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Today’s News: Health Care Overhaul Receives High Marks, Louisianans Don’t Fully Understand Flood Insurance and Young Drivers Make Insurance Claims Most

Posted in Auto Insurance , Auto Insurance Claims , Health Care , Health Insurance , Home Insurance

August 6th, 2010
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The health care overhaul has received some high marks from a surprising party, a study found that Louisiana residents don’t fully understand home insurance and new data has revealed that young drivers have the highest frequency of claims.

Health Care Overhaul Receives High Marks

Democrats and even some Republicans have given President Barack Obama high marks for the way his been able to carry out the new health care law. A new poll suggests that many people are very pleased with the way he’s pushed for health insurance and executed it, especially within the law’s first 100 days of being signed. Since May, favorable reviews have increased; however, since there are still months and years to go, views could change. Most say the November elections will be the real indicator of how the masses feel (NY Times).

Louisianans Don’t Fully Understand Flood Insurance

The Insurance Information Institute recently released a study revealing that people in Louisiana — homeowners in the epicenter of Hurricane Katrina’s destruction — are less likely than others around the country to understand that a home insurance policy doesn’t cover flooding. Specifically, 16 percent of Louisiana homeowners mistakenly believe that a homeowners policy covers flooding, having no idea that a flood insurance policy from the National Flood Insurance Program is how floods are covered (NOLA).

Young Drivers Make Insurance Claims Most

A report from the Highway Loss Data Institute revealed that drivers ages 16-19 have the highest frequency of auto insurance claims, as well as the highest average loss per claim. The types of claims this age group has the highest claims for include collision, property damage liability and bodily injury coverage. On the other end of the spectrum are 30-59 year olds who have three times fewer average claims than the teenage group. However, the drivers with the fewest auto insurance claims, according to the study, are those over the age of 70 due to their increased concern about their own driving skills (Auto Quote Now).

Today’s News: AMA Criticizes Health Insurers, Sacramento Considers Out-of-Town Motorist Tax and Primary Care Doctors Harder to Find

Posted in Auto Insurance , Health Care , Health Insurance , Health Insurance Companies

August 4th, 2010
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A letter issued by the American Medical Association is requesting that health insurance companies reveal their doctor rating system. In other insurance news, a study has found that the elderly pose fewer threats on the rode than their younger counterparts and in the state of Massachusetts it seems that primary care doctors are hard to find.

AMA Criticizes Health Insurers

A sharply worded letter from the American Medical Association (AMA) to the nation’s largest health insurance companies was released on Monday. In the letter, the association and 47 medical societies called on insurers to disclose to the public how they assessed doctors’ performance. Also, they want insurers’ methods to be reviewed by independent parties to stop what is viewed as unreliability of physician profiling.

Right now, the AMA believes that ratings systems used by insurers is not accurate enough to correctly direct patients to reliable doctors and hopes that this letter will initiate change that is long overdue (NY Times).

Sacramento Considers Out-of-Town Motorist Tax

Sacramento, Calif. is considering a tax on out-of-town motorists who are involved in local auto accidents. The Sacramento City Council’s Law and Legislation Committee looked into considering an ordinance that would impose the tax at its July 20 meeting.

In the proposal, non-residents would be billed if they were involved in motor vehicle accidents in the city. In some cases, the non-resident’s auto insurance company will cover the bill, but it’s possible that that non-resident would be stuck with the bill (24-7 Press Release).

Primary Care Doctors Harder to Find

While Massachusetts has the highest ratio of doctors per population in the country, it seems that residents are still having a difficult time finding a primary care physician who is accepting new patients.

New data from the Division of Health Care Finance and Policy discovered that last year 60 percent of family medicine doctors’ offices were accepting new patients. This is down from 70 percent in 2007. Even worse, only 44 percent of internal medicine practices were accepting new patients. To respond to the shortage, the report found that around 214 new primary care physicians would need to be hired (Market Watch).

Today’s News: U.S. Health Care Underperforms, Credit Scores Approved to Determine Insurance Rates and Wisconsin Mandatory Insurance Grace Period Near End

Posted in Auto Insurance , Auto Insurance Quotes , Health Care , Health Insurance

August 4th, 2010
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A report released in June revealed that the United States health care system underperforms compared to many industrialized nations, a court has ruled that credit scores are allowed when insurance companies determine rates and Wisconsin is nearing the end of a grace period allowing vehicle owners to drive without mandatory auto insurance.

