Bleak Economy Pushing Health Insurers to Raise Rates:

Bleak Economy Pushing Health Insurers to Raise Rates:

Insurers in the nation have been subjected to acute attacks of the Obama administration for seeking the rate increases seem surprising that sell policies to individuals.

Health and Human Services Secretary, Kathleen Sebelius recently pounced on WellPoint Anthem Blue Cross unit for wanting to increase premiums by 39 percent in California, and on Thursday released a scathing report detailing increases Wanted digit other insurance companies last year and so far this year.

Angela F. Braly, WellPoint's executive director, was forced to cancel a presentation for investors to prepare the barbecue which is likely to receive before Congress next week on increases in insurance rates.

But as bad as it could play politically, for insurers like WellPoint, the challenging business environment can leave you little choice but to raise prices if they want to protect profits, analysts and some health economists say.

The weak economy and the constantly increasing cost of medical care make it increasingly difficult for firms to avoid substantial increases even if such increases provide fresh fodder for Democrats trying to pass health legislation, now stalled in Congress.



"If they are losing money, have to raise prices," said Charles Boorady, an industry analyst with Citigroup.

Yet the failure to WellPoint seeking increases in the current political climate. He compares it to someone waving a five iron on a golf course during a thunderstorm. "You're asking to be electrocuted."

Under political pressure, the company has said it will delay rate increases in California until at least May 1.

But from a business perspective, WellPoint, one of the largest insurers in the country and the operator of Blue Cross business plans in more than a dozen states, may have little choice as a company accountable to shareholders demanding higher incomes. WellPoint makes money from selling policies for individuals and small businesses is a major source of global revenue. But the company says it lost millions of dollars in California last year on individual policies.

"They are not willing to lose money in this business," said Cathy Schoen, senior vice president of research at the Commonwealth Fund, a research nonprofit in New York. In fact, he said, many companies choose not to sell policies in the individual market.

Many health policy analysts point to the sharp price increase requested by Anthem as evidence that individual insurance is sold in this country must change.

"What they did is actuarially sound and completely legitimate," said Andrew Kurz, a former Wisconsin insurance executive with Blue Cross and Blue Shield, an outspoken critic of the current health system. "It's the market that is not bad, Anthem."

Insurers say they do not agree with Obama's administration if the current laws adequately address what is wrong with the health system. Specific market, especially, the companies say, healthy people tend to choose, leaving sicker people with higher medical costs from insurers to cover. That's a major reason for the insurance industry continues to push for mandatory coverage for everyone.

"Increases in the cost of coverage in the individual market shine a light on the urgent need to reduce the growth of the base medical expenses and to bring everyone into the system," said Karen Ignagni, chief executive of America's Health Insurance Plans, a trade group, said in a statement. "If the reform does not deal with these parts, it will not solve the serious problems that individuals, families and employers are facing."

While WellPoint officials have openly opposed the current health legislation in Washington, said California illustrates the need to change the system. Although California is an important market for WellPoint, the largest insurer in the state, California's economic problems have proved increasingly difficult. As companies have laid off workers, the number of people covered by Anthem in employer plans has declined significantly. Those who seek individual coverage tend to be people they know are likely to have high medical costs.

Although the company would not disclose the exact amount that was in the operating losses in its individual market in California politics, said its medical claims last year were 6 percent higher than they had anticipated, so the company did not charge enough in premiums last year.

Driver Please note that the deer mating season and other

Driver Please note that the deer mating season and other

This week full of drivers, deer and insurers in the nation car deer collisions costly self-make a special jump during the mating season, usually from October to December, and the peak of each month November.

"Dollars throw caution to the air we pursue it during the breeding season," said Billy Higginbotham, wildlife specialist at Texas A & M University. "If this happens to take you through one of the road, does not seem to care."

State Farm Insurance estimates that deer collisions in the last two years has reached 2.3 million, up 21 percent compared with five years ago, and further meetings are not reported. The annual number of collisions can be up to two million a year, according to Terry A. Messmer of Utah State University.

