Consumer Watchdog | In The Media

Assembly Bill Would Slash Coverage Mandates For Health Insurers

Thu, 11 Mar 2010 15:44:23 PST

Modesto Assemblyman Tom Berryhill (R) has introduced a bill that would allow insurers to drop some four-dozen coverage mandates. These include overnight hospital stays for new mothers. Jerry Flanagan is with the non-profit Consumer Watchdog. "If you take those laws away, insurance companies can still charge as much as they want, but provide far less health care," Flanagan argues. "That's really good for the insurance company, because they can keep more of our money for themselves; it's the last thing you want to do for patients."

Insurers Test Health Plans That Stress Patient Choices

Thu, 11 Mar 2010 11:16:00 PST

Workers at a Portland, Ore., steel mill soon will be able to pick a new type of insurance that offers free care for some illnesses, such as diabetes or depression, but requires hefty extra fees for treatments deemed overused, including knee replacements, hysterectomies and heart bypass surgery. The policies are among the first to apply financial incentives on both sides of one important factor driving up the nation's health care tab: The underuse of proven treatments and overuse of certain surgeries and diagnostic tests that may be less valuable. But efforts to charge workers more for some treatments put employers in the position of "playing doctor" and are well into a "danger zone of... limiting access to medical care," says Jerry Flanagan of the Santa Monica, Calif.-based advocacy group Consumer Watchdog.

California Group Urges National Freeze On Health Insurance Rates

Wed, 10 Mar 2010 13:03:00 PST

President Obama should include a provision freezing health insurance rates in the package of revisions Democrats are drafting for the Senate-passed health care overhaul bill (HR 3590), a California-based consumer group said Wednesday. Other provisions that the Consumer Watchdog group wants to see included are a requirement that state regulators approve rate increases before they go into effect, and that federal grants be made available to states for developing these "prior approval" regulations. "Given the audacity of health insurance rate increases last year and this year, and with the economy in deep recession, only federal legislation can curb the spiral of unaffordability," said Carmen Balber, the Washington director for the group.

Oil Companies Look At Permanent Refinery Cutbacks

Wed, 10 Mar 2010 11:53:00 PST

The response to slumping gasoline use would likely mean higher prices for drivers. Consumer advocates want regulators to examine the firms' plans.

Consumer advocates want regulators to probe refinery closures or consolidations that slash supply. Judy Dugan, research director for the Santa Monica-based advocacy group Consumer Watchdog, said that "closing or selling refineries to others who would limit production would be a serious case of corporate irresponsibility."

Calif. Regulators Defend Dropped Insurance Deals

Wed, 10 Mar 2010 11:19:00 PST

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.

Profiting From Collusion: Why Californians Can't Afford Health Insurance

Wed, 10 Mar 2010 10:33:00 PST

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?

Google Identifies Competitors

Tue, 09 Mar 2010 12:42:56 PST

Google sees an Internet far more crowded with competitors than just a year ago. At least, that's what the company is telling government regulators. Critics of Google's dominance in search — Americans use Google for about two thirds of U.S. searches, and the company has more than 70 percent of U.S. search advertising revenue, and about 90 percent in Europe — say the expanded list of competitors is an attempt by Google to paper over its dominance. "I think they are feeling the heat from several serious antitrust investigations, and that's reflected in the language they are using in the 10-K," said John Simpson, of Consumer Watchdog. He argued in a recent blog post that Google's statements that it has many competitors actually proves that "the opposite is actually true" and that "the real risk to Google's business is not from competition," but that regulators in the U.S. and Europe "will act in the interest of consumers and force the Internet giant to engage" in competition.

Auto Insurer Revs Measure's Motor

Mon, 08 Mar 2010 18:33:00 PST

Opponents, including Doug Heller, who works with Proposition 103 author Harvey Rosenfield at Santa Monica-based Consumer Watchdog, said the real aim of Mercury is to lift the ban on surcharges for drivers who need to reinstate coverage after letting their auto insurance policies lapse. “This would allow Mercury to jack up prices for customers they don’t really want,” said Heller, spokesman for Campaign for Consumer Rights, the main opposition group to Proposition 17.