U.S. Health Care Underperforms

A report released by the Commonwealth Fund, which is a private foundation focused on health, found that while the U.S. offers the costliest health care in the world, it underperforms many other industrialized nations. According to the report, the medical care systems of Canada, Germany, the Netherlands, New Zealand, Britain and Australia are all superior to the United States’ system. Currently, the system ranks “last or next-to-last on five dimensions of a high performance health system” including quality, access, efficiency, equity and health lives. However, the study noted that health care reform and new guidelines for health insurance should help to address the problems (AFP).

Credit Scores Approved to Determine Insurance Rates

The Michigan Supreme Court determined that insurance companies can use a person’s credit report to determine rates after deciding that state regulators had exceeded their authority by banning the practice. The battle to ban credit scoring use when determining insurance rates has been ongoing since 2005 and reached the Supreme Court last October. Many have said that the use of credit reports when determining auto insurance rates, unfairly targeted specific demographics for higher premiums. But in a 4-3 ruling, the Michigan law will now allow for those with better credit scores to receive lower insurance rates (Associated Press).

Wisconsin Mandatory Insurance Grace Period Near End

On June 1, 2010, Wisconsin became the 49th state to require mandatory liability auto insurance coverage for all drivers. And now, law enforcement is announcing that the grace period to acquire this mandatory coverage is coming to an end. While the specific deadline has not yet been set, police in the state are expected to begin penalizing drivers who do not yet carry coverage. Currently, drivers are required to carry $50,000 for bodily injury or death of one person, $100,000 for two or more people and $15,000 for injury or destruction of property. The penalty for not having at least liability insurance could cost up to $500 (WBAY).

Today’s News: Maine Seeks Health Care Waiver, Home Burglaries Increase and Blue Cross Cuts Cost by 20 Percent

Posted in Blue Cross Blue Shield , Health Care , Health Insurance , Health Insurance Companies , Home Insurance , Home Insurance Claims

August 2nd, 2010
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Officials in Maine recently asked the government for the right to be exempt from one provision of health care reform, home burglaries are said to be on the rise in the state of Texas and Blue Cross has decided to cut costs by 20 percent.

Maine Seeks Health Care Waiver

The insurance regulator in Maine recently asked the Obama administration to temporarily exempt the state’s health plans from a provision of the health care overhaul that would affect their profits. The provision is a measure of how much health insurance companies would spend on medical care in comparison to their administrative expenses and profits. The new law requires insurers to pay out at least 80 percent of the premiums collected on medical care. The insurance regulator says that these changes would result in one health plan, HealthMarkets Inc., to stop doing business in Maine, only leaving one health plan option for consumers (Wall Street Journal).

Home Burglaries Increase by 9 Percent in Texas

According to Allstate Insurance, the number of home burglary claims for the company’s customers in Texas jumped by 9 percent in 2009. Among the items that were stolen the most were flat screen TVs, laptops, jewelry and cash. While many of the burglaries looked to be neighborhood criminals, some were reported to be tied to organized criminal activity. The insurance company recommended that in addition to locking up homes securely whenever leaving the house, it’s important to have a quality home insurance policy to pick up the pieces financially (PR Newswire).

Blue Cross Cuts Cost by 20 Percent

Many insurance companies have had to make adjustments to accommodate health care reform and Blue Cross and Blue Shield of North Carolina is one of them. The company recently announced its plans to cut its administrative costs by 20 percent. This adjustment is predicted to result in the layoff of up to 4,400 employees, but will ultimately help improve financial results for the company while keeping premium costs down for customers. The change is expected to take place by 2014 (The Charlotte Observer).

Today’s News: Health Care Law Raises Abortion Questions, Pre-Existing Conditions Health Pools Begin and Flood Insurance Overhaul Underway

Posted in Health Care , Health Insurance , Home Insurance

July 30th, 2010
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Now that the new health care law has passed, questions about abortion have resurfaced. In other insurance news, health insurance pools are beginning to crop up around the country to help those with pre-existing conditions and Congress has taken steps to get a flood insurance overhaul underway.

