Insurance

Backers of Auto-Insurance Measure Sue Over Ballot Pamphlet Language

February 25, 2010  ·  Consumer Watchdog

<p> More than $3.51 million of Cal-FAIR’s $3.58 million campaign war chest came from insurance giant Mercury General Corp. Consumer Watchdog founder Harvey Rosenfield, one of the ballot-pamphlet argument co-authors named in the suit, said he looks forward to seeing Mercury in court. “For months, Mercury has been lying to the public, to state officials and to the news media about its June ballot initiative,” he said. “Indeed, for more than 10 years, the Department of Insurance and the courts have repeatedly concluded that Mercury’s proposal would create a new rating factor — the consideration of prior insurance history — that is currently illegal.” “The fact is that today, under current law, if you stop driving you won’t pay more when you restart your insurance coverage,” Rosenfield continued. “If Mercury’s Prop. 17 passes, insurance companies will be allowed to charge a lot more to good drivers who didn’t need insurance when they weren’t driving, or who missed a single payment, or who chose to fore-go coverage because of the economy or illness.” </p>

Wellpoint’s mistress of evasion

February 24, 2010  ·  Consumer Watchdog

When Wellpoint CEO Angela Braly doesn't like a question, she's a regular Houdini of evasion and blame-shifting. Her <a href="http://online.wsj.com/article/SB10001424052748704240004575085561340197660.html?mod=WSJ_latestheadlines">testimony in front of Congress today </a>managed to turn denial of health care into "efficiency" and put the blame for 39% yearly premium increases onto Blue Cross policyholders who dared to get sick.

Low-Cost Auto Insurance Program in California is Gaining Popularity

February 24, 2010  ·  Consumer Watchdog

Several Californians enjoy the benefit of enrolling in the state’s <a href="http://www.autoquotenow.com/resources/low-cost-car-insurance.php" title="Low Cost Automobile Insurance">Low Cost Automobile Insurance</a> Program (CLCA). Since its inception in July 2000, the program has provided ‘low-cost liability insurance’ to car owners with good driving records that do not have the financial capability to avail of market-rate insurance.

Anthem Blue Cross Executives Grilled At State Capitol

February 24, 2010  ·  Consumer Watchdog

<p> Anthem Blue Cross executives, under intense questioning by the state Assembly's Health Committee on Tuesday, defended the company's decision to raise premiums by as much as 39 percent on hundreds of thousands of Californians. Laurel Kaufer, a self-employed single mother from Woodland Hills who has two sons in college, could see her monthly premium jump from $823 to $1,102 – an increase of 34 percent – she told the committee. Her plan has a $3,000 deductible and 30 percent co-pays, she said. "Because of these relentless rate hikes and out-of-pocket costs, I measure the need for each visit to the doctor," she said. </p>

Anthem Defends Rate Hikes In California

February 24, 2010  ·  Consumer Watchdog

<p> <strong>Legislative hearing results in testy exchange with lawmakers</strong><br /> <br /> Consumers also showed up to voice their displeasure. Laurel Kaufer, a self-employed single mother of two and longtime Anthem customer, said her bare-bones plan was set to rise 34% to $1,102 per month on top of a 22% increase in rates over the last two years.  "If Anthem's new rate increase is permitted, I will spend a minimum of $14,724 before coverage actually kicks in for anything but a standard office visit," Kaufer said. "I can't afford to seek medical care whenever we see the need." <br /> </p>

Jerry Brown gets it right on Prop 17’s Title & Summary

February 24, 2010  ·  Consumer Watchdog

<p> California Attorney General Jerry Brown has issued his <a href="http://www.consumerwatchdog.org/resources/BallotLabelProp17.pdf">final ballot label for Proposition 17</a>, the Mercury Insurance-financed ballot measure to surcharge those with lapses in auto insurance coverage.  Brown got the ballot label right this time, acknowledging Prop 17 allowed insurers to increase premiums, as well as lower prices, based on whether a driver has a lapse in insurance coverage. </p>

