Archive for the ‘insurance news’ Category

Alfa Raises Homeowners Insurance Rates in Alabama

September 9th, 2011 by Iris | Comments Off | Filed in homeowners insurance, insurance news

Alabama homeowners, especially those with landlord and farm policies, will be seeing insurance rates that are about 20% higher if their coverage is through Alfa Mutual Group.

According to the Alabama state actuary, Charles Angell, this increase is not designed to account for losses caused by a spate of tornadoes which struck the state last April. In fact, he says, all insurers in Alabama will be able to offset only a fraction of such losses via upcoming rate requests.

Nevertheless, according to Alfa spokesperson Jeff Helms, the increase in the severity and frequency of such storms is putting pressure on insurance rates.

Alfa is an affiliate of the Alabama Farmers Federation, and the new, higher rates actually went into effect on September 1st.

Charles Angell insists that his calculations support the rate hike.

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Supreme Court Declines to Hear Military Malpractice Case

July 6th, 2011 by Iris | Comments Off | Filed in health insurance, insurance news

On Monday, June 27th, the U.S. Supreme Court declined, without comment, to hear the California case Witt vs. U.S., that many activists thought was the best chance in decades to eliminate malpractice liability shields for military hospitals.

The case concerned Dean Patrick Witt, a twenty-five-year-old staff sergeant from the Air Force who died after a nurse in a military hospital inserted a breathing tube down the wrong part of his throat during an appendectomy, an operation generally considered to be “routine.”

A decision made by the Supreme Court in 1950, the Feres Doctrine, blocked Witt’s family from suing the hospital for compensation.

The effort to invalidate the Feres Doctrine has received significant support from veterans groups and active-duty military officers, seven of whom filed briefs in Witts case, in order to demonstrate the public’s interest in this legislation.

After the Supreme Court declined to hear the case, U.S. Representative Maurice Hinchey (D – New York) said that later this year he’ll reintroduce legislation to change the law, but he pointed out that it’s already survived more than a few legal challenges and congressional attempts to overturn it, so he’ll be fighting an uphill battle.

Two years ago, a similar bill that Hinchey co-sponsored, proposed in the name of a 29-year-old Iraq war veteran of the Marines who died of skin cancer that his family believes was misdiagnosed, saw some movement, but the Republicans on the Hill opposed the measure claiming it would open up the military to expensive lawsuits that would not service families, but would benefit trial attorneys.

If the law is changed, the federal government would be exposed to billions of dollars in liability claims, which makes it incredibly unlikely that this Congress, already facing sharp partisan divisions and hunting for ways to cut expenses, will pass any such legislation.

The official estimate from the Congressional Budget Office is that the government would have to pay out about $135 million a year in claims, more if the law was written to be retroactive. Hinchey maintains, however, that the cost would be less than that estimate, since his proposed law would mean a better level of care in military hospitals, resulting in fewer negligence claims. He pointed out that federal prisoners have more rights than members of the military and their families when it comes to seeking recompense for medical malpractice.

Speaking to the press about the case, Hinchey said, “It is disappointing that the Supreme Court has again failed to correct the mistake it made 61 years ago when it wrongly decided Feres.”

The Austin, TX-based attorney whose firm represented the Witt famly, Jamal Alsaffar, said that he and other activists had been hopeful that this case would lead to a change in the law. He believes that Hinchey’s proposal in Congress is the best hope now.

“We’re not going to give up the fight for these military families,” Alsaffar said to the press. “We’re going to do whatever we can do to right this wrong.”

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VA County to Charge for Ambulance Service

June 22nd, 2011 by Iris | Comments Off | Filed in health insurance, insurance news

In an effort to improve their emergency equipment and provide better training to emergency first responders, Prince William County, Virginia has made the decision to begin charging health insurers for ambulance services.

Effective July 1, whenever a patient is transported to the hospital via an emergency medical service, the county will bill the patient’s insurance company. This includes both Medicaid and Medicare, but county officials stress that individuals will not be charged.

The fee schedule for ambulance fees is:
– $400 for basic life support services
– $500-$700 for any advanced life support services, depending on the extent of care.

According to the Prince William County fire chief, these fees should generate about $3.1 million each year for the county.

Prince William County is not the only county in Virginia that has imposed such emergency service fees.

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State Farm, Allstate Offering Benefits to Same-Sex Partners

May 25th, 2011 by Iris | Comments Off | Filed in alternative health plans, insurance news

Last week, State Farm insurance announced a significant change in their corporate policy. The company will be extending health care coverage and other benefits to the same-sex partners of its agents, agency staff members, employees, and retirees, so long as they’re in legally recognized relationships.

