BY BETH FITZGERALD
Star-Ledger Staff
New Jersey officials say they will explore ways to follow the lead of Massachusetts, which last week adopted the nation's first universal health insurance law.
Assemblyman Neil Cohen (D- Union) said yesterday he and Sen. Joseph Vitale (D-Middlesex) will spend the next six months meeting with employers, consumer groups, health insurance firms, hospitals, physicians, drug firms and other stakeholders to determine whether some version of the Massachusetts plan could work in New Jersey.
The law, signed last week by Gov. Mitt Romney, requires people who don't have health insurance to buy it by July 1, 2007. Employers with 11 or more employees would pay $295 a year, per employee, if the company doesn't provide insurance.
But Massachusetts has fewer than 600,000 uninsured -- well below Cohen's estimate of 1.3 million for New Jersey's -- and it's be lieved that Massachusetts has funds in place to cover the cost of the new mandate for at least the next two years.
"The toughest piece in the Mas sachusetts law is that it requires everyone to have health insurance, the same way we now require everyone with a car to have auto insurance," Cohen said. "This is going to take a lot of research and a lot of work.
"We know there are people who can't afford insurance right now, under any circumstances; there are undocumented immigrants whose names and addresses we don't even have. What is the cost, and how will the cost be borne?"
Cohen said New Jersey might consider exempting employers with 15, or 30 or even 50 workers, or perhaps use a gross revenue threshold instead.
Government subsidies would be needed to buy insurance for many of those who can't afford it now, but Cohen said taxpayers spend about $600 million a year to compensate hospitals for treating uninsured patients. "Some of those funds could be used to provide a coverage plan for the uninsured," he said.
The prospect of New Jersey tak ing a cue from Massachusetts drew a generally favorable response from several statewide business groups.
"It's a fantastic idea -- it makes sure that everyone has some responsibility in the health insurance game, and that is long overdue," said Jim Leonard, vice president for government relations at the state Chamber of Commerce. "Forcing people to take a responsible role in purchasing insurance will lead to reform, whether it's cost reform or system changes that make the system work better."
He cited a study a few years ago that found 356,000 of the uninsured had income of $50,000 or more; 200,000 were between jobs and temporarily uninsured, and 265,000 were eligible for government health plans and weren't taking advan tage of them. A key goal is getting everyone covered, "because then everyone has skin in the game, and everyone will be forced to pay attention to health insurance -- to the cost and to what is driving costs."
Phil Kirschner, president of the New Jersey Business & Industry Association, said the Massachu setts plan holds promise, though it doesn't attack the cost of health care.
"It's easy to say we're going to cover people, but what we have seen so far in the legislative response is an avoidance of the cost issue," he said.
Vitale, who chairs the state Senate health committee, said, "The goal is some form of universal health-insurance product where business, employee and government share in a partnership."
He said the state-and federally funded FamilyCare program that provides health coverage to 139,000 working poor parents and 112,000 children could be a model for how universal insurance would work.
Wednesday, April 19, 2006
Some Save On Car Insurance By Driving Less
(WCCO) Changing how much we drive won't just save us gas money, it can also help people save money on their car insurance.
Jeff Etzkin is already cashing in. It's rare for Etzkin to get behind the wheel these days. He said his breaking point was when gas prices jumped above $2.65 a gallon.
"The price of gas got so high, I started to look for alternatives," Etzkin said.
He has been saving more than gas money. He's also spending less on car insurance.
"I'm saving about 15 percent off of my premium for the year by not driving to work," he said.
Etzin isn't alone. More people are changing their driving habits.
"When gas prices go up, consumers drive differently," said Bob Hunter of the Consumer Federation of America. "Sometimes they don't drive to work anymore; they use mass transit or they carpool, or they just drive less."
In Minnesota and many other states ... if you stop driving to work or school, you may be classified as a "pleasure driver" and qualify for a lower rate.