Lawsuits Over California Ballot Question to Be Heard Together

Mon, 08 Mar 2010 13:03:00 PST

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."

Anthem's Rate Hikes To Add To Burdens Of Jobless

Sat, 06 Mar 2010 14:28:00 PST

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.

Candidates Find Incumbent Advantage Extends To Web

Thu, 04 Mar 2010 15:53:00 PST

Thirteen years in the House and a stint as majority leader have furnished Rep.Roy Blunt, R-Mo., with useful GOP and K Street support for his Senate bid. But Blunt's long resume also means a boost from another source: Google. Google's overwhelming dominance of the search market has brought its power to determine marketplace outcomes under new scrutiny this year. Tech company Foundem and other so-called "search neutrality" advocates allege that the search engine is gaining an unfair advantage by favoring its own products in searches. The advocacy group Consumer Watchdog wrote the Justice Department last week urging it to investigate the issue, while the European Commission is already checking out complaints from Foundem and others.

Consumer Group Sues Anthem Blue Cross Over Rate Hike

Wed, 03 Mar 2010 12:06:00 PST

A consumer group has filed a class-action lawsuit against Anthem Blue Cross of California, alleging the company's strategy in deploying an average 25% rate increase for individual plan customers violates state law. The lawsuit was filed by Consumer Watchdog on behalf of two Anthem policyholders who are covered under a program the insurer closed to new enrollees on Sept. 25, 2009. This triggers a "death spiral" as rate increases fall to "those remaining in the closed book of business until they can no longer afford coverage," the lawsuit stated.

Senate Panel Mulls Consumer Protection Deal

Tue, 02 Mar 2010 17:57:00 PST

The Senate might break its impasse on financial overhaul if it moves forward with a proposal that would put a consumer financial protection watchdog inside the Federal Reserve. "It's time for Senator Dodd to stop negotiating with Senators who have dug into battle trenches with the big banks in their attempt to block any meaningful consumer protections, and move a bill that will give the rest of the Senate a chance to vote for Main Street and support real reform," said Carmen Balber, Washington director for Consumer Watchdog, an advocacy group.

More Bad News For Anthem

Tue, 02 Mar 2010 17:43:00 PST

The company used controversial rate hikes, as high as 39 percent, to force older and sicker customers into high-deductible plans with fewer benefits so it could save money, Santa Monica-based Consumer Watchdog alleged in the complaint. The lawsuit seeks to end that tactic of "closing" an insurance product and raising rates to members while offering them cheaper plans, which plaintiffs say is known in the industry as the "death spiral."

Insurance Rate Hikes Fan Political Firestorm

Tue, 02 Mar 2010 16:43:28 PST

On Monday, Consumer Watchdog filed a lawsuit seeking class-action status against Anthem Blue Cross, alleging that the insurer is forcing subscribers into a coverage "death spiral." The suit, filed in Ventura Superior Court, accuses Blue Cross of hiking premiums to force subscribers from benefit-rich policies to less expensive coverage with fewer benefits and higher deductibles. The scrutiny has been welcomed by many, including consumer health care advocacy groups.

Marin Family Sues Anthem Blue Cross

Tue, 02 Mar 2010 16:35:55 PST

The Santa Monica-based advocacy group Consumer Watchdog brought the suit, saying Anthem violated a 1993 state law that requires health insurance companies to offer comparable coverage or minimal premium hikes if they cancel a policy. "Today's lawsuit is just the beginning of what is going to have to be a much more profound change in the state of California when it comes to healthcare," said Harvey Rosenfield, Consumer Watchdog's founder.