Health Care Law Raises Abortion Questions

Despite the fact that lawmakers promised abortions wouldn’t be covered under the new health care law unless the pregnancy was life-threatening or the result of rape or incest, abortion opponents have warned that some programs will indeed cover the procedure. The way they will be covered, according to some groups, is that those who have been denied health insurance because of pre-existing conditions will have a shot at the elective procedure if they are covered by the new federally-funded high-risk pools in some states. The Obama administration promises this will not happen but opponents say they don’t trust this promise. (USA Today)

Pre-Existing Conditions Health Pools Begin

Many states around the country have started implementing their insurance pools for those with pre-existing conditions. Enrollment has already begun for residents of Missouri who have been without insurance coverage for at least six months and have a pre-existing condition. Other states have also taken steps to get their programs underway. In Florida, enrollment has already started enrolling patients while Wisconsin will get its pool started for approximately 8,000 people on August 1. (News Journal Online)

Flood Insurance Overhaul Underway

After many months of watching the National Flood Insurance Program expire and get reinstated by Congress, House representatives have finally decided that the time is right to overhaul the program under HR 5114, also known as the “Flood Insurance Reform Priorities Act of 2010.” The latest extension of the program occurred in July and will allow policyholders to keep their flood insurance coverage until Sept. 30, 2010. However, if the act is passed in all of Congress, the program will be extended for five years. The act recently made it to Senate where it is awaiting approval. (Associated Press)

Today’s News: Employers Urged to Expand Health Plans, Medicare Doughnut Hole Checks Coming and the Nation’s Dumbest Drivers May Live Near You

Posted in Health Care , Health Insurance , Medicare

July 28th, 2010
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The secretary of Health and Human Services is urging employers to hurry and expand their health insurance benefits plans to employees with older children, while the government announces that Medicare checks may be mailed soon to beneficiaries into the “doughnut hole.” And in auto insurance news, GMAC has taken time to tell you where you can find the nation’s dumbest drivers.

Employers Urged to Offer Coverage to Children Up to Age 26 ASAP

Kathleen Sebelius, the secretary of health and human services, urged employers to begin immediately offering or continue to offer health insurance coverage to employees’ children up to the age of 26 — and they need to do it at little or no additional cost. While the new health reform law will require employers to do this very thing later this year, the secretary wants them to get started as soon as possible, especially with many college students graduating to no jobs or health insurance. While 65 insurers have already agreed to make changes early, very few employers have modified their plans accordingly. (New York Times)

Medicare Donut Hole Checks to be Mailed

In order to fill the gap in Medicare coverage that many senior citizens find themselves suffering through when their federal subsidies temporarily end each year, the government is offering assistance. The gap, or “doughnut hole,” requires that senior citizens pay for their medicine on their own until they reach the catastrophic stage of their plans. When they reach this stage, the government will pay 95 percent of their drug costs. Unfortunately, seniors have to pay about $3,500 on their own in drug costs to reach this stage. To help, the government is offering $250 rebate checks to those who find themselves in the hole. (Insurance and Financial Advisor)

Do You Live Near the Nation’s Dumbest Drivers?

According to a new GMAC Insurance National Drivers test, which polled 5,202 licensed drivers from 50 states and the District of Columbia, you may very well be among the dumbest drivers in the nation (see map). The test asked 20 questions based on state department of motor vehicle exams and required that participants receive a grade of 70 percent or better to pass. The test found that one in five drivers nationwide lack the necessary knowledge to pass the written driving test. And where are the dumbest drivers found? Sorry New York. (CNN Money)

Today’s News: Gov’t Blocks Health Insurer Mergers, Home Insurance Necessary for Hurricane Season and Life Insurance Assessment Tool Available

Posted in Health Care , Health Insurance , Home Insurance , Hurricane Insurance , Met Life

July 19th, 2010
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President Barack Obama is warning health insurance companies that he won’t hesitate to block any company mergers that will stifle competition, while also warning homeowners to protect their homes against a rapidly-approaching hurricane season. Also, MetLife is offering a new tool to help individuals choose life insurance options more effectively.

