Insurance

Auto Insurance Ballot Measure Revs Up

October 27, 2009  ·  Consumer Watchdog

The Secretary of State’s <a href="http://cal-access.ss.ca.gov/Campaign/Committees/Detail.aspx?id=1318927&view=late1">campaign finance database shows</a> insurance giant Mercury General Corp. on Friday put $1 million into Californians for Fair Auto Insurance Rates, the campaign committee it set up to back “The Continuous Coverage Auto Insurance Discount Act” for next year’s ballot. This doubles the company’s total previous contributions, made in June and September. Today, the committee announced the state Attorney General’s office has released the measure’s title and summary, and gathering of petition signatures has begun; it needs 433,971 valid signatures to qualify for the ballot, so the committee will seek about 700,000. Consumer Watchdog executive director Doug Heller says Mercury does not have your best interests at heart in pushing this ballot measure.

Rental Industry Hopes To Buy Influence On Hill

October 26, 2009  ·  Consumer Watchdog

Mark Reback, spokesman for Santa Monica-based Consumer Watchdog, said while the bills appear to be calling for the regulation of the rent-to-own industry, they actually are aimed at "sidestepping" strict state consumer-protection laws already in place. "What they're trying to do is to get around stricter consumer laws that now exist in several states," Mr. Reback said. "The goal is to get a more corporate-friendly federal standard to cover them nationwide, which will help them make more money and lower the restrictions."

Democrats Lead The Way In Killing ‘Job Killer’ Bills

October 26, 2009  ·  Consumer Watchdog

<p> SACRAMENTO, CA -- In his six years in office, Gov. Arnold Schwarzenegger has played the predictable Republican role of gatekeeper on legislation he deems to be anti-business, vetoing more than 90 percent of bills that the state's Chamber of Commerce calls "job killers". "It reflects the chamber's sway," said Doug Heller, an analyst for Consumer Watchdog, which tracks the relationship between corporate donors and politicians. "The Chamber of Commerce has become quite active in working the Democratic side. So, liberal Democrats can't get their bills past their own Democrats. There are several committees run by business Democrats that have been able to bottleneck anything that might make it onto the job-killer list." </p>

‘Option Annie’ wows ’em at Insurance Industry confab

October 23, 2009  ·  Consumer Watchdog

<a href="http://www.billionairesforwealthcare.com/about/">"Billionaires for Wealthcare"</a> sing their hearts out on behalf of the public option in healthcare reform, right in the middle of a meeting of the insurance industry lobby, America's Health Insurance Plans. Until, of course, the security guards move in. What a stunt! Click on to see the video....

Mass. Gov. Wants to Expand Power of Regulators to Review Health Premiums

October 23, 2009  ·  Consumer Watchdog

BOSTON, MA -- Massachusetts Gov. Deval Patrick has proposed reforms that include expanding the authority of state insurance regulators by allowing review of health insurance premium increases before they take effect. Consumer Watchdog said Massachusetts' move toward insurance rate regulation shows action like this is needed under proposed health reforms at the federal level. "The out-of-control costs in Massachusetts, which depends on the private market to insure all residents, show that insurers will not control costs voluntarily even as medical cost inflation slows," said Judy Dugan, research director for the group, in a statement.

Who’s really paying for United Health Group’s profit spike?

October 20, 2009  ·  Consumer Watchdog

<p> The biggest U.S. health insurance conglomerate, UnitedHealth Group, was basking today in a <a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aeteB.GuGqLg">13% profit increase,</a> to more than $1 billion, even though it lost nearly 10% of its commercial customers (because no job=no health insurance). Where it boosted revenue was in its for-profit Medicare managed care plans. Its profits were subsidized by people who have regular plain-vanilla Medicare. Here's how it works: </p>

Under Proposed Reforms, Little Rate Regulation, New Customers May Mean Health for Insurers

October 20, 2009  ·  Consumer Watchdog

<p> OLDWICK, N.J. -- With virtually no limits on what they could charge in premiums, coupled with millions of new customers to gain, the U.S. health insurance industry's financial future certainly isn't in critical condition. Lawmakers on both sides don't want to talk about rate regulation because they know insurance companies hate it, said Jerry Flanagan, health care policy director for Consumer Watchdog. Even many Democrats think that would be too much intrusion in the market, he said. Yet Congress requiring people to buy health insurance "is a dramatic market intrusion." </p>

Health Care Reform Insurance Companies Can Believe In

October 19, 2009  ·  Consumer Watchdog

It’s now clear that health care “reform” is a bonanza for the insurance companies. But these acquisitive businesses want even more. Their efforts to increase their profits are at the center of the clandestine Senate and House negotiations currently shaping the health bill. The companies are expected to continue to expand marketing strategies to persuade the young to buy insurance. Judy Dugan, research director of Consumer Watchdog, warned that the insurers would “cherry-pick” young people, offering free gym memberships and other health-oriented programs. “They will try to attract the healthy and young,” she said, leaving the older and potentially less healthy segments of the population to the insurance exchanges. The insurance companies also want to be free to charge high prices. That is why they don’t want the government selling policies—the public option—in the exchanges. “They don’t want the government selling what would likely be cheaper policies,” Dugan said.

AT&T To Raise Landline Phone Service By More Than 20 Percent

October 16, 2009  ·  Consumer Watchdog

For the second time in two years, AT&T is raising local landline phone rates by more than 20 percent. The phone giant plans to start informing customers next week that charges for basic phone service will jump from $13.50 a month to $16.45 starting Jan. 2nd. Consumer advocates questioned both the need and the timing of the price increase. They noted that it comes amid a recession, when many consumers are struggling financially. "There's nothing in the economy or the cost of providing phone service that would justify a 22 percent increase," said Harvey Rosenfield, founder of Consumer Watchdog.

Obama owes progressives answers on health reform

October 15, 2009  ·  Consumer Watchdog

<p> President Obama is coming to San Francisco tonight for a Democratic fundraiser. He owes the San Franciscans he will meet, in the city that has been the epicenter of progressive politics in America, some honest answers about how his...</p>

How will the proposed Consumer Financial Protection Agency weather industry attacks?

October 14, 2009  ·  Consumer Watchdog

<p class="MsoNormal"> The first hour of debate just finished in the House Financial Services Committee on the proposed Consumer Financial Protection Agency. This is the agency that's supposed to rein in abusive credit cards, mortgages and checking accounts, and all the other financial tricks that made Wall Street money at consumers' expense... </p>

Car Insurance Rates Downshifting

October 14, 2009  ·  Consumer Watchdog

<p> Whatever the case, consumers are benefitting from the lower rates. "Generally, they are coming down," said Heller. "ZIP codes that historically faced rate discrimination have seen substantial savings. It's always a good time to shop for insurance because we have a very competitive market." Still, the decision to buy a new policy should not be tied only to how much it costs. "It's good to save money on insurance but if the company is not there for you it's a waste," Heller said. </p>