Fighting Corporateering

Health Insurers Kill Real Rate Regulation Legislation; Insurer-Friendly Politicians Line Up Behind Proposal That Will Drive Up Rates in California

Jones/Feuer Effort Defeated; Schwarzenegger/Leno Bill Clears Legislature Allowing Insurers to Charge "Unreasonable" and "Unjustified" Premiums
 
Santa Monica, CA – Sacramento lawmakers, buffeted by hundreds of thousands of dollars in insurance company contributions, defeated a strong insurance rate reform bill supported by consumer and labor organization (AB 2578- Jones/Feuer) late Tuesday night. Democratic opponents of the Jones/Feuer legislation supported an alternative bill, proposed by Governor Schwarzenegger and carried by Senator Mark Leno (SB 1163), that allows insurers to charge excessive health insurance premiums under a new, industry-preferred standard that merely requires rates to be "actuarially sound."  

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$800,000 In Campaign Cash From Health Insurers Stops Premium Regulation In Sacramento

Santa Monica, CA -- Some of the top Democratic recipients of health insurance cash teamed up with Republicans in the California state senate late Monday to block health insurance premium legislation authored by state Assembly Members Dave Jones and Mike Feuer. Overall health insurers have given $800,218 in campaign contributions to California senators since 2007, in addition to gifts and donations made at their behest to nonprofit groups according to an analysis by Consumer Watchdog.

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Seattle Showdown: How Much Say Will Health Insurance Industry Have Over New Health Reform Law?

Insurance Commissioners and Obama Administration Must Resist More Weakening of Curbs on Industry Overhead and Profit, Says Consumer Watchdog

Seattle, WA --The nation’s state insurance commissioners are making far-reaching decisions in Seattle this week on whether health insurance companies will spend more on health care, less on their own overhead and investor profit. The decisions will affect whether insurance companies continue with double-digit premium increases and declines in the amount of actual health care they provide, or seek a more efficient business model that is as fair to consumers as it is to Wall Street, said Consumer Watchdog.

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ObamaCare's Loss Ratio Rules Are Out Of Balance, Critics Say

As part of ObamaCare, the federal government will impose strict new spending rules on health insurers. How it does so could have a sweeping impact on the industry and patient care. "We believe that insurance companies will get enough goodies out of the new "medical loss ratio" (MLR) law that they will not have to do business any differently," said Consumer Watchdog's Judy Dugan. "If a nursing line is something where a nurse can advise a patient on treatment, sure, that may be a medical expense. But if it is just to determine if a patient needs to see a doctor, that's just cost containment."

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Smile! Aerial Images Being Used to Enforce Laws

The nonprofit group Consumer Watchdog is seeking to determine the extent of the FBI and Drug Enforcement Administration's use of Google Earth in its investigations, spokesman John M. Simpson said last week. Federal contracting records reviewed by Consumer Watchdog show that the FBI has spent more than $600,000 on Google Earth since 2007. The Drug Enforcement Administration, meanwhile, has spent more than $67,000. Simpson has called on Congress to investigate how U.S. law enforcement and intelligence communities are using Google technologies. The group says it has concerns that data could be used for racial profiling.

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Health Insurance Limits Are Rising, If Regulators Approve

Insurers and employers say a generous waiver process is needed to avoid a sudden jump in premiums. But patient advocates, such as California-based Consumer Watchdog, warn against being too lenient. All sides are pressing their cases with the Department of Health and Human Services (HHS), which is writing the rules on the waiver process but has not specified what they will say or when they'll be in place. It's not clear yet whether waivers could continue after 2014. HHS said details on the process are under development, and declined to elaborate.

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Obama Administration Should Require Broad Financial Disclosures from Health Insurers To Scrutinize Unreasonable Rate Hikes

Washington, DC – Consumer Watchdog called on the Obama Administration to adopt new regulations requiring broad financial disclosures by health insurance companies to help insulate Americans from double-digit rate increases. Insurers should provide details of shadowy multibillion-dollar transfers to out-of-state affiliates and parent companies when they are required to justify “unreasonable” rate increases under the health reform law, said the group.

