Commissioner Kreidler and PA Commissioner, Joel Ario explain their support in ClimateWire and the New York Times of pay-as-you-drive initiatives and giving insurers the room to experiment with emissions-cutting auto insurance.
Boston Globe: Massachusetts Insurance Commissioner looks into the large disparities in payments to providers – but insurers refused to answer key questions about why some hospitals and doctors are paid up to three times as much as others for the same services.
The Olympian reports outcry begins immediately after Gregoire unveils budget but the Seattle Times says Gov. Gregoire's state budget has merit.
Wall Street Journal: The cost of medical care for pets is rising as fast as it is for humans, and that's helping to spur sales of pet insurance.
Thursday, December 10, 2009
Insurance news: Commissioners explain support of pay-as-you-drive and even pet insurance is going up
Shaving millions of dollars off your insurance bills
Little-known fact: In order to raise rates, many insurers in Washington state must get approval from the state insurance commissioner's office.
The companies produce data and calculations showing their justification for the requested rate. The state's actuaries then review the request. The rate that gets approved is often lower than what the companies originally requested.
The upshot: Behind the scenes, the insurance commissioner's office holds your insurance bills lower. Because each request is viewed on a case-by-case basis, some of the rates are approved as requested; others get trimmed down. The companies often argue that they can justify higher rates than they're actually requesting.
In percentage terms, the changes look minor: an average of a fraction of a percent in some years, up to about 3.5 percent. But in a multi-billion dollar business in Washington, those changes can mean millions of dollars a year shaved from Washingtonians' next insurance bills.
Here, for example, is a breakdown of the average difference between requested rates and approved rates for the top 20 homeowners' insurers doing business in Washington:
Year Change by OIC Savings to consumers
2001 -.31 percent $1.8 million
2002 -3.47 perc $22.1 million
2003 -1 percent $7 million
2004 -.02 percent $153,000
2005 -.02 percent $170,000
2006 $0 $0
2007 -.03 percent $280,000
2008 -.54 percent $5.2 million
2009 -1.72 percent $16.7 million
Total saved: $53 million
Coming soon: A post on how rate review affected WA auto insurance rates. (The short form: Since 2000, $243 million saved.)
The companies produce data and calculations showing their justification for the requested rate. The state's actuaries then review the request. The rate that gets approved is often lower than what the companies originally requested.
The upshot: Behind the scenes, the insurance commissioner's office holds your insurance bills lower. Because each request is viewed on a case-by-case basis, some of the rates are approved as requested; others get trimmed down. The companies often argue that they can justify higher rates than they're actually requesting.
In percentage terms, the changes look minor: an average of a fraction of a percent in some years, up to about 3.5 percent. But in a multi-billion dollar business in Washington, those changes can mean millions of dollars a year shaved from Washingtonians' next insurance bills.
Here, for example, is a breakdown of the average difference between requested rates and approved rates for the top 20 homeowners' insurers doing business in Washington:
Year Change by OIC Savings to consumers
2001 -.31 percent $1.8 million
2002 -3.47 perc $22.1 million
2003 -1 percent $7 million
2004 -.02 percent $153,000
2005 -.02 percent $170,000
2006 $0 $0
2007 -.03 percent $280,000
2008 -.54 percent $5.2 million
2009 -1.72 percent $16.7 million
Total saved: $53 million
Coming soon: A post on how rate review affected WA auto insurance rates. (The short form: Since 2000, $243 million saved.)
Wednesday, December 9, 2009
Eliminating WA’s Basic Health Plan: What it would mean
The proposed elimination of Washington state’s Basic Health Program would accelerate an already bleak trend in Washington state. It would mean tens of thousands fewer people with health coverage. It would also drive the number of uninsured people in Washington above a million next year.
The cuts would also mean that Washington’s uncompensated medical care – bad debts and charity care – will rise to a record $1 billion by late 2010, instead of the projected 2011.
Including the proposed BHP cut, the percentage of Washingtonians with no health coverage is expected to rise to 15 percent next year.
Another 20 percent of the state’s residents will be “underinsured,” meaning that they have health coverage, but that they spend more than 10 percent of their income to pay for it.
All told, more than 1 in 3 of the state’s residents will be uninsured or underinsured next year.