You may also get a reduction if you still drive to work, but not as far or if you reduce miles in other ways, such as walking to the store instead of driving.
"The typical car in America is about $900 for insurance for one car. So, if you have a single car and you save 10 percent, that's $90, so it's worth a phone call," Hunter said.
It's also worth a call if you're thinking about buying a hybrid car. Travelers Insurance just rolled out a discount that applies in Minnesota, Wisconsin and about 25 other states.
"It is a 10 percent discount, and it applies to the majority of coverages," one expert said.
In some cities ... driving a hybrid will buy you free parking and access to car pool lanes ... even if you're alone.
"You need to have a clean air sticker on your vehicle. It just saves hours off your commute time over the course of a week," a representative of the car buying Web site edmunds.com said.
Studies show carpooling won't always save you time ... but money is a different story. Minnesota provides a tax credit on carpool and transit passes.
Transportation experts said plans like these will likely increase this summer along with the price of gas, so it's a good idea to keep checking with your company or state program.
"You should call your insurance company and tell them, 'I've changed my driving behavior — I've stopped driving to work' or, 'I'm using my car less,' and explain it to them and that you'd like to know if you qualify for a lower rate," Hunter said.
It's a lifestyle change that's paying off for Jeff.
"It puts money in my pocket. I feel good about what I'm doing," Etzkin said.
Jeff Etzkin is already cashing in. It's rare for Etzkin to get behind the wheel these days. He said his breaking point was when gas prices jumped above $2.65 a gallon.
"The price of gas got so high, I started to look for alternatives," Etzkin said.
He has been saving more than gas money. He's also spending less on car insurance.
"I'm saving about 15 percent off of my premium for the year by not driving to work," he said.
Etzin isn't alone. More people are changing their driving habits.
"When gas prices go up, consumers drive differently," said Bob Hunter of the Consumer Federation of America. "Sometimes they don't drive to work anymore; they use mass transit or they carpool, or they just drive less."
In Minnesota and many other states ... if you stop driving to work or school, you may be classified as a "pleasure driver" and qualify for a lower rate.
You may also get a reduction if you still drive to work, but not as far or if you reduce miles in other ways, such as walking to the store instead of driving.
"The typical car in America is about $900 for insurance for one car. So, if you have a single car and you save 10 percent, that's $90, so it's worth a phone call," Hunter said.
It's also worth a call if you're thinking about buying a hybrid car. Travelers Insurance just rolled out a discount that applies in Minnesota, Wisconsin and about 25 other states.
"It is a 10 percent discount, and it applies to the majority of coverages," one expert said.
In some cities ... driving a hybrid will buy you free parking and access to car pool lanes ... even if you're alone.
"You need to have a clean air sticker on your vehicle. It just saves hours off your commute time over the course of a week," a representative of the car buying Web site edmunds.com said.
Studies show carpooling won't always save you time ... but money is a different story. Minnesota provides a tax credit on carpool and transit passes.
Transportation experts said plans like these will likely increase this summer along with the price of gas, so it's a good idea to keep checking with your company or state program.
"You should call your insurance company and tell them, 'I've changed my driving behavior — I've stopped driving to work' or, 'I'm using my car less,' and explain it to them and that you'd like to know if you qualify for a lower rate," Hunter said.
It's a lifestyle change that's paying off for Jeff.
"It puts money in my pocket. I feel good about what I'm doing," Etzkin said.
Tuesday, April 18, 2006
Health Insurance boosted by Wal Mart
By KEVIN FREKING
THE ASSOCIATED PRESS
WASHINGTON - Wal-Mart Stores Inc. said Monday it will relax eligibility requirements for part-time employees who want health insurance, allowing an additional 150,000 workers to gain insurance coverage if they choose. The retailer also is decreasing co-pays on generic medications from $10 to $3 and expanding health benefits to children of part-time associates.
Until now, part-time employees have had to work for Wal-Mart for two years to qualify for employer-sponsored insurance. Beginning next month, they will have to work at the company for one. The coverage also will extend to their children.