Calif. Lawmakers Outraged By Insurer’s Rate Hikes

February 23, 2010  ·  Consumer Watchdog

Sacramento, Calif. (AP) -- California lawmakers grilled Anthem Blue Cross executives on Tuesday about their plan to boost individual insurance premiums by as much as 39 percent, only to hear them blame the economy and a broken health care system. Laurel Kaufer, a single, working mother from Woodland Hills, said she received a letter from the company last month saying her premium could go up by about 34 percent, from $823 a month to $1,102 a month. Over the past 10 years, she said, her premium has risen 550 percent. "Because of these relentless rate hikes and out-of-pocket costs, I measure the need for each visit to the doctor, especially for myself," she said in an interview before the hearing, where she testified alongside several consumer advocates.

As Anthem Blue Cross Sends Profits To Wellpoint, It Plans Hefty Rate Hikes For Californians

February 22, 2010  ·  Consumer Watchdog

<p> <strong>Even as the health insurance giant turns over hundreds of millions in profits to its parent company, it defends plans to raise rates for Californians whose care last year exceeded premiums paid.</strong> </p> <p> But not all the profits went to the corporate parent. Anthem has accumulated more than $1 billion in cash -- in excess of what regulators require the company to reserve to cover outstanding claims, The Times found. And, between 2005 and 2007, Anthem made annual payments of more than $2 billion a year to affiliated companies for unspecified services, according to an analysis of regulatory filings by Consumer Watchdog. The Santa Monica-based advocacy group has urged regulators to investigate the transfers. </p>

Feinstein Takes On Anthem Blue Cross Over Premium Hikes

February 19, 2010  ·  Consumer Watchdog

WASHINGTON, D.C. — Responding to growing outrage over plans by Anthem Blue Cross to dramatically raise health insurance rates for hundreds of thousands of Californians, Sen. Dianne Feinstein on Friday proposed giving the federal government new authority to block premium increases deemed to be "unjustified." Santa Monica-based Consumer Watchdog, which for years has lobbied for rate regulation of health insurance products sold in California, called Feinstein's plan a step in the right direction. "It's needed and appropriate for the federal government to provide a backstop when states can't or won't stand up to insurance companies," said Jerry Flanagan, a health care advocate for the group.

Insurer Veils Its Funding Of Measure

February 19, 2010  ·  Consumer Watchdog

<strong>Literature For Prop. 17 Omits Mercury’s Millions</strong><br /> <br /> Officially, the proposition is the handiwork of Californians for Fair Auto Insurance Rates or Cal-FAIR, which describes itself as “a growing coalition of consumer advocates, businesses and insurers from across the state.” But Cal-FAIR is actually the creation of a Sacramento public-affairs firm, Bicker, Castillo & Fairbanks, that has so far earned $200,000 from Mercury for its work on the campaign, part of the insurer’s $3.5 million total contribution to the effort.

Talking Car Insurance With Mercury’s Top Man

February 17, 2010  ·  Consumer Watchdog

<strong>George Joseph is bankrolling Proposition 17 on the June ballot, saying it’s about lowering rates for California drivers. Not everyone agrees.<br /> </strong><br /> Consumer Watchdog insists Prop. 17 would, in effect, legalize surcharges that were made illegal by 1988’s Prop. 103, adding yet another way to discriminate against those who don’t fit the insurance industry’s profile of the perfect driver. One result, they argue, would be more uninsured drivers on the road at great cost to everyone.

Anthem as “Exhibit A”

February 16, 2010  ·  Consumer Watchdog

<p> Kevin Sack hits it right on the head in today's <a href="http://www.nytimes.com/2010/02/16/health/policy/16anthem.html?ref=business">New York Times </a>with his story about how Anthem's 39% premium increase in California embodies the need for health care reform. The missing element is prior approval health insurance regulation. </p>