Consumer Watchdog – Affordable Car & Home Insurance - Articles

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."  

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.

When Anthem Blue Cross announced its controversial premium increases in California recently, the insurer claimed, "a carrier must be able to receive actuarially sound rates." So it is remarkable that "progressive" San Francisco State Senator Mark Leno, a single payer health care advocate, recently introduced eleventh hour legislation codifying Anthem Blue Cross's "actuarially sound" defense of premium increases in law.

Actuarial Soundness” Defense Protects Insurers At Expense of Rate Regulation, Consumer Watchdog Says

Los Angeles, CA -- Anthem Blue Cross’s defense of its recent controversial premium increases will be codified in law under eleventh hour legislation by San Francisco State Senator Mark Leno, SB 1163, just as the California legislature is set to adjourn Tuesday night. Consumer Watchdog, the group behind auto insurance regulation Prop 103 that has saved Californians $62 billion, warned that if health insurers can defend rates simply by having an actuary say the increases are “actuarial sound,”  as Anthem Blue Cross did and Leno’s legislation provides, consumers will be in big trouble.

OLDWICK, N.J. -- Certain life insurance agents and broker-dealer firms could face increased legal liability depending on how the U.S. Securities & Exchange Commission rules on the fiduciary standard pertaining to the sale of investment products. The concern among affected parties is the possible increased legal liability or financial penalties from the SEC if they don't meet the new standard, said Carmen Balber, director of the Washington, D.C. office of Consumer Watchdog.

Life insurers are facing broad criticism for profiting from the death benefits of soldiers and other life insurance policyholders after a claim is supposed to be paid...

Program Provides Economic Opportunity in Tough Times, With No Taxpayer Cost
 
Santa Monica, CA – California lawmakers gave final approval Wednesday to legislation strengthening and extending the innovative “Low Cost Auto Insurance Program” that offers an affordable bare bones car insurance policy to low-income motorists with no taxpayer cost. Consumer advocates applauded lawmakers for passing AB 1597 (Jones) on a bipartisan basis and are urging Governor Schwarzenegger to sign the bill in order to keep this program available.

$1 Million Grant Would Bolster Industry-favored Schwarzenegger Plan, Help Kill Actual Regulation of Insurance Companies

Washington, DC -- Consumer Watchdog today asked Health and Human Services Secretary Kathleen Sebelius to reject Gov. Arnold Schwarzenegger’s request for a $1 million grant under the new health reform law. The grants are intended to help states strengthen regulation of health insurance companies, but the Schwarzenegger administration’s weak plan would kill proposed protections against unjustified rate increases, Consumer Watchdog charged.

As an Aug. 31 deadline nears, state lawmakers haggle over how difficult it should be for companies to significantly raise premiums.

Consumer groups, meanwhile, say that allowing insurance companies to pick the actuaries who review their filings would give them too much influence over the process. "Insurance companies in California will be getting millions of new customers, and the least that Californians should get in return is strong oversight of rates and premiums," said Judy Dugan, research director for Consumer Watchdog in Santa Monica. "Instead, the governor's proposal would prevent effective oversight."

If Californians Have to Buy Health Insurance, Insurers Have to Be Regulated, Says Watchdog’s Letter to Gov.

Santa Monica, CA -- Consumer Watchdog has called on Gov. Arnold Schwarzenegger to withdraw weak pseudo-reforms of the health insurance industry that would bar strong regulation of health insurers. Schwarzenegger sent his proposals this month to lawmakers who are seeking stronger state regulation modeled on the successful market reforms of auto and homeowner insurance under Proposition 103, demanding that they substitute his legislation for their bills.