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Consumer Watchdog

Insurance

Insurance news, investigations, and reform — auto, home, and health insurance rates, claims denials, and industry accountability.
Former head of California insurance committee takes insurance job

Former head of California insurance committee takes insurance job

<p class="source">The San Jose Mercury News (California)</p> <p>Vargas, who left office last month, headed the Assembly Insurance Committee for the past four years, a post from which he advocated legislation benefiting the insurance sector, said Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights. "While he was chairman he often sided with the industry and now we know why," Heller said. "He saw a pot of gold at the end of the rainbow."</p>
Stem cell policy vote due;

Stem cell policy vote due;

<h3>10-year spending strategy likely to get board approval.</h3><p class="source">The Sacramento Bee (California)</p> <p>Watchdog groups say the plan offers a refreshingly sober contrast to the grand promises delivered during the Proposition 71 campaign. "I think Californians deserve to have an honest assessment of what's going to be done with their money," said John Simpson, stem cell project director for the Santa Monica-based Foundation for Taxpayer and Consumer Rights. "That's happening now. And it may be sign that the scientists are in the ascendancy" in shaping the agency's agenda.</p>
Juan Vargas, former Assembly Insurance Committee chairman, takes job with Safeco

Juan Vargas, former Assembly Insurance Committee chairman, takes job with Safeco

<p class="source">Capitol Weekly (California)</p> <p>Vargas' job change drew a critical response from Doug Heller, the executive director of the Foundation for Taxpayer and Consumer Rights, who said Vargas appeared to favor the insurance industry during his stint as chairman of the Assembly Insurance Committee. "This is exactly what we're saying is wrong in Sacramento," Heller said. "It casts a cloud over his entire chairmanship of that committee. It's as if he was interviewing for that job for four years, and presented his credentials by attacking consumer protections in order to defend the insurance industry." Heller noted that two of Vargas' committee consultants also took jobs in the industry. </p>
Stem cell grantees may be required to share profits

Stem cell grantees may be required to share profits

<p class="source">East Bay Business Times (California)</p> <p>John Simpson, the stem cell project director for the Foundation for Taxpayer and Consumer Rights who is an outspoken advocate for a direct financial payback to the state, said he was happy to see the rules. "When this all started, there were serious proposals that there would be no payback to the state at all and that the only payback would be in terms of the jobs created and perhaps the taxes," he said. "I'm happy to see they put the payback in and it's a reasonable rate." But Simpson expressed concern over issues of assuring access to therapies that result from work financed by the institute.</p>
Open to new health plans;

Open to new health plans;

<h3>Aides say governor may ask employers to shoulder worker coverage, but is seeking other ideas.</h3><p class="source">The Sacramento Bee (California)</p> <p>Consumer advocates just as adamantly object to the idea of requiring individuals to buy health insurance, just as motorists must have auto insurance. "The problem is there are no checks on the profits or the huge overhead of the insurance companies who would be guaranteed a new consumer base under this plan," said Jerry Flanagan of the Foundation for Taxpayer and Consumer Rights.</p>
HEALTH CARE REFORMS ARE TOP PRIORITY

HEALTH CARE REFORMS ARE TOP PRIORITY

<p class="source">The Daily News of Los Angeles</p> <p>Santa Monica-based activist group Foundation for Taxpayer and Consumer Rights suggests the government regulate the health insurance industry the same way it regulates auto insurance. Under such a plan, any increases in premiums would have to be approved by the state insurance commissioner. "We need to treat health care like we used to treat energy and we currently treat garbage disposal and cable television, we need to regulate it like a utility," said Jerry Flanagan, an advocate with the foundation.</p>
Pro-business Senate Dems could tilt Legislature

Pro-business Senate Dems could tilt Legislature

<p class="source">The San Jose Mercury News (California)</p> <p>If pro-business Democrats stand in the way of pro-consumer legislation, Democrats won't be distinguishable from Republicans, said consumer advocate Jamie Court. "There will be a tug of war for the heart and soul of the Senate,'' Court said, "and it's going to be up to the leadership to make sure the Democratic Party stands for their traditional values of consumer and environmental protection, and not just helping their biggest donors.''</p>
Report on Corporate Rules Is Assailed;

Report on Corporate Rules Is Assailed;

<h3>Panel's Business Ties Spark Outcry</h3><p class="source">The Washington Post</p> <p>Consumer advocates seized on the issue to question the study's conclusions and the motives of the panel's members, who include top executives from some of the nation's largest accounting and investment firms as well as people with close ties to the Bush administration.</p>
Healthcare premiums to soar for entertainers

Healthcare premiums to soar for entertainers

<p class="source">The Los Angeles Times</p> <p>Insurers are increasingly adopting a "take-it-or-leave-it strategy," said Jerry Flanagan, an advocate with the Foundation for Taxpayer and Consumer Rights in Santa Monica. "The market has collapsed so much that insurers left in the game don't have to offer good rates to big groups."</p>
Stem-cell overseers face built-in conflict

Stem-cell overseers face built-in conflict

<p class="source">The San Jose Mercury News (California)</p> <p>The stem-cell oversight committee is going to have to decide. Though the committee has the word "independent'' in its official title, it's highly unlikely that the 13 institutional representatives will act in any way that is independent of the interests of their employers. And, as has been repeatedly demonstrated, what is best for the state's universities and research institutions is by no means necessarily what's best for all Californians.</p>
Stem-cell overseers face built-in conflict

Stem-cell overseers face built-in conflict

<p class="source">The San Jose Mercury News (California)</p> <p>The stem-cell oversight committee is going to have to decide. Though the committee has the word "independent'' in its official title, it's highly unlikely that the 13 institutional representatives will act in any way that is independent of the interests of their employers. And, as has been repeatedly demonstrated, what is best for the state's universities and research institutions is by no means necessarily what's best for all Californians. Those representing the institutions that want the money ought not set the rules for how they get it. Unfortunately, that's not what Proposition 71 provides.</p>
We’ve been here before…

We’ve been here before…

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