Boston -- The Massachusetts Legislature approved a bill Tuesday that requires all residents to purchase health insurance or face legal penalties, which would make this the first state to tackle the problem of incomplete medical coverage by treating patients the same way it does cars.
Republican Gov. Mitt Romney supports the proposal, which would require all uninsured adults in the state to purchase some kind of insurance policy by July 1, 2007, or face a fine. Their choices would be expanded to include a range of new and inexpensive policies -- ranging from about $250 per month to nearly free -- from private insurers subsidized by the state.
Romney said the bill, modeled on the state's policy of requiring auto insurance, is intended to end an era in which 550,000 people go without insurance, and their hospital and doctor visits are paid for with public funds.
"We insist that everybody who drives a car has insurance," Romney said in an interview. "And cars are a lot less expensive than people."
Tuesday's votes approving the bill -- 154-2 in the House and 37-0 in the Senate -- were the culmination of two years of politicking and several months of backroom negotiations, as rival health care plans from Romney and the two Democrat-led chambers were hammered into one.
What resulted is a proposal that health care experts say is unlike any other in the country. What to do about the 45 million Americans without health insurance has flummoxed both the Bush administration, whose proposal for "health savings accounts" fizzled, and that of Bill Clinton, whose sweeping plan for health care changes fell flat.
On the state level, Hawaii and Maine have programs that seek to offer near-universal access to health insurance, and Illinois approved a subsidy plan last year that will widely increase coverage for needy children.
But no state, experts say, has taken the step of making health insurance coverage a legal requirement.
This is how Massachusetts leaders envision the plan would work:
Uninsured people earning less than the federal poverty-level threshold would be able to purchase subsidized policies that have no premiums, and would be responsible for very small co-payment fees for emergency-room visits and other services. Those earning between that amount and three times the poverty-level amount would be able to buy subsidized policies with premiums based on their ability to pay. Though no maximum premium is set in the bill, legislators' intent seems to be for it to top out at about $200 or $250 per month.
All residents will have to provide details about their health insurance policy on their state income-tax returns in 2008. Those who do not have insurance would first lose their personal state-tax exemption, perhaps worth $150, and later face penalties equal to half the cost of the cheapest policy they should have bought. That might work out to $1,200 per year, officials said. Those who cannot find an affordable plan could obtain a waiver.
As simple as the Massachusetts plan sounds -- buy insurance or else -- the proposal is complex and, in some cases, still unfinished. For instance, it leaves the task of determining exactly how much some low-income residents will pay for their new, more affordable policies to a new agency that would serve as a liaison between the government, policyholders and private insurance companies.
Another aspect that may change is the $295 annual fee that the bill would require companies to pay for each employee that they do not provide with insurance. Legislative leaders have insisted that this money be fed into the pool that would subsidize low-cost policies for the uninsured, but Romney said that would be unnecessary.
Wednesday, April 5, 2006
Auto insurance ads to be dropped from BMV mailings
Associated Press
COLUMBUS, Ohio - An insurance company's advertisements will no longer appear in vehicle registration renewal notices sent to Ohio drivers.
The Massachusetts company that sends the notices, Imagitas Inc., has reached an agreement with the state to ban insurance ads. Gov. Bob Taft asked the Bureau of Motor Vehicles to look into the contract with Imagitas two months ago, saying he was concerned the Allstate Corp. ads might be taken as a state endorsement of the company over other insurance agents.
The Professional Insurance Agents Association of Ohio, an organization representing thousands of state insurers, complained in a letter to Taft earlier this year that only Illinois-based Allstate was included in the mailings.
"We're delighted the governor took a leadership role and did the right thing," said George Haenszel, the trade group's executive vice president.
The insurance ads, which generated about $250,000 in annual revenue, will be discontinued starting next month, said Tamara Dukes, an Imagitas vice president. The mailings will still include ads from other companies.
"We value our partnership with the state of Ohio," Dukes said. "Clearly, there were concerns, and we heard those concerns and responded."
Taft spokesman Mark Rickel said the governor singled out car insurance ads because the state regulates insurance.
The state uses the money raised by the ads to defray the $1.2 million cost of printing and mailing the notices, bureau spokesman Fred Stratmann said.
