Shanaya Reeves' Opinion
If you ask me, the cost of health insurance is still ok though I don't know about the future the way rates are going up.
I don't think the rise in costs necessitates healthcare reform. The solution to controlling costs may lie in better technology or better procedures.
I do believe that having to provide cover for illegal aliens is one of the factors driving up costs. Also, lack of health insurance competition in Georgia and Alabama for instance is certainly a high cost factor in those states.
I believe such solutions as the above would make any further government intervention unnecessary.
The stats about people not covered by health insurance is slightly bloated because many young people do not get health insured BY CHOICE. They simply feel they don't need it since they rarely have serious medical complaints unlike the elderly.
The reasons for not having coverage don't boil down to cost alone. Sometimes, it's simply choice.
Wednesday, November 11, 2009
'Democrat' Leiberman & Health Insurance
Hey, we need to remember that Mr Joe Lieberman is more of an Israeli than an American.What is his concern about 30 million or more americans who have no health insurance?
Funny enough, the man supports health insurance in Israel which is both universal and compulsory.
It seems Lieberman just wants to continue enjoying the money from the insurance companies with home base in his state.
Sorry to say it seems this guy is selfish and greedy and couldn't care less about many americans. Even seems his wife is also on the insurance companies payroll.
Funny enough, the man supports health insurance in Israel which is both universal and compulsory.
It seems Lieberman just wants to continue enjoying the money from the insurance companies with home base in his state.
Sorry to say it seems this guy is selfish and greedy and couldn't care less about many americans. Even seems his wife is also on the insurance companies payroll.
Monday, November 9, 2009
Getting the VIN for a new engine
This little bit of info is for you if you've just bought a new engine and are interested in knowing the VIN of the Car it once belonged to.
Some car models have the VIN information embedded on the back of the engine block, just under the exhaust manifold.
Some car models have the VIN information embedded on the back of the engine block, just under the exhaust manifold.
Tuesday, April 7, 2009
Get Cheapest Homeowners Insurance
Nobody likes to think anything could ever happen to their home because this is the place we spend a significant amount of our lives and the place we form a strong emotional attachment to, it is the place we feel safe and the thought that anything could ever happen to it is unthinkable.
Unfortunately, as the saying goes, whatever can go wrong, usually will go wrong, so in that vein, it pays to be prepared because environmental factors, fire and theft are factors outside of your control.
Even though insuring your home can not replace the sentimental value at least you can have some peace of mind you are covered in the event you may need it.
Do not just ensure the house itself but make sure that your personal belongings are covered as well.
Should anything happen to your house at least it is a comfort to know that you do not have to find the money to buy and replace everything within your home as well.
Save yourself the trouble and included your contents with your home insurance policy. Our basic home insurance should protect you against fire and flood, damage to property and theft.
With the accessibility of the internet you are able to get a quote any time of day or night when it suits your schedule, no more waiting for a representative to make an appointment and physically come to your house, so make the most of this benefit and compare several quotes if you need to, the power truly is back in the hands of the consumer and you can pick and choose which one is right for your situation.
Getting your quotes instantly online you will be able to compare which companies will give you the best deal for your budget and what that particular insurance policy entails including the details of exactly what you are covered for.
Finance lenders will insist you have a homeowners insurance policy to ensure they are covered should a large claim ever be made.
You can save on monthly insurance premiums by raising the amount you pay on your deductible, in fact you can reduce your premium payments by up to two to three times. You can also save an additional 20 to 30% by doing something as simple as taking out an additional insurance policy with your existing company.
If you are already paying an existing auto insurance policy you might as well save money on it and consolidate your policies under one company.
You need to insure for the Replacement value rather than Actual costs when it comes to your home contents.
The replacement value allows you to claim the costs for your contents by present day value rather than actual costs which only gives you an amount after depreciation, for example instead of being given $1,500 to purchase a new home entertainment system that you bought 5 years ago, you would receive the amount the item was worth after depreciation at present day value, say $400, so it pays to make sure you get the right contents insurance.
If you want to protect your home and your contents then you can not afford to be without a homeowners insurance because you never know when you just might need it.
Unfortunately, as the saying goes, whatever can go wrong, usually will go wrong, so in that vein, it pays to be prepared because environmental factors, fire and theft are factors outside of your control.
Even though insuring your home can not replace the sentimental value at least you can have some peace of mind you are covered in the event you may need it.
