Auto plan to boost political hopes, not consumers, he says
By Bruce Mohl, Globe Staff | June 8, 2005
A top official at Commerce Insurance yesterday said Governor Mitt Romney is trying to fuel his presidential ambitions with an auto insurance proposal that would line the pockets of big national insurers at the expense of Massachusetts drivers.
James A. Ermilio, senior vice president and legal counsel at the state's largest auto insurer, said the bill Romney filed last week would offer no real savings for consumers and would instead lead to higher rates, particularly for two groups: youthful drivers and urban drivers.
''It's quite clear it's an effort to line the pockets of national insurance companies," Ermilio said. ''My guess is the governor hopes to garner financial support from the companies as he makes plans to run on the national stage."
One locally based national carrier is already backing Romney. Edmund F. Kelly, chief executive of Boston-based Liberty Mutual Group, joined Romney at his news conference last week and hosted a fund-raiser for the governor in April, at which at least nine officials with ties to the company donated a total of $3,500.
It's unclear whether Liberty and other companies played a role in crafting Romney's proposals. A spokesman for Liberty was unable to comment last night.
Christopher Goetcheus, a spokesman for the state Division of Insurance, said the agency drafted the Romney bill but may have shared ideas and concepts with other parties to get feedback. Goetcheus could not immediately say who those parties were.
''We were trying to produce the best product to correct this market and benefit drivers," Goetcheus said.
Romney attacked Commerce by name last week at a news conference when he unveiled his proposal to revamp what he called the state's ''Soviet-style" auto insurance system, where regulators set all auto insurance rates.
The governor labeled Commerce a defender of the status quo as he called for a system under which companies would set their own premiums after a four-year transition during which they would be given more and more pricing flexibility. Commerce, based in Webster, currently controls 29 percent of the state's auto insurance business.
Yesterday, Goetcheus said the governor's bill is needed to attract national insurance carriers to the state. He said 34 companies have left the state over the past 15 years as a result of the state's oppressive regulation.
''Why is Commerce afraid to compete?" Goetcheus asked. ''They want to retain an artificial system where the vast majority of our drivers are not benefiting."
Ermilio said Commerce is not afraid to compete, but warned that Romney is using a ''bait-and-switch" tactic to try to sell Massachusetts drivers on a system that won't benefit them.
Critics of Romney's plan say that Massachusetts has about the same number of large insurers as other states, and that's what counts. Many states, for example, attract large numbers of small companies, but have little market share. According to one study, Massachusetts has 12 companies with market shares of more than 2 percent, one more than the national average of 11.
Romney's bill promises the two-thirds of Massachusetts drivers with clean records a guaranteed 5 percent reduction in their premiums next year, but Ermilio said preliminary claims data from 2004 indicates all drivers in the state should receive at least a 5 percent rate reduction next year even if no changes are made in the system.
Ermilio said the 5 percent reduction for good drivers proposed by Romney could represent a savings for insurers, since they would be free to charge the remaining one-third of drivers higher rates under the governor's proposal.
''Do you think national companies would come in to Massachusetts when rates are going down?" Ermilio asked. ''No, they'll only come in only if it's lucrative for them to do so."
Ermilio said Massachusetts' system is the best in the country from the driver's standpoint, largely because drivers in all areas have access to affordable insurance. He said Massachusetts has one of the lowest levels of uninsured drivers in the country.
The Commerce official predicted auto premiums would rise over time under the governor's plan, not drop. He said urban drivers and youthful drivers could end up paying a lot more as subsidies for those drivers are eliminated. He said that if Romney was serious about charging bad drivers more and good drivers less, he could do that now by modifying the state's safe-driver insurance plan, which uses surcharge points to reward and penalize drivers.
Thursday, June 9, 2005
Costco Stores to Market Health Plans
By Debora Vrana, Times Staff Writer
Costco Wholesale Corp., the low-cost bulk supplier of breakfast cereal, motor oil and diamond rings, is adding health insurance to its warehouse shelves.