The changes were announced by one of the company’s vice presidents, Susan Chambers., at a meeting of business and health care executives.
Wal-Mart has been strongly criticized by unions and others for a health plan they say is lacking. However, Chambers said Wal-Mart’s health insurance costs have risen at a rate of 19 percent annually over the past three years. She also noted few companies extend health coverage to part-time workers.
‘‘Keep in mind that covering part-time employees is not the norm in retail,’’ Chambers said. ‘‘But every American deserves health care, and we want to lead by taking these steps. We hope that others in the retail community will work with us to do the same.’’
Chambers did not provide details about how much the change would cost the company. She said it’s now picking up about 70 percent of the costs for each employee’s health care and she expects that percentage to increase.
Chambers said the version of the health plan that the company expected most employees to sign up for would be available for $23 a month. Workers’ children would be included for $15 more, whatever the size of the family.
THE ASSOCIATED PRESS
WASHINGTON - Wal-Mart Stores Inc. said Monday it will relax eligibility requirements for part-time employees who want health insurance, allowing an additional 150,000 workers to gain insurance coverage if they choose. The retailer also is decreasing co-pays on generic medications from $10 to $3 and expanding health benefits to children of part-time associates.
Until now, part-time employees have had to work for Wal-Mart for two years to qualify for employer-sponsored insurance. Beginning next month, they will have to work at the company for one. The coverage also will extend to their children.
The changes were announced by one of the company’s vice presidents, Susan Chambers., at a meeting of business and health care executives.
Wal-Mart has been strongly criticized by unions and others for a health plan they say is lacking. However, Chambers said Wal-Mart’s health insurance costs have risen at a rate of 19 percent annually over the past three years. She also noted few companies extend health coverage to part-time workers.
‘‘Keep in mind that covering part-time employees is not the norm in retail,’’ Chambers said. ‘‘But every American deserves health care, and we want to lead by taking these steps. We hope that others in the retail community will work with us to do the same.’’
Chambers did not provide details about how much the change would cost the company. She said it’s now picking up about 70 percent of the costs for each employee’s health care and she expects that percentage to increase.
Chambers said the version of the health plan that the company expected most employees to sign up for would be available for $23 a month. Workers’ children would be included for $15 more, whatever the size of the family.
Save some money on your auto insurance - 04/18/06 - The Detroit News
You can save several hundred dollars a year by purchasing auto insurance from a licensed, low-price insurer. Call Michigan's Office of Financial and Insurance Services (877-999-6442) for a publication showing typical prices charged by different companies.
Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.
Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.
Norvax Builds New Carrier Partnerships, Expands Quote Engine Selection For Individual Health Agents
Press Release
Chicago, IL (PRWEB) April 16, 2006 -- Norvax Inc., a leading developer of Web-based sales and customer communication tools for the health insurance industry, announced today an expanded selection of instant quoting options available to individual health agents.
“We are pleased to see our ongoing efforts to build relationships with preferred companies result in a stronger quote engine product, said Scott Osler, vice president, business development, Norvax. “More companies are choosing to add or expand their portfolios of products on our web-based quote engine, allowing them to reach the growing number of agents who have adopted this technology to speed up their quoting and sales. Agents benefit from the greater selection of popular products to add to their instant web proposals.”
Since January, Norvax has added one new carrier to their quote engine, launched 16 new states for existing carriers and expanded product portfolios offered by several other companies. Agents using Norvax’ quote engine can now choose from the company’s total offering of 33 carriers in 43 states.
In addition to quoting software, Norvax offers agents compatible turn-key insurance websites that allow consumers to generate their own instant quotes. Designed specifically to help insurance agents expand their market and convert web traffic into exclusive leads, Norvax’ professional websites give prospects 24-hour access to carrier applications, brochures and provider networks.
