Michigan Legislative Panel OKs Health Insurance Conscience Clause

(LifeNews.com) -- A Michigan state House panel approved legislation Thursday that would provide a conscience clause for insurance companies. The measure would help companies that don't want to cover abortions or the morning after pill, for example, from being forced to do so.
The legislation helps insurance providers and HMO opt out of providing coverage for any service or benefit that conflicts with the companies moral or religious beliefs.

Sponsored by Rep. Scott Hummel, a Republican, the bill would help specialized Catholic insurance plans or other agencies if their objections are reflected in their mission statement or articles of incorporation.

The measure received a favorable vote from the House Insurance Committee, which approved it on a party-line 9-6 vote and it now heads to the full House. Republicans backed the bill while Democrats voted against it.

Abortion advocates oppose the bill and claim it will reduce health benefits for consumers and limit women's access to the morning after pill.

But the measure enjoys the support of the Michigan Catholic Conference and Right to Life of Michigan.

Backer of the bill say it is important for abortion and the Plan B drugs, which can sometimes cause an abortion, but will be increasingly important as bioethics issues like human cloning and embryonic stem cell research take shape.

"This is a forward-thinking piece of legislation," said Ed Rivet, legislative director for Right to Life of Michigan, told the Associated Press. "If an insurer does not want to cover something -- consistent with previously established values or mission statements -- that should be protected."

The insurance bill is in two parts and is HB 4745 and HB 4746.

Most expensive and cheapest cars to insure - Mar 23, 2006

From CNN Money

The Ford F-series pick-up, which consistently ranks as America's most popular vehicle, is also the most expensive to insure among the top 20, according to a report released today by the insurance website Insure.com.

The Chrysler Town & Country minivan is the least expensive to insure of the 20 most popular vehicles, while its corporate twin, the Dodge Caravan, is the third least expensive. The Chevrolet Cobalt small car is the second least expensive to insure, according to the report.

Any individual's actual car insurance premiums can vary greatly depending on factors such as their age, driving record and where they live. But the vehicle itself is a major factor that insurance companies consider to determine premiums.

Insurance is the third largest cost of owning a new car, after depreciation and fuel, according to Insure.com. Insurance premium costs, now averaging almost $900 per year, have risen 27 percent since 2000, according to the report.

Insure.com looked only at the 20 top-selling vehicles in the United States.

In order to rank the vehicles by their relative costs to insure, Insure.com compared rates provided by the website Esurance.com for a 45-year-old single male with no traffic violations who drives less than three miles to work. The amounts of coverage were also the same for each vehicle. Premiums for three different cities, one on the East Coast, one on the West Coast and one in the Midwest, were averaged for each vehicle.

Factors such as popularity with car thieves, how much the vehicle costs to repair after a crash and the amount of damage it does to another vehicle in a crash can influence a vehicles cost to insure, said Loretta Worters, vice president of the Insurance Information Institute.

Options, such as a bigger engine or a high-performance trim level, can make one vehicle cost more than another even if they are the same make and model, said Worters. For example, a Honda Civic Si, the high-performance version of that car, might cost more to insure than the Honda Civic Hybrid.

Some vehicles are also more prone to having parts stolen, such as headlights or spoilers, Worters said.

Before deciding on a car to purchase, Worters recommends that shoppers contact their insurance agent with a list of the vehicles being considered.

Top 20 most popular cars ranked by relative cost to insure

Least expensive vehicle to insure is listed first.

1. Chrysler Town & Country

2. Chevrolet Cobalt

3. Dodge Caravan

4. Chevrolet Impala

5. Ford Taurus

6. Ford Econoline van

7. Jeep Grand Cherokee

8. Chevrolet Malibu

9. GMC Sierra pick-up

10. Toyota Corolla

11. Ford Focus

12. Nissan Altima

13. Chevrolet Trailblazer

14.Honda Accord

15. Toyota Camry

16. Chevrolet Silverado pick-up

17. Honda Civic

18. Ford Explorer

19. Dodge Ram pickup

20. Ford F-series pick-up

Basing car insurance on profession

Allstate Insurance examined 10 million car insurance policies over a three-year period and examined accident claims according to profession. The results suggest people in certain jobs are less likely to have car accidents. As a result of the study, Allstate classified three levels of drivers.
Level three drivers receive a five per cent discount. They include: accountants, carpenters, elevator operators and telephone repairmen. Level two drivers receive a 10 per cent discount. They include: biologists, chemists, economists, judges and veterinarians. Level one is designated for Allstate employees, who also get a 10 per cent discount. The company says that doesn't mean they're less likely to have an accident than level two drivers.