In a pilot program to be launched next month in Southern California, Costco will offer family and individual health coverage to its customers who pay $100 a year for "executive" membership, company officials said. The insurance is aimed at people such as contractors, waiters and students who are self-employed or cannot sign up for plans at work.
Although other discount stores such as Wal-Mart and Target have begun offering limited health services in their stores, Costco says it will be the first to offer insurance to members. About 18 million households nationally belong to Costco, including 3.4 million who pay for executive membership.
Company officials would not quote premiums but said the insurance would be 5% to 20% cheaper than policies individuals could buy on their own. Costco expects to offer coverage statewide by the end of the year and may eventually make it available to regular members, said Dellanie Fragnoli, assistant vice president of insurance services at Issaquah, Wash.-based Costco.
"It's one of the more requested services by our members," Fragnoli said.
Since 2003, Costco has offered group health insurance to its small-business members in the West through Cypress-based PacifiCare Health Systems Inc., said Cheryl Randolph, spokeswoman for PacifiCare.
The new program, also offered through PacifiCare, will be different in that it is tailored to individuals and families.
The preferred-provider plan, also known as a PPO, which encourages members to see participating doctors, will come in two forms offering similar benefits. One option will have a $1,500 annual deductible for individuals and a $3,000 deductible for families. The other, with lower premiums, will have deductibles twice as high, Costco said.
Coverage for both plans will include prescription drugs; co-payments for most office visits will be $35. Premiums will vary depending on age, location and health status.
Initially available only through Costco's 34 warehouses in Los Angeles, Orange and parts of Riverside and San Bernardino counties, the plan will be sold over the Internet and through a call center.
Costco can offer a discount in part because of lower administration, advertising and brokerage costs, Randolph said.
"They believe they can be cheaper than everyone else, not because of the bulk or the [lack of] frills, but because they are cutting out the middlemen, the broker," said J.D. Kleinke, a healthcare economist in Portland, Ore.
Costco is licensed to sell health insurance and receives a commission, but it "is significantly lower than what is generally paid," Fragnoli said.
Kleinke said consumers didn't really care who their health insurance provider was.
"They just want the cheapest way to see their doctor," Kleinke said.
Although discount retailers selling health insurance may seem like an odd mix, it points out the need consumers have for alternatives, given the rising costs of health insurance, Kleinke said.
Other major retailers including Target Corp. and Longs Drug Stores Corp. also have moved into the healthcare arena. At some Target stores in Minneapolis, shoppers can visit walk-up clinics staffed mostly by nurse practitioners for minor ailments, such as a bladder infection or seasonal allergies, with no appointment and little or no waiting. Target is contracting with Minneapolis-based MinuteClinic Inc. to run the clinics.
In Davis, Calif., this year, Longs unveiled its own in-store clinic. And also this year, the Wal-Mart Stores Inc.-operated Sam's Club began offering a discount program to members that cuts by as much as 50% the cost of some health services not covered by insurance, such as laser eye surgery and dental care.
This area is going to continue to grow, predict healthcare specialists like Kleinke, as rising costs push people to find new ways to insure themselves.
"We're not going to solve this problem," Fragnoli said. But "there is some value in Costco being in the arena. It keeps the providers on their toes."
Costco Wholesale Corp., the low-cost bulk supplier of breakfast cereal, motor oil and diamond rings, is adding health insurance to its warehouse shelves.
In a pilot program to be launched next month in Southern California, Costco will offer family and individual health coverage to its customers who pay $100 a year for "executive" membership, company officials said. The insurance is aimed at people such as contractors, waiters and students who are self-employed or cannot sign up for plans at work.
Although other discount stores such as Wal-Mart and Target have begun offering limited health services in their stores, Costco says it will be the first to offer insurance to members. About 18 million households nationally belong to Costco, including 3.4 million who pay for executive membership.
Company officials would not quote premiums but said the insurance would be 5% to 20% cheaper than policies individuals could buy on their own. Costco expects to offer coverage statewide by the end of the year and may eventually make it available to regular members, said Dellanie Fragnoli, assistant vice president of insurance services at Issaquah, Wash.-based Costco.