Allstate did not complain about being banned from advertising in the mailings.
"This was an innovative opportunity for Allstate to get its name and product in front of customers and potential customers," spokeswoman Karen Spica said. "We understand they're going in a different direction, and that's fine."
COLUMBUS, Ohio - An insurance company's advertisements will no longer appear in vehicle registration renewal notices sent to Ohio drivers.
The Massachusetts company that sends the notices, Imagitas Inc., has reached an agreement with the state to ban insurance ads. Gov. Bob Taft asked the Bureau of Motor Vehicles to look into the contract with Imagitas two months ago, saying he was concerned the Allstate Corp. ads might be taken as a state endorsement of the company over other insurance agents.
The Professional Insurance Agents Association of Ohio, an organization representing thousands of state insurers, complained in a letter to Taft earlier this year that only Illinois-based Allstate was included in the mailings.
"We're delighted the governor took a leadership role and did the right thing," said George Haenszel, the trade group's executive vice president.
The insurance ads, which generated about $250,000 in annual revenue, will be discontinued starting next month, said Tamara Dukes, an Imagitas vice president. The mailings will still include ads from other companies.
"We value our partnership with the state of Ohio," Dukes said. "Clearly, there were concerns, and we heard those concerns and responded."
Taft spokesman Mark Rickel said the governor singled out car insurance ads because the state regulates insurance.
The state uses the money raised by the ads to defray the $1.2 million cost of printing and mailing the notices, bureau spokesman Fred Stratmann said.
Allstate did not complain about being banned from advertising in the mailings.
"This was an innovative opportunity for Allstate to get its name and product in front of customers and potential customers," spokeswoman Karen Spica said. "We understand they're going in a different direction, and that's fine."
AIG Auto Insurance Introduces Groundbreaking Free Service Featuring Identity Theft Restoration Service
Press Release
AIG Auto Insurance today announced AIG Security Advantage, a groundbreaking new service that includes identity theft restoration service, around-the-clock medical and emergency travel assistance, and 24-hour roadside assistance, all at no additional cost to the consumer, for auto insurance policyholders*.
Identity Theft Restoration Service*
Identity theft is escalating in the United States. According to the January 2006 "Consumer Fraud and Identity Theft Complaint Data" report issued by Federal Trade Commission (FTC), in 2005 the FTC received more than 685,000 consumer fraud and identity theft complaints resulting in more than $680 million in losses. As a means to mitigate the results of ID theft, AIG Auto Insurance is including ID Theft Restoration Service as part of its AIG Security Advantage package. AIG Security Advantage auto insurance policyholders will receive the following as part of the new service:
-- Access to AIG Auto Insurance's 24-hour ID Theft Restoration service hotline.
-- An AIG Auto Insurance ID Theft Restoration Kit to help determine if identity theft has occurred.
-- Comprehensive, professional assistance if an auto insurance policyholder becomes a victim of ID theft. This includes working with a case manager to notify relevant agencies of ID theft and follow-up.
"Today, everyone is a potential victim of identity theft," said Tony DeSantis, President of AIG Marketing, Inc., the direct marketing division responsible for AIG Auto Insurance. "The fact is that if your identity is stolen, it can take months to notify relevant agencies and restore the integrity of your identity. We've added ID Theft Restoration service as a free benefit to help further support our policyholders' needs - on and off the road."
Emergency Travel & Medical Assistance
In addition to the ID Theft Restoration Service, AIG Security Advantage provides policyholders with 24-hour, free Emergency Travel and Medical Assistance anywhere in the U.S. or Canada. Policyholders will have support services that include:
-- Last minute hotel and car rental reservations
-- Assistance with airline reservations
-- Contact information for local doctors, dentists and hospitals
-- Contact information for ATM locations
-- Travel and health advisories, including regional weather information
Roadside Assistance
Lastly, AIG Auto Insurance provides 24-hour Roadside Assistance. The Roadside benefit will provide assistance with flat tires, dead batteries, lockouts, empty gas tanks and more. While Roadside Assistance is not new, most insurance companies and other providers charge a premium for such an enhanced service and added convenience - it's free with AIG Security Advantage.