Allstate officials say they did the study because they are always searching for ways to reward customers with safe driving records.

Congress debates health insurance

Tom Walker/Washington Bureau Chief

Washington D.C., March 22 - The people who run one small business selling and fixing lawn care equipment know well what it's like to have a problem they can't fix, how to provide health insurance for the ten people, including themselves, who work there.

They say it's almost to the point that they can't.

Co-owner Tom Stokes says, "It just seems your renewal time comes very quickly, fifteen to twenty to thirty percent increases on an annual basis."

One proposed solution would make it easier for small companies to get insurance at a better rate by linking up with other small businesses through trade associations.

But the plan is coming under fire on Capitol Hill because it would also allow those plans to bypass requirements of many states, including Indiana, for certain types of health coverage.

The result, say critics, is a lot of junk policies that may cost less, but also offer very little coverage.

Dana Christensen went to Washington to tell of the coverage she and her husband thought they had through an association plan when he was dying of bone cancer. They were stunned to find out the truth. "My husband had to go in for surgery and when we were being admitted into the hospital they told us our insurance policy was so poor that we had to pay $8,000 just to be admitted into the hospital."

She was left with half a million dollars in medical bills insurance wouldn't pay.

But horror stories like that have not convinced lawmakers the idea is a bad one.

Senator Mike Dewine (R - Ohio) believes, "Some insurance is better than no insurance for people, even if it is not

a Cadillac version of insurance."

That's the way state insurance regulators in Indiana are inclined to look at it too, for now. They are not nearly as concerned about this plan as officials in other states.

Health plans in Indiana are required to cover 33 different types of procedures. Officials say treatments for obesity and autism are two that might have to be dropped under the bill in Congress.

Premium car insurance not worth the extra cost

How good a deal is premium car insurance?
You may have seen TV commercials for Allstate's new extras, such as ``accident forgiveness,'' which keeps your rates from being raised after a crash, and for new car replacement.
Drivers pay as much as 15 percent more for accident foregiveness.
The new car replacement add-on costs another 2 percent and is intended to cover drivers for the rapid depreciation of a new car. If your car is totaled within three years of its purchase, Allstate will buy you a new one, rather than pay you the depreciated value.
You may already be getting some of those features for free.
It's true that insurers often raise your rates after a crash. But Nationwide forgives a single accident and multiple minor ones after three years of safe driving and it doesn't cost you a penny more.
As for new car replacement, the chances that your shiny new car will be totaled as you drive it off the lot are slim.

UF's expanded health insurance for students covers morning-after pill

By JACK STRIPLING
Sun staff writer
March 22. 2006 6:01AM

More birth control options, including a controversial morning-after pill called Plan B, are now covered by the University of Florida's student health insurance plan.

Changes in the health care plan, which went into effect Thursday, came at the behest of UF's Pharmacy Committee, an organization within the Student Health Center.

Laura Tipton, pharmacy manager, said the committee felt it was "biased or unfair" that oral contraception was covered by the plan while other forms were not. In addition to Plan B, the coverage now extends to the NuvaRing, the Ortho Evra birth control patch and the Depo-Provera Shot.

"They are very pleased," Tipton said of the students.

Some abortion opponents have criticized Plan B, arguing that it can be a form of abortion when it blocks the implantation of a fertilized egg. Tipton said criticism of the morning-after pill was never discussed as the committee negotiated an extension of the plan.

The Student Health Center offered Plan B before insurance coverage changed, and Tipton said she did not think use would increase due to the change. Plan B is a viable option for anyone who has had unprotected sex or has been sexually assaulted, she said.

"There are times when we dispense a lot of it," she said. "There's no doubt about it."

The student health care plan is provided by Nationwide Mutual Insurance Co. and administered locally by Scarborough Insurance. About 5,500 students are covered by the plan.

Students bear the cost of coverage, except for graduate teaching assistants who receive a $500 annual subsidy from UF, a Scarborough official said.