"It's one of the more requested services by our members," Fragnoli said.
Since 2003, Costco has offered group health insurance to its small-business members in the West through Cypress-based PacifiCare Health Systems Inc., said Cheryl Randolph, spokeswoman for PacifiCare.
The new program, also offered through PacifiCare, will be different in that it is tailored to individuals and families.
The preferred-provider plan, also known as a PPO, which encourages members to see participating doctors, will come in two forms offering similar benefits. One option will have a $1,500 annual deductible for individuals and a $3,000 deductible for families. The other, with lower premiums, will have deductibles twice as high, Costco said.
Coverage for both plans will include prescription drugs; co-payments for most office visits will be $35. Premiums will vary depending on age, location and health status.
Initially available only through Costco's 34 warehouses in Los Angeles, Orange and parts of Riverside and San Bernardino counties, the plan will be sold over the Internet and through a call center.
Costco can offer a discount in part because of lower administration, advertising and brokerage costs, Randolph said.
"They believe they can be cheaper than everyone else, not because of the bulk or the [lack of] frills, but because they are cutting out the middlemen, the broker," said J.D. Kleinke, a healthcare economist in Portland, Ore.
Costco is licensed to sell health insurance and receives a commission, but it "is significantly lower than what is generally paid," Fragnoli said.
Kleinke said consumers didn't really care who their health insurance provider was.
"They just want the cheapest way to see their doctor," Kleinke said.
Although discount retailers selling health insurance may seem like an odd mix, it points out the need consumers have for alternatives, given the rising costs of health insurance, Kleinke said.
Other major retailers including Target Corp. and Longs Drug Stores Corp. also have moved into the healthcare arena. At some Target stores in Minneapolis, shoppers can visit walk-up clinics staffed mostly by nurse practitioners for minor ailments, such as a bladder infection or seasonal allergies, with no appointment and little or no waiting. Target is contracting with Minneapolis-based MinuteClinic Inc. to run the clinics.
In Davis, Calif., this year, Longs unveiled its own in-store clinic. And also this year, the Wal-Mart Stores Inc.-operated Sam's Club began offering a discount program to members that cuts by as much as 50% the cost of some health services not covered by insurance, such as laser eye surgery and dental care.
This area is going to continue to grow, predict healthcare specialists like Kleinke, as rising costs push people to find new ways to insure themselves.
"We're not going to solve this problem," Fragnoli said. But "there is some value in Costco being in the arena. It keeps the providers on their toes."
Wednesday, June 8, 2005
BCBSNC, next move upto Babtist
As of Monday morning there had been no apparent move toward new contract talks between N.C. Baptist Hospital and Blue Cross and Blue Shield of North Carolina, though officials with both organizations said they were willing to sit down at the negotiating table again.
If, and when, that might happen, though, is unclear.
After negotiations over a new reimbursement contract stalled for more than a year, Baptist announced in March that it would cancel its contract effective June 4 with Blue Cross, the state's largest health insurance company.
Monday morning, Blue Cross and Blue Shield spokesman Mark Stinneford said the company was prepared to negotiate with N.C. Baptist to bring the hospital back into its network, just as it would negotiate with any health care provider who wanted into the network.
"We have to negotiate from a position of what would we pay comparable hospitals," he said. "It's a clean slate."
However, he said, Blue Cross expects Baptist to make the first move now to restart talks.
"The ball's in their court," Stinneford said. "They took the initiative to leave the network, so we'd expect them to take the initiative to rejoin if that's their desire."
Mark Wright, a spokesman for the hospital, said Baptist CEO Len B. Preslar Jr. sent a letter to the insurance company less than two weeks before the contract cancellation asking for a meeting with the company to restart negotiations this week, after the cancellation.
"We're doing everything we can to resolve this situation," Wright said.
In the meantime, both organizations have taken steps to help Blue Cross and Blue Shield members who might seek care at Baptist.
If, and when, that might happen, though, is unclear.