AIG Auto Insurance today announced AIG Security Advantage, a groundbreaking new service that includes identity theft restoration service, around-the-clock medical and emergency travel assistance, and 24-hour roadside assistance, all at no additional cost to the consumer, for auto insurance policyholders*.
Identity Theft Restoration Service*
Identity theft is escalating in the United States. According to the January 2006 "Consumer Fraud and Identity Theft Complaint Data" report issued by Federal Trade Commission (FTC), in 2005 the FTC received more than 685,000 consumer fraud and identity theft complaints resulting in more than $680 million in losses. As a means to mitigate the results of ID theft, AIG Auto Insurance is including ID Theft Restoration Service as part of its AIG Security Advantage package. AIG Security Advantage auto insurance policyholders will receive the following as part of the new service:
-- Access to AIG Auto Insurance's 24-hour ID Theft Restoration service hotline.
-- An AIG Auto Insurance ID Theft Restoration Kit to help determine if identity theft has occurred.
-- Comprehensive, professional assistance if an auto insurance policyholder becomes a victim of ID theft. This includes working with a case manager to notify relevant agencies of ID theft and follow-up.
"Today, everyone is a potential victim of identity theft," said Tony DeSantis, President of AIG Marketing, Inc., the direct marketing division responsible for AIG Auto Insurance. "The fact is that if your identity is stolen, it can take months to notify relevant agencies and restore the integrity of your identity. We've added ID Theft Restoration service as a free benefit to help further support our policyholders' needs - on and off the road."
Emergency Travel & Medical Assistance
In addition to the ID Theft Restoration Service, AIG Security Advantage provides policyholders with 24-hour, free Emergency Travel and Medical Assistance anywhere in the U.S. or Canada. Policyholders will have support services that include:
-- Last minute hotel and car rental reservations
-- Assistance with airline reservations
-- Contact information for local doctors, dentists and hospitals
-- Contact information for ATM locations
-- Travel and health advisories, including regional weather information
Roadside Assistance
Lastly, AIG Auto Insurance provides 24-hour Roadside Assistance. The Roadside benefit will provide assistance with flat tires, dead batteries, lockouts, empty gas tanks and more. While Roadside Assistance is not new, most insurance companies and other providers charge a premium for such an enhanced service and added convenience - it's free with AIG Security Advantage.
Tuesday, April 4, 2006
Mass. bill requires health insurance
By Scott Helman, Globe Staff | April 4, 2006
Every Massachusetts resident would be required to have health insurance on July 1, 2007, under a landmark healthcare bill the Legislature could send to Governor Mitt Romney as early as today.
Sign up for: Globe Headlines e-mail | Breaking News Alerts The agreement, unveiled by legislative leaders yesterday, aims to increase coverage in phases over three years to include 90 to 95 percent of the uninsured, through the insurance requirement for individuals, along with a new assessment on employers that don't cover workers and creation of private, subsidized health plans for people who can't afford them on their own.
The 145-page bill is the result of more than four months of occasionally bitter negotiations. It melds ideas from the House, the Senate, and Romney, who put forth competing healthcare plans last year that have often seemed irreconcilable. The bill appears headed for law, given that Romney yesterday called it ''exactly what we'd hoped for."
Romney has been adamantly opposed to a new payroll tax on businesses. But though he stopped short of saying he would sign that facet of the bill yesterday, the governor said he had no major objections to a proposed $295-per-employee charge on employers who don't provide insurance, a component designed to raise about $45 million a year.
Romney said he considered that an assessment or a fee, not a tax. The distinction is important to Romney, who many expect to tout the healthcare plan on the stump as he moves toward a possible presidential run, because he would suffer politically if Republican antitax advocates determine that he supported a tax increase.
House Speaker Salvatore F. DiMasi and Senate President Robert E. Travaglini, who have been at odds over some aspects of the plan, stood side by side yesterday during a State House press conference and proclaimed the final bill a true compromise reached after many hours of give and take.
''This is a very historic moment in Massachusetts," DiMasi said. ''We will be able to -- in three years, hopefully -- virtually insure every man, woman, and child in this commonwealth."
The House and Senate are both expected to pass the plan today.