Jack Stripling can be reached at 374-5064 or Jack.Stripling@gvillesun.com




Birth control options expand at UF
The University of Florida's student health care coverage has been expanded to include the following forms of birth control:


The Patch (Ortho Evra): A patch worn for three weeks each month that releases the hormones progestin and estrogen to prevent pregnancy. It is 98 to 99 percent effective.

n Depo-Provera Shot: A shot of the hormone progestin injected every three months to prevent pregnancy. It is 97 percent effective.

n NuvaRing: A flexible vaginal ring, about the size of a silver dollar, that delivers the hormones progestin and estrogen to prevent pregnancy. It is 98 to 99 percent effective.


Plan B (Morning-after pill): Two doses of hormonal pills taken as emergency contraception within three days after having unprotected sex. It is 75 to 89 percent effective.

Health Savings Accounts (HSAs)

Critics of Health Savings Accounts (HSAs) have a litany of complaints. They are essentially the same complaints critics made a decade ago, at the dawn of the consumer-driven health care revolution. We now have evidence that consumer-driven health care works. In addition to the decade of experience with Medical Savings Accounts (MSAs) in South Africa, Americans have had six years' experience with an MSA pilot program, four years with similar accounts called Health Reimbursement Arrangements (HRAs) and two years with HSAs themselves, say John C. Goodman, president of, and Devon Herrick, a senior fellow with, the National Center for Policy Analysis.

What follows are answers to some of the most important criticisms.

Criticism: HSAs primarily benefit the healthy.

Reply: People with significant health problems benefit from HSA plans because they have a maximum out-of-pocket expenditure, whereas traditional health plans have no such limit. That is why out-of-pocket spending for such patients often goes down when they switch to HSA plans.

Criticism: HSAs won't help reduce the number of uninsured.

Reply: HSAs have already reduced the number of uninsured Americans. America's Health Insurance Plans, a trade group for health insurers, reports that about one-third of people who individually purchased HSA plans were previously uninsured. This is consistent with reports from Assurant and eHealthInsurance, which found that about half of those with incomes under $35,000 had not had coverage for at least six months prior to enrollment.

Criticism: Consumers don't like HSAs.

Reply: HSAs are spreading rapidly. A survey by America's Health Insurance Plans finds that about 3.2 million people are enrolled in HSA plans and another 3 million have HRAs. A U.S. Treasury estimate projects 14 million HSA accounts by 2010 and 21 million if President Bush's recent proposals are adopted.

Source: John C. Goodman and Devon M. Herrick, "Health Savings Accounts: Answering the Critics, Part I, II, III," National Center for Policy Analysis, March 21, 2006.

Labor unions rally for health insurance

By Bill Cotterell
DEMOCRAT POLITICAL EDITOR

Demonstrators from labor unions heckled the powerful president of Florida's biggest business organization Monday at a Capitol rally, which was held to support a plan to make employers provide health-care insurance or contribute to a state fund for covering the working poor.

Rep. Susan Bucher, D-West Palm Beach, said making companies provide employee health insurance would not wipe out jobs. Sen. Tony Hill, D-Jacksonville, said organized labor and civil-rights groups will take vengeance at the polls in November if the Republican-run Legislature fails to bring the "fair share health care act" to a vote during the 2006 session.

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"We know that we have responsible corporate entities and then we have some irresponsible ones," Bucher told about 150 sign-waving pickets in the Capitol courtyard. "It's time that we level the business playing field and make this requirement a law."

Bucher and Sen. Walter "Skip" Campbell, D-Fort Lauderdale, sponsored bills (HB 813 and SB 1618) that would require companies with more than 10,000 employees in Florida to devote 9 percent of their payroll costs to health care. If a company had no insurance plan, or spent less than 9 percent of payroll on it, the firm would have to pay the difference into a state fund that would cover costs of Medicaid and other health programs for the poor.

Corporate change
Bucher said there are 23 companies in Florida - including Wal-Mart, Publix, Walgreen's, Burger King, McDonald's and Winn-Dixie - that would be affected by the requirement.

Barney Bishop, president of Associated Industries of Florida, smiled and waved from the back of the crowd when he and some other business lobbyists were pointed out by Jeanette Wynn, president of the American Federation of State, County and Municipal Employees. Demonstrators chanted "corporate welfare has got to go" and shook their picket signs at Bishop.