Do not just ensure the house itself but make sure that your personal belongings are covered as well.
Should anything happen to your house at least it is a comfort to know that you do not have to find the money to buy and replace everything within your home as well.
Save yourself the trouble and included your contents with your home insurance policy. Our basic home insurance should protect you against fire and flood, damage to property and theft.
With the accessibility of the internet you are able to get a quote any time of day or night when it suits your schedule, no more waiting for a representative to make an appointment and physically come to your house, so make the most of this benefit and compare several quotes if you need to, the power truly is back in the hands of the consumer and you can pick and choose which one is right for your situation.
Getting your quotes instantly online you will be able to compare which companies will give you the best deal for your budget and what that particular insurance policy entails including the details of exactly what you are covered for.
Finance lenders will insist you have a homeowners insurance policy to ensure they are covered should a large claim ever be made.
You can save on monthly insurance premiums by raising the amount you pay on your deductible, in fact you can reduce your premium payments by up to two to three times. You can also save an additional 20 to 30% by doing something as simple as taking out an additional insurance policy with your existing company.
If you are already paying an existing auto insurance policy you might as well save money on it and consolidate your policies under one company.
You need to insure for the Replacement value rather than Actual costs when it comes to your home contents.
The replacement value allows you to claim the costs for your contents by present day value rather than actual costs which only gives you an amount after depreciation, for example instead of being given $1,500 to purchase a new home entertainment system that you bought 5 years ago, you would receive the amount the item was worth after depreciation at present day value, say $400, so it pays to make sure you get the right contents insurance.
If you want to protect your home and your contents then you can not afford to be without a homeowners insurance because you never know when you just might need it.
Get the Right Home Insurance For You
You can legally own a home without having homeowner insurance but if you have financed the purchase of your home with a mortgage, your lender will most likely require you to get homeowners insurance coverage to protect their investment. That is when using a specialist website that gives you full access to the marketplace is so helpful when deciding upon the best homeowner insurance policy for you.
So what is homeowner insurance? It is a package policy, which provides financial protection, covering both damage to your property and your liability or legal responsibility for any injuries and property damage, you and your family, may cause to other people. The most common is a standard homeowner insurance policy, which comprises of four essential types of coverage: structure of your home, your personal belongings, liability protection and additional living expenses should you temporarily not be able to live in your home because of an event, which is covered by the policy, like fire.
However, it is possible just to have buildings insurance making it cheaper but you must consider the expense of replacing your belongings without contents insurance, in the event of a disaster. You need to think about your cover, do you really need accidental damage cover as this can increase your premiums by 25%. It is also helpful to know that some insurance companies offer a discounted price on their policies if you take another insurance product with them, like car insurance.
Ideally when obtaining homeowner insurance we wish to enjoy the maximum coverage with the minimum premiums. With this specialist website, you only have to enter your details the once. It enables you to access the results in a matter of minutes, allowing effortless comparison of homeowner insurance, instantly reviewing the policy contents, saving precious time and money. It allows you to change the way in which you view your quotes, simply list them in an order that best suits you, save the information and retrieve it later at your convenience.
Your location can affect the price of your homeowner insurance, this maybe one of the deciding factors should you be looking to move. What better than to have a specialist website that allows you to peruse with ease the difference in price a postcode can make. You will notice the increase of homeowner insurance in areas that are prone to flooding or where subsidence is prevalent.
There are a number of things you can do to your home to reduce the risk of making a claim and thus reducing the premiums. Fit five-lever mortise locks on external doors and two bolt locks on windows. The fitting of smoke alarms, installing a good home security system and even joining the local neighbourhood watch campaign are all simple things you can do. The insurance companies when assessing the risk of providing you with a homeowner insurance policy look upon these details favourably.
The excess amount on a policy is the amount of money you are willing to pay on claims, the higher the excess, the lower the premiums. The reduction in premiums can be as much as 20% with some insurers for as little as £250.00 excess. This specialist website allows easy alteration of the excess amounts and other criteria, providing impartial information from an extensive range of trusted insurance suppliers, enabling you to make an informed decision when choosing homeowner insurance.
So what is homeowner insurance? It is a package policy, which provides financial protection, covering both damage to your property and your liability or legal responsibility for any injuries and property damage, you and your family, may cause to other people. The most common is a standard homeowner insurance policy, which comprises of four essential types of coverage: structure of your home, your personal belongings, liability protection and additional living expenses should you temporarily not be able to live in your home because of an event, which is covered by the policy, like fire.