Agents can also choose to add LeadMiner autoresponder technology to automate their follow up process. Norvax’ LeadMiner incorporates the company’s web-based quoting technology into email responses sent automatically to all incoming leads. With a one-time set up, agents can easily create their own campaigns and send leads updated quotes within a series of personalized follow up emails. Agents are alerted via email when a lead views their web-proposal.
Agents interested in the instant quoting capabilities and expanded selection of Norvax’ QuoteBuilder quote engine, or Norvax’ suite of productivity-enhancing tools should call 1-866-466-7829.
Chicago, IL (PRWEB) April 16, 2006 -- Norvax Inc., a leading developer of Web-based sales and customer communication tools for the health insurance industry, announced today an expanded selection of instant quoting options available to individual health agents.
“We are pleased to see our ongoing efforts to build relationships with preferred companies result in a stronger quote engine product, said Scott Osler, vice president, business development, Norvax. “More companies are choosing to add or expand their portfolios of products on our web-based quote engine, allowing them to reach the growing number of agents who have adopted this technology to speed up their quoting and sales. Agents benefit from the greater selection of popular products to add to their instant web proposals.”
Since January, Norvax has added one new carrier to their quote engine, launched 16 new states for existing carriers and expanded product portfolios offered by several other companies. Agents using Norvax’ quote engine can now choose from the company’s total offering of 33 carriers in 43 states.
In addition to quoting software, Norvax offers agents compatible turn-key insurance websites that allow consumers to generate their own instant quotes. Designed specifically to help insurance agents expand their market and convert web traffic into exclusive leads, Norvax’ professional websites give prospects 24-hour access to carrier applications, brochures and provider networks.
Agents can also choose to add LeadMiner autoresponder technology to automate their follow up process. Norvax’ LeadMiner incorporates the company’s web-based quoting technology into email responses sent automatically to all incoming leads. With a one-time set up, agents can easily create their own campaigns and send leads updated quotes within a series of personalized follow up emails. Agents are alerted via email when a lead views their web-proposal.
Agents interested in the instant quoting capabilities and expanded selection of Norvax’ QuoteBuilder quote engine, or Norvax’ suite of productivity-enhancing tools should call 1-866-466-7829.
Monday, April 17, 2006
Bill could dilute oversight on health insurance rates
By Kristen Consillio
Pacific Business News (Honolulu)
Updated: 8:00 p.m. ET April 16, 2006
Legislation backed by Hawaii's two largest health insurers and key legislators will weaken the state's power to regulate health-plan rates, the state insurance commissioner says.
The proposed amendments to the law make it harder for the state to deny insurers' rate proposals and would likely result in higher premiums for businesses, said state Insurance Commissioner J.P. Schmidt.
"The amendments make rate regulation ineffective -- it makes it harder to rein in excessive prices," he said. "And with no competitive market, health insurance premiums may continue to rise for businesses and individuals."
The law that took effect in January 2003 gave the commissioner broad power to deny proposed rate hikes that he considers either excessive, discriminatory or detrimental to businesses and consumers. Rates must be approved or denied within 90 days.
The amended bill is laden with complicated language, opening it to differing interpretations. It is now in the Senate, where lawmakers must decide whether to pass the amendments or do nothing with the bill. The law that gives the commissioner power to regulate health insurance rates expires June 30 and unless it is reauthorized, the state will no longer have the authority to review rates.
"The average person cannot understand what the legislation is doing," said Paul Tom, president of Benefit Plan Consultants, who opposes changes to the law. "It takes a technician to understand."
Kaiser Permanente Hawaii lobbyist Chris Pablo acknowledged that he drafted the amendments to the bill and circulated them among other health plans, like the Hawaii Medical Service Association, to enlist their support.
"My first priority is I would prefer if the whole rate-regulation process would end," Pablo said.
"But if the Legislature's intention is to continue rate regulation, then we cannot accept the process as it's written in the law now. We will continue to provide the depth of information that we do under the current law to enable the commissioner to do his job."
The amendments would make the following changes to the law, according to Schmidt:
Eliminate rate filings and supporting information from being open to the public.