"It's a policy that sounds fantastic but when you drill down deeper into this issue, what you're going to realize is that most companies in Florida and in America already provide health insurance," said Bishop. He said most Wal-Mart employees, for instance, are older or younger workers who have other coverage - and that the retailer offers some health plans for its employees.

"This is a deal killer," Bishop said. "This is going to hurt Florida's economy. Mandates never improve the economy, but incentives always work."

Linda Chavez-Thompson, executive vice president of the national AFL-CIO, said Florida gives millions in tax breaks and other financial incentives for big businesses establishing stores or plants in the state. She said the state allows some businesses to hold down operating costs by passing their employee health-care costs on to the taxpayers.

Election-year issue
Hill said that even if the Bucher-Campbell bill never gets out of committee, the labor movement will use it as an issue in this election year.

"It's time for us to move in the same direction as Maryland," he said. "Sometimes, by just raising the issue, we can win. In November, we're going to retire some of these folks."

GEICO charged with unfair auto insurance rates

from Reuters

By Jonathan Stempel

NEW YORK, March 20 (Reuters) - A leading U.S. consumer group on Monday accused Geico Corp. of using consumers' education backgrounds and occupations as criteria in setting auto insurance rates, resulting in discrimination against minorities and lower-income people.

The Consumer Federation of America (CFA) charged that the No. 4 U.S. auto insurer, has adopted rating methods and underwriting guidelines in 44 states that directly tie rates to education and occupation.

Geico, a unit of Berkshire Hathaway Inc. (BRKa.N: Quote, Profile, Research) (BRKb.N: Quote, Profile, Research), the insurance and investment company controlled by billionaire Warren Buffett, rejected the charges. It called them "an offensive attempt to link fundamentally fair and actuarially sound industry practices with invidious discrimination."

The insurer provides auto insurance to more than 6 million policyholders, and insures more than 10 million vehicles.

Robert Hunter, the CFA's director of insurance and a former Texas insurance commissioner, called Geico's rate-setting policies an "underwriting sleight-of-hand" that can shortchange thousands of drivers.

Under Geico's guidelines, he said, a New Orleans factory worker without a high school education would pay $2,636 for insurance, 91 percent more the $1,382 that a white-collar worker with a graduate degree would pay for the same vehicle and location.

"There is clearly a disparate impact on minorities and lower income people," Hunter said in an interview. "If it isn't violative of the law, it should be. It strikes me as very unfair."

In a March 14 letter to the National Association of Insurance Commissioners, the CFA said Geico's use of educational status alone to determine rates allows it to bypass prohibitions on using income as a guideline for setting rates, on the grounds that doing so is racially discriminatory.

"What is very troubling is that Geico appears to be using these guidelines as a de facto rating method," it said. "Geico's methodology is reprehensible because not everyone has the opportunity or can afford to pursue a four-year college degree."

The CFA asked the NAIC to intervene before the practice, which it said other auto insurers are beginning to use, becomes more widespread.

Geico, responding in a March 17 letter to the NAIC, said the CFA's opinions are wrong from a public policy and legal perspective, and constitute a "full frontal attack" on market competition and consumer choice.

Highmark buy may change insurance landscape

from Post Gazette

By Christopher Snowbeck, Pittsburgh Post-Gazette

Highmark Inc. spent $16 million last year to buy a Virginia company that it could use to sell health plans in Pennsylvania, a move that could prove significant in the local insurance market for small businesses.

The purchase enables the region's dominant health insurer to create a for-profit subsidiary that could compete in the "small group" market, where Highmark has been trying to convince the state Legislature to change the rules governing how companies set premiums. With a for-profit subsidiary, Highmark could, in effect, adopt the business practices of the for-profit competitors it has been trying to abolish in the small business marketplace. A "small group" in Pennsylvania is one that includes two to 50 people.

The new subsidiary -- called HM Health Insurance Company -- could be used in other ways, as well. HM Health has licenses to underwrite coverage in 46 states and Washington, D.C., and multi-state licenses could prove useful to Highmark if proposed federal legislation allows for interstate sales of health insurance to small business groups, said Cliff Shannon of SMC Business Councils in Churchill.

Highmark spokesman Michael Weinstein said the company is evaluating its options for the subsidiary.

Purchased in August from WellPoint Inc., a publicly-traded company based in Indianapolis that is an amalgamation of numerous Blue Cross plans, the company acquired by Highmark was basically a shell with licenses and financial assets but no employees and subscribers. The acquisition was noted by Highmark in financial documents released last week by the state Department of Insurance.

