Insurance

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>

Schwarzenegger Vetoes Extension of Low-Cost Auto Insurance Plan

October 13, 2009  ·  Consumer Watchdog

SACRAMENTO, CA -- Gov. Arnold Schwarzenegger vetoed bipartisan legislation that would have extended California's Low Cost Auto Insurance program for low-income families. "Why would a program that has allowed nearly 50,000 Californians to buy auto insurance instead of driving uninsured and doesn't cost the taxpayers a dime be on the Governor's chopping block?  It's not just low-income families who benefit from this program but all the people who have had their claims paid because another driver was carrying this policy," Consumer Watchdog Executive Director Doug Heller said in a statement.

Low-Income Auto Insurance Bill Vetoed

October 12, 2009  ·  Consumer Watchdog

Efforts to extend a state-backed auto insurance program for low-income Californians failed after Gov. Arnold Schwarzenegger vetoed a bill that would have kept it going until 2016. Consumer advocates argued that the low-cost insurance program has been effective and criticized the governor for his veto. "This veto is out of touch with the real economy that many Californians are facing," said Douglas Heller, executive director of the Santa Monica-based Consumer Watchdog. "Why should a program that has allowed nearly 50,000 Californians to buy auto insurance instead of driving uninsured and doesn't cost the taxpayers a dime be on the governor's chopping block?"

Gov Signs, Vetoes Consumer Protection Bills

October 12, 2009  ·  Consumer Watchdog

A bill that would have extended a low cost auto-insurance program in California another three years has been vetoed by the Governor. The program offers bare-bones auto liability insurance to good drivers for about $350 per year. The pilot program has provided insurance to about 50,000 motorists, but is set to end next year. The bill by Assemblyman Dave Jones, D-Sacramento would have extended the program to 2015. "This veto is out of touch with the real economy that many Californians are facing," said Doug Heller, Executive Director of the nonpartisan Consumer Watchdog. "Why would a program that has allowed nearly 50,000 Californians to buy auto insurance instead of driving uninsured and doesn't cost the taxpayers a dime be on the Governor's chopping block?"

Couple Battle To Make Insurers Liable For Coverage Decisions

October 7, 2009  ·  Consumer Watchdog

<strong>Their wrongful-death suit against Cigna over the loss of their 17-year-old daughter was blocked. Now they aim to bring change.</strong> <p> With Congress considering a healthcare overhaul -- including a requirement that individuals buy health insurance -- Potter, the Sarkisyans and their supporters want lawmakers to undo the high court's 1987 ERISA ruling. Santa Monica-based Consumer Watchdog sent a letter to key congressional leaders urging them to undo the ERISA ruling, and president Jamie Court said Nataline's case shows why such a move is crucial to any healthcare reform. "If the insurer decides they don't want to pay for the treatment because they can save a lot of money, there is not a dime available in damages if the person dies or is injured," Court said. "It's cheaper to kill you. If you die, you can't go to court." It's not the first time this aspect of ERISA has come under fire. </p>

Why is Washington DC afraid of premium regulation?

October 7, 2009  ·  Consumer Watchdog

The head of the American health insurance lobby Karen Ignani is urging Congress to increase tax penalties under the mandatory health insurance reform. How about mandatory health insurance premium regulation instead? It's worked for auto insurance in California.

WellPoint Cuts Workers’ Health Insurance Benefits

October 5, 2009  ·  Consumer Watchdog

WellPoint health insurance company, which has encouraged its employees to lobby against health care reform, is now cutting their benefits. The insurance giant plans to raise deductibles and premiums for some of its employee health benefits. "Your cost per paycheck will probably increase," said a memo to Wellpoint employees that was <a href="http://news.cincinnati.com/article/20091003/BIZ/910030367/WellPoint+cuts+workers+health+benefits">obtained by Bloomberg News</a>.

The Missing Health Care Debate

October 5, 2009  ·  Consumer Watchdog

I’ve been observing the health “reform” saga on two levels. One is the spectacle of the insurance industry having its way with Congress. The other is the Venice Family Clinic in Los Angeles, which provides free health care to the uninsured working poor. In Congress, the Senate is plodding toward approval of a huge giveaway to the insurance industry. It is considering a proposal requiring almost everyone to buy an insurance policy. But so far, the plan fails to impose any serious regulation on the insurance companies. That’s a blatant gift to an industry that will benefit from the many millions of new policyholders without giving up anything in return. In California, where I live, we have mandatory auto insurance, but thanks to a voter initiative, Proposition 103, the companies are strongly regulated and consumers are authorized to fight rate increases. Such regulation should be part of any federal health reform legislation. One need only visit a free clinic to find out why.