Shorten the waiting period for rate approvals from 90 to 30 days, with an option to extend for another 30 days.
Require that the commissioner specify the actuarial, statutory and regulatory information that lead to a rate disapproval.
Require that the commissioner set an interim rate if a proposed rate is rejected.
Other changes exempt vision and dental rates from review and allow the commissioner to review only the method used to determine a rate and not the rate itself, Schmidt said.
"From my perspective I'm concerned about both ends of it -- on one side that rates aren't too high ... the other end that the big boys like HMSA and Kaiser not cut their rates too low to drive some of their competitors out of business," he said.
Rep. Robert Herkes, D-Puna-N. Kona, House Consumer Protection & Commerce Committee chairman, said the changes do not weaken the law.
Herkes said he worked out the bill's final draft with House Speaker Calvin Say and Rep. Dwight Takamine, D-S. Hilo-N. Kohala, chairman of the House Finance Committee.
Herkes said the amendments make the law more fair to both the insurers and the commissioner, who he said will still have the power to approve or deny rates.
"The bottom line is they are regulated," Herkes said. "I think [insurers] made more money on the previous law, and took advantage of it frankly, because they treated the [rate] cap like a floor and would go right up to it."
Pacific Business News (Honolulu)
Updated: 8:00 p.m. ET April 16, 2006
Legislation backed by Hawaii's two largest health insurers and key legislators will weaken the state's power to regulate health-plan rates, the state insurance commissioner says.
The proposed amendments to the law make it harder for the state to deny insurers' rate proposals and would likely result in higher premiums for businesses, said state Insurance Commissioner J.P. Schmidt.
"The amendments make rate regulation ineffective -- it makes it harder to rein in excessive prices," he said. "And with no competitive market, health insurance premiums may continue to rise for businesses and individuals."
The law that took effect in January 2003 gave the commissioner broad power to deny proposed rate hikes that he considers either excessive, discriminatory or detrimental to businesses and consumers. Rates must be approved or denied within 90 days.
The amended bill is laden with complicated language, opening it to differing interpretations. It is now in the Senate, where lawmakers must decide whether to pass the amendments or do nothing with the bill. The law that gives the commissioner power to regulate health insurance rates expires June 30 and unless it is reauthorized, the state will no longer have the authority to review rates.
"The average person cannot understand what the legislation is doing," said Paul Tom, president of Benefit Plan Consultants, who opposes changes to the law. "It takes a technician to understand."
Kaiser Permanente Hawaii lobbyist Chris Pablo acknowledged that he drafted the amendments to the bill and circulated them among other health plans, like the Hawaii Medical Service Association, to enlist their support.
"My first priority is I would prefer if the whole rate-regulation process would end," Pablo said.
"But if the Legislature's intention is to continue rate regulation, then we cannot accept the process as it's written in the law now. We will continue to provide the depth of information that we do under the current law to enable the commissioner to do his job."
The amendments would make the following changes to the law, according to Schmidt:
Eliminate rate filings and supporting information from being open to the public.
Shorten the waiting period for rate approvals from 90 to 30 days, with an option to extend for another 30 days.
Require that the commissioner specify the actuarial, statutory and regulatory information that lead to a rate disapproval.
Require that the commissioner set an interim rate if a proposed rate is rejected.
Other changes exempt vision and dental rates from review and allow the commissioner to review only the method used to determine a rate and not the rate itself, Schmidt said.
"From my perspective I'm concerned about both ends of it -- on one side that rates aren't too high ... the other end that the big boys like HMSA and Kaiser not cut their rates too low to drive some of their competitors out of business," he said.
Rep. Robert Herkes, D-Puna-N. Kona, House Consumer Protection & Commerce Committee chairman, said the changes do not weaken the law.
Herkes said he worked out the bill's final draft with House Speaker Calvin Say and Rep. Dwight Takamine, D-S. Hilo-N. Kohala, chairman of the House Finance Committee.