However, it is possible just to have buildings insurance making it cheaper but you must consider the expense of replacing your belongings without contents insurance, in the event of a disaster. You need to think about your cover, do you really need accidental damage cover as this can increase your premiums by 25%. It is also helpful to know that some insurance companies offer a discounted price on their policies if you take another insurance product with them, like car insurance.
Ideally when obtaining homeowner insurance we wish to enjoy the maximum coverage with the minimum premiums. With this specialist website, you only have to enter your details the once. It enables you to access the results in a matter of minutes, allowing effortless comparison of homeowner insurance, instantly reviewing the policy contents, saving precious time and money. It allows you to change the way in which you view your quotes, simply list them in an order that best suits you, save the information and retrieve it later at your convenience.
Your location can affect the price of your homeowner insurance, this maybe one of the deciding factors should you be looking to move. What better than to have a specialist website that allows you to peruse with ease the difference in price a postcode can make. You will notice the increase of homeowner insurance in areas that are prone to flooding or where subsidence is prevalent.
There are a number of things you can do to your home to reduce the risk of making a claim and thus reducing the premiums. Fit five-lever mortise locks on external doors and two bolt locks on windows. The fitting of smoke alarms, installing a good home security system and even joining the local neighbourhood watch campaign are all simple things you can do. The insurance companies when assessing the risk of providing you with a homeowner insurance policy look upon these details favourably.
The excess amount on a policy is the amount of money you are willing to pay on claims, the higher the excess, the lower the premiums. The reduction in premiums can be as much as 20% with some insurers for as little as £250.00 excess. This specialist website allows easy alteration of the excess amounts and other criteria, providing impartial information from an extensive range of trusted insurance suppliers, enabling you to make an informed decision when choosing homeowner insurance.
Home Insurance Savings: Get Online Quotes & Save
Now you can get a quote for homeowner insurance online and save yourself time in the process of saving yourself some money. As a home owner you understand the importance of protecting your most valued asset, your home and it's contents with the best possible coverage available. Unlike in the past it is an easy task today to find that protection for your home online. With a few clicks of the mouse in the comfort of your home or office it is possible to research, compare and secure home owner insurance quotes from multiple home insurers, sometimes in minutes.
When you choose to make use of the internet in order to get an home owners insurance quote, you will be given the opportunity to carry out some comparison shopping amongst the many reputable companies and insurance agents available to you on line. In fact, seeking out home insurance online is by far the simplest way of doing things and you can learn a lot as you browse through the various policies all without having to leave the comfort of your own home.
With work, family and health issues, to name but a few, competing with each other for your time and attention you can find yourself being pulled in every which direction. Taking the time to make appointments, fill out forms and mail them off for consideration is just another boring task and something you don't much look forward to doing. Doing it once may be all that you can stand. This is why most home owners choose home insurance without comparing quotes, they simply don't want the bother.
Time savings is a big benefit of seeking a home owners insurance online quotes. If you are pushed for time, like most of us are now a days, it is so quick and easy to complete an homeowners insurance application online. All you have to do after filling in the on line form is just one click of the mouse and your application will be delivered to the website for consideration.
The biggest benefit besides time you will receive securing online homeowners insurance quotes is the savings of money. This savings can be substantial since you can now do a more thorough job of research and comparison. Easily find different competing home insurers and quickly compare each company, policy coverages and their quotes. Since you can submit as many applications as you like you are now in the drivers seat when it comes to picking and choosing the absolute best coverage with the best premiums.
In order to realize the most significant savings possible you should, at minimum, compare four competing home insurance quotes before you decide on one. The beauty of this is that spending just a few minutes online and submitting a secure application allows you to do in minutes what used to take days or weeks. There are even some home insurance companies online that offer multiple online homeowners insurance quotes with the submission of one application.
When you choose to make use of the internet in order to get an home owners insurance quote, you will be given the opportunity to carry out some comparison shopping amongst the many reputable companies and insurance agents available to you on line. In fact, seeking out home insurance online is by far the simplest way of doing things and you can learn a lot as you browse through the various policies all without having to leave the comfort of your own home.
With work, family and health issues, to name but a few, competing with each other for your time and attention you can find yourself being pulled in every which direction. Taking the time to make appointments, fill out forms and mail them off for consideration is just another boring task and something you don't much look forward to doing. Doing it once may be all that you can stand. This is why most home owners choose home insurance without comparing quotes, they simply don't want the bother.
