Today’s News: States Get $51 Million to Rate Health Insurance, Prop 17 Gets Shot Down and AIG Repayment Prospects Look Shaky

The U.S. Department of Health and Human Services has made grants available to states to help them enhance their health insurance rate review programs, California’s Proposition 17 auto insurance bill does not make the vote and AIG looks to be struggling to fulfill its promise to repay taxpayers.

$51 Million to Rate Health Insurance

Every state, as well as the District of Columbia, has been granted $1 million to work on a process that will help it review and give approval to health insurance premium requests. In total, there is $250 million to give out to states under the Patient Protection and Affordable Care Act, but the $51 million is the initial portion being used to get the programs started. The deadline for states to grab their share is July 7, while the second round of grants is expected to be distributed before the end of the year. (Insurance News Net)

Prop 17 Gets Shot Down

After months of debates on whether California drivers would benefit from Proposition 17, also known as the Continuous Coverage Auto Insurance Discount, the voters gave the ultimate answer: no. Prop 17 was best known for being advertised as a major benefit because it would provide auto insurance discounts to those who maintained their coverage continuously. However, opponents disliked the bill since drivers who were unable to maintain coverage would suffer a penalty. With 99.1 percent of the votes in, Prop 17 was losing by 158,000 votes. (San Francisco Chronicle)

AIG Repayment Plans Fading

After AIG’s attempt to sell its Asian life insurance unit went bust when it refused an original offer from Prudential PLC – an act that resulted in an even lower bid from the buyer – some wonder whether the insurer will be able to repay its debts to taxpayers. The $35 billion that AIG could have gained would have placed a significant dent in the $132.6 billion it borrowed. However, the company now has to try to sell the life insurance unit again to try to repay what is owed. (CNN Money)