Insurance

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>

Critics Say Initiative Hits Some Motorists Too Hard

February 16, 2010  ·  Consumer Watchdog

California’s third-largest auto insurance company says it’s just trying to give consumers a break by pushing a ballot initiative that could significantly change the way drivers are charged for their coverage. But consumer groups say that Proposition 17, which would allow insurers to set their rates partly based on how long drivers have had continuous coverage, could push auto rates higher for a large number of drivers — including military personnel who often let their insurance lapse when they are transferred.

Battle Over Auto Insurance Ballot Measure Heats Up

February 15, 2010  ·  Harvey Rosenfield

SACRAMENTO, CA -- For more than two decades, Mercury General Corp. Chairman George Joseph has been sparring with consumer advocate Harvey Rosenfield over California's landmark automobile insurance law, Proposition 103. Combat over the latest initiative, Prop 17, escalated last week when the state Department of Insurance released legal documents sought by the San Francisco Chronicle. The documents accused Mercury of illegal practices, such as unfairly denying coverage and charging discriminatory rates to motorists who were not at fault in accidents, were members of the armed forces or worked in certain professions.

Anthem Blue Cross To Delay Rate Increases

February 15, 2010  ·  Consumer Watchdog

<b>The scheduled March 1 hike of up to 39% for individual health insurance policies will not take effect before May 1. In the meantime, California regulators will analyze the legality of the increases.</b> <br ><br > Jerry Flanagan, health policy director at Consumer Watchdog in Santa Monica, said Anthem's efforts may prompt a backlash. He urged the Legislature to give Poizner more power to review and possibly disapprove new rates. "Existing law is inadequate to restrain rate increases," he said.

Anthem Blue Cross Delays Major Rate Increases

February 15, 2010  ·  Consumer Watchdog

SAN FRANCISCO, CA -- Days after national furor erupted over double-digit health insurance rate hikes for about 700,000 Anthem Blue Cross members in California, the insurer announced Saturday that it would delay the increases for two months to allow state regulators to conduct a review. Jerry Flanagan, health care policy director for Santa Monica-based Consumer Watchdog, said the company has been raising rates by 20 to 40 percent for six straight years and is the biggest player not just in California but nationally, and therefore has a disproportionate influence over the market.

Steep Rate Increases By Anthem Blue Cross Under Scrutiny

February 12, 2010  ·  Consumer Watchdog

<p> Consumers say they're seeing steep increases in their health insurance premiums, and one insurer raised rates as much as 39 percent for some customers after making almost $3 billion in profit in the last quarter alone. Jerry Flanagan, of Consumer Watchdog, a group endorsing regulation, says the rate hikes are about making a profit. </p> <p> JERRY FLANAGAN, CONSUMER WATCHDOG: This is not just Anthem. Insurance companies across the board will absolutely follow anthem's lead. </p>

Probes Sought On Jump In Rates

February 10, 2010  ·  Consumer Watchdog

<p> <strong>Lawmakers quick to demand action on Anthem Blue Cross</strong><br /> <br /> Angry lawmakers turned up the heat on Anthem Blue Cross on Tuesday, calling for federal and state investigations into the California health insurer's decision to increase rates as much as 39% for thousands of policyholders statewide. Consumer advocates say the company's rate increases may not be new, but the political and economic environment has changed. "With the economy in the tubes, people are having a much harder time affording these big increases," said Jerry Flanagan, health care policy director for Consumer Watchdog in Santa Monica. "Also, the fact that health care is in the political spotlight... gives a political opening to talk about the reform effort." </p>

Memo To Giant Health Insurance Companies

February 10, 2010  ·  Consumer Watchdog

RACHEL MADDOW: In September, the group Consumer Watchdog alleged that the company was pressuring its own employees to write and call members of Congress to oppose reform. In October, an internal WellPoint memo announcing cuts to its own employees' health benefits made its way to Bloomberg News. That same month, one of WellPoint's Anthem Blue Cross/Blue Shield subsidiaries decided to sue the State of Maine for the right to raise premiums by more than 18 percent. The 10.9 percent increase approved already by Maine's insurance superintendent apparently wasn't enough for WellPoint's bottom line.

Ensuring Insurance Inequity

February 10, 2010  ·  Consumer Watchdog

<strong>A California ballot item would legalize practices Mercury has been fined for.</strong><br />     <br /> If passed, Proposition 17 would require insurers to offer so-called "persistency" discounts to drivers who have good records and no lapse in coverage, which is a good thing for those people, naturally. But under the misleadingly titled Continuous Coverage Discount Initiative, other drivers would be punished, according to the advocacy group Consumer Watchdog. If you have a lapse of 90 days or more in coverage for any reason other than foreign military service during a five-year period, you can be hit with a hefty surcharge.