Archive for the ‘Health Insurance’ Category

Does It Really Matter Who the Defendant Is?

Wednesday, September 1st, 2010

Almost as soon as the health reform legislation was passed, opponents mobilized to see where the weaknesses were and call the new law into question. And, like many conservatives before them, they found the answer in the one place where Americans most hate to see their rights being messed with: the Constitution.

Back in May, two separate groups – the U.S. Citizens Association and a group of 17 state attorneys general across the country – challenged the constitutionality of the newly passed Patient Provider and Affordable Care Act. Specifically, the attorneys general say that the insurance mandate (the part of the law which requires that all citizens have health insurance) is against the commerce clause of the Constitution, because it regulates both economic activity and economic inactivity.

The attorneys general moved to court, led by Virginia Attorney General Kenneth Cuccinelli. Recently, however, secretary of Health and Human Services Kathleen Sebelius claims that the lawsuit should be thrown out because Cuccinelli named the wrong defendants in the case.

The case, which was brought against Sebelius, should have been brought against the Secretary of the Treasury. According to Sebelius, she doesn’t have the power to oversee the mandate and therefore is the wrong defendant.

“The secretary of the Treasury is primarily responsible for the administration of the minimum coverage provision that the plaintiff seeks to challenge,” Sebelius said.

Cuccinelli has not listed Treasury Secretary Timothy Geithner as a defendant in the suit.

So, is this a deal-breaker? Could the constitutionality argument crumble because the attorneys general named the wrong defendant? It’s possible. Court cases have collapsed as a result of less. However, it turns out that government attorneys generally don’t make a big deal out of situations like this – and they happen a lot more frequently than you would think, particularly when the defendant is a government or a representative of the government. Corrective action can be taken, if it’s necessary, and in the end the case can move forward.

It seems, then, that Sebelius is out of luck again, and the suit will likely move forward.

Insurance Twitter Round-Up

Thursday, August 26th, 2010

Twitter can be a great source of information about the insurance industry. Here are some interesting tweets from the last week that showed up in ASJonline’s Twitter feed (Click on the user name to be brought to the tweeter’s feed):

@brettspurr: Politicians should talk about REAL problems like SS, medicare, deficit, WAR and stop opining about a stupid mosque. #politics

@GordonMarketing: Medicare Part D will increase about 3% to a national average of about 30%. Not too bad but expect the co-pays to keep edging up too

@LTCBelen: Why women need long term care insurance: They have a longer life expectancy and may out-live their spouse or partner #fb

@DalDubya: ‘Grandfathered’ Health Plans Less Inviting For Some Employers – WSJ.com – http://ht.ly/2uJ3l

@BenefitsGuru: Drug Prices Climb Faster Than Inflation, Again | NPR http://j.mp/dimmDg <8.3%

@JamesAEllis: About 20% of hospitalized Medicare patients are readmitted within 30 days says U.S. News and World Report

@AlbanyInsurance: Crash Course in Long-term Care Insurance http://goo.gl/fb/nzaab #featuredcontent #longtermcare #personalinsurance

@kendoyle62: Key Senate Democrat suggests that he didn’t read entire healthcare reform bill http://bit.ly/bhWlhQ

@NSLPN “Upcoming changes create lots of anxiety for professionals in Long Term Care.” How to prepare – http://bit.ly/d91p5g

Want more information about joining Twitter? Read our guide to getting started on Twitter.

Can Plan Types Make Employees Healthier?

Wednesday, August 18th, 2010

If you have an employer client who is concerned about keeping costs down (or keeping employees healthy), you may want to look at some recent studies that suggest that individuals in HRAs are healthier.

Officials at the U.S. Government Accountability Office (GAO) found workers who signed up for the health reimbursement arrangement (HRA) option at two large employers were healthier than other employees.

GAO analysts looked at health benefits programs at two firms – one large private employer and one large government employer. Both employers gave individuals a choice of signing up for traditional preferred provider organization health insurance or a high-deductible health insurance plan that gave the employees access to HRA health accounts.

The employees who choose the HRA option at each employer appeared to be healthier than the other employees, and their plan costs increased more slowly than costs for the other employees, according to a GAO director. However, the same director warns that the results are not useful beyond the enrollees, health plans, and employers included in the review.

However, research from the National Center for Health Statistics indicates that people who use HSAs and FSAs access care more often than users of traditional plans. They visited the dentist more, were more likely to get the flu vaccine, they see their eye doctor, and – most importantly – they are more likely to report unmet medical or prescription drug needs. This gives more clout to the idea that consumer-directed health care plan participants are, overall, more healthy.

So what does this mean for employers? A healthier population can keep costs down overall, and CDHPs are a great cost-saver to begin with. Plus, employees who are healthy show up to work, and are more productive when they’re at work.

Sounds like a win-win situation all around.