Time savings is a big benefit of seeking a home owners insurance online quotes. If you are pushed for time, like most of us are now a days, it is so quick and easy to complete an homeowners insurance application online. All you have to do after filling in the on line form is just one click of the mouse and your application will be delivered to the website for consideration.
The biggest benefit besides time you will receive securing online homeowners insurance quotes is the savings of money. This savings can be substantial since you can now do a more thorough job of research and comparison. Easily find different competing home insurers and quickly compare each company, policy coverages and their quotes. Since you can submit as many applications as you like you are now in the drivers seat when it comes to picking and choosing the absolute best coverage with the best premiums.
In order to realize the most significant savings possible you should, at minimum, compare four competing home insurance quotes before you decide on one. The beauty of this is that spending just a few minutes online and submitting a secure application allows you to do in minutes what used to take days or weeks. There are even some home insurance companies online that offer multiple online homeowners insurance quotes with the submission of one application.
Homeowners Insurance Coverage: How much do you actually need?
The cost of actually replacing your home should you need to rebuild it, is the total amount of cover that you should apply for. In today's market, the cost of rebuilding your home may be greater than it was to actually build the home previously. Applicant's of home insurance cover should seriously consider buying extra cover over and above the basic replacement value.
Your homeowner's insurance policy can be protection for your home if it is damaged in almost any way. It can be a lifesaver in the event of theft, fire, vandalism, an explosion, or wind damage. If your home is not up to the standard to be able to live in it then you are able to use the homeowner's insurance to pay for alternative accomodation whilst your home is being repaired.
There may be some losses which are not covered by your homeowner's insurance and your insurance agent will inform you about these uncovered losses. Living in any location that is deemed as being high risk due to the high probability of natural disasters, your insurance company may send you to the government for additional protection. There are funds that are sponsored by the government for natutal disasters such as the Wind Pool fund, this could even be available where you live. If you plan to move to or if you already live in a high risk state like Alabama, Texas, Florida, Mississippi, or North and South Carolina you may want to consider buying wind storm insurance.
It should be noted that homeowner's insurance does not include cover against any potential floods. The Federal Emergency Management Agency offers flood insurance through the National Flood Insurance Program. Destruction caused by high waters or a flash flood, which means if water penetrates your home the flood insurance will cover the damages instead of homeowner's insurance. Ask if your home is in a high risk area and adjust your coverage to cover the possible flood damages.
The priority of homeowner's insurance is to cover the policy holder against any potential financial loss for nearly any reason. It is of utmost importance to review your policy on a regular basis. It is up to the homeowner to keep adequate coverage by adding coverage for improvements or remodeling or the purchase of new furnishings. Rising home prices and inflation also need to be taken into consideration. A home purchased in 1980 may be worth 3 or 4 times the original purchase price in 2008. A home built in the 70's or 80's might have different building codes in the 21st century. Building materials definately cost a higher amount than they did during that time. Protecting your family's home is one of the most important things you can do for them. To assure them and also your own self, homeowner's insurance is the best way to show everyone that your home will always be protected.
Your homeowner's insurance policy can be protection for your home if it is damaged in almost any way. It can be a lifesaver in the event of theft, fire, vandalism, an explosion, or wind damage. If your home is not up to the standard to be able to live in it then you are able to use the homeowner's insurance to pay for alternative accomodation whilst your home is being repaired.
There may be some losses which are not covered by your homeowner's insurance and your insurance agent will inform you about these uncovered losses. Living in any location that is deemed as being high risk due to the high probability of natural disasters, your insurance company may send you to the government for additional protection. There are funds that are sponsored by the government for natutal disasters such as the Wind Pool fund, this could even be available where you live. If you plan to move to or if you already live in a high risk state like Alabama, Texas, Florida, Mississippi, or North and South Carolina you may want to consider buying wind storm insurance.
It should be noted that homeowner's insurance does not include cover against any potential floods. The Federal Emergency Management Agency offers flood insurance through the National Flood Insurance Program. Destruction caused by high waters or a flash flood, which means if water penetrates your home the flood insurance will cover the damages instead of homeowner's insurance. Ask if your home is in a high risk area and adjust your coverage to cover the possible flood damages.
