Insurelane Insurance Blog

Mercer Health and Benefits has just released its annual survey of employer sponsored health plans, highlighting how employers are dealing with rising health care costs.

Turns out they’re not doing too badly. Through cost-shifting and changing vendors, employers have been able to curb the increase to just 6.1% for 2005 – over 3% lower than predicted if they had not been proactive.

That means employees who are using their health plans the most are picking up more of the tab, although the study also finds employers are providing them with more support.

The survey also takes a look towards cost management in the future. More employers will utilize consumerism and care management to keep health care prices down. Both strategies depend upon employee involvement, whether it’s managing their own health care costs through consumerism or taking an active role in their health by participating in care management programs.

Common care management programs offered today include health risk assessment, disease management programs and nurse advice lines. Some large employers have even got the ball rolling by encouraging participation with cash incentives.

Read the whole press release at the Mercer website.

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ERs are under pressure, according to the Center for Studying Health System Change’s latest findings.

Why? It’s partly due to a growing identity crisis. The federal government continues to mandate that ERs provide access to medical care to all individuals – insured or not. While hospitals themselves are increasingly relying on ERs to attract and admit insured people.

And as ERs grapple with this dual role, their resources are being strained by a number of factors, the major ones being:  

• More and more specialists are unwilling to be on-call for ER duty
• More and more people are looking for primary treatment in ERs
• More and more people afflicted by serious mental illnesses are seeking treatment in ERs that are not prepared to help them

The outlook for ER patients if these conditions persist? Not too good: Delay in care, increasing costs, and inadequate care are all the results of ERs taxed too far.

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It’s true. Just like your driving record, where you live impacts how high your auto insurance premiums are. Some cities are deemed by insurers to be at higher risk for everything from theft to traffic-related accidents, so they hike the costs accordingly.

Which cities are the worst? Here’s the 2005 list of most expensive cities for car insurance, courtesy of the Insurance Information Institute.

1. Detroit, Michigan - $5,162 (figures based on average auto premiums in these cities)
2. Philadelphia, Pennsylvania - $4,142
3. Newark, New Jersey - $3,482
4. Los Angeles, California - $3,225
5. New York City, New York - $3,127

And if you’re lucky, you live in one of the next 5 cities that are the cheapest for car insurance.

1. Roanoke, Virginia - $758 (figures based on average auto premiums in these cities)
2. Wapakoneta, Ohio - $871
3. Chattanooga, Tennessee - $911
4. Green Bay, Wisconsin - $948
5. Raleigh, North Carolina - $949

For more information, visit the Insurance Information Institute’s website, http://www.iii.org/media/facts/statsbyissue/auto/

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The government is launching its new Medicare drug plan early next year, but less than a week before the open enrollment period begins this November, the majority of seniors aren’t on board.

According to a national survey conducted by the Kaiser Family Foundation and the Harvard School of Public Health, more than 6 in 10 seniors say they understand the new benefit either “not too well” or “not at all.”

This could affect enrollment rates in the Medicare program: currently only 20% of seniors studied plan on signing up for the new prescription benefits.

The biggest trouble with seniors’ misperceptions and lack of understanding of the unwieldy program (there are over 40 different plans for seniors to choose from) is that those needing the assistance the most might not be aware of it.

In fact, of the seniors who qualify for the low-income assistance offered by the government (for those who earn less than $15,000 annually), 50% are unaware that they qualify for extra financial help.

To learn more of the study’s findings, visit the Kaiser Family Foundation website.

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As it gets colder you might be spending more of your free time indoors, curled up with a book. Here’s two you don’t want to miss –

Conrad F. Meier’s new book, Destroying Insurance Markets: How Guaranteed Issue and Community Rating Destroyed the Individual Health Market in Eight States, focuses on those states that 10 years ago imposed laws requiring health insurance companies to offer policies to anyone who is willing to pay the premium.

Meier takes a look at the eight (Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Vermont and Washington) who took on guaranteed issue laws, and with man-on-the-street opinions and statistics, paints a picture of rising individual insurance rates and declining numbers of insureds and companies offering individual health insurance.

