Insurance

Political danger of a ‘Yes’ on health reform? The risk of a ‘No’ may be greater

March 2, 2010  ·  Consumer Watchdog

<p> President Lyndon Johnson faced hard choices in 1964: Preserve Democrats' majority in Congress, perhaps for decades. Or ram through landmark civil rights legislation proposed by the slain John F. Kennedy, plus Medicare health coverage for seniors--and <a href="http://en.wikipedia.org/wiki/Civil_Rights_Act_of_1964#Political_repercussions">lose the whole bloc of so-called Southern Democrats</a>, Strom Thurmond among them.Substitute Blue Dog Democrats for Southern Democrats, and you'd be close to what Congress and President Obama face over a much easier choice--a moderate health reform bill that bears no relation to a "government takeover." </p>

Consumer Group Sues Anthem Blue Cross Over Policy Change

March 1, 2010  ·  Consumer Watchdog

<strong>Consumer Watchdog says Anthem violated the state's health and safety code when it closed policies to newcomers and offered remaining customers alternative plans with fewer benefits at higher rates.</strong><br /> <br /> Santa Monica-based Consumer Watchdog says in its class-action lawsuit that Anthem began closing "blocks of health insurance business" last fall, a few months before it informed policyholders who stayed put that their rates would rise as much as 39%.

Local Consumer Group Files Suit Against Anthem

March 1, 2010  ·  Consumer Watchdog

<strong>Insurer accused of manipulating policies, blocking access to care</strong> <p> A Santa Monica-based consumer advocacy organization filed a lawsuit Monday on behalf of enrollees of Anthem Blue Cross of California in Ventura County Superior Court, accusing the insurer of violating state law. </p>

Arguing Over The Arguments

February 26, 2010  ·  Consumer Watchdog

<p> The argument is over the arguments submitted against Proposition 17, the Mercury Insurance-backed measure that supporters say would allow auto insurers to extend discounts for maintaining continuous coverage to motorists who switch carriers. The opponents, who say the change would result in rate hikes for motorists who experienced a lapse in coverage, countered that Mercury Insurance is the one lying and attempting to mislead the public with its attempt to shut them up.<a href="http://www.sos.ca.gov/elections/vig-public-display/060810-primary-election/index.htm"></a> </p>

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>