The priority of homeowner's insurance is to cover the policy holder against any potential financial loss for nearly any reason. It is of utmost importance to review your policy on a regular basis. It is up to the homeowner to keep adequate coverage by adding coverage for improvements or remodeling or the purchase of new furnishings. Rising home prices and inflation also need to be taken into consideration. A home purchased in 1980 may be worth 3 or 4 times the original purchase price in 2008. A home built in the 70's or 80's might have different building codes in the 21st century. Building materials definately cost a higher amount than they did during that time. Protecting your family's home is one of the most important things you can do for them. To assure them and also your own self, homeowner's insurance is the best way to show everyone that your home will always be protected.
Online Homeowners Insurance Comparison
Insurance is a very big deal and that is why it is much recommended to shop around and do your research before purchasing one. The insurance premiums change from one customer to another depends on what you want to insure.
Look for the best insurance company, compare between several companies and ask them for a quote. Most of the companies would give you a rough sum, but if you wait and give them the details they ask for you could get an exact offer from the companies. The best and the most efficient way to get several offers is to get online and visit the websites of the companies, contact an insurer online and you will get instant quotes. This way you would know what kind of prices to expect. You could also try the quotation website, on this website you could choose different options and see how it affects your premium. There are many factors that could affect the price of your premium and that is why you should know all your options. If there is something you don't want the policy to cover tell it to your agent and your premium would become much cheaper.
Be very careful not to double insure, that means that you insure something twice, it may seem necessary, but you don't benefit anything from this. Surely you won't be paid twice in case of damage to the insured object. If you see that an item is already insured and your agent wants to insure it let him know that the item is already insured and it should be taken under consideration when they calculate the amount you need to pay.
There are a few factors that would affect price of your premium. Your address is one of these factors, for example: if you live in an area that is prone to earthquakes, or has a high crime rate your policy price would be affected by that. If your home is in an area that flood often or suffers from many hurricanes and other disasters know that your policy is going to be more expansive. If you make your home safer you could save some money, if you installed an alarm system or any other devices that could protect your house you could get a discount on your policy. Also if you fire alarm or sprinklers it could make your premium cheaper.
If your area floods often you could take flood prevention measures. Another important factor is the value and the size of your home, logically an expansive, big house is going to cost a lot to rebuild. Some companies would require that the house will be always occupied and if you rent such a house your premium is likely to change.
Never include the price of the land on which the house is build on in the rebuilding costs. Many people list in their policy the cost that they paid for the house, but it is not correct. All of the above are ways for insurance companies to offer quotes and rates, but that is not all. There are more ways to save money on your insurance policy
, that is why you always need to be in touch with your insurance agent and he can tell you what discounts or savings you can get.
Home Insurance Comparison Online: How to do it
When Insuring your home first you should make sure that the insurance company you are using is licensed to sell home owner’s insurance. Never use the services of a company that doesn't have a valid license in your state, if you should ever have problems with the insurance company you won't be able to ask help from your state’s department of insurance if the company is not licensed, besides you could be getting into a big scam.
The insurance company you pick should have a good financial reputation. In our days it is unlikely that a company will go bankrupt while you have a policy especially because the insurance industry is regulated all the time. But there could be a situation that the insurance company is being watched or investigated, these kind of companies you should avoid. Before purchasing insurance make sure you checked every thing about the company, check the insurance company’s rating and that would help you see if the company is the best there is. Also you should make sure that the company isn't being monitored by the state’s department of insurance. All of this information you could find on the Internet.
Find out more about the company you are interested in from people you know, if your neighbor insures his house in the company you are comparing talk to him and see if he is satisfied from their services. Ask them all kinds of questions about the insurance company so you can make the best choice. Are they satisfied with the rates? Does the company keep their coverage promises? and other important questions.
When insuring your house, make sure you include in the policy every thing you want to insure. The insurance is not complete if you haven't included all the things you want to insure in the policy, which means that your valuables should be included also. Yes you will get the coverage that you paid for, but what if in case of damage the things that are not insured would be damaged the replacement or fixing of the valuables would come out of your pocket.
In case you lost your home your expanses would dramatically increase, you would have to stay in a hotel and eat out, and all of this is a lot of money that is why your insurance policy should include the coverage of these expanses. The level of insurance is very different from one person to another and it depends on what kind of a homeowner’s insurance policy you have. Always pay attention to the benefits you will receive when getting quotes for your homeowners insurance.