Herkes said the amendments make the law more fair to both the insurers and the commissioner, who he said will still have the power to approve or deny rates.
"The bottom line is they are regulated," Herkes said. "I think [insurers] made more money on the previous law, and took advantage of it frankly, because they treated the [rate] cap like a floor and would go right up to it."
Massachusetts auto insurance rates
By Rebecca Deusser Sentinel & Enterprise Statehouse Bureau
BOSTON -- Drivers in Lunenburg paid $86.59 more for auto insurance last year than they should have, compensating for drivers in Lowell, Lawrence and Dorchester who paid $24.86, $916.48 and $1,328.60 less than they should have, respectively, according to the Automobile Insurers Bureau of Massachusetts.
Critics of the state's auto insurance system say a statewide mandate for insurance has inadvertently pushed up the cost of premiums.
And some people on Beacon Hill say Massachusetts drivers are paying too much for car insurance.
The state ranked fourth in the country for car insurance rates, an annual average of $1,051.60, in 2003, and officials suspect rampant insurance fraud exists in several of its major cities.
Decades ago, lawmakers voted to use subsidies to make required insurance plans affordable, and for some communities, those costs have added up.
Typically a driver pays more for car insurance for living in a city, rather than a rural area.
But Peter Robertson, a spokesman for the Fairness for Good Drivers Coalition, said a suburban zip code does not ensure lower auto insurance rates; rather, it helps ease the high cost of city driving.
"The rates are not as high as they would be (for city drivers) if they were based on pure costs," Robertson said. "Because of our system, these subsidies mean people in the most rural areas pay more than they should, so city and young drivers don't have to pay as much."
Gov. Mitt Romney, who proposed a dramatic overhaul to the system last fall, said state restrictions have driven insurance companies and competition out, pushing premiums sky-high.
Others say recent changes, including an insurance rate cut of 8.7 percent, have already saved taxpayers money, and that little reform is necessary.
Massachusetts Insurance Commissioner, Julianne Bowler "set the table" for car insurance reform last year by cutting premium rates and changing the state's "step" system to a point system to rate a person's driving record, said Division of Insurance spokesman Chris Goetcheus.
The new rating system penalizes experienced drivers less for driving infractions, such as speeding tickets or minor at-fault accidents, but it also sticks young drivers with a "hefty surcharge" for similar offenses, Goetcheus said.
He said drivers should start to see savings this year.
But drivers in communities like Leominster and Fitchburg are expected to pay more for car insurance than they would under a system less dependent on subsidies.
Jim Harrington, also a spokesman for the Fairness for Good Drivers Coalition, said a top culprit for those prices is insurance fraud.
City officials in Lawrence started to crack down on fraud in 2002, after a woman died in a staged car accident to collect insurance money.
In 2002, there were 141 injuries per 100 vehicle accidents in Lawrence, but in 2004, the number dropped to 60 injuries, Harrington said.
"That was about $30 million in savings to the system," Harrington said. "If we commit the same type of resources to fight fraud like we did in Lawrence, it could dramatically take fraud out of the system."
Harrington supports Romney's proposals to change how insurance rates are set and allow companies to use "assigned risk," allowing them to factor in all sorts of criteria to determine who is a bad driver.
Some insurance companies already operating in Massachusetts, including Arbella and Commerce Insurance, oppose assigned risk, saying the state should not change its rules to accommodate large, national companies, said Doug Bailey, spokesman for the Massachusetts Coalition for Affordable Auto Insurance for All.
The governor's bill calls for competitive rating, in which companies would submit rates to the state for approval, instead of continuing to allow the state Insurance Commissioner to set the rate herself.
Harrington said those changes will make the state more friendly to national insurance companies that have stayed away to avoid home rules.
Few disagree that a key reason why insurance rates are high in Massachusetts is because it fosters a culture of bad driving.