After negotiations over a new reimbursement contract stalled for more than a year, Baptist announced in March that it would cancel its contract effective June 4 with Blue Cross, the state's largest health insurance company.
Monday morning, Blue Cross and Blue Shield spokesman Mark Stinneford said the company was prepared to negotiate with N.C. Baptist to bring the hospital back into its network, just as it would negotiate with any health care provider who wanted into the network.
"We have to negotiate from a position of what would we pay comparable hospitals," he said. "It's a clean slate."
However, he said, Blue Cross expects Baptist to make the first move now to restart talks.
"The ball's in their court," Stinneford said. "They took the initiative to leave the network, so we'd expect them to take the initiative to rejoin if that's their desire."
Mark Wright, a spokesman for the hospital, said Baptist CEO Len B. Preslar Jr. sent a letter to the insurance company less than two weeks before the contract cancellation asking for a meeting with the company to restart negotiations this week, after the cancellation.
"We're doing everything we can to resolve this situation," Wright said.
In the meantime, both organizations have taken steps to help Blue Cross and Blue Shield members who might seek care at Baptist.
Smart shopper's guide to auto insurance
Are you spending more than necessary to insure your car? The auto insurance premiums you pay can vary significantly based on the insurer, your coverage and the type of car you drive. Other factors that influence cost are the age, gender and driving records of family members on the policy, and your state of residence.
The following are things you should know about auto insurance.
Understand the coverage you're buying.
An auto insurance policy actually includes a number of different types of coverage, such as liability, comprehensive and collision insurance.
Liability insurance covers injuries to other people, including medical bills related to bodily injury and lost wages. It also pays for the repair or replacement of property other than your own, damaged in an accident.
Liability coverage is often quoted in a series of three numbers, representing thousands of dollars of coverage, such as 50/100/25. The first number represents the bodily injury liability maximum for one person injured in an accident; the second number is the bodily injury liability maximum for all injuries in the accident; and the third number is the property damage liability maximum for an accident.
Individual states establish the required minimum level of auto liability insurance.
Comprehensive and collision insurance cover damage to your car due to fire, flood, theft or collision. The medical insurance component pays all or a portion of the medical expenses for injuries to you and other riders in the car.
Assume more risk with higher deductibles.
Your auto insurance deductible represents the amount of the loss you must absorb before the insurer makes a pay-out. If you are willing to accept a higher deductible, you will pay lower premiums, since you are able to absorb the cost of small losses and rely on the insurance company only to cover the larger losses.
Drop collision and comprehensive coverage on older cars.
It may not be cost-effective to have collision or comprehensive coverage on older cars. The amount the insurer would pay for the car's repair or replacement would be relatively small even if the vehicle were severely damaged in an accident.
Choose your car wisely.
The cost of your car and its make and model will affect your insurance premiums. Cars that are expensive to buy and to repair, or that are a favorite target for thieves, are more costly to insure. This is particularly true of sports cars and other high-performance vehicles.
It's a good idea to call your insurance carrier to check on the cost of coverage for a car you are considering buying.
Discounts can lower your insurance costs.
Many insurers offer discounts for cars with safety features such as automatic seat belts, air bags and anti-lock brakes, and for installing anti-theft devices. You also may qualify for a discount if you buy both your auto and home owners' insurance from the same insurer.
Discounts may also be available for insuring more than one vehicle, for student drivers with good grades, for drivers over 50, for drivers who stay with the same insurance company for a number of years and for motorists who drive a lower than average number of miles a year. Be sure to check with your insurer.
Shop around.
Auto insurance premiums for the exact same coverage on the same car can vary widely among different insurers, so it pays to shop around. Ask your friends or business associates for recommendations or call your state insurance department.
But CPAs caution that you shouldn't select a policy based on price alone. The insurer you select should be financially sound, offer fair prices and provide excellent service.
The following are things you should know about auto insurance.
Understand the coverage you're buying.
An auto insurance policy actually includes a number of different types of coverage, such as liability, comprehensive and collision insurance.
