Protecting Patients

Insurers Test Health Plans That Stress Patient Choices

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.

 

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California Group Urges National Freeze On Health Insurance Rates

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.

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Calif. Regulators Defend Dropped Insurance Deals

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.

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

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?

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Insurance Regulation Expert Calls For Freeze Of Health Rates Until 'Prior Approval' Regulation Is Adopted

Washington, DC -- Harvey Rosenfield, author of California’s landmark insurance regulation Proposition 103—recognized as the most successful insurance regulation in the country—was joined today by people struggling to pay for health insurance in calling on President Obama and Congress to impose a national freeze on health insurance rates as part of the final round of votes on reform. Consumers must have a breather from yearly premium hikes like the 39% increase planned by Anthem Blue Cross, said Consumer Watchdog, which Rosenfield founded.

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Revisions to Health Care Reform Must Include Rate Freeze, Rate Regulation and States' Rights Provisions, Says Consumer Watchdog

Insurers Would Get Tens of Millions of New Customers Under Reform, and Owe Americans a Break from Audacious Rate Spikes By Anthem Blue Cross and Others

Washington, DC -- Consumer Watchdog called on President Obama to impose a national freeze on health insurance rates before health reform takes effect to protect consumers from premium hikes like the 39% increase recently announced by Anthem Blue Cross in California. The rate freeze is one of five tools Consumer Watchdog urged the president to include as part of his proposed fixes to the Senate health care bill.

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Anthem's Rate Hikes To Add To Burdens Of Jobless

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.

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Consumer Group Sues Anthem Blue Cross Over Rate Hike

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.

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More Bad News For Anthem

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."

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Insurance Rate Hikes Fan Political Firestorm

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.

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Recent Articles:

Insurers Test Health Plans That Stress Patient Choices

By Julie Appleby, USA TODAY
March 11, 2010

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California Group Urges National Freeze On Health Insurance Rates

By John Reichard, CONGRESSIONAL QUARTERLY HEALTHBEAT
March 10, 2010

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Calif. Regulators Defend Dropped Insurance Deals

By Shaya Tayefe Mohajer, ASSOCIATED PRESS
March 10, 2010

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Insurance Regulation Expert Calls For Freeze Of Health Rates Until 'Prior Approval' Regulation Is Adopted

CONTACT: Jerry Flanagan, (310) 889-4912; or Carmen Balber, (202) 629-3043
March 10, 2010

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Recent Posts in Protecting Patients:

Insurance rate curbs continue to gain steam

The latest round of exhorbitant rate increases nationally has helped more and more people recognize what Consumer Watchdog has been arguing for the last year: Congress cannot require all Americans to purchase insurance from the for-profit insurance industry without real oversight of what they charge ...

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Health insurance premium curbs are catching on

Consumer Watchdog's calls for tough and open health insurance rate regulation are being echoed and amplified. The latest instance is in Connecticut, the home state of insurance companies, where Attorney General Earl Blumenthal recently proposed major reforms that would require the state to review and reject, modify or allow a rate change before it goes into effect. No more shrugging and letting it happen without a public review.

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Sarah Palin wasn't the only Alaskan border-hopping for health care

Sarah Palin, the Cruella DeVille of anti-government-health care, caught everyone's attention with the story of her family hopping the border from Skagway, Alaska, into the Yukon Territory for Canadian government health care when Palin was a child. Canadian newspapers noted cattily that Palin previously described going to Juneau, Alaska, for the same treatment for her brother's burned foot. Whatever. I wanted to know whether other Alaskans went to Canada for medical care--and still do.

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The no. 1 cure for Anthem Blue Cross greed: Here's the plan, from the expert

Harvey Rosenfield, the founder of Consumer Watchdog and the author of California's landmark insurance regulation, is the original expert on making insurance companies friendlier to consumers. So when he outlines a plan to make health insurance more affordable--and combat price spikes like the recent 39% annual increase by Anthem Blue Cross--he's got 20 years in the trenches making insurance companies toe the line, to back him up.

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Thanks Blue Cross, you gave the public its reason to reform

The President called for an up or down vote on health care reform, but I can say from my own experience this week working with Blue Cross patients, who are part of Consumer Watchdog’s lawsuit against he company, that the public has already cast its vote. 

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