These accidents tend to be more catastrophic for the animals, but also account for billions of dollars in car repair and medical costs and hundreds of human deaths each year.

Collisions have been rising mainly deer populations of whitetail deer, now numbering over 30 million and have adapted well to suburban life - and the spread of housing in the forests and grasslands.

The risk is highest in West Virginia, where the odds of a driver hitting a deer over 12 months are 1 in 42, according to estimates by State Farm. Iowa is second with a probability of 1 in 67, and Michigan is third, 1 in 70. A driver in Hawaii, however, has only a 1 in 13, 011 chance of hitting a deer - month "more or less equivalent to the chances of finding a pearl in an oyster shell," noted State Farm in last report.

In a typical sequence of fall, a driver can detect a range of brake to limit and then speed up just to hit the ball chasing.

wild pigs add to the hazards of darkness to dawn driving in many states, including Texas, Florida and California. The collisions are increasing sprawl of animals that breed prolifically and can weigh up to 300 pounds.

Many deer are saved by their physiology: bright eyes reflecting the headlights of a car, making it easy to place in the dark. porcine eyes do not reflect light like that, and animals, low rise and dark tones can be difficult to detect in a day of cloudy night.

the months of October and December resulting in a marked increase in the movement of this population.

This is the time of year which increases the dangerous encounters and collisions between cars and deer, so drivers should be particularly aware and careful, recommends the Insurance Information Institute (Insurance Information Institute, III).

Damage caused by an accident with a deer or other animal is covered under "the extended portion" of auto insurance, NOT "portion collision."

"The extended portion" or "other damages" (Comprehensive English) is not mandatory and includes almost any other condition that may affect your car, except for a shock: covers fire, theft, vandalism, malicious acts, street riots, flood , earthquakes, explosions, hail, wind, falling objects above the car, damaged by contact with animals or birds, and in some cases, depending on the policy, damages to the windshield.

Causes

Not only urban areas are shifting the natural habitat of these animals but the deer population is rising, causing many to come into contact with humans, and are entered in the suburbs or the freeways and highways, especially in the mating season.

"As the natural habitat of our wildlife is progressively reduced, accidents with deer and other wildlife will be more frequent," said Eliane E. Gonzalez, spokesman I.I.I.

"We must be very vigilant to avoid these situations when driving a car, ready for anything that happens along the way, especially in the hours of sunset and before sunrise," he added.

Prevention measures

Fortunately there are steps you can take to reduce the chances of getting involved in a collision with a deer or other similar animal.

The deer are not only found in rural or wooded areas. Many deer crashes occur on busy roads and near cities.

Deer behavior is unpredictable, especially when they are dazzled by the headlights, the vehicle noise at high speed and sound of the horns. Often rammed into traffic.

The deer move in groups. If you see one, watch it is very likely that there are more nearby.

1 .- When driving, take these precautions:

-Drive with caution when in areas known animal crossing wild deer in areas that are inhabited by them and ways to separate or make boundaries between cultivated areas and wooded areas.

-Always wear your seat belt, be alert and refreshed when driving and stay sober.

"When driving at night, use high beam headlights as long as there is no traffic in the opposite direction. The bright lights help illuminate the ground better and also allows the deer to distinguish the road.

"Be more careful between the hours of sunset to midnight and close at dawn. Hours are at greater risk of collision with these animals.

2 .- If you notice a deer in the road:

-Brake firmly if you see a deer in your path or near it, but stay in your lane of traffic.

"Many serious crashes occur when drivers have swerved trying to avoid the animal in their path and collide with other vehicles or lose control of their own.

"Do not count on against implements like deer whistles, stickers to animals or fences, as these tools are not efficient.
Many are surprised to learn that deer kill more people each year than spiders, snakes, bears and wolves together. Because of its propensity to find its way in front of traffic, the deer kill more people annually than any other creature.