The most contentious part of the negotiations had centered on what mandates to include: a requirement on individuals to obtain insurance, on businesses to provide it, or a combination of the two. In the end, DiMasi said, the bill calls on individuals, businesses, and the state and federal governments to do more to bring healthcare to the state's 500,000 to 600,000 uninsured residents.
Legislative leaders say their plan would:
Cover 92,500 people by bringing more people onto MassHealth, the Medicaid program, by expanding eligibility for children and enrolling eligible adults who haven't yet signed up.
Cover an additional 207,500 people by offering free or low-cost private health insurance with sliding-scale premiums.
Every Massachusetts resident would be required to have health insurance on July 1, 2007, under a landmark healthcare bill the Legislature could send to Governor Mitt Romney as early as today.
Sign up for: Globe Headlines e-mail | Breaking News Alerts The agreement, unveiled by legislative leaders yesterday, aims to increase coverage in phases over three years to include 90 to 95 percent of the uninsured, through the insurance requirement for individuals, along with a new assessment on employers that don't cover workers and creation of private, subsidized health plans for people who can't afford them on their own.
The 145-page bill is the result of more than four months of occasionally bitter negotiations. It melds ideas from the House, the Senate, and Romney, who put forth competing healthcare plans last year that have often seemed irreconcilable. The bill appears headed for law, given that Romney yesterday called it ''exactly what we'd hoped for."
Romney has been adamantly opposed to a new payroll tax on businesses. But though he stopped short of saying he would sign that facet of the bill yesterday, the governor said he had no major objections to a proposed $295-per-employee charge on employers who don't provide insurance, a component designed to raise about $45 million a year.
Romney said he considered that an assessment or a fee, not a tax. The distinction is important to Romney, who many expect to tout the healthcare plan on the stump as he moves toward a possible presidential run, because he would suffer politically if Republican antitax advocates determine that he supported a tax increase.
House Speaker Salvatore F. DiMasi and Senate President Robert E. Travaglini, who have been at odds over some aspects of the plan, stood side by side yesterday during a State House press conference and proclaimed the final bill a true compromise reached after many hours of give and take.
''This is a very historic moment in Massachusetts," DiMasi said. ''We will be able to -- in three years, hopefully -- virtually insure every man, woman, and child in this commonwealth."
The House and Senate are both expected to pass the plan today.
The most contentious part of the negotiations had centered on what mandates to include: a requirement on individuals to obtain insurance, on businesses to provide it, or a combination of the two. In the end, DiMasi said, the bill calls on individuals, businesses, and the state and federal governments to do more to bring healthcare to the state's 500,000 to 600,000 uninsured residents.
Legislative leaders say their plan would:
Cover 92,500 people by bringing more people onto MassHealth, the Medicaid program, by expanding eligibility for children and enrolling eligible adults who haven't yet signed up.
Cover an additional 207,500 people by offering free or low-cost private health insurance with sliding-scale premiums.
RBC Insurance offers online insurance - Insurance Business Review
RBC Insurance has become the first company to offer Canadians the ability to get a quote and purchase personal property and auto insurance online.
The online service will also allow existing RBC Insurance customers to pay through a preauthorized debt payment system and view and amend the details of their policy online.
The company said that the online service would offer a full range of property and auto insurance policies, including cover for recreational vehicles such as motorcycles and motor homes.
"RBC Insurance is directly responding to Canadian consumers looking for convenience and choice," said Stan Seggie, president of the property and casualty division at RBC Insurance.
"This online channel is truly an exciting first for RBC Insurance and another demonstration of our commitment to put our clients first."
The online service will also allow existing RBC Insurance customers to pay through a preauthorized debt payment system and view and amend the details of their policy online.
The company said that the online service would offer a full range of property and auto insurance policies, including cover for recreational vehicles such as motorcycles and motor homes.
"RBC Insurance is directly responding to Canadian consumers looking for convenience and choice," said Stan Seggie, president of the property and casualty division at RBC Insurance.
"This online channel is truly an exciting first for RBC Insurance and another demonstration of our commitment to put our clients first."