Consumer Group Sues Calif. Health Insurer

Tue, 02 Mar 2010 12:13:00 PST

SANTA MONICA, Calif. (KABC) -- A consumer watchdog group filed a lawsuit Monday against California's largest for-profit health insurer on behalf of policyholders, claiming they were pushed to take coverage with fewer benefits and higher deductibles. "Anthem Blue Cross has been in the news a lot because Anthem Blue Cross is very good at gouging people," said Jerry Flanagan, a health advocate for Consumer Watchdog. "They are the market leader, not only the largest insurance carrier, but they are the best at charging people more for less coverage." Consumer Watchdog says it's called a "death spiral" because rates inevitably increased until policyholders could no longer afford coverage. They say that's against California law.

FDIC Chairman Sheila Bair Committed To Independent Consumer Agency

Tue, 02 Mar 2010 12:08:06 PST

One of the nation's top banking regulators reiterated her support for an independent agency to protect borrowers from predatory lenders, putting her at odds with her fellow regulators and the industry she oversees. "Granting the Fed consumer protection authority would create a lapdog for Wall Street, not the watchdog consumers need," said Carmen Balber, Washington Director for Consumer Watchdog, in a statement. "We can't cross our fingers and hope the regulators whose failures caused the crisis in consumer lending will do a better job for the public next time around."

Santa Venetia Woman Joins Suit Against Anthem Blue Cross

Tue, 02 Mar 2010 11:59:00 PST

The lawsuit seeks class action status and is being brought by Consumer Watchdog, a Santa Monica-based consumer advocacy group, on behalf of Feller and Freed. When the practice was outlawed in 1993, legislative analysts called it a "death spiral" because rates inevitably increased until policyholders could no longer afford coverage. As the coverage pool shrank over time, rates went up. "It's a very profitable practice, and what we know is the insurance industry is very focused on short-term returns," said Jerry Flanagan, a health advocate for Consumer Watchdog.

Consumer Group, Burlingame Attorney Sue Anthem Blue Cross Over Rate Hikes

Tue, 02 Mar 2010 11:39:00 PST

OAKLAND — A consumer group has sued Anthem Blue Cross for allegedly using its widely publicized rate hikes to attempt to force customers into lower benefit and higher deductible plans, a tactic the group calls a "death spiral." Many of the individual policyholders who recently learned their premiums would jump by as much as 39 percent were informed several months ago that Anthem Blue Cross was closing their plan to new customers, The firm then offered them plans with greatly reduced benefits, the class-action lawsuit filed by Consumer Watchdog says. "These customers are then forced to accept greatly inferior coverage or to drop it altogether," said Harvey Rosenfield, founder of Consumer Watchdog.

Anthem Blue Cross Sued Over Rate Increases

Tue, 02 Mar 2010 09:21:04 PST

A consumer group filed a lawsuit Monday against Anthem Blue Cross, accusing the insurer of raising rates to force members into policies with higher deductibles and lower benefits. Consumer Watchdog accuses Anthem of violating state law by failing to offer policyholders comparable coverage and minimize rate hikes after the company directs customers to alternative plans when closing out existing plans.

WellPoint CEO Takes On Critics Of Rate Hikes

Mon, 01 Mar 2010 22:39:17 PST

In California, in addition to government scrutiny, WellPoint faces a plaintiff suit�filed Monday in state court by the advocacy group Consumer Watchdog�that alleges that when WellPoint raised rates as it was seeking to wind down certain health plans it didn't provide mandated consumer protections, WellPoint said it hadn't yet seen the suit.

Consumer Group Sues California Health Insurer

Mon, 01 Mar 2010 22:28:36 PST

Anthem Blue Cross accused of illegal premium hikes - Customers say they are forced into inferior plans

LOS ANGELES, March 1 (Reuters) - Consumer advocates filed a class-action suit against Anthem Blue Cross on Monday, accusing California's largest for-profit health insurer of illegally using drastic rate hikes to force customers into inferior health plans.

Consumer Group Sues Insurer Over Policy Changes

Mon, 01 Mar 2010 22:20:00 PST

LOS ANGELES, CA -- A consumer watchdog group filed a lawsuit Monday against California's largest for-profit health insurer on behalf of policyholders, claiming they were pushed to take coverage with fewer benefits and higher deductibles.

