Insurance

Auto Insurer Revs Measure’s Motor

March 9, 2010  ·  Consumer Watchdog

Opponents, including Doug Heller, who works with Proposition 103 author Harvey Rosenfield at Santa Monica-based Consumer Watchdog, said the real aim of Mercury is to lift the ban on surcharges for drivers who need to reinstate coverage after letting their auto insurance policies lapse. “This would allow Mercury to jack up prices for customers they don’t really want,” said Heller, spokesman for Campaign for Consumer Rights, the main opposition group to Proposition 17.

Lawsuits Over California Ballot Question to Be Heard Together

March 8, 2010  ·  Consumer Watchdog

A judge will hear testimony on three related cases surrounding ballot language for Proposition 17, which backers say will allow discounts for more drivers and opponents claim will create back-door rate increases. The latest is Attorney General Jerry Brown's attempt to change the official title and summary to say the measure "will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage," according to the lawsuit. Due to what Brown's office argued is its error, the language submitted by the attorney general to the California Secretary of State reads, "may allow insurance companies to increase cost of insurance to drivers who do not qualify for discount."

Anthem’s Rate Hikes To Add To Burdens Of Jobless

March 6, 2010  ·  Consumer Watchdog

There have been demands for explanations from state and federal lawmakers as well as the White House. Documents of financial records have been subpoenaed. Last week, Consumer Watchdog filed a lawsuit in Ventura County Superior Court alleging the insurer doesn’t offer adequate alternatives when it closes a policy.

President Obama’s best ally–Anthem Blue Cross

March 3, 2010  ·  Consumer Watchdog

<p> President Obama's "get it done" <a href="http://tpmlivewire.talkingpointsmemo.com/2010/03/obama-give-my-health-care-proposal-an-up-or-down-vote-in-the-next-few-weeks.php?ref=fpa">speech on health reform</a> Wednesday may have been a day late, but I hope it's not a dollar short, as the old saying goes. At least he has one tremendous ally in his call for action by Congress: Anthem Blue Cross, and the continuing outrage at its huge rate increases. </p> <p>   </p>

Consumer Group Sues Anthem Blue Cross Over Rate Hike

March 3, 2010  ·  Consumer Watchdog

A consumer group has filed a class-action lawsuit against Anthem Blue Cross of California, alleging the company's strategy in deploying an average 25% rate increase for individual plan customers violates state law. The lawsuit was filed by Consumer Watchdog on behalf of two Anthem policyholders who are covered under a program the insurer closed to new enrollees on Sept. 25, 2009. This triggers a "death spiral" as rate increases fall to "those remaining in the closed book of business until they can no longer afford coverage," the lawsuit stated.

More Bad News For Anthem

March 3, 2010  ·  Consumer Watchdog

<p> The company used controversial rate hikes, as high as 39 percent, to force older and sicker customers into high-deductible plans with fewer benefits so it could save money, Santa Monica-based Consumer Watchdog alleged in the complaint. The lawsuit seeks to end that tactic of "closing" an insurance product and raising rates to members while offering them cheaper plans, which plaintiffs say is known in the industry as the "death spiral." </p>

Insurance Rate Hikes Fan Political Firestorm

March 3, 2010  ·  Consumer Watchdog

On Monday, Consumer Watchdog filed a lawsuit seeking class-action status against Anthem Blue Cross, alleging that the insurer is forcing subscribers into a coverage "death spiral." The suit, filed in Ventura Superior Court, accuses Blue Cross of hiking premiums to force subscribers from benefit-rich policies to less expensive coverage with fewer benefits and higher deductibles. The scrutiny has been welcomed by many, including consumer health care advocacy groups.

Marin Family Sues Anthem Blue Cross

March 3, 2010  ·  Consumer Watchdog

The Santa Monica-based advocacy group Consumer Watchdog brought the suit, saying Anthem violated a 1993 state law that requires health insurance companies to offer comparable coverage or minimal premium hikes if they cancel a policy. "Today's lawsuit is just the beginning of what is going to have to be a much more profound change in the state of California when it comes to healthcare," said Harvey Rosenfield, Consumer Watchdog's founder.

Consumer Group Sues Calif. Health Insurer

March 2, 2010  ·  Consumer Watchdog

SANTA MONICA, Calif. (KABC) -- A consumer watchdog group filed a lawsuit Monday against California's largest for-profit health insurer on behalf of policyholders, claiming they were pushed to take coverage with fewer benefits and higher deductibles. "Anthem Blue Cross has been in the news a lot because Anthem Blue Cross is very good at gouging people," said Jerry Flanagan, a health advocate for Consumer Watchdog. "They are the market leader, not only the largest insurance carrier, but they are the best at charging people more for less coverage." Consumer Watchdog says it's called a "death spiral" because rates inevitably increased until policyholders could no longer afford coverage. They say that's against California law.

FDIC Chairman Sheila Bair Committed To Independent Consumer Agency

March 2, 2010  ·  Consumer Watchdog

One of the nation's top banking regulators reiterated her support for an independent agency to protect borrowers from predatory lenders, putting her at odds with her fellow regulators and the industry she oversees. "Granting the Fed consumer protection authority would create a lapdog for Wall Street, not the watchdog consumers need," said Carmen Balber, Washington Director for Consumer Watchdog, in a statement. "We can't cross our fingers and hope the regulators whose failures caused the crisis in consumer lending will do a better job for the public next time around."

Santa Venetia Woman Joins Suit Against Anthem Blue Cross

March 2, 2010  ·  Consumer Watchdog

The lawsuit seeks class action status and is being brought by Consumer Watchdog, a Santa Monica-based consumer advocacy group, on behalf of Feller and Freed. When the practice was outlawed in 1993, legislative analysts called it a "death spiral" because rates inevitably increased until policyholders could no longer afford coverage. As the coverage pool shrank over time, rates went up. "It's a very profitable practice, and what we know is the insurance industry is very focused on short-term returns," said Jerry Flanagan, a health advocate for Consumer Watchdog.

The day when Daddy Warbucks couldn’t afford health insurance

March 2, 2010  ·  Consumer Watchdog

<p> A few sentences in <a href="http://www.consumerwatchdog.org/patients/articles/?storyId=33041">a Wall Street Journal story</a> Tuesday, on Blue Cross insurance increases, made my eyes pop. If you take the words at face value, we're heading for a future in which a few very rich sick people will pay $10,000 a month for health insurance and the rest of us can just beg for bandages on the street. </p>