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Consumer Groups Want Federal Investigation of Insurers' Medical Spending

Consumer advocates urged the Obama administration Thursday to investigate what they called an effort by large for-profit insurance companies to slash spending on medical care even as they raise premiums. In a letter to Health and Human Services Secretary Kathleen Sebelius, Consumer Watchdog and the Center for Media and Democracy said that insurers reported less medical spending in recent months ahead of new federal rules that will require the companies to do just the opposite starting next year.

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3 On Your Side: DIRECTV Complaints

The nation's largest satellite TV service is getting some static. Consumers have now logged more than 40,000 complaints against DIRECTV on the Better Business Bureau's website. DIRECTV offers promotions like five months free or $29.99 a month. But some customers complain they're then surprised when charged extra fees for leasing equipment, special features and programming packages. Todd Foreman of the group Consumer Watchdog says to get out of DIRECTV's standard two year contract is expensive saying, "DIRECTV is charging up to $480 dollars for a cancellation fee."

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Insurers Reign Over Rates -- Only 19 States Have 'Prior' Approval Over Medical Premiums

WASHINGTON, DC -- As Americans struggle with double-digit hikes in their health insurance bills, millions are coming up against a hard reality: The state regulators who are supposed to protect them can often do little to control what insurers are charging. Consumer advocates and administration officials are trying to spark new state efforts because the new healthcare law gives the federal government only limited power to regulate premiums, traditionally a state responsibility. The Obama administration plans to announce a series of $1-million grants next week to help states increase their oversight.

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Recent Articles:

$800,000 In Campaign Cash From Health Insurers Stops Premium Regulation In Sacramento

CONTACT: Jamie Court, (310) 874-9989; or Carmen Balber, (310) 403-0284
August 31, 2010

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Seattle Showdown: How Much Say Will Health Insurance Industry Have Over New Health Reform Law?

CONTACT: Judy Dugan, 213-280-0175, cell, or judy@consumerwatchdog.org
August 16, 2010

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ObamaCare's Loss Ratio Rules Are Out Of Balance, Critics Say

By David Hogberg, INVESTOR'S BUSINESS DAILY
August 16, 2010

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Smile! Aerial Images Being Used to Enforce Laws

By Frank Eltman, ASSOCIATED PRESS
August 14, 2010

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Recent Posts in Fighting Corporateering:

Google facing close DOJ scrutiny on ITA

Despite what the spinmeisters over at Google's Public Policy Blog would have you believe, the Internet giant is facing tough...

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Health reform regulation scorecard: The big stuff is headed to court

Wouldn't it be great if we could all deduct our federal income and investment taxes from next year's income? And if we could also deduct that stress-reducing trip to a spa in Bora Bora? And if the government would just take our word for it? Fantasy for us, but the health insurance industry think that's what federal health reform ought to allow, on a corporate scale.

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Four House members blast Google-Verizon plan; call on FCC to act

Four members of the House Energy and Commerce Committee’s Subcommittee on Communications, Technology, and the Internet, on Monday ...

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" Do Not Track Me" gains traction in Washington

I'm just back from a sweltering week in Washington, DC, convinced that those of us who care about protecting consumers' online privacy have reason for optimism.  There is growing interest in creating a "Do Not Track...

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Saturday in Seattle: Live demonstrators, zombie insurance lawyers, someone's caving to lobbyists

It's livelier Saturday at the National Association of Insurance Commissioners meeting in Seattle. Most refreshing was a medium-sized street demonstration, with forays into meeting rooms, by young and old demonstrators protesting lobbyist influence on health care reform. They handed out "lobbyist disinfectant packs," including soap and face masks, and demanded that regulators do their job for consumers. The sponsor was the "Puget Sound Alliance for Retired Americans," and it was backed by Health Care for America Now, a national group that is finally engaging with vigor on regulation issues.

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