Consumer Group Sues Anthem Blue Cross Over Policy Change

Mon, 01 Mar 2010 14:42:00 PST

Consumer Watchdog says Anthem violated the state's health and safety code when it closed policies to newcomers and offered remaining customers alternative plans with fewer benefits at higher rates.

Santa Monica-based Consumer Watchdog says in its class-action lawsuit that Anthem began closing "blocks of health insurance business" last fall, a few months before it informed policyholders who stayed put that their rates would rise as much as 39%.

Local Consumer Group Files Suit Against Anthem

Mon, 01 Mar 2010 09:52:00 PST

Insurer accused of manipulating policies, blocking access to care

A Santa Monica-based consumer advocacy organization filed a lawsuit Monday on behalf of enrollees of Anthem Blue Cross of California in Ventura County Superior Court, accusing the insurer of violating state law.

California Assembly Speaker-Elect P�rez Has Ties To Deep Pockets

Sun, 28 Feb 2010 11:06:00 PST

The legislator, who has cultivated an image as a crusader for the marginalized and powerless, has also advocated for the powerful.

Pérez worked closely with fellow union executive Sean Harrigan, who said he had been a Pérez mentor and who in 2000 was appointed to the board of the California Public Employees Retirement System (CalPERS), the world's largest pension fund. Consumer groups and government watchdogs were shocked by what the union did next: raise more than $374,000 in political contributions from investment firms doing business with CalPERS. "That's one step short of payola," said Doug Heller of the Santa Monica-based nonprofit group Consumer Watchdog.

Arguing Over The Arguments

Fri, 26 Feb 2010 11:03:00 PST

The argument is over the arguments submitted against Proposition 17, the Mercury Insurance-backed measure that supporters say would allow auto insurers to extend discounts for maintaining continuous coverage to motorists who switch carriers. The opponents, who say the change would result in rate hikes for motorists who experienced a lapse in coverage, countered that Mercury Insurance is the one lying and attempting to mislead the public with its attempt to shut them up.

Backers of Auto-Insurance Measure Sue Over Ballot Pamphlet Language

Thu, 25 Feb 2010 14:20:00 PST

More than $3.51 million of Cal-FAIR’s $3.58 million campaign war chest came from insurance giant Mercury General Corp. Consumer Watchdog founder Harvey Rosenfield, one of the ballot-pamphlet argument co-authors named in the suit, said he looks forward to seeing Mercury in court. “For months, Mercury has been lying to the public, to state officials and to the news media about its June ballot initiative,” he said. “Indeed, for more than 10 years, the Department of Insurance and the courts have repeatedly concluded that Mercury’s proposal would create a new rating factor — the consideration of prior insurance history — that is currently illegal.” “The fact is that today, under current law, if you stop driving you won’t pay more when you restart your insurance coverage,” Rosenfield continued. “If Mercury’s Prop. 17 passes, insurance companies will be allowed to charge a lot more to good drivers who didn’t need insurance when they weren’t driving, or who missed a single payment, or who chose to fore-go coverage because of the economy or illness.”

Group Calls On Justice To Probe Google Searches

Thu, 25 Feb 2010 09:55:09 PST

The consumer advocacy group Consumer Watchdog wrote the Justice Department Wednesday to urge it to investigate allegations that Google is manipulating its search results to favor its own products.

Google Faces New Antitrust Complaints

Wed, 24 Feb 2010 15:58:52 PST

Earlier this month, the shopping comparison search engine myTriggers brought an antitrust action against Google, alleging that the search giant unfairly lowered myTriggers' quality score. This afternoon, the nonprofit Consumer Watchdog piled on. Consumer Watchdog called for the Department of Justice to investigate whether Google "is manipulating" search results by returning its own sites high in the search results.