Monday, April 3, 2006
Brown offers criticism of health insurance bill
By DEBORA SHAULIS
VINDICATOR STAFF WRITER
YOUNGSTOWN — A Republican-backed U.S. Senate bill that's supposed to help small businesses buy affordable health insurance also would disregard current state insurance laws, says U.S. Rep. Sherrod Brown of Lorain, D-13th.
That means health providers could discontinue coverage for maternity care, many cancer screenings, kidney dialysis, basic children's health care, mental health treatment and diabetic supplies, Brown said.
Brown met Saturday at Youngstown Community Health Center with doctors, nurses and patients as he criticized Senate Bill 1955, the Health Insurance Marketplace Modernization and Affordability Act, that cleared a Senate committee last month.
Youngstown was one of six campaign stops Saturday for Brown, who is challenging incumbent U.S. Senator Michael DeWine, R-Ohio.
"This Congress is one that first of all thinks about its interest group supporters," Brown said, citing the insurance industry.
What approval would mean
Sen. Michael Enzi, R-Wyoming, is lead sponsor of the bill. If it's approved, small businesses could form associations, regardless of state lines, to buy health insurance.
VINDICATOR STAFF WRITER
YOUNGSTOWN — A Republican-backed U.S. Senate bill that's supposed to help small businesses buy affordable health insurance also would disregard current state insurance laws, says U.S. Rep. Sherrod Brown of Lorain, D-13th.
That means health providers could discontinue coverage for maternity care, many cancer screenings, kidney dialysis, basic children's health care, mental health treatment and diabetic supplies, Brown said.
Brown met Saturday at Youngstown Community Health Center with doctors, nurses and patients as he criticized Senate Bill 1955, the Health Insurance Marketplace Modernization and Affordability Act, that cleared a Senate committee last month.
Youngstown was one of six campaign stops Saturday for Brown, who is challenging incumbent U.S. Senator Michael DeWine, R-Ohio.
"This Congress is one that first of all thinks about its interest group supporters," Brown said, citing the insurance industry.
What approval would mean
Sen. Michael Enzi, R-Wyoming, is lead sponsor of the bill. If it's approved, small businesses could form associations, regardless of state lines, to buy health insurance.
The Progressive Group of Insurance Companies Lowers Auto Insurance Rates and Expands Presence in New Jersey
Press Release
New Jersey drivers may be able to save money on car insurance - and bikers and boaters now have more insurance options - thanks to moves announced today by The Progressive Direct Group of Insurance Companies (Progressive Direct) and The Drive Group of Progressive Insurance Companies (Drive Insurance).
Since entering the Garden State last September, Progressive Direct has reduced auto insurance rates an average of 9 percent, and Drive Insurance has taken rates down an average of 5 percent. The Progressive Direct brand of insurance, which was previously only available to New Jersey drivers online at progressivedirect.com, is now also available in New Jersey by phone at 1-800-PROGRESSIVE. The Drive brand is sold through more than 200 local independent agencies. Consumers can locate a Drive agent near them by visiting driveinsurance.com.
"Our message to New Jersey drivers is simple: If you haven't shopped with us yet, now is a good time to see what we have to offer," said Jeff Briglia, Progressive Direct product manager. "Or, if you shopped with us and didn't find what you were looking for, check us out again; you may find things have changed."
"We're always reviewing our business results, and when we find that we can pass savings along to our customers, we move quickly to change our rates," said Mike Esposito, Drive Insurance product manager. "The fact that the regulatory environment enables us to respond quickly to changes in the marketplace is one of the reasons we came to New Jersey."
The product managers also announced that each of their respective businesses is now offering motorcycle and boat insurance. Riders or boaters who want to buy online or over the phone can purchase a Progressive Direct motorcycle or boat policy, while those who prefer to work with an independent agent can purchase Drive motorcycle or boat insurance. Together, Progressive Direct and Drive Insurance are the number one writer of motorcycle insurance in the country.
"Because we insure more motorcycles than anyone else and because many of the people who work in our motorcycle business are riders themselves, we understand what riders want and need in terms of insurance coverage," said Briglia. Both Progressive Direct and Drive Insurance will offer a variety of motorcycle coverages, including up to $30,000 in coverage for custom parts and equipment. A wide range of coverages are also available for vehicles such as mopeds, scooters, ATVs, and even the Segway(R) Human Transporter (HT).