Liability insurance covers injuries to other people, including medical bills related to bodily injury and lost wages. It also pays for the repair or replacement of property other than your own, damaged in an accident.
Liability coverage is often quoted in a series of three numbers, representing thousands of dollars of coverage, such as 50/100/25. The first number represents the bodily injury liability maximum for one person injured in an accident; the second number is the bodily injury liability maximum for all injuries in the accident; and the third number is the property damage liability maximum for an accident.
Individual states establish the required minimum level of auto liability insurance.
Comprehensive and collision insurance cover damage to your car due to fire, flood, theft or collision. The medical insurance component pays all or a portion of the medical expenses for injuries to you and other riders in the car.
Assume more risk with higher deductibles.
Your auto insurance deductible represents the amount of the loss you must absorb before the insurer makes a pay-out. If you are willing to accept a higher deductible, you will pay lower premiums, since you are able to absorb the cost of small losses and rely on the insurance company only to cover the larger losses.
Drop collision and comprehensive coverage on older cars.
It may not be cost-effective to have collision or comprehensive coverage on older cars. The amount the insurer would pay for the car's repair or replacement would be relatively small even if the vehicle were severely damaged in an accident.
Choose your car wisely.
The cost of your car and its make and model will affect your insurance premiums. Cars that are expensive to buy and to repair, or that are a favorite target for thieves, are more costly to insure. This is particularly true of sports cars and other high-performance vehicles.
It's a good idea to call your insurance carrier to check on the cost of coverage for a car you are considering buying.
Discounts can lower your insurance costs.
Many insurers offer discounts for cars with safety features such as automatic seat belts, air bags and anti-lock brakes, and for installing anti-theft devices. You also may qualify for a discount if you buy both your auto and home owners' insurance from the same insurer.
Discounts may also be available for insuring more than one vehicle, for student drivers with good grades, for drivers over 50, for drivers who stay with the same insurance company for a number of years and for motorists who drive a lower than average number of miles a year. Be sure to check with your insurer.
Shop around.
Auto insurance premiums for the exact same coverage on the same car can vary widely among different insurers, so it pays to shop around. Ask your friends or business associates for recommendations or call your state insurance department.
But CPAs caution that you shouldn't select a policy based on price alone. The insurer you select should be financially sound, offer fair prices and provide excellent service.
Socializing Health Insurance
NEW HAMPSHIRE, formerly home to the second-lowest health insurance costs in the nation, is on the verge of reinstating the very same “reform” that caused our health insurance rates to skyrocket a decade ago and which was later repealed. Unless, that is, House members pass an amended version of the “reform” bill.
Health insurance is one of those issues lawmakers are eager to be perceived as fixing. Even if a bill would have disastrous consequences, many legislators will vote for it anyway because they know that in the next campaign an opponent can say, “He voted to kill important health insurance reform.”
That’s one reason Jeanne Shaheen got her devastating insurance bill passed in 1994. After it became law, 30 insurers fled the state and our health insurance costs rose to among the highest in the nation. Legislators improved the law two years ago by passing Senate Bill 110, which has helped bring insurers back to the state. But because the law sensibly lets insurers base rates on a person’s actual risk of getting sick or dying, advocates of wealth redistribution want it changed.
If not amended, SB 125 will not only reintroduce community rating, it will impose an $18 million tax increase on small businesses and subsidize large insurers by creating a tax-funded high-risk pool into which they can dump their sickest patients. In other words, the bill takes three big steps towards further socializing health insurance.
However, opponents of SB 110 and opponents of SB 125 can each claim a victory if they work together to pass the amendment proposed by the minority of the House Commerce Committee. The amendment would fix some of the problems with SB 110 without imposing excessively burdensome regulations and new taxes that would chase insurers from the state.
Today’s vote will test whether House members truly want to make health insurance more affordable in New Hampshire, or whether they simply want to take credit for doing so. A vote for the amended version of SB 125 would be a vote for true reform.
Health insurance is one of those issues lawmakers are eager to be perceived as fixing. Even if a bill would have disastrous consequences, many legislators will vote for it anyway because they know that in the next campaign an opponent can say, “He voted to kill important health insurance reform.”
