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 Insurance
August 2nd, 2010
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).