Specialized boat insurance products are also now available from both companies, including coverage for items like personal effects and fishing equipment, and services such as fuel spill clean-up and wreckage removal. Boaters also can purchase total loss replacement coverage, so that if their new boat is stolen or destroyed within the first five years, they'll get a brand new boat of the same or similar make and model, regardless of the cost in today's dollars.
The introduction of the motorcycle and boat products comes six months after the companies began selling private passenger auto insurance in New Jersey and four months after the introduction of commercial auto insurance, which caters primarily to small business owners with vehicles such as delivery vans, tow trucks and dump trucks. Recreational Vehicle insurance is the only product from Drive Insurance and Progressive Direct that is not yet available in New Jersey, but the companies expect to introduce RV insurance next year.
"We welcome Progressive's entry into the motorcycle and boat insurance markets, further expanding availability of insurance products to New Jersey consumers and the competitive marketplace created by the 2003 auto insurance reforms," said Steven M. Goldman, commissioner, New Jersey Department of Banking and Insurance.
New Jersey drivers may be able to save money on car insurance - and bikers and boaters now have more insurance options - thanks to moves announced today by The Progressive Direct Group of Insurance Companies (Progressive Direct) and The Drive Group of Progressive Insurance Companies (Drive Insurance).
Since entering the Garden State last September, Progressive Direct has reduced auto insurance rates an average of 9 percent, and Drive Insurance has taken rates down an average of 5 percent. The Progressive Direct brand of insurance, which was previously only available to New Jersey drivers online at progressivedirect.com, is now also available in New Jersey by phone at 1-800-PROGRESSIVE. The Drive brand is sold through more than 200 local independent agencies. Consumers can locate a Drive agent near them by visiting driveinsurance.com.
"Our message to New Jersey drivers is simple: If you haven't shopped with us yet, now is a good time to see what we have to offer," said Jeff Briglia, Progressive Direct product manager. "Or, if you shopped with us and didn't find what you were looking for, check us out again; you may find things have changed."
"We're always reviewing our business results, and when we find that we can pass savings along to our customers, we move quickly to change our rates," said Mike Esposito, Drive Insurance product manager. "The fact that the regulatory environment enables us to respond quickly to changes in the marketplace is one of the reasons we came to New Jersey."
The product managers also announced that each of their respective businesses is now offering motorcycle and boat insurance. Riders or boaters who want to buy online or over the phone can purchase a Progressive Direct motorcycle or boat policy, while those who prefer to work with an independent agent can purchase Drive motorcycle or boat insurance. Together, Progressive Direct and Drive Insurance are the number one writer of motorcycle insurance in the country.
"Because we insure more motorcycles than anyone else and because many of the people who work in our motorcycle business are riders themselves, we understand what riders want and need in terms of insurance coverage," said Briglia. Both Progressive Direct and Drive Insurance will offer a variety of motorcycle coverages, including up to $30,000 in coverage for custom parts and equipment. A wide range of coverages are also available for vehicles such as mopeds, scooters, ATVs, and even the Segway(R) Human Transporter (HT).
Specialized boat insurance products are also now available from both companies, including coverage for items like personal effects and fishing equipment, and services such as fuel spill clean-up and wreckage removal. Boaters also can purchase total loss replacement coverage, so that if their new boat is stolen or destroyed within the first five years, they'll get a brand new boat of the same or similar make and model, regardless of the cost in today's dollars.
The introduction of the motorcycle and boat products comes six months after the companies began selling private passenger auto insurance in New Jersey and four months after the introduction of commercial auto insurance, which caters primarily to small business owners with vehicles such as delivery vans, tow trucks and dump trucks. Recreational Vehicle insurance is the only product from Drive Insurance and Progressive Direct that is not yet available in New Jersey, but the companies expect to introduce RV insurance next year.
"We welcome Progressive's entry into the motorcycle and boat insurance markets, further expanding availability of insurance products to New Jersey consumers and the competitive marketplace created by the 2003 auto insurance reforms," said Steven M. Goldman, commissioner, New Jersey Department of Banking and Insurance.
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