Anthem Blue Cross Executives Grilled At State Capitol

Wed, 24 Feb 2010 11:40:25 PST

Anthem Blue Cross executives, under intense questioning by the state Assembly's Health Committee on Tuesday, defended the company's decision to raise premiums by as much as 39 percent on hundreds of thousands of Californians. Laurel Kaufer, a self-employed single mother from Woodland Hills who has two sons in college, could see her monthly premium jump from $823 to $1,102 – an increase of 34 percent – she told the committee. Her plan has a $3,000 deductible and 30 percent co-pays, she said. "Because of these relentless rate hikes and out-of-pocket costs, I measure the need for each visit to the doctor," she said.

Anthem Defends Rate Hikes In California

Wed, 24 Feb 2010 11:29:00 PST

Legislative hearing results in testy exchange with lawmakers

Consumers also showed up to voice their displeasure. Laurel Kaufer, a self-employed single mother of two and longtime Anthem customer, said her bare-bones plan was set to rise 34% to $1,102 per month on top of a 22% increase in rates over the last two years. "If Anthem's new rate increase is permitted, I will spend a minimum of $14,724 before coverage actually kicks in for anything but a standard office visit," Kaufer said. "I can't afford to seek medical care whenever we see the need."

Lawsuit Targets Anthem Denial Policy

Tue, 23 Feb 2010 14:36:00 PST

Anthem Blue Cross refused to pay for one of its California members to get a liver transplant at an Indiana University hospital to save money. Ephram Nehme's case is "Exhibit A" of another problem: insurers refusing to pay for or denying care that treating physicians order, Jerry Flanagan, healthcare director for the Consumer Watchdog advocacy organization, said at a news conference outside the courthouse. "Denials of life-saving, medically necessary care is the M.O. of an industry that puts profits before patients and yet another example of why Americans need a public option to the private insurance market," Flanagan said.

Calif. Lawmakers Outraged By Insurer's Rate Hikes

Tue, 23 Feb 2010 11:15:00 PST

Sacramento, Calif. (AP) -- California lawmakers grilled Anthem Blue Cross executives on Tuesday about their plan to boost individual insurance premiums by as much as 39 percent, only to hear them blame the economy and a broken health care system. Laurel Kaufer, a single, working mother from Woodland Hills, said she received a letter from the company last month saying her premium could go up by about 34 percent, from $823 a month to $1,102 a month. Over the past 10 years, she said, her premium has risen 550 percent. "Because of these relentless rate hikes and out-of-pocket costs, I measure the need for each visit to the doctor, especially for myself," she said in an interview before the hearing, where she testified alongside several consumer advocates.

Democrats' Ambitious Legislative Agenda Pushes K Street Salaries Skyward

Tue, 23 Feb 2010 10:30:54 PST

“Wall Street was bailed out and benefited from taxpayer largesse, and now K Street is benefiting from it,” said Carmen Balber, head of the Washington office at Consumer Watchdog. “We all know the health insurance lobby has been such a massive undertaking and people have spent so much money in supporting or opposing it, but still, on the financial side with fewer firms and fewer lobbyists, the numbers are so much higher. That’s a picture of the stakes on Wall Street,” Balber said.

HEALTHCARE Q&A -- Not Starting From Scratch

Tue, 23 Feb 2010 09:01:03 PST

Don't states already regulate health insurance?

States do regulate insurance, but the outcome is uneven and not always effective. In many states, regulators cannot evaluate and reject rate increases before they take effect. In California, other forms of insurance are regulated this way, but health insurance is not. Auto insurers, for example, are required to submit increases to a regulatory body for approval before they can start charging customers higher premiums. Consumers can request hearings to examine rate increases of more than 7%. This regulation has saved California drivers $62 billion since 1988, according to Consumer Watchdog, a consumer advocacy group.

As Anthem Blue Cross Sends Profits To Wellpoint, It Plans Hefty Rate Hikes For Californians

Mon, 22 Feb 2010 11:52:46 PST

Even as the health insurance giant turns over hundreds of millions in profits to its parent company, it defends plans to raise rates for Californians whose care last year exceeded premiums paid.