"We have here bad weather, aggressive drivers, unfriendly attitudes, a high concentration of trial lawyers and chiropractors, congested streets and a propensity to sue," said state Sen. Andrea Nuciforo Jr., D-Pittsfield. "Given those things, we shouldn't expect to pay rates like those in Iowa."
BOSTON -- Drivers in Lunenburg paid $86.59 more for auto insurance last year than they should have, compensating for drivers in Lowell, Lawrence and Dorchester who paid $24.86, $916.48 and $1,328.60 less than they should have, respectively, according to the Automobile Insurers Bureau of Massachusetts.
Critics of the state's auto insurance system say a statewide mandate for insurance has inadvertently pushed up the cost of premiums.
And some people on Beacon Hill say Massachusetts drivers are paying too much for car insurance.
The state ranked fourth in the country for car insurance rates, an annual average of $1,051.60, in 2003, and officials suspect rampant insurance fraud exists in several of its major cities.
Decades ago, lawmakers voted to use subsidies to make required insurance plans affordable, and for some communities, those costs have added up.
Typically a driver pays more for car insurance for living in a city, rather than a rural area.
But Peter Robertson, a spokesman for the Fairness for Good Drivers Coalition, said a suburban zip code does not ensure lower auto insurance rates; rather, it helps ease the high cost of city driving.
"The rates are not as high as they would be (for city drivers) if they were based on pure costs," Robertson said. "Because of our system, these subsidies mean people in the most rural areas pay more than they should, so city and young drivers don't have to pay as much."
Gov. Mitt Romney, who proposed a dramatic overhaul to the system last fall, said state restrictions have driven insurance companies and competition out, pushing premiums sky-high.
Others say recent changes, including an insurance rate cut of 8.7 percent, have already saved taxpayers money, and that little reform is necessary.
Massachusetts Insurance Commissioner, Julianne Bowler "set the table" for car insurance reform last year by cutting premium rates and changing the state's "step" system to a point system to rate a person's driving record, said Division of Insurance spokesman Chris Goetcheus.
The new rating system penalizes experienced drivers less for driving infractions, such as speeding tickets or minor at-fault accidents, but it also sticks young drivers with a "hefty surcharge" for similar offenses, Goetcheus said.
He said drivers should start to see savings this year.
But drivers in communities like Leominster and Fitchburg are expected to pay more for car insurance than they would under a system less dependent on subsidies.
Jim Harrington, also a spokesman for the Fairness for Good Drivers Coalition, said a top culprit for those prices is insurance fraud.
City officials in Lawrence started to crack down on fraud in 2002, after a woman died in a staged car accident to collect insurance money.
In 2002, there were 141 injuries per 100 vehicle accidents in Lawrence, but in 2004, the number dropped to 60 injuries, Harrington said.
"That was about $30 million in savings to the system," Harrington said. "If we commit the same type of resources to fight fraud like we did in Lawrence, it could dramatically take fraud out of the system."
Harrington supports Romney's proposals to change how insurance rates are set and allow companies to use "assigned risk," allowing them to factor in all sorts of criteria to determine who is a bad driver.
Some insurance companies already operating in Massachusetts, including Arbella and Commerce Insurance, oppose assigned risk, saying the state should not change its rules to accommodate large, national companies, said Doug Bailey, spokesman for the Massachusetts Coalition for Affordable Auto Insurance for All.
The governor's bill calls for competitive rating, in which companies would submit rates to the state for approval, instead of continuing to allow the state Insurance Commissioner to set the rate herself.
Harrington said those changes will make the state more friendly to national insurance companies that have stayed away to avoid home rules.
Few disagree that a key reason why insurance rates are high in Massachusetts is because it fosters a culture of bad driving.
"We have here bad weather, aggressive drivers, unfriendly attitudes, a high concentration of trial lawyers and chiropractors, congested streets and a propensity to sue," said state Sen. Andrea Nuciforo Jr., D-Pittsfield. "Given those things, we shouldn't expect to pay rates like those in Iowa."
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