Insurance

Brown Under Fire For ‘Gift’ To Mercury Insurance

October 30, 2009  ·  Consumer Watchdog

<p> SACRAMENTO, CA — Attorney General Jerry Brown is facing accusations that he cleared the way for a ballot measure summary that was favorable to an insurance company that has contributed to his campaign coffers. "If it was an insurance company trying to get us to ask them to raise their rates, this is exactly what they'd want," said Harvey Rosenfield, founder of Santa Monica-based Consumer Watchdog and author of the 1988 voter-approved Proposition 103, the measure that restricts the insurance industry's ability to raise rates. "It's a massive gift to Mercury. The attorney general needs to explain why this changed and why it's no longer important to tell the public about the consequences of this initiative." Rosenfield has filed a Public Records Act request to gain access to all communications between the attorney general's office and Mercury. Meanwhile, the attorney general's office admitted that it recorded the conversations with journalists inquiring about the ballot measure issue.<br /> </p>

Jerry Brown’s Office Taped Reporters’ Calls

October 30, 2009  ·  Harvey Rosenfield

SAN FRANCISCO, CA -- A spokesman for Attorney General Jerry Brown acknowledged Thursday that he taped a phone conversation with a reporter for The Chronicle this week without disclosing the fact or asking permission - and admitted he has taped conversations with other news reporters. Scott Gerber, spokesman for Brown's office, made the admission after the publication of a story in the newspaper that detailed consumer activist Harvey Rosenfield's criticisms of revisions the attorney general made to the summary of a ballot measure that deals with car insurance rates. <br />

Jerry Brown Accused Of Caving In To Donor

October 30, 2009  ·  Harvey Rosenfield

SACRAMENTO, CA -- A leading California consumer advocate charged Wednesday that Attorney General Jerry Brown caved to pressure from a powerful insurance company - and campaign donor - when he reworked the summary of a ballot measure to omit mention that it could boost premiums for thousands of drivers. Harvey Rosenfield, founder of Consumer Watchdog.org of Santa Monica and author of Proposition 103, the landmark measure protecting insurance consumers that voters approved in 1988, said Brown's office engaged in "shameful" behavior by rewriting the measure, which was backed by Mercury General.

Shame on Jerry Brown

October 28, 2009  ·  Consumer Watchdog

Our Attorney General is charged with telling the truth when he prepares the official title and summary for proposed ballot initiatives. Jerry Brown did that two months ago when, in accordance with previous legal rulings, he described a measure backed by Mercury Insurance as allowing insurers to raise or lower premiums based on whether a driver had a lapse in insurance coverage.

More Details On Federal Insurance Office Legislation

October 27, 2009  ·  Consumer Watchdog

<p class="BodyCopy"> "We are at a loss to understand why you have proposed a measure to deregulate the insurance industry by preempting state laws as part of the financial re-regulation package," Consumer Watchdog officials said. "Each version of the bill would restrict the ability of state lawmakers and regulators to protect insurance consumers by granting the Treasury Department and a new Federal Insurance Office the authority to preempt state laws and regulations on prudential matters on behalf of foreign insurance firms. This proposal is even more perplexing in light of the strong fight, on the part of both the administration and majority members of the Financial Services Committee, to preserve states’ ability to protect their citizens during the debate over the Consumer Financial Protection Agency," the letter continued. </p> <span></span>

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>