Insurance Archive
WellPoint, Anthem Blue Cross rate hikes: Bloodless Economics?
February 16th, 2010. By Hunter West
The mind-boggling increase in healthcare premiums promoted to policyholders of WellPoint Inc. and its subsidiary, Anthem Blue Cross comes down to a central question, according to a story today in the New York Times…
Is this the bloodless economics of risk, or a corporate culture of greed?
In Los Angeles Bernhard Punzet opened up his envelope from Anthem Blue Cross and saw that Anthem intended to increase his insurance premiums by 34 percent. His partner’s would rise by 36 percent.
Joshua Needle, a trial lawyer in Santa Monica, got a similar shock when he saw that Anthem intended to increase his premium by 33 percent. ”I have no problem with profits,” he said in comments published this morning in the New York Times, “but they’re maximizing profits without any concern that they have a captive audience.”
He is not alone. About 700,000 Anthem Blue Cross clients are reeling with the news that they may be facing increases averaging 25 percent. That’s the average. A full 25 percent of policyholders are facing premium increases of anywhere from 35 to 39 percent.
That’s four times the rate of medical inflation.
Needless to say, consumers are screaming bloody murder, while advocates of public healthcare are using the issue as fodder for a renewed push behind President Obama’s universal health care reform.
The increase has been delayed by two months, at the request of the insurance commissioner in California, in order
CIGNA LINA disability screw-up nets $600k Settlement in California
October 7th, 2009. By AbiK
I may not agree with Steve Poizner on his views of California labor law, but when he gets it right on other things, I give him his due. The recent bad faith insurance settlement that the California Insurance Commissioner announced with Life Insurance Company of North America (aka LINA, and part of CIGNA) is one such time when he got it right. Here’s the general play by play…(click to end of post to find out if you qualify)
1. LINA Denies Disability Insurance Claims
During the period January 1, 2005 to December 31, 2007, LINA improperly handled disability insurance claims in violation of California state laws. Translation: folks filing for disability insurance during that time were denied benefits that they may have actually been eligible for…they got screwed.
2. California Department of Insurance Investigates LINA
This is where Poizner’s team comes into play. The CDI conducted an on-site examination of how LINA processed claims. That’s when the “gotcha!” moment occurred. Seems in some instances
In View of Past Misdeeds, Unum is Playing it Smart
September 21st, 2009. By Hunter West
It’s time to give credit where credit is due: for a corporation oft-painted as a villain, Unum Provident is one smart company.
Unum Provident has been dragged through the mud in recent years over various charges and allegations that the company goes out of its way to deny legitimate disability claims. A claim, after all, is a drag on an insurer’s bottom line. The fewer claims an insurer is required to process, the less money it has to pay out while premium revenue remains a constant.
Thus, there are basically three ways to improve the performance of an insurance company: sell more policies; reduce the number of claims, or any combination of the two.
All you hear about are the horror stories from policyholders who have allegedly been cut down at the knees by a seemingly uncaring and unfeeling insurer. However, any corporation will tell you that the road to profitability is paved with cost reductions. There isn’t an insurer worth its’ salt that doesn’t cast a wary eye every time a claim is made against a short-term disability (STD), or long-term disability (LTD) policy. Unum Provident is no different.
If insurers have been cast as villains, so too are a handful of policyholders who really do try to take advantage and pull a fast one on their insurer by making a claim for disability when they are, indeed quite healthy.
Be that as it may, Unum Provident—easily a global leader in the provision of insurance products—is doing a lot of things right, in spite of what its critics are saying. You can’t have 11 profitable quarters in a row without some degree of savvy.
Here’s what Unum Provident is doing well…
Get Ready for the Social Security Disability Insurance Tsunami
August 10th, 2009. By janem
Increasingly, as aging and injured baby boomers make claims, a Social Security Disabilities Insurance tsunami will likely make landfall soon. Compound that with the recession and at least 10 states ready to furlough hundreds of employees who process initial benefit claims: more waves are predicted.
According to unions.org, two out of every three Social Security Disabilities Insurance applicants initially are denied. And the Associated Press reports that since last October, the number of people waiting to have a claim processed has jumped a whopping 30 percent, from about 556,000 eight months ago to more than 736,000 in July of this year. Some applicants wait years to resolve their claim, but about 61 percent of those who appeal are ultimately approved for benefits. So if you are initially denied, DON’T GIVE UP.
What You Can Do—Here are some great tips from disabilitysecrets.com:
1: Take everything you are told about your Social Security Disability claim with at least one grain of salt.
2: Get copies of your medical records and supply these with your SSD or SSI disability application.
3: Respond to letters and notices regarding you disability case promptly–from social security, DDS, or your attorney.
4: The rule of three always applies–for those who are applying for benefits or appealing a denial.
5: If you are denied for Social Security Disability or SSI, you will need to file an appeal.
6: Call DDS for updates on your SSD or SSI claim, not the local Social Security office.
7: If you have dire financial problems and have a Disability case, let people know.
8: If you have child support obligations which you cannot fulfill, ask your attorney or representative to help.
9: Contact your congressman or senator to help you with your Social Security Disability or SSI claim.
10: If you have been approved for Social Security Disability or SSI, you will receive…
11: Get your doctor to write a supporting statement for your Social Security Disability or ssi case.
12: Make sure your doctor REALLY DOES support your SSD or SSI disability case.
AND 2 more important tips: you may want to consider legal help:
13: Representation will increase your chance of winning Social Security Disability or SSI benefits.
14: If you have representation on a Social Security Disability or SSI disability case, keep your attorney fully informed.
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