That’s one reason Jeanne Shaheen got her devastating insurance bill passed in 1994. After it became law, 30 insurers fled the state and our health insurance costs rose to among the highest in the nation. Legislators improved the law two years ago by passing Senate Bill 110, which has helped bring insurers back to the state. But because the law sensibly lets insurers base rates on a person’s actual risk of getting sick or dying, advocates of wealth redistribution want it changed.
If not amended, SB 125 will not only reintroduce community rating, it will impose an $18 million tax increase on small businesses and subsidize large insurers by creating a tax-funded high-risk pool into which they can dump their sickest patients. In other words, the bill takes three big steps towards further socializing health insurance.
However, opponents of SB 110 and opponents of SB 125 can each claim a victory if they work together to pass the amendment proposed by the minority of the House Commerce Committee. The amendment would fix some of the problems with SB 110 without imposing excessively burdensome regulations and new taxes that would chase insurers from the state.
Today’s vote will test whether House members truly want to make health insurance more affordable in New Hampshire, or whether they simply want to take credit for doing so. A vote for the amended version of SB 125 would be a vote for true reform.
Tuesday, June 7, 2005
Auto Insurance Reform Deserves Support
The automobile insurance market in Massachusetts is a disaster and Gov. Mitt Romney's plan to reintroduce competition among insurers is a step in the right direction.
Drivers in Massachusetts pay the fourth-highest insurance rates in the nation. Yet relatively few companies want to do business here. While more than 100 insurers offer policies at competitive rates in nearby states, poor driving records and state-controlled rates have driven out all but 19 in the Bay State.
If you own a car or truck, you know how much it costs to insure it — hundreds, if not thousands, of dollars ever year. Parents dread the day their children become old enough to drive, knowing how much their inclusion on the policy will hike those annual premiums. And heaven forbid you have an accident or are cited for a moving violation.
Up in Lawrence, where fraud has driven rates even higher than in most places, drivers can pay as much as $4,000 a year for car insurance.
Romney wants to end what he called a "Soviet-style" insurance industry in Massachusetts. That's not an entirely accurate description on the governor's part, for industries in the old Soviet Union at least looked well-run on paper.
Romney has proposed a kind of regulated deregulation for the insurance industry. (See his column on today's Viewpoint page.)
Under his proposal, insurers would set their own rates — to a point. They would be required to lower rates for the state's best drivers by at least 5 percent. Those drivers account for 64 percent of the four million insurance policies in the state. Insurers could raise rates on drivers with poor records, but by no more than 15 percent.
The plan effectively eliminates the subsidies good drivers pay to support lower rates for poor drivers. In other words, drivers would pay rates that more closely reflect the cost of insuring them.
Romney also wants to increase the threshold for filing lawsuits for pain and suffering. Medical bills must exceed $2,000 before a lawsuit can be filed. Romney would raise that to $4,000. He also seeks a limit of 10 visits to nonmedical practitioners such as chiropractors.
These are moves that will help curb insurance fraud and reduce the number of nuisance lawsuits filed.
Other aspects of Romney's plan are less helpful and smack of government meddling in what should be business decisions. Among these is a plan to assess insurers $700,000 annually to pay for police anti-fraud efforts. That's a bill insurers would pass on directly to drivers. Romney also wants to replace no-deductible windshield replacement with a $100 deductible plan. That's a decision we'd have insurers, not the governor, make.
The heavily Democratic Legislature will no doubt be tempted to turn this proposal into an opportunity for partisan sniping at the Republican governor. Instead, they should take the opportunity to do something constructive for their constituents and work toward a market-based auto insurance system for Massachusetts.
Because anything that brings competition back to the insurance business and holds the promise of lower rates for good drivers would be most welcome.
Drivers in Massachusetts pay the fourth-highest insurance rates in the nation. Yet relatively few companies want to do business here. While more than 100 insurers offer policies at competitive rates in nearby states, poor driving records and state-controlled rates have driven out all but 19 in the Bay State.
