UCLA study: More than 2.2 million Calfornians -- two-thirds of whom have health insurance -- face medical debts

UCLA's Center for Health Policy Research today released a study showing that 2.2 million Californians -- that's more than one in eight non-elderly adults -- face medical debts.

And two-thirds of them have insurance coverage.

"Individuals with medical debt are twice as likely as those without debt to delay or forgo needed health care," the center said, citing the statistic as evidence of the "glaring inadequacy" of the current health insurance system.

More than half of those with medical debts reported hardships, ranging from being unable to pay credit card bills to full-blown bankruptcy.

Also: the survey was done in 2007, before the current recession really started hitting home.

New Driver Car Insurance - Tips To Save Money With Your New Driver

As a new driver, expect to pay more for your car insurance than you would if you were an older more experienced driver. All is not lost, however, there are things you can do to take the sting out of the cost of insurance and lower your rate.

1.Vehicle: Stay away from brand new, very expensive, very fast, sport cars. Expensive cars cost more to insure, the more horse power, the higher and the premium. Go for something that is older, with many safety features. Companies offer discounts for features like automatic seatbelts, airbags and anti-lock brakes.

2.Drivers Education: As a new driver, it will help your insurance rate if you take an approved drivers safety course. Chat with your insurance agent before taking the course. You want to make sure that they recognize and approve of the institution offering the class. Aside from getting good driving information, you do want to get the insurance premium discount so make sure that it is one accepted by your insurance carrier.

3.Sober Driving: This is a no brainer, but needs to be said. Driving while under the influence is not only dangerous, but costly in more ways than one. If you are stopped with a DUI, not only will your insurance rates increase, if you are under aged, it is illegal and your insurance company may void your coverage.

4.Student Drivers: If you're a new young driver that is still in school, maintaining good grades (B average or above) may earn a discount of up to 25% of your insurance premium.

5.Talk to your agent. Your insurance agent is aware of various discounts offered by the insurance company. You might qualify for some of them, but you won't know unless you ask.

6.Compare: Get quotes from more than one company. Shop around.

Hang in there. You're only new once; rates will go down with driving experience.

Insurance news: Co-ops and discount health plans...

Some interesting talk this morning about cooperatives as an answer in the health-care overhaul debate:

Washington Post: Cooperatives' Record Weighed in Health-Care Debate: Some herald them as a cure for health care, others question their power and costs.

Huffington Post: Co-ops the equivalent of a `medical unicorn': "One of the leading progressive voices in the House of Representatives declared on Thursday that a co-operative approach for health insurance coverage was such a vague entity -- and political non-starter -- it might as well be a `medical unicorn.'"

In California, state officials have ordered two unlicensed discount health card companies -- Prudent Choice and International Association of Benefits, to stop operating in that state. A third company, DentalPlans.com, has been ordered to get licensed there.

Here in Washington, a new law requires discount health plans -- which are NOT insurance -- to be licensed here and to file annual financial statements. The companies' marketing materials are required by law to state that these are discount plans and not health insurance, and companies must refund all charges if a customer cancels within 30 days.

In addition, the plans must offer an updated list of cooperating providers, list discounted services, and not restrict access to their providers. Violations are subject to penalties ranging from $100 to $10,000. For more information on this law, click here.

Insurance news today

Seattle Times: Costs for employer-provided health plans are expected to rise more than 10 percent within the next 12 months


NY Times:
-Aetna Chief Says Public Plan a Distraction - Ron Williams, chief executive of the giant insurer Aetna, has been the most vocal insurance executive in favor of an overhaul of the health care system — as long as it does not include a public, government-run health plan.

Washington Post:
 -Why the Health Care Debate Is So Explosive - When Harry Truman first proposed national health insurance, Senate minority leader Robert Taft (R-Ohio) promptly tagged it "the most socialistic measure that this Congress has ever had before it." Shouting socialism in the middle of the red scare detonated a serious charge.

-Why Obamacare Is Failing - At first it seemed plausible that President Obama had a communications problem on health care -- to which the solution was always more and more Obama. But exposure did not translate into persuasion.
National Association of Insurance Commissioners: Lost in the din of this summer's health care debates is one important fact: there is a strong consensus that reform of the health care system is absolutely necessary. Click here to read news release.

News story: As national dialogue turns to co-ops, how does Group Health stack up?