Government Blocks Health Insurer Attempts at Mergers

Christine Varney, antitrust chief of the Justice Department, told a lawyers’ conference that the Obama administration plans to vigorously enforce anti-monopoly laws so that the newly-passed health care reform bill will see ultimate success. She noted that the point of the bill was to control premiums for policyholders and this can’t be accomplished without competition between numerous health insurance companies to drive down the prices. The department plans to actively investigate big insurers to stop monopolies before they start. (Associated Press)

Check Your Home Insurance Policy During National Hurricane Preparedness Week

President Barack Obama had announced that May 23 – 29, 2010 was National Hurricane Preparedness Week, during which time homeowners were to make sure their homes were prepared for hurricane season starting on June 1.

As summer continues, it’s good to make sure your home insurance policy fully covers your home if you live in an area prone to hurricanes. Also, it’s good to make reinforcements to your home that could better protect it and potentially lower your home insurance rates as a result.

MetLife Offers New Life Insurance Assessment Tool

Insurer MetLife announced recently that it would be offering a new life insurance needs assessment tool along with tips to help insurance seekers better understand how to get started with a new policy. The company will offer an online Life Insurance Needs Calculator that offers guidance in determining how much life insurance consumers need as well as how much they should expect to pay from MetLife. Also, tips will be made available to help simplify the application process. (Market Watch)

Understanding the Health Insurance Exchange

Posted in Compare Health Insurance , Health Care , Health Insurance

July 15th, 2010
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There have been a number of changes resulting from health care reform. One immediate change has been extending adult children’s health insurance coverage under a parent’s policy until their 26th birthday. Another major change is that no one can being turned down for health insurance due to pre-existing conditions.

One of the changes that actually helps uninsured acquire coverage is making its way from state to state: the health insurance exchange. To get a better understanding of how it could affect you, let’s take a closer look at what it is.

What is a Health Insurance Exchange?

Health insurance exchanges are places where consumers can go to compare various policy options and select the one that is best for them. These exchanges are meant to lower insurance costs for consumers who are self-employed or don’t have coverage available to them via an employer with discounts through group coverage. By pooling insurer plans together in a similar way, consumers will have access to group-like rates.

The federal government has given states the option of establishing their own state-run health insurance exchange, or to go with a regional creation. Technically, the health insurance exchanges are not supposed to form until 2014, but many states have taken it upon themselves to start sooner.

What Types of Coverage Will Health Insurance Exchanges Offer?

The health insurance exchanges are expected to offer the same or similar types of coverage options as employers, meaning that you may have PPO, HMO or POS options to choose from. Depending on the plan you choose, you could have specific co-pays, deductibles or coinsurance options available as well. The idea of the exchange is to open up the number of affordable options for those who currently struggle to obtain coverage, but the options within each exchange are likely to be similar.

Who Will Qualify?

The exchanges will first be available to people who work for small businesses with fewer than 100 employees and don’t have access to coverage through the employer. For instance, if you work for a company that does not currently offer coverage, the exchange could help you find insurance at an affordable rate. Also, the exchanges will be available to those who are self-employed and don’t have access to group plans.

Those who work for larger companies will be given access to the exchanges. However, they will only qualify for coverage if their employer’s coverage doesn’t meet new standards for cost or comprehensiveness. Also, those who have been offered coverage through high-risk pools for pre-existing conditions will have access to coverage only six months after discontinuing their coverage with the pool.

Are There Any States Currently Offering Health Insurance Exchanges?

Currently, only Utah and Massachusetts run health insurance exchanges. Utah’s exchange is a website that consists mostly of links to various websites where consumers can acquire insurance information. However, Massachusetts’ site offers health insurance quotes right on the site to help consumers find affordable coverage.

West Virginia is another state that plans to participate in health insurance exchanges. While its exchange is not up and running, the insurance commissioner plans to have it ready for launch sometime in 2011. The reason the state was able to get an early start was because it received a $37 million federal grant to help implement health care reform during the next five years.

Health insurance exchanges are expected to lower the cost of health insurance across the board, making it more affordable for everyone. With the mandate that Americans will need to acquire some form of coverage by 2014, a cost reduction will indeed be the order of the day.