“I fully recognize the grim budget situation that Gov. Chris Gregoire and state lawmakers face,” Insurance Commissioner Mike Kreidler said Wednesday, after the governor proposed eliminating BHP as a cost-cutting measure for the 2010-11 supplemental state budget.
“No one wants to make these kinds of cuts. Potentially losing this coverage would be disastrous for many of the families that rely on it. I support the Governor's plan to restore the Basic Health Plan. But the situation we're facing underscores the critical need for broader health care reform,” he said. “We must fix what is clearly a broken system. We can’t afford not to.”
The cuts would also mean that Washington’s uncompensated medical care – bad debts and charity care – will rise to a record $1 billion by late 2010, instead of the projected 2011.
Including the proposed BHP cut, the percentage of Washingtonians with no health coverage is expected to rise to 15 percent next year.
Another 20 percent of the state’s residents will be “underinsured,” meaning that they have health coverage, but that they spend more than 10 percent of their income to pay for it.
All told, more than 1 in 3 of the state’s residents will be uninsured or underinsured next year.
Tuesday, December 8, 2009
Insurance news: Surge in kidnap-and-ransom coverage, and back-and-forth on the Hill
The New York Times has a fascinating story today about hostage-taking, including a recent surge in "K&R" -- meaning "kidnap and ransom" -- insurance coverage.
On Capitol Hill, meanwhile, Politico reports that a public option compromise is taking shape, and the Washington Post talks about some of the remaining hurdles to passing the bill.
The NYT has a longer take on the latter topic, with more detail on the abortion fight over the Senate bill.
On Capitol Hill, meanwhile, Politico reports that a public option compromise is taking shape, and the Washington Post talks about some of the remaining hurdles to passing the bill.
The NYT has a longer take on the latter topic, with more detail on the abortion fight over the Senate bill.
Kreidler wins consumer advocacy award
More about us: Washington state insurance commissioner Mike Kreidler has won a national award for consumer advocacy.
Kreidler last weekend received the "Excellence in Consumer Advocacy Award" given out annually by consumer advisors to a nationwide association of insurance regulators.
The award honors "the regulator we believe has most effectively represented and advanced the interests of consumers,” according toSally B. McCarty, one of the 16 consumer representatives who participate in the National Association of Insurance Commissioners’ Consumer Liaison Program.
Kreidler and his staff have:
-Cut excessive rate increases on home and auto policies by more than $300 million since 2000,
-Helped consumers recover about $10 million a year in denied and delayed payments on their coverage,
-Rejected a bid by the state’s largest non-profit health insurer to become a for-profit company,
-And worked with lawmakers to close a waiting-period loophole that was endangering the lives of organ-transplant patients.
Kreidler, a former member of Congress, is Washington’s eighth insurance commissioner. First elected commissioner in 2000, he was re-elected to a third term in 2008.
At Kreidler’s urging, Washington also became one of the first states in the nation to strongly limit the use of credit scoring in auto and homeowner’s insurance. Kreidler is now trying to ban its use entirely in insurance.
Kreidler last weekend received the "Excellence in Consumer Advocacy Award" given out annually by consumer advisors to a nationwide association of insurance regulators.
The award honors "the regulator we believe has most effectively represented and advanced the interests of consumers,” according toSally B. McCarty, one of the 16 consumer representatives who participate in the National Association of Insurance Commissioners’ Consumer Liaison Program.
Kreidler and his staff have:
-Cut excessive rate increases on home and auto policies by more than $300 million since 2000,
-Helped consumers recover about $10 million a year in denied and delayed payments on their coverage,
-Rejected a bid by the state’s largest non-profit health insurer to become a for-profit company,
-And worked with lawmakers to close a waiting-period loophole that was endangering the lives of organ-transplant patients.
Kreidler, a former member of Congress, is Washington’s eighth insurance commissioner. First elected commissioner in 2000, he was re-elected to a third term in 2008.
At Kreidler’s urging, Washington also became one of the first states in the nation to strongly limit the use of credit scoring in auto and homeowner’s insurance. Kreidler is now trying to ban its use entirely in insurance.
WA insurance commissioner retains national accreditation
Washington state's Office of the Insurance Commissioner has retained national accreditation as a regulator following an audit by the National Association of Insurance Commissioners.
