Tuesday, 10 April 2007

Top Disability Lawyer: Barack Obama “Has It Right” On Long-Term Care

Frank N. Darras, one of the United States’ most prominent disability lawyers, has issued a statement in support of presidential candidate Barack Obama’s recent comments on the state of long-term care.

“Barack Obama has it right, and it is encouraging to see a presidential candidate focusing on truly helping hard working senior Americans,” says Darras.

Obama said in a pres release that “it's about time Washington stood up to insurance companies so that families and seniors across the country can get the care they deserve.” Obama’s comments come on the heels of a recent New York Times article about senior citizens who purchased long-term care policies, only to face denied claims and bureaucratic red tape when they needed the coverage those policies were supposed to provide.

“It is a shame, plain and simple,” says Darras, “and a fraud against the folks who don't have any fight left in them.”

“Your surest bet,” continues Darras, “know the claim paying history and how often the carrier has sought rate increases in your state. Get reliable competent advice and a sound second opinion from someone you trust before you shell out those hard earned premiums. Understand how your policy works and make sure when you file your claim, you don't give up till you get paid.”

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Posted by Insurance Quote at 10:51 AM in Senior Insurance

Independence Blue Cross And Highmark Talk Merger; Brokers Worried

Independence Blue Cross of Philadelphia and Highmark Incorporated of Pittsburg have announced their intention to merge, a move that would create the third-largest health insurer in the country. The two non-profit companies said the merger would help reduce many costs, saving members millions of dollars.

“By combining our two organizations, we will be better able to maintain affordable programs, meet shifting customer demands for new products and fund essential technological and infrastructure improvements in the face of challenges from much larger, for-profit out-of-state health insurance companies,” said president and chief executive of Independence Blue Cross, Joseph Frick.

The proposed merger has made some insurance brokers wary. The merger could increase costs, hurt competition, create more administrative work, shift focus away from customer service, and have a negative impact on their business.

If the two insurers are allowed to merge, barring federal and state approval, they would control more than half of Pennsylvania’s health insurance market.

One particular concern that brokers have is the disparity between the two companies’ methods of compensation.

Independence Blue Cross pays brokers and agencies a percentage of a policyholder’s premiums — the higher the premium, the higher the percentage paid to agents. Highmark pays a flat rate to agents, regardless of the premium.

“There’s a movement to go that way [in the insurance business], and that may be the cause of the uneasiness,” said president of Brown & Brown Consulting, Robert Cola.

Brokers are worried if the flat rate policy is adopted, the fees would have to be negotiated and the merged company would be in better position to set the fees lower, reports the Philadelphia Inquirer.

But Cola acknowledges that brokers’ concerns may not be anything to worry about.

“I think there is a fear of change,” Cola said. “But I think, at the end of the day, it will be somewhat of a non-event.”

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Posted by Insurance Quote at 9:58 AM in Health Insurance