Americans: Hating Insurers Since the Dawn of Time

Wednesday, June 30th, 2010

Recently, CNNMoney.com published a list of the 10 most hateable companies (apart from BP, who undoubtedly holds the No. 1 spot right now). These are the companies that Americans love to make fun of, to talk bad about, to boycott. The companies on the list were varied. They included retailers such as Walmart, tech companies like Microsoft – even social media giant Facebook made the list, no doubt thanks to their recent slackening of privacy policies. But no industry was hit harder than the financial industry, which claimed 40 percent of the list – including the No. 1 spot, held by Goldman Sachs – and half of those spots were held by insurers.

The anger over AIG has definitely died down some since the government bailed the company out. Still, AIG owes the taxpayers enough to give them the No. 5 position on this list. And even though the tides are definitely changing for life insurers in general, they’re not out of the water yet – one slip-up by a major company or group of companies could cause the industry to fall right back down again. What’s more, AIG and big insurers like it have become the symbol for what it means to be too big to fail. It’s no wonder that consumers feel wary of the company, and the agents who back it, even after all this time.

And WellPoint, who holds the No. 4 position, is not doing anything good for health insurers. In California, the company attempted to increase premiums by up to 34 percent. Then there are the allegations that they investigate every case of breast cancer trying to find a case of fraud. Indeed, other health insurers have recently made headlines for rescission practices, or otherwise troubling business methods. None of these instill confidence in the consumer, which is worrisome at a time when health reform was swooping in promising to fix everything.

But whether or not one or two bad companies can really change a nation’s view of the insurance industry isn’t the question. The question is – what are you, as an insurance agent, doing to make sure that your industry remains respected? Are you making every effort you can to show that you’re honest? Do you admit when you make a mistake? Do you ease your client’s concerns in the best way possible?

How is the overall animosity toward the financial industry affecting your practice on a day-to-day basis? Comment below and let us know!

Does Health Reform Break Obama’s Campaign Promise?

Wednesday, May 5th, 2010

The Congressional Budget Office recently came out with estimates about the number of people who will be affected by the penalties caused by the insurance mandates. According to the CBO, about 4 million people will be charged fines in 2016.

Of course, this doesn’t mean that only 4 million people will be uninsured by then. The CBO estimates that 21 million people will actually be uninsured, but the large majority won’t make enough to be hit with penalties. Which means that the ones who will be hit are those in the middle class – people who make enough that they don’t qualify for exemptions, but not enough that they feel comfortable committing a portion of their income to buying health insurance in the first place.

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Public Opinion Polls: Which Ones Can You Trust?

Thursday, April 8th, 2010

When it comes to health care reform, there has been no shortage of public opinion polls. Rasmussen Reports publishes a new feeler study every week, while the Kaiser Family Foundation conducts a new study every month. And while these surveys can often be a wonderful indicator of public opinion, at times they simply make things even more unclear.

Take, for example, the recent controversy surrounding a poll on FoxBusiness.com. The poll invited readers to choose from three options expressing their feelings on health reform – but none of those options included being in favor of the bill. Even for Fox News, a site known for its reliance on right-leaning statistics, this seems to be a bit of a stretch.

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NAHU: Agents Will Still Have a Role in Health Insurance Exchanges

Tuesday, March 30th, 2010

It turns out your biggest fear with health care reform – the state-based health insurance exchanges through which individuals can more easily purchase qualified benefit plans – isn’t as big of a threat to you as you might have thought.

Today, I spoke with Jessica Waltman, senior vice president of government affairs at the National Association of Health Underwriters, specifically about how the Patient Protection and Affordable Care Act (H.R. 3590) will affect health insurance agents. You’ve probably noticed that plenty of media attention is being given to how the bill would impact consumers, particularly those with pre-existing conditions or no current coverage. But your voice has been loud in the past week or so since the bill’s passage in the House: What does this mean for us?

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So Health Reform Passed – Now What?

Monday, March 22nd, 2010

This weekend, I drove past a busy demonstration full of signs denouncing our communist representatives and president.

Unfortunately, they seem not to have been successful in their pleas against the reform package, as the House ultimately succeeded in passing its reconciliation package on March 21. Now, the bill, which includes some changes from the Senate bill passed in December 2009, will head to President Obama’s desk.

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For or Against: Which Type of Agent Are You When it Comes to Health Care Reform?

Friday, March 19th, 2010

If you want to get a fellow insurance agent going, ask him or her about health care reform.

“I am a capitalist! For all people, for all business, and want 90 percent of the government to exit our world.”

“Get something done, even if it is not perfect.”

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Why Is Health Care Reform Being Bundled with the Student Loan Industry?

Wednesday, March 17th, 2010

What do student loans and health reform have in common? According to the Obama administration, apparently a lot.

Obama wants to remove banks from the student loan process, shifting money in the program that currently goes to overhead and/or bank profits to tuition payments, helping more students for the same amount of spending. Legislation to implement these reforms has passed the House, but has stalled in the Senate due to a Republican filibuster. Sound familiar? Democrats can use reconciliation to pass student loan reform, but there’s a catch – the reconciliation process can only be used once per session. The solution? Combine student loan reform and health reform bills into a single piece of legislation.

Uh, what?

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