Insurance

Health Insurers Weighing Options To Get Ahead Of Reform

April 18, 2010  ·  Consumer Watchdog

<p> ... in the not-too-distant future, some insurers will be subject to a process called risk-adjustment, which will attempt to neutralize the incentive to cherry-pick. Under risk-adjustment, health plans that attract disproportionately healthy populations will be penalized, and plans that attract disproportionately sick populations will be awarded additional payments. Depending on how the risk-adjustment rules are written, insurers could lock in a lasting advantage by cherry-picking more vigorously now, or they could see that benefit erased, said Jerry Flanagan of the advocacy group Consumer Watchdog. </p>

Is that the best you can do, Mitch?

April 16, 2010  ·  Consumer Watchdog

<p> Senate Republican Leader Mitch McConnell was asked directly if his strident opposition to financial reform was because he is acting on behalf of big banks. His ringing denial? "I'd say that's inaccurate"... </p>

California Accuses Insurer Mercury Of Overcharging Customers

April 13, 2010  ·  Consumer Watchdog

<p> Mercury Insurance Group, which is bankrolling a controversial ballot initiative on car insurance, was accused by state regulators Monday of overcharging California motorists and homeowners for coverage. The proposition's leading critic, prominent consumer advocate Harvey Rosenfield, said the charges are further evidence of Mercury's anti-consumer orientation. "This ought to put the nail in the coffin for Prop. 17 for any voters paying attention," Rosenfield said. </p>

Insurer May Face Fines For Overcharging

April 13, 2010  ·  Consumer Watchdog

<strong>Mercury is accused of violating state laws on how policies are priced and sold.</strong> <p> "This troubling report shows Mercury has overcharged its customers for a decade and a half but wants us to believe Proposition 17 will lower premiums," said Harvey Rosenfield, who spearheaded the landmark insurance reforms under Proposition 103, some provisions of which would be repealed if Proposition 17 passes. "That's like Bernie Madoff backing a ballot measure to protect investors." </p>

Mercury Insurance May Face Millions In Fines

April 13, 2010  ·  Consumer Watchdog

Consumer advocates including Harvey Rosenfield, founder of Consumer Watchdog of Santa Monica, oppose Prop. 17, arguing that the measure will raise insurance rates for some Californians and allow the firm to legalize discriminatory practices and price increases that are currently barred by Prop. 103, the landmark insurance reform law approved by state voters in 1988. Rosenfield, reacting to the new state report, called on California regulators to lift Mercury's license to do business in California - saying he has never seen "such a brazen and widespread series of violations" in an industry that he has monitored for decades.

Cal. Dep’t of Insurance 2010 Action Against Mercury Insurance

April 12, 2010  ·  Consumer Watchdog

<p> Download the Adminstrative Action filed against Mercury Insurance <a href="http://www.consumerwatchdog.org/resources/nr0502010MercuryORDER.pdf">here</a>. </p> <p> Download the full Department of Insurance investigation of Mercury ...</p>

Lifting The Cap On Coverage

April 12, 2010  ·  Consumer Watchdog

<p> The rules will apply to new plans and retroactively to existing plans, said Jerry Flanagan, health care policy director for California-based Consumer Watchdog. (<a href="http://www.timesfreepress.com/news/2010/apr/12/lifting-cap-coverage">Click here to listen to his comments</a>.) Insurers cap coverage to keep monthly premiums cheaper and control costs. A $1 million or $2 million cap might seem enormous, but a few hospital surgeries or years of cancer treatments swiftly could max it out, health advocates say. “Even a $5 million cap is pretty easy to meet — not for most folks, but if you have a bad accident or if... you have an illness that requires ongoing treatment,” Mr. Flanagan said. </p>

New State Report Alleges Repeat Violations and Discrimination By Mercury Insurance, Prop. 17 Backer

April 12, 2010  ·  Consumer Watchdog

Mercury Insurance Group, the high-profile firm that has put up $3.5 million to back a ballot measure that consumer advocates say would raise insurance rates for some Californians, continues to violate state laws, has engaged in discriminatory practices and may have illegally overcharged thousands of consumers, according to a new report from the state Department of Insurance to be released today.

Consumer Watchdog Urges Govt To Close Key Loopholes in Healthcare Bill

April 12, 2010  ·  Consumer Watchdog

<p> <a href="http://www.archive.org/download/DailyDigest-041210/2010_04_12_flanagan.mp3">Click here to listen to this segment</a>. </p> <p> While the Health and Human Services Secretary devoted time to issuing an alert and announcing reform benefits for seniors and low-income people, Consumer Watchdog sent a letter addressed to Sebelius urging the closure of key loopholes in the health insurance reform law. </p>

Healthcare Overhaul Won’t Stop Premium Hikes

April 12, 2010  ·  Consumer Watchdog

<p> <strong>The new law doesn't prevent rate increases such as Anthem Blue Cross' double-digit hike last year. 'It is a very big loophole,' says Sen. Dianne Feinstein, who is pushing regulatory legislation.</strong> </p> <p> At least in the short term, regulators will be able to do little more than require insurers to publicly explain why they want to raise rates. Consumer advocates believe that will not be an effective deterrent against such premium increases as the 39% hike that Anthem Blue Cross sent some California customers last year. "The irony here is that it was the Anthem rate increase that breathed new life into the healthcare bill," said Jerry Flanagan, medical policy director of Consumer Watchdog, a longtime supporter of tougher premium regulation. "But there is nothing in this bill to guarantee that it doesn't happen again." </p>

Mercury Accused Of Bilking Customers

April 12, 2010  ·  Consumer Watchdog

<strong>Insurer, a Prop 17. Backer, Alleges Bias</strong> <p> “This ought to be the nail in the coffin for Proposition 17 for any voter who’s paying attention,” said Harvey Rosenfield, founder of Consumer Watchdog and author of California auto insurance regulatory law, Proposition 103. “It’s a recognition by the Department of Insurance that Mercury is a particularly bad actor. Voters and the public need to understand more about this company.” </p>

Consumer Group Says Loopholes In Healthcare Overhaul Could Hurt The Public

April 8, 2010  ·  Consumer Watchdog

A consumer group called Thursday for the Obama administration and Congress to address 10 potential glitches in the new healthcare overhaul law, saying loopholes could leave millions of people with reduced health benefits or higher insurance costs. In a <a href="https://consumerwatchdog.org/wp-content/uploads/2010/04/resources_HealthReformLoopholes.pdf" target="_blank" rel="noopener">letter</a> to President Obama and lawmakers on Capitol Hill, <a href="../../../" target="_blank" rel="noopener">Consumer Watchdog</a> of Santa Monica said the legislation — which requires most Americans to carry health insurance by 2014 — fails to limit how much insurers can charge for coverage. Obama had proposed greater federal oversight of insurance rates, but the idea failed to survive congressional negotiations over the final healthcare reform law he signed last month.