But not all the profits went to the corporate parent. Anthem has accumulated more than $1 billion in cash -- in excess of what regulators require the company to reserve to cover outstanding claims, The Times found. And, between 2005 and 2007, Anthem made annual payments of more than $2 billion a year to affiliated companies for unspecified services, according to an analysis of regulatory filings by Consumer Watchdog. The Santa Monica-based advocacy group has urged regulators to investigate the transfers.

Experts Warn Of Medical Industry Cartels' Power

Sun, 21 Feb 2010 09:10:00 PST

The planned spike in health insurance rates by Anthem Blue Cross in California is just the tip of a Titanic-size iceberg of exorbitant price increases, secret pricing and consolidation not only by insurers - but by the hospitals, doctors and medical device-makers that send the bills to the insurers. Insurers blame hospitals and doctors, doctors blame insurers, and hospitals blame doctors and medical device-makers in what academics call an inscrutable medical-industrial complex that rivals anything the defense industry ever invented. All these groups are combining into what many experts describe as cartels. Jerry Flanagan, health care policy director for Consumer Watchdog in Santa Monica, said the heath care system is "in a tug-of-war between warring tribes... over who has market dominance over price." Flanagan doesn't think the insurance industry is losing the battle. Consumers have almost no control over costs, no ability to shop and little incentive to do so because most patients neither buy their own insurance nor pay their medical bills directly. But they foot the bill in skyrocketing premiums, deductibles and co-pays.

How Lawmakers Turn Perks Into Profit

Fri, 19 Feb 2010 17:46:00 PST

WEST SACRAMENTO – State law says legislators legally reside wherever they're registered to vote, which in Van Tran's case is 418 miles south, at his parents' house in Westminster. The law also says that if legislators live far away, they're entitled to a daily, tax-free allowance when they work at the Capitol. These laws have enabled Tran to enjoy every aspect of home life while also collecting more than $137,000 in allowance for being away from home during the legislative session. "This is a state where its own financial house and its broader economy is in disarray and yet there's still a major financial advantage and loopholes to politicians wily enough to take them," said Doug Heller, executive director of Consumer Watchdog, an observer of California government. "It should shake any taxpayer to see their lawmakers work so many angles to get rich off their public service."

Feinstein Takes On Anthem Blue Cross Over Premium Hikes

Fri, 19 Feb 2010 15:49:00 PST

WASHINGTON, D.C. — Responding to growing outrage over plans by Anthem Blue Cross to dramatically raise health insurance rates for hundreds of thousands of Californians, Sen. Dianne Feinstein on Friday proposed giving the federal government new authority to block premium increases deemed to be "unjustified." Santa Monica-based Consumer Watchdog, which for years has lobbied for rate regulation of health insurance products sold in California, called Feinstein's plan a step in the right direction. "It's needed and appropriate for the federal government to provide a backstop when states can't or won't stand up to insurance companies," said Jerry Flanagan, a health care advocate for the group.

Judge Puts Off Ruling On Google's Proposed Digital Book Settlement

Fri, 19 Feb 2010 11:26:46 PST

NEW YORK, NY -- Google confronted a barrage of criticism from opponents of its proposed digital book settlement Thursday as the Internet search giant tried to persuade a federal judge to approve a deal that would allow it to create the world's largest online library. Some consumer groups warned Thursday that the company that preaches not to be evil could suffer from eroding trust. "They are part of this Silicon Valley culture which says 'don't ask for permission because you can always ask for forgiveness,' " said John Simpson, head of the nonprofit group Consumer Watchdog. "The problem is that they are starting now to be so big and so ambitious that some of the things they are trying to do now are overreaching in a way that will very likely tarnish their brand."

Insurer Veils Its Funding Of Measure

Fri, 19 Feb 2010 10:53:10 PST

Literature For Prop. 17 Omits Mercury’s Millions

Officially, the proposition is the handiwork of Californians for Fair Auto Insurance Rates or Cal-FAIR, which describes itself as “a growing coalition of consumer advocates, businesses and insurers from across the state.” But Cal-FAIR is actually the creation of a Sacramento public-affairs firm, Bicker, Castillo & Fairbanks, that has so far earned $200,000 from Mercury for its work on the campaign, part of the insurer’s $3.5 million total contribution to the effort.