Such benefits are already offered to employees and their partners in ten jurisdictions where the company operates, but State Farm spokesperson Phil Supple said that the programs will go nationwide as of June 1st, 2011. Supple added that if existing ratios are accurate, the cost of doing so won’t be at all significant.

What brought on this decision? It stems from a change in the laws in State Farm’s home state of Illinois which requires benefits be extended to partners who have civil unions. Even though only two of the insurer’s plans would be subject to the new law, Suppler said, it was decided to extend benefits to all plans and employees (etc.) nationwide in order to be “fair and consistent.” Across the United States, the company has about 68,000 employees and 18,000 agents.

Employees and their partners must be in legally recognized relationships under the laws of the states where they reside, including civil unions, same-sex marriages, and domestic partnerships, in order for the partners to receive benefits, which include medical, dental, vision, life, long-term care, and accidental death and dismemberment coverage.

Another major insurer, Allstate Corp, also offers benefits to same-sex partners (as well as some non-traditional opposite-sex partners who are in document-able exclusive, committed relationships), with such caveats as a demonstrated co-responsibility for each other’s welfare and financial obligations, a shared primary residence, legal adulthood, and no relationships or marriages outside the partnership.

Benefits for Allstate employees include medical, dental, vision, and long-term care coverage, as well as flexible spending accounts.

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State Farm Closing Offices to Save Money

May 9th, 2011 by Iris | Comments Off | Filed in insurance news, insurance specialists

According to the Pantagraph newspaper out of Bloomington, IL, State Farm Insurance has announced plans to close two dozen of its field offices in the midwest (Illinois, Indiana, and Michigan) in order to save $8 million over the next five years. Currently, these facilities are home to about 1,300 employees.

Some of these employees, the insurer has said, will become mobile employees who work from home, while others will be offered transfers to other field offices in the same states (there are two in each of the three states named). Either way, says the Bloomington-based insurance company, it is hoped that all affected employees will be retained.

While the to-be-closed offices in Indiana and Michigan have not yet been identified, the sites closing in Illinois include facilities in Arlington Heights, Champaign, Collinsville, Elmhurst, Marion, Moline, Peoria, Rockford, Springfield, and Tinley Park.

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FEMA Stresses Need for Hurricane Response Training

April 27th, 2011 by Iris | Comments Off | Filed in hurricane insurance, insurance news

Earlier this week, Craig Fugate, director of FEMA (the Federal Emergency Management Agency) emphasized the importance of public officials learning how to respond to hurricanes and other powerful storms, and also said that the state of the economy was not an excuse to forgo preparation.

Speaking at the National Hurricane Conference in Atlanta, Fugate said, “As much as we talk about the public, this team is constantly changing. There has been a tremendous turnover. How many of the elected leadership are going to participate — and not just for the photo op?”

He stressed that mayors, governors and others have to participate in hurricane preparedness drills in order to really understand the sorts of decisions they may have to make during this summer’s Atlantic hurricane season, which begins in a bit over a month. He also urged the emergency management community to use social media to keep the public engaged in the process, and stressed that they need to work with private sector responders when handling disasters.

When asked if budget concerns would affect state and local governments’ response to disasters like hurricanes, or the recent spate of tornadoes in the Midwest and South, Fugate was dismissive, saying, “Just because the economy’s horrible doesn’t mean hurricanes stop.”

Also speaking at the conference was National Hurricane Center Director Bill Read, who reviewed last year’s hurricane season, which, he said, had the highest number of the storms without a landfall in the United States.

Among his priorities this year, said Read, are outreach to boost community preparation and public empowerment. His top concern is Haiti, where 1.5 million people are still living in tents, putting them at an even greater risk than ever from a major hurricane.

Read said, “That’s going to be my biggest gut check. I don’t know how many people can be safely dealt with in a hurricane of that magnitude.”

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Insurance Brief: Prudential to Sell Global Commodities

April 11th, 2011 by Iris | Comments Off | Filed in insurance news, insurance specialists

Today’s news is from the business side of the insurance industry, rather than the patient side. It’s relevant because it speaks to the health of the industry.

Last week, Prudential Financial, Inc. announced that it had reached an agreement with Jefferies Group, Inc, for the sale of its (Prudential’s) global commodities business. The purchase price is $430 million, and is roughly equal to the book value of the company, as of the end of 2010.

The transaction, which must go through regulatory approval before it’s expected closing this summer, will include FCM, Prudential Bache Commodities, LLC, Prudential Bache Securities, LLC, and the UK and Hong Kong-based Bache Commodities Limited, and Bache Commodities, Ltd.

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