others don't have any such mandate, allowing companies to charge women more because they generally use health-care services more often, Hurley said.
Premium prices were equal for men and women in 10 geographic areas: California cities, Honolulu, Portland, Ore., Seattle, Minneapolis, San Juan, Puerto Rico, New York, Boston and Washington.
New Orleans showed the biggest distinction between the sexes, with men's plans available at $106.59 per month versus $143.95 for women -- a 35% difference. Las Vegas also showed a gap, with the lowest premium for men at $100 compared with $128 for women, as did El Paso, Texas, which offered men $107 vs. $133 for women.
Among the top 50 cities, only Boston and New York have state-mandated guaranteed issue -- meaning insurers must offer coverage to anyone who wants to buy it, regardless of age and health status -- and community rating, where insurers rates are based on population and tend to be more favorable to unhealthy applicants.
Considerations and emerging trends
At eHealthInsurance, plans with a $1,000 deductible are the most commonly purchased among individuals, who typically range from age 31 to 35, Hurley said.
But some people prefer to take a higher deductible -- $2,500 or even $5,000 -- in exchange for a lower premium. That trend may accelerate as more people show interest in high-deductible plans eligible to be treated as Health Savings Accounts (HSAs), tax-free investment vehicles designed to offset health expenses, he said.
About 15% of those who apply for insurance on the site are rejected based on pre-existing conditions, though some people with prior health problems are accepted at a higher premium, he said.
Even so, consumers in the individual market need to proceed with caution, looking to see what kind of state regulations are in effect and how the benefits are structured to make sure they won't be left underinsured, said Gail Shearer, director of health-policy analysis at Consumers Union.
"In general, people are better off with insurance than without any insurance," Shearer said. "It's always easy to insure young, healthy people. The challenge for this country is to figure out how to insure the older and sicker, so I can't get too excited" about the study.
EHealthInsurance was the primary source of its figures, but the company also used data from states' Divisions of Insurance to determine prices in San Juan, Boston and Honolulu.
The online broker eHealthInsurance examined 4,000 health plans from 140 insurance companies in the 50 most populous metro areas in the nation. The company screened the plans for those with no more than $1,000 deductibles and 20% patient coinsurance, based on an applicant who's a healthy, single 30-year-old man or woman.
That profile fits about 10 million people, or 22% of the 45 million uninsured in the United States, said Bob Hurley, vice president for customer care at eHealthInsurance in Mountain View, Calif. Visit the site.
"They have a mindset of being invincible, and this is the time of year when they get very active and unfortunately experience accidents," he said.
"They go out and jump on their mountain bike and don't realize when they crash or fall it can be a $10,000 to $12,000 occurrence to fix a broken leg or arm," Hurley said. "This group doesn't realize that health insurance can be affordable."
Columbus appeared on both the men's and women's list of 10 cities with the lowest premiums because it has a large number of insurers competing for business in that market, he said.
California cities had a decisive lead because the Golden State also has vigorous competition, as well as a high percentage of lower-cost health maintenance organizations (HMOs) relative to preferred provider plans (PPOs), he said.
"The dominance of HMOs in the state historically over the last 10 to 15 years has driven pricing to very aggressive levels," Hurley said.
California also benefits from a "health culture," where residents are more likely to manage their body weight through healthy lifestyles and state policy restricts smoking in public places. Those factors result in less use of the health-care system and lower premiums, he said.
Where the low premiums are
The top 10 cities for single men to buy health insurance, based on the lowest quote for monthly premiums found among plans with $1,000 deductibles, according to eHealthInsurance:
Columbus, Ohio: $52.38
Mesa, Ariz.: $53.13
Tucson, Ariz.: $53.15
Long Beach, Calif.: $54
Omaha, Neb.: $54.62
Sacramento, Calif.: $56
Fresno, Calif.: $56
San Diego: $57
San Jose, Calif.: $58
San Francisco: $58
Top 10 cities for single women to buy health insurance, based on the lowest quote found among plans with $1,000 deductible:
Long Beach, Calif.: $54
Sacramento: $56
Fresno: $56
San Diego: $57
San Jose: $58
San Francisco: $58
Oakland, Calif.: $58
Los Angeles: $63
Columbus: $63.86
Mesa: $64.77
Gender differences
Some states require insurers to rate men and women equally while others don't have any such mandate, allowing companies to charge women more because they generally use health-care services more often, Hurley said.
Premium prices were equal for men and women in 10 geographic areas: California cities, Honolulu, Portland, Ore., Seattle, Minneapolis, San Juan, Puerto Rico, New York, Boston and Washington.
New Orleans showed the biggest distinction between the sexes, with men's plans available at $106.59 per month versus $143.95 for women -- a 35% difference. Las Vegas also showed a gap, with the lowest premium for men at $100 compared with $128 for women, as did El Paso, Texas, which offered men $107 vs. $133 for women.