Insurance Commissioner Mike Kreidler received the award at the NAIC's winter meeting over the weekend. Accreditation means that the office's ability to monitor insurance companies for financial stability -- which is a big part of what the agency does -- meets or exceeds national standards.
Accreditation was lost in 1999 under a prior administration. An NAIC audit at the time found that staffing levels, training, exam procedures, timeliness and oversight at the agency were not up to national standards.
Kreidler made restoring accreditation a top priority when he took office in 2001, and the agency was re-accredited six months after he took office.
Insurance Commissioner Mike Kreidler received the award at the NAIC's winter meeting over the weekend. Accreditation means that the office's ability to monitor insurance companies for financial stability -- which is a big part of what the agency does -- meets or exceeds national standards.
Accreditation was lost in 1999 under a prior administration. An NAIC audit at the time found that staffing levels, training, exam procedures, timeliness and oversight at the agency were not up to national standards.
Kreidler made restoring accreditation a top priority when he took office in 2001, and the agency was re-accredited six months after he took office.
Monday, December 7, 2009
New report has practical, real-world advice for coping with crush of medical bills
Families USA has put out a very good guide for people struggling with medical debts. The topic's bleak, but the advice can be critical.
In addition to the usual advice -- make sure the charges are correct, find out your appeal rights -- the 20-page booklet has good, real-world advice for folks who cannot afford to pay. It includes pointers on how to ask billing offices to write-off or forgive some of the bill, negotiate a lower rate, and what to ask for in a payment plan.
Other advice: Prioritize child support and income tax debts, since failure to pay can mean serious legal problems. Avoid adding medical debts to your mortgage, which puts your home at risk.
The guide looks at different types of bankruptcies, how to protect yourself if sued, whether money can be taken from your paycheck, and how to deal with bill collectors.
In addition to the usual advice -- make sure the charges are correct, find out your appeal rights -- the 20-page booklet has good, real-world advice for folks who cannot afford to pay. It includes pointers on how to ask billing offices to write-off or forgive some of the bill, negotiate a lower rate, and what to ask for in a payment plan.
Other advice: Prioritize child support and income tax debts, since failure to pay can mean serious legal problems. Avoid adding medical debts to your mortgage, which puts your home at risk.
The guide looks at different types of bankruptcies, how to protect yourself if sued, whether money can be taken from your paycheck, and how to deal with bill collectors.
Insurance news, and lots of it. (Bonus: the strange case of the house-licking cows)
The New Yorker's Atul Gawande talks about a key part of health-insurance reform: Controlling health-care costs.
The L.A. Times has a good Q&A re: the legislation, including things like will you go to jail for not having health insurance. (A: Not likely.)
Insurance Journal reports that a Southern California accountant has been sentenced to 12 years in prison for stealing more than $2m from a pet insurer.
Speaking of animals, a Tennessee man reported $100 in damage to his home from escaped cows licking his house. Really.
TheStreet.com talks about proposed health reforms from the National Association of Insurance Commissioners.
Here in Washington, insurance commissioner Mike Kreidler is unhappy about a public standoff between health insurer Aetna and the University of Washington over rates paid to the university's several major health-care facilities. KING 5 has the story.
The L.A. Times has a good Q&A re: the legislation, including things like will you go to jail for not having health insurance. (A: Not likely.)
Insurance Journal reports that a Southern California accountant has been sentenced to 12 years in prison for stealing more than $2m from a pet insurer.
Speaking of animals, a Tennessee man reported $100 in damage to his home from escaped cows licking his house. Really.
TheStreet.com talks about proposed health reforms from the National Association of Insurance Commissioners.
Here in Washington, insurance commissioner Mike Kreidler is unhappy about a public standoff between health insurer Aetna and the University of Washington over rates paid to the university's several major health-care facilities. KING 5 has the story.
Friday, December 4, 2009
How do they get insurance at Gatorland?
How does one underwrite, um, alligator wrestling?
Someone does, apparently. Insurance Journal, a trade journal, has put together a video about risk management and insurance at...Florida's "Gatorland" theme park.
Someone does, apparently. Insurance Journal, a trade journal, has put together a video about risk management and insurance at...Florida's "Gatorland" theme park.
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