The final and very important thing is to have a lot of additional coverage options to choose from. Your company should allow you to have the freedom to choose additional coverage. Look for a company that would offer you such conditions.
Homeowners Insurance: What you need to know
A typical Homeowners insurance policy has two main sections.
Section 1 includes the property of the insured and Section 2 includes the personal liability coverage that needs to be insured.
At times, lender might require homeowner's insurance as part of requirement in obtaining a mortgage. While buying home insurance policyone has to keep certain important things in mind. One needs the best level of protection as well as the provisions for valuables like jewelry, computer equipment, kitchen appliances and other possessions. In order to have adequate home insurance coverage one must check with agent or home insurance company beforehand to be sure of the adequate coverage instead of relying on the coverage mandated by the bank or mortgage company. Those levels are for protecting the house only and eventually skip the protection of possessions.
While applying for home insurance the insurance company needs to know about your present occupation, employment history, marital status, date of birth and social security number. The insurer needs to check the credit criminal and insurance history. Insurance claims of past is also checked by the home insurance company. The decision to chose a specific type of homeowner's policy, deductible and how to pay for the coverage depends upon the homeowner.
There is exception to destructions like flood, earthquake and poor maintenance of house. Home insurance is needed and most lending institutions will require the homeowners to acquire a certain amount of coverage before issuing a loan to purchase property. The lender has a vested interest in property and wants to ensure financial compensation in the event of disaster. Homeowners may suffer a default of loan if they fail to carry the level of coverage needed by lender.
Contents Home Insurance: Get it cheaper online
Home and contents insurance can be a lot cheaper when bought online. This means that you can have peace of mind for a lot less than your policy is costing you now. If you took out a policy from the high street lender as opposed to shopping around then you should go online with a specialist and allow them to gather quotes for you.
The majority of people do take a policy from the high street lender. The main reason for doing so is that they believe that home insurance has to be taken from the mortgage lender or they might not get the mortgage. This is closely followed by apathy - the fact that many people feel that they haven't got the time to shop around and believe the price of cover does not vary that much.
Those who have a home and contents insurance policy at the moment should also be aware than they might need more cover than they currently have. With the Christmas period over and expensive gifts having been exchanged many could find themselves under insured. While the majority of policies will be lenient and offer extra cover on the run up to the holiday period when you have gifts in the house, after Christmas this is dropped off. This means that you need to take an inventory again and check to make sure you are still insured for the correct amount. If you do this get a fresh quote with a broker, never be tempted to up the amount with your current provider.
The terms and conditions of any policy are a vital part of the cover and this needs to be checked along with the premiums. This is the part of the policy which will tell you what is and is not covered. It will also tell you how much the premium will cost in total and give vital information regarding the insurance. The terms and conditions of a policy can vary greatly so never assume that they will be the same. Just as the premiums for the cover will vary remember that the conditions will too. If you have any expensive jewellery, home office equipment or collections then these might not be included in with your basic cover.
When making an inventory of your possessions with a view to taking out home and contents insurance do not forget about the little things. While the big items such as TV, sofa and such items will jump out it is important not to forget the items that are hidden from view. Take into account the clothes in the wardrobe and items in the kitchen cupboards, they might only be small items but it can be surprising how much they can add up to.
Home and contents insurance taken out online is always the best way to take out cover. A broker however can find you the right policy in the shortest time possible which saves you effort. You can also be sure you have the key facts which must be compared if you are to get the cover you need.
The majority of people do take a policy from the high street lender. The main reason for doing so is that they believe that home insurance has to be taken from the mortgage lender or they might not get the mortgage. This is closely followed by apathy - the fact that many people feel that they haven't got the time to shop around and believe the price of cover does not vary that much.
Those who have a home and contents insurance policy at the moment should also be aware than they might need more cover than they currently have. With the Christmas period over and expensive gifts having been exchanged many could find themselves under insured. While the majority of policies will be lenient and offer extra cover on the run up to the holiday period when you have gifts in the house, after Christmas this is dropped off. This means that you need to take an inventory again and check to make sure you are still insured for the correct amount. If you do this get a fresh quote with a broker, never be tempted to up the amount with your current provider.
The terms and conditions of any policy are a vital part of the cover and this needs to be checked along with the premiums. This is the part of the policy which will tell you what is and is not covered. It will also tell you how much the premium will cost in total and give vital information regarding the insurance. The terms and conditions of a policy can vary greatly so never assume that they will be the same. Just as the premiums for the cover will vary remember that the conditions will too. If you have any expensive jewellery, home office equipment or collections then these might not be included in with your basic cover.