Among the top 50 cities, only Boston and New York have state-mandated guaranteed issue -- meaning insurers must offer coverage to anyone who wants to buy it, regardless of age and health status -- and community rating, where insurers rates are based on population and tend to be more favorable to unhealthy applicants.
Considerations and emerging trends
At eHealthInsurance, plans with a $1,000 deductible are the most commonly purchased among individuals, who typically range from age 31 to 35, Hurley said.
But some people prefer to take a higher deductible -- $2,500 or even $5,000 -- in exchange for a lower premium. That trend may accelerate as more people show interest in high-deductible plans eligible to be treated as Health Savings Accounts (HSAs), tax-free investment vehicles designed to offset health expenses, he said.
About 15% of those who apply for insurance on the site are rejected based on pre-existing conditions, though some people with prior health problems are accepted at a higher premium, he said.
Even so, consumers in the individual market need to proceed with caution, looking to see what kind of state regulations are in effect and how the benefits are structured to make sure they won't be left underinsured, said Gail Shearer, director of health-policy analysis at Consumers Union.
"In general, people are better off with insurance than without any insurance," Shearer said. "It's always easy to insure young, healthy people. The challenge for this country is to figure out how to insure the older and sicker, so I can't get too excited" about the study.
EHealthInsurance was the primary source of its figures, but the company also used data from states' Divisions of Insurance to determine prices in San Juan, Boston and Honolulu.
Sunday, July 3, 2005
Enrollment For Low-Income Health Insurance Begins
Low-income advocates are urging Utah residents to act now to sign children up for a government health insurance program.
The Utah Department of Health opened the Children's Health Insurance Program for enrollment beginning July 1, and are keeping it open until further notice because of increased funding. The legislature provided an additional $3.3 million to insure 12,000 more children, taking the maximum number of children covered from 28,000 to 40,000.
"This is huge,'' said Utah Issues analyst Judi Hilman of the prospect of reaching more of Utah's estimated 62,800 uninsured children. ``We're not there yet. But we're moving the ball down the field.''
CHIP is funded jointly by the federal and state governments. To be eligible, children must qualify based on family size and household income.
For example, a family of four earning up to $38,700 a year may qualify. In addition, children must be younger than 19, U.S. citizens or legal residents, and not currently covered by health insurance to qualify.
Once enrolled on CHIP, families may be required to pay premiums of up to $25 every three months. Premiums and small copays make it possible for CHIP to insure more children, health department officials said.
According to the department's 2004 Health Status Survey, 250,000 Utahns are uninsured, of which 62,800 are children.
The Utah Department of Health opened the Children's Health Insurance Program for enrollment beginning July 1, and are keeping it open until further notice because of increased funding. The legislature provided an additional $3.3 million to insure 12,000 more children, taking the maximum number of children covered from 28,000 to 40,000.
"This is huge,'' said Utah Issues analyst Judi Hilman of the prospect of reaching more of Utah's estimated 62,800 uninsured children. ``We're not there yet. But we're moving the ball down the field.''
CHIP is funded jointly by the federal and state governments. To be eligible, children must qualify based on family size and household income.
For example, a family of four earning up to $38,700 a year may qualify. In addition, children must be younger than 19, U.S. citizens or legal residents, and not currently covered by health insurance to qualify.
Once enrolled on CHIP, families may be required to pay premiums of up to $25 every three months. Premiums and small copays make it possible for CHIP to insure more children, health department officials said.
According to the department's 2004 Health Status Survey, 250,000 Utahns are uninsured, of which 62,800 are children.
Pet health insurance policies a growing business
MARSHALL LOEB
MarketWatch
More than 71 million U.S. households have a cat or dog, and Americans spend $18 billion a year for veterinary care.
As more products and services are created to cater to our love of pets - everything from pet prescriptions to pricey boutiques peddling designer duds - pet health insurance is growing fast.
Pet policies are similar to your own health insurance - they have annual premiums, deductibles and different coverage plans. Depending on the company, you can get plans for different species of varying ages and lifestyles - i.e., animals kept indoors vs. outdoors. Some also allow for pre-existing conditions.
The American Veterinary Medical Association endorses the idea of pet health insurance. The organization recommends looking for a company that allows you to choose your veterinarian, can offer referrals and is supported by professional organizations, individual veterinarians and other groups and individuals concerned with animals.
MarketWatch
More than 71 million U.S. households have a cat or dog, and Americans spend $18 billion a year for veterinary care.
As more products and services are created to cater to our love of pets - everything from pet prescriptions to pricey boutiques peddling designer duds - pet health insurance is growing fast.
Pet policies are similar to your own health insurance - they have annual premiums, deductibles and different coverage plans. Depending on the company, you can get plans for different species of varying ages and lifestyles - i.e., animals kept indoors vs. outdoors. Some also allow for pre-existing conditions.
The American Veterinary Medical Association endorses the idea of pet health insurance. The organization recommends looking for a company that allows you to choose your veterinarian, can offer referrals and is supported by professional organizations, individual veterinarians and other groups and individuals concerned with animals.
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