Economist and entrepreneur Paul Zane Pilzer’s latest, The New Health Insurance Solution: How to Get Cheaper, Better Coverage Without A Traditional Employer Plan offers a solution for the nation’s strained health care system. Pilzer provides no-nonsense guidelines and money-saving tips to help consumers find affordable coverage. Nearly all readers can immediately take advantage of his clear-cut solutions (except those in the eight states stuck with guaranteed issue laws).

Both books are excellent, engaging reads for consumers trying to understand the current state of health insurance and concerned about the rising costs.

Find Destroying Insurance Markets at http://www.cahi.org/index.asp and The New Health Insurance Solution at most bookstores.

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The government created Health Savings Accounts in 2003 (launched in 2004) to make consumer-driven health care more attractive – something many people in the capitol think will stem the rising costs of health care.

The real basics on Health Savings Accounts: Most people with a high-deductible health plan (whether it’s their own policy or they get it through an employer) can add an HSA to their existing coverage. The HSA is a savings account that consumers can add to and use the funds from to pay for routine healthcare expenses. If you don’t need to use the money, it stays in the account. All account deposits are tax-free.

Because HSAs are still the new insurance plan on the block, a lot of people either aren’t familiar with them, or have a lot of questions about them.

To address this, the Council For Affordable Health Insurance has put together a list of frequently asked questions to help consumers understand HSAs. You can view all their resources at: http://www.cahi.org/index.asp

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Health Savings Accounts, or HSAs, are still a relatively new health insurance alternative, but reports are in that the majority of consumers who are currently enrolled are satisfied.

The Blue Cross And Blue Shield Association recently conducted a survey of almost 3,000 people currently with HSA plans. They found that:

• 68% of enrollees are satisfied with the performance of their insurer
• 71% are satisfied with their access to preventative care and wellness services
• 69% are satisfied with the health benefits offered by their insurer

The majority of enrollees also said they would recommend the products to others.

To read the full survey report, visit the Blue Cross website at: http://bcbshealthissues.com/proactive/newsroom/release.vtml?id=179835

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It’s beginning to feel like 1979. That’s the last time motorcycle sales reached today’s level – up to 1 million a year. According to the Insurance Information Institute (III), the increase in popularity has led to more insurers offering motorcycle insurance, giving riders more choice in plans and carriers.

And riders will need it. The number of motorcycle-related fatalities and injuries has been on the rise too – particularly among riders 40 and up.

Don’t Forget Your Helmet

Helmets are 37% effective in preventing a motorcycle crash-related death. Yet only 20 states have laws requiring helmets be worn at all times by all riders. Helmet use has overall has sunk from 63% in 1994 to just 48% of riders in 2005.

If you’re a motorcycle rider now or just thinking of buying one, do your best to avoid the preventable injury and even death –  wear a helmet each time you hit the road.

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It’s that time of year when we start eying people who sneeze near us a little more warily, and up our intakes of vitamin C. And it’s not just the common cold we’re worried about. Each year the flu and the high profile flu shot concerns us most.

As national supplies predictably run short, we ask ourselves, “Do I need a flu shot?”

The Center of Disease Control and Prevention offers comprehensive information to help people identify whether they are “high risk” for developing complications from the flu, and should make getting the flu shot a top priority. 

The CDC also lists who should not get the flu shot due to possible interactions, and provides details on the side effects you can expect after getting the vaccine.

Take the time and find out whether you should be getting in line for your flu shot! Visit the CDC’s flu resource pages at: http://www.cdc.gov/flu/index.htm

If you want to check in on the current flu activity in your county, FluWatch offers a “U.S. Flu Threat Map” to help you keep tabs. Visit www.fluwatch.com to check up on your area.

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Do yourself (and everyone else) a favor – keep the cell phone off when you’re on the road!

As cell phones have become a ubiquitous part of life, the debate over whether they impair driving ability any more than other activity, such as talking to another passenger, has become a perennial hot topic.

The risks cell phones pose are pretty obvious: many models require you to take your eyes off the road to dial, and getting involved in a phone conversation distracts you from how well you’re driving.

A new study that came out this June found that cell phone use causes more accidents than any other distraction. And hands-free doesn’t mean risk free. Several recent studies have shown that drivers using hands-free cell phones are at just as much risk as the hand-held users, and they take more time to brake.