When making an inventory of your possessions with a view to taking out home and contents insurance do not forget about the little things. While the big items such as TV, sofa and such items will jump out it is important not to forget the items that are hidden from view. Take into account the clothes in the wardrobe and items in the kitchen cupboards, they might only be small items but it can be surprising how much they can add up to.
Home and contents insurance taken out online is always the best way to take out cover. A broker however can find you the right policy in the shortest time possible which saves you effort. You can also be sure you have the key facts which must be compared if you are to get the cover you need.
Saturday, April 4, 2009
First time home buyers benefit from crashing prices
While her friends ran up credit card debt and bought show homes beyond their means, Taina Goldman saved for a down payment. She moved back in with her parents, sharing a room with her young daughter, ate in and worked two jobs.
“I don’t live dangerously,” said Ms. Goldman, 42, a nurse. “You can’t live on ‘what if.’ ”
Now, she is reaping the rewards. She and her daughter recently moved into a three-bedroom, two-bathroom ranch-style house, with a pool, after putting 20 percent down and persuading the seller to cover most of her closing costs. She paid $187,000 for a house that sold in July 2006 for $370,000.
And there are many more like her. Across Florida and other states with high numbers of foreclosures, severe declines in real estate values are reinvigorating a group of buyers previously priced out: middle-class families with steady jobs, who are often buying a home for the first time.
Figures released last week by the National Association of Realtors show that sales of existing homes across the country rose 5.1 percent in February, with much of the increase concentrated in foreclosed homes bought for less than $300,000. Even with tighter borrowing restrictions, many families used to renting are discovering that they can afford to own.
“They are the most active participants right now because they don’t have the burden of having to sell their old homes,” said James Diffley, a managing director at IHS Global Insight, a research firm. “You have a bunch of young people who were forced to sit on the sidelines because houses were so darn expensive, and now they’re starting to come in.”
Real estate agents in Arizona, Florida, Nevada and other states hit hard by the bust say they began to notice rising interest among first-time buyers a few months ago, as prices dropped by more than a third.
The addition of a tax credit of up to $8,000, part of the federal housing rescue plan passed in February, appears to be sweetening the pot for some of those buyers, while banks eager to unload foreclosed properties have also begun to offer incentives, like money for closing costs.
“A lot of the banks have adjusted their thinking,” said John Ahlbrand, a real estate agent who with his wife, Ruth, owns ReMax Central in Las Vegas. “If they show they have the ability to repay — imagine that — then the bank helps.”
In some areas, several families have pooled enough money to pay cash for homes. There are others, like Ms. Goldman, who saved enough to afford a traditional down payment and mortgage.
But in many cases, agents and loan officers say, first-time buyers are receiving loans insured by the Federal Housing Administration, which allow for lower credit scores and a down payment of only 3.5 percent.
Unlike the subprime mortgages doled out a few years ago to nearly anyone who asked, F.H.A. loans include strict income requirements. Buyers must document two years of employment history with pay stubs and W-2 forms that are verified by the underwriter, and they can typically borrow only around 31 percent of their income, or 43 percent when other debt is included.
Andrea Heuson, a finance professor at the University of Miami, said the tighter restrictions should help ensure that people who buy can afford to pay what they owe — as long as they keep their jobs.
A second risk is that these new buyers will walk away if property values continue to drop.
Jennifer Vaughn’s development in Homestead is one of many where prices seem to fall by the day.
A 26-year-old first-time buyer, Ms. Vaughn closed on a three-bedroom, three-bathroom townhouse in November, paying $87,000 for the foreclosed property with an F.H.A. loan. The price was far below the $261,000 the house sold for in October 2006, but a few weeks ago, a townhouse with the same layout and fancier features sold for $75,000. And a third is about to close for $65,000, said Andy Lopez, a real estate agent at Keyes Company Realtors who found Ms. Vaughn her townhouse. So already, she appears to owe more than her home is worth. Not that she minds.
“I’m going to stay for five or six years at least,” Ms. Vaughn said, “and I’m sure prices will go up somewhat by then.”
She also has one of the recession’s safest job: she works for a collection agency. Ms. Vaughn said she could afford her $1,100 monthly payment, which includes taxes and insurance, and had already settled in.
“It’s like the best feeling,” she said, admiring the arches in her doorways. “I never thought I could own.”