For most people, few things evoke fear as the image of a great white shark .. A combination of popular culture movies and ubiquitous media stories about shark attacks have worked together to create a universal fear of the machines gears of eating. However, the dangers posed by sharks on humans are exaggerated. In fact, sharks kill ten people each year. On the contrary, is ten times more likely to die under the clumsy feet of the ordinary cow and fatally stomping around 100 people every 12 months.

Why You're Saving on Car Insurance

Why You're Saving on Car Insurance

State Farm, Progressive, Allstate and other insurers are tripping over each other with ads that promise to Americans to save money on your auto insurance. Drivers can be forgiven for wondering what the catch is.





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Of course, not all drivers can save 15 percent, as a promise of safe, but many are finding significant discounts. This year, auto insurance premiums will rise only 1.5 percent on average across the country, a group of industry trade estimates, the smallest gain in five years. Although the costs of vehicle repair and medical care as a result of collisions are on the rise, says the group, which are tempered by fewer accidents in all legislation and improvement in many states to combat fraud.


"This has really become a competitive industry, so insurance companies are anxious to do everything possible to get more business," said Jean Salvatore, senior vice president of the group, the Insurance Information Institute.


Stephen Reginald, 47, a book editor in Chicago, took a persistent State Farm agent who was driving the policy owner to convince him to change his insurance Honda Accord 1993. Mr. Reginald, who says that the units only when traveling out of town, had been with Progressive, the insurer's third-largest automaker, since 2002. He chose the Advancement of principle, he said, because of the convenience of using your site after hours. But Mr. Reginald was able to save about $ 200 a year by making the switch to State Farm. "It's great to have someone local," he said.


Some recent decreases in the cost of premiums can be traced to the actions of state regulators. Most states require insurers to file rate plans annually in a process that is reviewed and approved or rejected by the state insurance commissioner. "It is the job of insurance commissioner, using modern data resources to see if the fees are a threat to inflate the market too much or put undue stress on the reserves," said Tim Wagner, president of the commission National Association of Insurance Commissioners, an organization of state regulators. He is also director of the Nebraska Department of Insurance.


When Howard Mills, Superintendent of Insurance of New York, was a reduction in fraud rates steadily over the past two years, he said, showed that auto insurance rates to reflect the change. Mr. Mills met with insurers to discuss the reduction of the rate and, consequently, 70 percent of auto insurance customers in the state have had their premiums reduced by 5 percent on average since last year.


New Jersey Department of Banking and Insurance revised its auto insurance regulations in 2003, after more than 40 insurance companies left the state during the previous decade. Since then, 56 percent of auto insurance policyholders have experienced rate decreases, totaling more than $ 300 million in savings statewide, according to the 2005 report of the auto insurance industry issued by the insurance department.


Car owners often consider changing insurance provider when their policies are up for renewal or need to add a driver or buy a new car. That gives insurers the opportunity to find new customers. Hence the flood of ads for the promotion of lower premiums.


"Overall, people renew with your current carrier, so insurers are trying to encourage people to compare and strength in a competitive market," said Mark Presser, assistant superintendent and chief of the office of the State of New York Department of Insurance.


Rates may drop to a variety of reasons. Texas, for example, has made some recent progress in combating fraud, which will most likely accelerate the decline in rates. And thanks to some changes in state law in 2003, most auto insurance companies doing business there. The new entrants have "increased competition, which has helped reduce taxes on everything," said Texas Insurance Commissioner Mike Geeslin.


The increased competition worked for Steve Gulledge's when he began pricing insurance while purchasing a new car. Mr. Gulledge, a musician in Spring, Texas, had his eye on a used Audi TT, but opted for a less sporty sedan when he discovered his car insurance in the Audi cost more than your car payment.


After weeding through offers and features like towing and rental car coverage, Mr. Gulledge, 24, found a couple of companies that exceeded the actual quote from his State Farm agent. Ultimately, he said, was able to convince his staff to sweeten the deal, giving him a loyalty discount and ensuring that as long as your driving record remained clean, his rate would drop $ 50 a month you turn 25 years at the end of the year.

Why You're Saving on Car Insurance