From the Seattle Times:

When Mike Kreidler joined Group Health Cooperative as a staff optometrist in 1972, the co-op's reputation for innovation and quality was such that a Soviet delegation toured the Seattle headquarters to learn how a member-run collective managed to flourish in a capitalist country.



As salaried employees, the doctors and nurses at Group Health "paid a lot of attention to patients because they were effectively your bosses," said Kreidler, now the state's insurance commissioner.


Today it's the people seeking to change the nation's health-care system who are taking a closer look at the Seattle cooperative.


The Obama administration last week endorsed health cooperatives like Group Health as a potential alternative to a government-run insurance plan whose aim is to create competition among insurers and slow soaring health-care costs.

...Yet even some of Group Health's most ardent admirers warn that replicating the co-op would be difficult — and replicating it quickly practically impossible.

The story notes that Group Health has struggled with some of the same problems as other health insurers, such as significant recent hikes in premiums. But it also says that even critics think the co-op's model is worth copying.

Car Insurance Top Tips

The car insurance industry has got really competitive in the last few years, so prices haven't really changed much. There are now over 100 car insurers to choose from, so there are some very good deals out there for those who are prepared to shop around. 23% of motorists still choose to insure with the same company as the year before, but they could undoubtedly save money if they did check out some other companies.

Motorists could be forgiven for not getting other quotes, it used to be a very laborious exercise involving long waits while getting routed through the call centre, and boring repetition of facts to sales advisors. Now, thanks to the internet, it's all a lot more simple. Car insurers also offer extra discounts to people who buy online.

However, you need to consider the quality of the policy, not just the price:

• Check that your low quotation is not due to an extremely high excess.

• Check that you will get a courtesy car if your car needs to be taken in for repairs.

• Check that legal insurance cover is included, if you want it, and automatic windscreen replacement.

• Find out if there is an accident help line in case of an emergency.

It's a good idea to ring the insurer direct to talk through the policy in detail before signing up online.

Money saving tips – recommended!

You can get a quote with over 40 car insurers if you input your details into a good car insurance broker's website. You'll only need to give your details once. Call the insurer with the quotation to check exactly what is and isn't covered.

If you have a garage, then you'll save by keeping your car there overnight. You'll also make savings if you can keep your car on a driveway. This is because there is more chance your car being broken into or vandalised if it's kept on the road.

Give your insurer an accurate picture of how many miles you do each year – you will save if you travel less.

Some occupations, like being a landlord, journalist or professional footballer (if only) attract higher premiums. You can save money if you work in finance or the civil service.

Get married! Men under 30 pay more if they're not married – it's just the excuse your girlfriend is looking for!

Under 25's pay more, but you can get lower premiums if can put a driver over the age of 25 with a good driving record on your policy as a named driver. That person must be under 60 though, as premiums rise again at that age.

Agreeing to higher excess (the average cost is ฃ100) will help lower your premiums.

If your car is not of a high value, you could get third party cover and make quite a saving compared to fully comprehensive insurance.

Pay as you go insurance is a new option for 18-21 year olds. It's a recent development introduced by Norwich Union, in which you pay a unit cost per mile. The cost per mile is more between 11pm and 6am. You pay an initial fee of ฃ199 to have a Global Positioning System fitted to your car, and then it transmits details of your mileage direct to Norwich Union. They send you a monthly invoice and you pay for the miles you've done!

Taking Pass Plus lessons to improve your driving abilities could save you around a third on your premiums. They cost ฃ15 - ฃ30 an hour and cover driving at night, in busy rush hour jams and fast motorway driving. You can find out more at www.passplus.org.uk . You can also improve your driving skills and make insurance savings with the Institute of Advanced Motorists ( www.iam.org.uk ).

Find out the insurance group of a car before you make the purchase. There are twenty insurance groups – the slower and less desirable the car (to criminals) then the lower the rating. You could make considerable savings by choosing a car in a lower insurance group.

If you want a high spec or performance car then you can expect to pay a lot more on your insurance. They're a lot more likely to be stolen or involved in an accident. Making the sensible choice might be a bit boring, but it will be a lot cheaper.

Watch your speed. Most insurance companies will let you get away with a single fixed penalty fine but if you repeat the offence then your premiums will rocket.

Protect your no claims discount as soon as you can (usually after four years). It costs a bit extra but it's well worth it.