If you own a car or truck, you know how much it costs to insure it — hundreds, if not thousands, of dollars ever year. Parents dread the day their children become old enough to drive, knowing how much their inclusion on the policy will hike those annual premiums. And heaven forbid you have an accident or are cited for a moving violation.
Up in Lawrence, where fraud has driven rates even higher than in most places, drivers can pay as much as $4,000 a year for car insurance.
Romney wants to end what he called a "Soviet-style" insurance industry in Massachusetts. That's not an entirely accurate description on the governor's part, for industries in the old Soviet Union at least looked well-run on paper.
Romney has proposed a kind of regulated deregulation for the insurance industry. (See his column on today's Viewpoint page.)
Under his proposal, insurers would set their own rates — to a point. They would be required to lower rates for the state's best drivers by at least 5 percent. Those drivers account for 64 percent of the four million insurance policies in the state. Insurers could raise rates on drivers with poor records, but by no more than 15 percent.
The plan effectively eliminates the subsidies good drivers pay to support lower rates for poor drivers. In other words, drivers would pay rates that more closely reflect the cost of insuring them.
Romney also wants to increase the threshold for filing lawsuits for pain and suffering. Medical bills must exceed $2,000 before a lawsuit can be filed. Romney would raise that to $4,000. He also seeks a limit of 10 visits to nonmedical practitioners such as chiropractors.
These are moves that will help curb insurance fraud and reduce the number of nuisance lawsuits filed.
Other aspects of Romney's plan are less helpful and smack of government meddling in what should be business decisions. Among these is a plan to assess insurers $700,000 annually to pay for police anti-fraud efforts. That's a bill insurers would pass on directly to drivers. Romney also wants to replace no-deductible windshield replacement with a $100 deductible plan. That's a decision we'd have insurers, not the governor, make.
The heavily Democratic Legislature will no doubt be tempted to turn this proposal into an opportunity for partisan sniping at the Republican governor. Instead, they should take the opportunity to do something constructive for their constituents and work toward a market-based auto insurance system for Massachusetts.
Because anything that brings competition back to the insurance business and holds the promise of lower rates for good drivers would be most welcome.
Affordable Small Business Health Insurance
Legislation in Congress could help a number of groups representing small business line up affordable health insurance, backers say.
Critics say allowing the creation of "association" health plans will still leave many business owners or employees without coverage or facing even higher premiums.
Rep. Denny Rehberg recently joined National Federation of Independent Business representatives on a statewide tour, pitching the idea of allowing groups like the NFIB or National Association of Realtors to provide health coverage to members.
Of the roughly 45 million Americans without health insurance, more than 60 percent own or work for a small business, Rehberg told a gathering in Great Falls recently.
"Obviously, we've got a market that's not being fulfilled right now," Rehberg said.
For instance, there are about 1.2 million members of the National Association of Realtors nationwide, said Ronda Tompers, president of the Great Falls Association of Realtors.
"About a third of those people don't have any health insurance at all so it's an important issue for us," Tompers said.
Rehberg is backing a measure called the Small Business Health and Fairness Act, which would allow bona fide trade associations to buy health insurance nationally, provide the same rates and coverage to all their members and be exempt from state coverage mandates.
There are versions of the bill pending in the U.S. House and Senate. Currently, it is illegal for such insurance pools to be formed across state lines.
Backers of the plan say it will do much to give small business owners and their employees access to health insurance similar to that enjoyed by big companies and members of labor unions.
But opponents, including Montana Auditor John Morrison and others, oppose such legislation. Health plans formed by such a measure would be exempt from regulation by state insurance commissioners, a role held by Morrison in Montana.
Without state regulation, such plans could siphon off the healthiest groups and force up premiums for other small businesses, Morrison says. They also could be more prone to fraud.
Without state regulators, there could also be a lack of someone to keep association plans from becoming insolvent and leaving policy holders stranded without coverage.