Today’s News: New Coverage for Pre-Existing Conditions to Begin, Florida Auto Insurance Fraud Skyrockets and Gov’t Long-Term Care Program Already Doomed

Posted in Auto Insurance , Auto Insurance Claims , Health Care , Health Insurance

July 7th, 2010
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Some relief may be on the way for those who suffer from preexisting conditions as the government has set up a new health insurance program that is to begin soon. In Florida, auto insurance fraud via intentional crashes has skyrocketed and the government plans to start a new program for those in need of long-term care, but there is a major glitch that could force its failure before it even begins.

New Coverage for Pre-Existing Conditions to Begin

A new health insurance program is being launched by the Obama administration that will help Americans who are currently uninsured and also have pre-existing medical problems. The program, also known as the Pre-Existing Condition Insurance Plan, will offer lower-cost insurance coverage to those who have trouble getting insurance elsewhere. It will begin accepting applications as soon as July 1 and start offering coverage as early as Aug. 1. Some think the coverage costs could still be a bit of a stretch for many individuals and families, but will still be worth a try. Those who are interested should visit healthcare.gov for more information (Associated Press).

Intentional Crashes Cause Florida’s Auto Insurance Fraud Cases to Skyrocket

Auto insurance fraud where a policyholder crashes his or her car just to generate medical claims is on the rise in Florida, according to the National Insurance Crime Bureau (NICB). The industry group acknowledges that staged accidents surged by 58 percent to 1,999 in 2009. Among the cities with the highest number of intentional crashes was Tampa with the highest number sitting at 487. According to the group, the economic slump contributes most to the significant increase in fraudulent accidents (Business Week).

Governmentt Long-Term Care Program Already Doomed

A new program is being offered by the federal government to provide insurance assistance to those in need of long-term care. The program is needed as the costs of long-term care continue to skyrocket. However, the Community Living Assistance Services and Support (CLASS) Act, which will offer adults with severe physical or cognitive limitations receive anywhere from $50 to $75 a day to help pay for services, won’t be getting its start until 2017. Many think the program could be successful when it actually starts, but in the meantime, tons of seniors could suffer major financial setbacks trying to pay for care on their own (Delaware Online).

Today’s News: California First to Implement Health Overhauls, U.S. Life Insurance Sales Up and Liberty Mutual Offers Safe Driving Game

Posted in Auto Insurance , Health Care , Health Insurance , Liberty Mutual , Life Insurance , Life Insurance Quotes

July 5th, 2010
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As the nation prepares for a new world of health insurance in the near future, California gets to see changes sooner since it was designated as the test-run state for many health care reform implementations. In other insurance news, it seems the life insurance industry is continuing its rebound with sales up in the first quarter of 2010 and for those who are interested in lowering their auto insurance rates, they could take a stab at Liberty Mutual’s safe driving game.

California First State to Implement Health Overhauls

The state of California has been chosen as the first one to begin implementing the complex set of overhauls that have been issued by the government. Representatives in the state will begin taking the initial steps this week to make reform a reality. So far, more than 20 bills have been introduced and lawmakers might vote on up to a dozen this week to meet a tight deadline that requires the bills to be passed out of their house of origin. California was chosen as health care reform’s model state because of its sheer size. And with 8.2 million in the state without health insurance, its residents are in need of a great deal of help. (Mercury News)

U.S. Life Insurance Sales Up in First Quarter

According to industry research organization, LIMRA, total first-quarter U.S. sales of individual life insurance rose by 10 percent from the same period in 2009. The organization has dubbed this improvement “encouraging.” However, while the increase in sales may seem to be good news for the life insurance industry, the organization expects that universal life sales will actually be negatively impacted in the near future as prices for policies increase and consumers decide to slow purchases. (Insurance News Net)

Lower Your Auto Insurance with Liberty Mutual’s Safe Driving Game

Liberty Mutual is offering a fun new futuristic driving game that helps drivers navigate the roads of the future and even improve their defensive driving skills. The game, titled “2099,” challenges drivers to protect their sleek vehicles from hazards by safely traveling around a race track without colliding with other drivers on the futuristic road. While the game is not to be thought of as a driving school simulator, it offers a good way to pay attention to one’s surroundings while operating a vehicle, which could help become a safer driver and eventually lower auto insurance rates. (Business Wire)