Satellite navigation in your car will lower your premiums. Insurers have found that people concentrate more on their driving and less on trying to find their way, which means less chance of having an accident.

It's a good idea to have an engine immobiliser or alarm fitted not just because it could help you keep hold of your car, it will also make you a saving of 5-8%.

If there's two or more cars in the household, get them on the same policy to get a good discount.

WA Insurance commissioner on health care: Reforms needed, fears overblown

This morning on radio station KUOW, Washington state Insurance Commissioner discussed the nation’s health care system, saying it’s unsustainable and badly in need of reform. He also said that many of the concerns being voiced at town hall meetings are overblown. Excerpt:

“I think that a single-payer system is something that, while certainly having some broad support with a lot of people in our society, is never one that’s going to be broadly applied to everybody in the country. Even if there might be cost advantages to it and you can come up with some pretty logical reasons why it would be preferable, politically it will never happen. We’re not Canadians, we’re not the English, we’re not the Swiss or the Germans or the French. We’re Americans and we’re going to come up with an American solution. Virtually every one of those countries built on the private system that they had that people were knowledgeable and comfortable with. That’s what we’ve got to do in this country. It’s a private insurance market. It’s an employer-based system. That’s what we have. We need to build on that.”

KUOW podcast over the interview is here.

Insurance news...

-In a much-talked-about article Sunday, the New York Times reported that "The White House, facing increasing skepticism over President Obama's call for a public insurance plan to compete with the private sector, signaled Sunday that it was willing to compromise and would consider a proposal for a nonprofit health cooperative being developed in the Senate."

-In a commentary for CNN, former longtime insurance company spokesman Wendell Potter blasts health insurers and their "army of PR people":

Until I quit my job last year, I was one of the leaders of that army. I had a very successful career and was my company's voice to the media and the public for several years.

Potter writes. And he maintains -- citing his two decades of experience in such campaigns -- that much of the opposition to the Obama administration's efforts at health-insurance reform is fueled by ghostwriters within the industry. He writes:

So the next time you hear someone warning against a "government takeover" of our health care system, or that the creation of a public health insurance option would send us down the "slippery slope toward socialism," know that someone like I used to be wrote those terms, knowing it might turn many of the very people who would benefit most from meaningful reform into unwitting spokespeople for the industry.

-In North Carolina, a high-school teacher was arrested for allegedly filing thousands of dollars in false burglary claims, in some cases claiming things that she'd rented. From the North Carolina Department of Insurance press release:

Investigators say she...gave the company several computer print-outs, many from Rent-A-Centers in Durham. An investigator with Liberty Mutual found several of the items Blount claimed stolen were actually still in the store.

Print and save: What to do if you're involved in a car accident

From the Washington state Office of the Insurance Commissioner, here are some tips from you might want to keep in the glove compartment of your car:

What you should do after an accident:

Every driver involved in an accident is legally required to remain at the scene. He or she must also offer aid and give necessary information to others involved and to law enforcement officers.

If you’re involved in an accident:

• Use all means possible to warn oncoming traffic of the danger at the scene.
• Give reasonable aid to the injured. Do not move them unless it is absolutely necessary.
• Notify the Washington State Patrol (WSP), city police or county sheriff, and if needed, request a doctor or aid unit and ambulance.
• Obtain and give necessary information for the accident report, including names of witnesses and police officers.
• If there is any injury or death, or if property damage exceeds $700 to any one person’s property, you must notify the WSP, city police or county sheriff. If you fail to complete a written report, when required, it may result in the suspension of your driver’s license or instruction permit.

It is equally important that you promptly report the incident to your insurance company. Also, you may be subject to other reporting requirements specified in your insurance policy. It is vital that you read your policy and know what you must do to file a claim.

What that auto insurance card in your wallet means...

Just about everyone with auto insurance has been through the drill: Do you want collision? Comprehensive? Personal injury protection? GAP coverage?

To help figure out what's what, we've prepared this guide. It includes a list of companies to check with to if you can't find coverage due to a poor driving record, for example. It also explains things like why car insurers are allowed to charge different rates based on age, say, or gender.

Perhaps most importantly, the guide includes a list of tips to reduce your cost.

Juvenile Or Child Life Insurance Tips

Is it wise to buy an insurance policy for your children? Is it really necessary? Parents often ponder over these questions.