Morrison recently testified against association plans before a Senate committee. Joining state insurance regulators in opposition are the National Governor's Association, the National Association of Attorneys General and the National Conference of State Legislatures.
Rehberg and others say "cherry picking" the healthiest customers is already forbidden under federal law.
Backers say one of the biggest opponents of association plans are Blue Cross Blue Shield plans, which could stand to lose a sizable number of customers if the legislation is approved.
Stacy Jenkins, an NFIB representative, said association plans could give small business owners more choices in health care and the opportunity to pay rates as much as 50 percent below current levels.
"Many small businesses want health insurance for their employers but they simply can't afford it," Jenkins said.
While the U.S. House has backed such legislation several times, the Senate has been a roadblock, Rehberg said.
Having a Republican, Sen. Mike Enzi of Wyoming, as chairman of the Senate Committee on Small Business and Entrepreneurship could boost its chances of passage, according to Rehberg.
"This is getting more and more attention, and we need to get it through the Senate," he said.
A Blue Cross Blue Shield board member, former Montana Rep. Rick Hill, told Rehberg that such legislation would help some but leave plenty of small business owners who are not members of big trade groups behind. Those folks could face even higher premiums than they do now.
"That's the problem," Hill said.
Critics say allowing the creation of "association" health plans will still leave many business owners or employees without coverage or facing even higher premiums.
Rep. Denny Rehberg recently joined National Federation of Independent Business representatives on a statewide tour, pitching the idea of allowing groups like the NFIB or National Association of Realtors to provide health coverage to members.
Of the roughly 45 million Americans without health insurance, more than 60 percent own or work for a small business, Rehberg told a gathering in Great Falls recently.
"Obviously, we've got a market that's not being fulfilled right now," Rehberg said.
For instance, there are about 1.2 million members of the National Association of Realtors nationwide, said Ronda Tompers, president of the Great Falls Association of Realtors.
"About a third of those people don't have any health insurance at all so it's an important issue for us," Tompers said.
Rehberg is backing a measure called the Small Business Health and Fairness Act, which would allow bona fide trade associations to buy health insurance nationally, provide the same rates and coverage to all their members and be exempt from state coverage mandates.
There are versions of the bill pending in the U.S. House and Senate. Currently, it is illegal for such insurance pools to be formed across state lines.
Backers of the plan say it will do much to give small business owners and their employees access to health insurance similar to that enjoyed by big companies and members of labor unions.
But opponents, including Montana Auditor John Morrison and others, oppose such legislation. Health plans formed by such a measure would be exempt from regulation by state insurance commissioners, a role held by Morrison in Montana.
Without state regulation, such plans could siphon off the healthiest groups and force up premiums for other small businesses, Morrison says. They also could be more prone to fraud.
Without state regulators, there could also be a lack of someone to keep association plans from becoming insolvent and leaving policy holders stranded without coverage.
Morrison recently testified against association plans before a Senate committee. Joining state insurance regulators in opposition are the National Governor's Association, the National Association of Attorneys General and the National Conference of State Legislatures.
Rehberg and others say "cherry picking" the healthiest customers is already forbidden under federal law.
Backers say one of the biggest opponents of association plans are Blue Cross Blue Shield plans, which could stand to lose a sizable number of customers if the legislation is approved.
Stacy Jenkins, an NFIB representative, said association plans could give small business owners more choices in health care and the opportunity to pay rates as much as 50 percent below current levels.
"Many small businesses want health insurance for their employers but they simply can't afford it," Jenkins said.
While the U.S. House has backed such legislation several times, the Senate has been a roadblock, Rehberg said.
Having a Republican, Sen. Mike Enzi of Wyoming, as chairman of the Senate Committee on Small Business and Entrepreneurship could boost its chances of passage, according to Rehberg.
"This is getting more and more attention, and we need to get it through the Senate," he said.
A Blue Cross Blue Shield board member, former Montana Rep. Rick Hill, told Rehberg that such legislation would help some but leave plenty of small business owners who are not members of big trade groups behind. Those folks could face even higher premiums than they do now.
"That's the problem," Hill said.
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