Several states and cities are taking the cell phone debate seriously, and have passed laws banning cell phone use while driving, with violations carrying hefty fines of $100 - $200.

Even if your city or state has been slow to ban cell phone use when driving – get in the habit of leaving yours off when driving. Taking every precaution is the best way to prevent accidents which can not only cause injury and damage, but are a quick way to raise your insurance premiums.

For more information on cell phone use and driving, read the excellent report provided by the Insurance Information Institute.

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Haven’t considered generic prescription drugs before? Neither have a lot of Americans – and it’s costing them.

If more people had selected generic prescription drugs over their brand-name alternatives in 2004, the U.S. could have saved over $20 billion.

A new report issued by Express Scripts reveals American consumers are still opting for pricier name-brand drugs over cheaper generics in the face of significant savings– pointing to a consumer education problem.

The greatest savings for consumers, employers and state governments lie in gastrointestinal drugs. Just by purchasing the generic versions, more than $5 billion could be saved each year.

If you’re looking to save money on your prescription bills, purchasing generic drugs is a great way to start. Generics are not only FDA approved, they have a lower co-pay and are typically just as effective as brand-name drugs.

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Learning how to file a life insurance claim now will simplify the process when you are dealing with the stress of a death in your family.

The American Council of Life Insurers offers the following tips for filing a life insurance claim:

Make multiple copies of the death certificate. The life insurance company will require the death certificate in order to complete a claim request. You can get the death certificate from the funeral director.

Call the policyholder’s insurance agent. He or she will help guide you through the claim process. They will also help you determine how you would like to receive the policy’s payout. If you are unable to find out who the insurance agent is, contact either your own agent or the life insurance company.

Call the policyholder’s employer if they have a group life policy. Call the employer (or their Human Resources department) directly for help filing this type of claim.

For more information, visit the American Council of Life Insurers website.

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Don’t wait until your car is stolen to find out there are gaps in your insurance coverage.

One of the biggest surprises many victims of car theft get (besides realizing their car has been stolen) is that their insurance doesn’t cover the costs of a replacement rental car.

Replacement rental car coverage is available – but it’s optional, so many consumers seeking the cheapest insurance possible pass on it.

According to the National Insurance Crime Bureau (NICB), insurance companies typically wait two to four weeks before they will let you purchase a replacement car. And if a car is absolutely essential to your daily routine, you could wind up paying as much as $1,000 in non-refundable rental car costs.

And if you can’t pay for a rental car out of your pocket, you might be stranded.

Imagine two to four weeks without a car. Then consider how for just a couple extra dollars a month you are insured against that ever happening. Is it worth it?

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Your Medicare information is just as susceptible to theft and fraud as your Social Security Number, your credit card number and your banking information – and it needs to be protected just as carefully.

The Center for Medicare and Medicaid Services offers the following tips to help you keep your information safe:

• Don’t give out your Medicare information to anyone unless you are certain they are working with Medicare and the product they are offering a Medicare-approved product.
• No one can begin enrolling people with Medicare until November 1, 2005.
• All Medicare-approved products will have the “Medicare-Approved” seal on them.
• People who are really working for Medicare are not allowed to come to your home uninvited to try to sell you a Medicare product. They are allowed to call you.
• You cannot be asked to make payment over the phone or the web. If you enroll over the phone or on the web you will be sent a bill through the mail. Someone pressuring you to pay over the phone or internet may be fraudulent. To get more information about Medicare fraud protection and to view the “Medicare-Approved” seal, visit the Medicare Consumer website.

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Losing touch with the company that issued you your life insurance policy isn’t that hard to do. Maybe you’ve moved, or perhaps the company was bought out and has an entirely different name.

You’ll have to do a little sleuthing, but you should be able to locate that missing life insurance company.

Where did you live when you bought the policy? Contact that state’s state insurance department or division. They can help you locate an address and might know if the company has a new name.

If that doesn’t turn up your company, head to the reference section of the nearest large library. Look for Best’s Insurance Reports. Each year A.M. Best puts out a new version with updated lists of insurance company names, addresses and includes any name changes, mergers, etc. College and university libraries are a good bet for finding these reports.

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