Banking On Hope

Thu, 18 Feb 2010 15:12:13 PST

Ten years ago, scientists discovered stem cells in the dental pulp of human teeth. Despite the fact that there are still no FDA-approved therapies using these cells, at least four dental stem cell banking companies exist so far, charging anywhere from $575 to more than $1,600 for the initial extraction plus an annual storage fee of around $100 per year. "It's not a huge sum," said John M. Simpson, the Stem Cell Project director at Consumer Watchdog, but "it just seems an idea to try to cash in on the stem cell craze without any obvious benefits for people being asked to fork over the money."

At Hearing On Google Books, Critics Reiterate Opposition

Thu, 18 Feb 2010 14:58:15 PST

In press releases this morning outlining their testimony, critics of the plan reiterated their opposition. “In essence Google’s latest arguments seem to boil down to this: ‘Our motto is don’t be evil, so you can trust us to control the world’s digital library,’ said John Simpson, with a group called Consumer Watchdog which has criticized Google on privacy issues.

Google In Court Over Books Deal

Thu, 18 Feb 2010 10:35:00 PST

Search giant Google is facing its opponents in a New York court over long-delayed plans to create the world's largest online library. Critics say the pact would hand the search giant a monopoly over online books sales. Some 26 interested parties will be given time to outline any objections. "This case is the key showdown. It's high-noon time in front of a judge," said John Simpson of Consumer Watchdog, one of the groups that objects to the settlement. "I do think all the books in the world should be digitised, but I think it is completely wrong to give one huge company control of that huge database and this is a very, very important matter," Mr Simpson said.

Google Buzz 'Breaks Privacy Laws'

Wed, 17 Feb 2010 11:51:00 PST

A leading privacy group has urged US regulators to investigate Google's new social networking service Buzz, one week after its launch.

The Consumer Watchdog, an advocacy group, said it was not surprised by this stumble. "This case illustrates a lot about Google's corporate culture where a company is run by computer scientists whose operating method is don't ask for permission when you can always ask for forgiveness," said the organisation's John Simpson.

Talking Car Insurance With Mercury's Top Man

Wed, 17 Feb 2010 10:23:00 PST

George Joseph is bankrolling Proposition 17 on the June ballot, saying it’s about lowering rates for California drivers. Not everyone agrees.

Consumer Watchdog insists Prop. 17 would, in effect, legalize surcharges that were made illegal by 1988’s Prop. 103, adding yet another way to discriminate against those who don’t fit the insurance industry’s profile of the perfect driver. One result, they argue, would be more uninsured drivers on the road at great cost to everyone.

Critics Say Initiative Hits Some Motorists Too Hard

Mon, 15 Feb 2010 16:19:00 PST

California’s third-largest auto insurance company says it’s just trying to give consumers a break by pushing a ballot initiative that could significantly change the way drivers are charged for their coverage. But consumer groups say that Proposition 17, which would allow insurers to set their rates partly based on how long drivers have had continuous coverage, could push auto rates higher for a large number of drivers — including military personnel who often let their insurance lapse when they are transferred.

Battle Over Auto Insurance Ballot Measure Heats Up

Mon, 15 Feb 2010 11:26:00 PST

SACRAMENTO, CA -- For more than two decades, Mercury General Corp. Chairman George Joseph has been sparring with consumer advocate Harvey Rosenfield over California's landmark automobile insurance law, Proposition 103. Combat over the latest initiative, Prop 17, escalated last week when the state Department of Insurance released legal documents sought by the San Francisco Chronicle. The documents accused Mercury of illegal practices, such as unfairly denying coverage and charging discriminatory rates to motorists who were not at fault in accidents, were members of the armed forces or worked in certain professions.