"The idea when we bought it was -- and we're still pursuing this -- the concern that there's this two-tiered regulatory framework for small employer health insurance," Mr. Weinstein said.

Highmark has argued for more than a year that legislative changes are needed so it can compete on a more equal basis with Aetna, HealthAmerica and other companies that price insurance policies based on the health status of employees. Because of their position as insurers of last resort in Pennsylvania, Blue Cross insurers don't collect this detailed information, also called "medical underwriting."

Competitors that consider health status when setting rates essentially "cherry pick," Highmark says, by offering affordable coverage to only low-risk groups. That leaves high-risk groups, which typically have large numbers of women or older men, with Blue Cross plans.

The acquisition, however, suggests that Highmark is positioning itself so that it can pursue an "if-you-can't-beat-em-join-em" strategy.

"I do think that it provides a certain amount of leverage in their discussions with the state legislature and regulators about the topic of small group reform," said Doug Moore, an insurance broker with Seubert & Associates in Bellevue.

"I do think the regulators, in particular, consider the turmoil in the market if Highmark shifted [the small-group business] to a for-profit carrier."

Critics of Highmark-backed reform bills argue that eliminating medical underwriting would effectively kill health insurance competition in the state.

Without the ability to consider health status in setting insurance rates, premiums would be a function primarily of the discounts that insurers negotiate with doctors and hospitals -- and Blue Cross plans because of their market share always get the best rates, according to supporters of medical underwriting.

Eliminating medical underwriting would have the effect of driving non-Blue Cross insurers from the state, critics say. They add that medical underwriting allows insurance companies to financially reward groups that have fewer risk factors, some of which can be controlled by personal behavior.

Although four bills addressing the issue were considered by the General Assembly last year, the debate didn't generate any results. Considering the importance of the small group business to Highmark -- it generates about $900 million in annual revenue -- the company felt the need to consider options other than legislation.

"One of the options that we were looking at was the use of this subsidiary as a means to market insurance to smaller employers," said Mr. Weinstein, the Highmark spokesman. "Why would we do that? We would not have to be subject to the same types of regulatory constraints if [small group] products were sold through this distribution channel."

While the debate continues at the state level, developments at the federal level could provide a different use for the subsidiary, said Mr. Shannon. A bill currently being considered would allow for the creation of health plans for small groups that cross state lines.

"Apart from facilitating interstate sales of small group health insurance, [the federal legislation] would lead to a further consolidation in the health insurer industry," Mr. Shannon said. "The ability to operate in a lot of states would become very important."

Non Owner Auto Insurance Coverage Available in Florida from Serenity Insurance Group

Press release

Spokane, WA (PRWEB) March 20, 2006 -- Serenity Insurance Group, a long time provider of SR22 Automobile insurance, now offers non owner auto insurance coverage in Florida. Non-owner insurance policies provide liability insurance coverage to individuals who don't own vehicles.

High risk drivers who have had their driver's license revoked or suspended in the past may also need this type of insurance coverage if they don't own a vehicle and want to retain their driver’s licenses. Motor vehicle departments will not reinstate a driver's license without proof of minimum liability insurance.

A non owner auto insurance policy may also include uninsured motorist coverage, and personal injury protection.

An added benefit to Non Owner Insurance is to show proof of continuous coverage. In situations where a vehicle is sold and not replaced, most people cancel or let their existing insurance policies lapse or expire. If there is a lapse in insurance coverage for an extended period of time, it may be more expensive to get coverage when you buy your next car. Most insurance companies look for continuous coverage when rating an individual for a new auto insurance policy and Serenity Insurance offers non owner vehicle insurance as the perfect solution. Call Serenity Insurance today toll free: 1-800-774-0520 or visit their website for details: www.serenitygroup.com/.

Situations can occur unexpectedly when driving a borrowed vehicle. Don’t be caught without adequate insurance coverage. If you have an accident in a borrowed car, your non owner insurance coverage will protect you for liability coverage. The vehicle owner's liability insurance usually pays first and if damages exceed the limits of the vehicle owner's policy, your non owner coverage will be utilized.

Since a non owner policy may be less expensive than vehicle owner insurance coverage, it makes sense to choose this protection.