Going to Court
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."
Last year, Consumer Watchdog, a consumer advocacy group based in
Southern California, filed a class action lawsuit against DIRECTV over
its cancellation policies. Consumer Watchdog attorney Todd Foreman said
the company can charge customers up to $480 to get out of their
contracts.
SACRAMENTO, Calif. -- Health insurance plans in California would have to submit their rates for prior approval under legislation advanced by the Assembly Health Committee. Consumer Watchdog welcomed the bill and provisions that would allow
consumers to intervene in the approval process. "Now that Congress has
mandated that every American must show proof of owning a health
insurance policy or face tax fines, California must ensure that the
prices that insurers charge for coverage are fair," testified Jerry
Flanagan, the advocacy group's health care policy director.
Lawsuits ensued over just how that impact would be described in the voter pamphlets, landing all three parties in court: Attoney General Jerry Brown, Harvey Rosenfield and the backers of Proposition 17. Brown, for instance, insisted on language saying the initiative "will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage." Backers of Proposition 17 wanted that language stricken, but the judge disagreed.
A teachers union's effort to change wording in Prop. 14, which would allow open primaries, was largely rejected. Measures on car insurance and public financing got only minimal adjustments.
"All Proposition 17 does is allow people to take it with them when they move to a new insurance company and get the lower rate," argued Richard Martland, an attorney for the supporters. But Consumer Watchdog founder Harvey Rosenfield said the measure is a thinly disguised attempt by Mercury to be allowed to charge higher rates for those it doesn't want to insure. Rosenfield's attorney, Fredric Woocher, said the proposition is being misleadingly cast as an opportunity for drivers to retain their loyalty discounts even if they switch insurers. "You can't take it with you," Woocher said. "You are taking away the one thing that makes persistency persistent. It would be like taking a good student discount and extending it to people who fail."
"All Proposition 17 does is allow people to take it with them when they move to a new insurance company and get the lower rate," argued Richard Martland, an attorney for the supporters. But Consumer Watchdog founder Harvey Rosenfield said the measure is a thinly disguised attempt by Mercury to be allowed to charge higher rates for those it doesn't want to insure. Rosenfield's attorney, Fredric Woocher, said the proposition is being misleadingly cast as an opportunity for drivers to retain their loyalty discounts even if they switch insurers. "You can't take it with you," Woocher said. "You are taking away the one thing that makes persistency persistent. It would be like taking a good student discount and extending it to people who fail."
Consumer Watchdog argues Prop 17 also allows insurance companies to charge a severe penalty to customers who do not have a history of coverage, therefore, the voter pamphlet should say the initiative will raise rates. “It allows insurance companies to surcharge people just because they didn’t have previous insurance, maybe they didn’t even have a car, or they were in the military serving stateside, or they missed a single payment on their insurance,” said Harvey Rosenfield with Consumer Watchdog.
LOS ANGELES, CA (AP) ― State insurance regulators on Wednesday defended their actions against health insurers after a report showed few consumers who complained that their coverage was canceled after they took ill actually benefited from state-negotiated settlements. The settlements may not have appealed to many consumers because they
were "very stilted towards insurance companies," said Jerry Flanagan, a
health advocate for Consumer Watchdog. Consumers weren't allowed to hire lawyers for arbitration, and had to
prove all their past medical bills were "medically necessary, which is
a hard legal standard to meet" without a lawyer's help. Additionally, the coverage that was offered through arbitration was
usually a policy with a lower benefit than the wrongfully rescinded
policy, said Flanagan.
California's Consumer Watchdog group is suing Anthem Blue Cross after
they raised health care insurance premiums 39 percent, but the company
isn't budging. Meanwhile Goldman Sachs recommended buying health insurance company
stock because competition is decreasing and prices are going up. The
Center for Retirement Research at Boston College estimates that "the
typical married couple at age 65 should expect to spend" a whopping
$197,000 on uninsured medical expenses. Obama urges action on a
watered-down health care bill, but the Republicans and conservative
Democrats just say no and collect money from the private health care
lobby. Will we continue to tolerate skyrocketing health care costs?
A judge will hear testimony on three related cases surrounding ballot
language for Proposition 17, which backers say will allow discounts for
more drivers and opponents claim will create back-door rate increases.
The latest is Attorney General Jerry Brown's attempt to change the
official title and summary to say the measure "will allow insurance
companies to increase cost of insurance to drivers who do not have a
history of continuous insurance coverage," according to the lawsuit.
Due to what Brown's office argued is its error, the language submitted
by the attorney general to the California Secretary of State reads,
"may allow insurance companies to increase cost of insurance to drivers
who do not qualify for discount."
There have been demands for explanations from state and federal
lawmakers as well as the White House. Documents of financial records
have been subpoenaed. Last week, Consumer Watchdog filed a lawsuit in
Ventura County Superior Court alleging the insurer doesn’t offer
adequate alternatives when it closes a policy.
« Previous
Recent Articles:
3 On Your Side: DIRECTV Complaints
By Jim Donovan, CBS-TV3 (Philadelphia, PA)
August 12, 2010
Read More »
Consumer Complaints, Lawsuits Target DIRECTV
By Staff Reporters, KCBS TV-5 (San Francisco, CA)
August 10, 2010
Read More »
Prior Approval for Health Policies Advances in California
By Sean P. Carr, BESTWIRE
March 24, 2010
Read More »
Insurance Ballot Fight Warms Up In Court
By Dale Kasler, THE SACRAMENTO BEE
March 13, 2010
Read More »
Judges Review Language Of State Ballot Measures
By Carol J. Williams, THE LOS ANGELES TIMES
March 13, 2010
Read More »