Yes it is wise. Actually buying a policy of child life insurance leads your child’s life to a future that is financially secured. It helps to keep plans for your child’s carrier alive. Also, as they step into adulthood, the child life insurance policy builds cash value that supports your child’s life with a financial cushion.

Child life insurance policies are affordable as compared to any adult life insurance policies.

Many financial experts consider it as a foolish decision to spent money on any child life insurance policy. But let me tell you how important and beneficial a child life insurance policy could be.

1. In case your child suffers from illness that may take his/her life, you may be left with funeral and burial costs or may be even medical bills. So the pre existing life insurance proceeds could provide the extra cash you need to settle the worries.

2. In case of fatal illness of a youngster, you may have to bear huge medical expenses. So the juvenile or child life insurance policy’s proceeds can support the family with significant financial relief.

3. If your child develops any serious medical condition while he/she is uninsured, parents may find premiums to be expensive. However, early coverage results in significant cost-savings.

It is agreeable that children hardly show any significant contribution to family’s income, but purchasing some insurance policy for children can really give good financial support under certain events.

You can also collect information about the different child life insurance policies by shopping online and visiting several online insurance companies.

If you hesitate to get a separate life insurance policy for your child – then you can add a rider to your own life insurance policy. This will cost you few more but it will make your children future financially supported.

Some ways to save on prescription drug costs...

If you can't afford your prescription drugs, there are numerous programs to save you money or, in some cases, get free medication.

Here's a list with links to several such programs. Note: some of them, like the Washington Prescription Drug Program, are limited to residents of Washington state. But several are nationwide.

Looking for financial info on your health insurer?

A couple of people this week wrote inquires to "Ask Mike" searching for financial information on Washington state health insurers. Here's a tool on our website that compares the financial data among health carriers.

We're hearing from consumers...

It's no surprise in these tough times that the number one caller topic to our Insurance Consumer Hotline is people losing their health insurance. Often it's because they've lost their jobs. But here's a new consumer concern popping up on the hotline: Employers who are cancelling health insurance -- or failing to pay the premiums -- and not notifying their workers they no longer have coverage.

Have a problem with your insurance or need help finding coverage? Call our Insurance Consumer Hotline at 1-800-562-6900. Real people actually answer our phones!

Suggestions for Washingtonians who cannot afford health coverage for their kids...

If you can't afford to buy health insurance for your children, there are several low-cost options in Washington state that may be able to help.

A program called Apple Health for Kids, for example, provides state-subsidized coverage and is free to children in families living on less than 200 percent of the federal poverty level. (For a family of three, that's less than $3,052 per month.)

For more information on this and other resources, including a programs for pregnant women and parents of new babies, click here.

Jobless and worried about health coverage? Here are some ideas...

We've compiled a series of tips and suggestions for people struggling to keep their health coverage after losing a job. The page includes a county-by-county list of community clinics in Washington state, information on the federal COBRA law that allows former employees to stay on their health plan (if they pay the full cost) and information regarding veterans, Medicaid eligibility, and more.

Click here to read more.

Kreidler predicts health care reform success

A good Q&A in Seattlepi.com. Washington Insurance Commissioner Mike Kreidler shares what's different this time around in the national health care reform debate.

Excerpt: "... you're seeing the nature of the problem being redefined as an economic problem much more than a human or moral issue. I think we're starting to realize that the large employers who had historically been resistant to a national health insurance program now are stepping up and viewing it very differently." Click here for full story.

In D.C.: Health-care reform clears key hurdle...

Good overview and update in the New York Times this morning:

House members headed home on Friday, leaving behind the outlines of a nearly $1 trillion health care overhaul that is sure to draw fire from a variety of interests, but also shows the beginnings of a consensus that would provide insurance for more Americans and give them new rights in dealing with insurers. Click here to read the story.

Politico tries to peer a little further into the future:

But the bill's turbulent passage widened longstanding rifts within his party, rifts that imperil his landmark push for vastly expanding health care coverage when Congress returns to session in the fall. Click here to read more.

And in Slate, there's an interesting -- really -- look at declining insurance enrollments and what it means to insurers and national health care reform. A key point, from writer Daniel Gross:

...(I)t turns out the current arrangement, through which employers are supposed to buy coverage from large insurance firms and enlist their employees to cover the costs, isn't working so well for the insurance industry, either. Click here to read Gross' piece.