Many other buyers are equally giddy.
Julio Cesar Memeses, 45, a construction worker who is about to close on a three-bedroom home in West Phoenix for $50,000, said he and his family were thrilled to own “a piece of the American dream.” He said they were not worried about making their mortgage payments because the price was so low.
Ms. Goldman, too, said she felt pleased. “It’s like, wow, I accomplished something,” she said.
She said she had visited 200 properties before finding her current home late one night and deciding she had to have it. Sliding open the glass door to the pool on a sunny afternoon, she said: “I love the light. That’s what captured me.”
Her daughter, Tiffany Munro, 14, stood beside her. “I’m, like, this is my house,” Tiffany said, looking skyward, and smiling. “I get to live here.”
The house, a foreclosure in the Kendall neighborhood, needed a little work. Some lights had been removed, and the fence had been painted the colors of a rainbow. Tiffany insisted that the fence be repainted white (“like white picket fences in the old movies,” she said).
Tiffany also asked permission to paint her bedroom wall with a mural of her own design — a drawing with dozens of small hearts.
In all, Ms. Goldman said she spent about $6,000 fixing up the house. Like Ms. Vaughn, Ms. Goldman said she did not worry about declining prices because she had no plans to leave.
Asked if she felt vindicated — rewarded for saving when so many others spent — she said no. “It’s sad that for me to buy a house, the economy had to be like it is,” she said.
Sitting on her couch, overlooking the pool, Ms. Goldman said she feared that the drop in prices would draw back the same investors who created the housing bubble in the first place. Real estate agents said this was already happening, even as the wave of foreclosures and evicted families would most likely continue.
“It’s not worth it in the end,” Ms. Goldman said, adding, “It’s unfortunate that I have to build my happiness on top of tears.”
“I don’t live dangerously,” said Ms. Goldman, 42, a nurse. “You can’t live on ‘what if.’ ”
Now, she is reaping the rewards. She and her daughter recently moved into a three-bedroom, two-bathroom ranch-style house, with a pool, after putting 20 percent down and persuading the seller to cover most of her closing costs. She paid $187,000 for a house that sold in July 2006 for $370,000.
And there are many more like her. Across Florida and other states with high numbers of foreclosures, severe declines in real estate values are reinvigorating a group of buyers previously priced out: middle-class families with steady jobs, who are often buying a home for the first time.
Figures released last week by the National Association of Realtors show that sales of existing homes across the country rose 5.1 percent in February, with much of the increase concentrated in foreclosed homes bought for less than $300,000. Even with tighter borrowing restrictions, many families used to renting are discovering that they can afford to own.
“They are the most active participants right now because they don’t have the burden of having to sell their old homes,” said James Diffley, a managing director at IHS Global Insight, a research firm. “You have a bunch of young people who were forced to sit on the sidelines because houses were so darn expensive, and now they’re starting to come in.”
Real estate agents in Arizona, Florida, Nevada and other states hit hard by the bust say they began to notice rising interest among first-time buyers a few months ago, as prices dropped by more than a third.
The addition of a tax credit of up to $8,000, part of the federal housing rescue plan passed in February, appears to be sweetening the pot for some of those buyers, while banks eager to unload foreclosed properties have also begun to offer incentives, like money for closing costs.
“A lot of the banks have adjusted their thinking,” said John Ahlbrand, a real estate agent who with his wife, Ruth, owns ReMax Central in Las Vegas. “If they show they have the ability to repay — imagine that — then the bank helps.”
In some areas, several families have pooled enough money to pay cash for homes. There are others, like Ms. Goldman, who saved enough to afford a traditional down payment and mortgage.
But in many cases, agents and loan officers say, first-time buyers are receiving loans insured by the Federal Housing Administration, which allow for lower credit scores and a down payment of only 3.5 percent.
Unlike the subprime mortgages doled out a few years ago to nearly anyone who asked, F.H.A. loans include strict income requirements. Buyers must document two years of employment history with pay stubs and W-2 forms that are verified by the underwriter, and they can typically borrow only around 31 percent of their income, or 43 percent when other debt is included.
Andrea Heuson, a finance professor at the University of Miami, said the tighter restrictions should help ensure that people who buy can afford to pay what they owe — as long as they keep their jobs.
A second risk is that these new buyers will walk away if property values continue to drop.
Jennifer Vaughn’s development in Homestead is one of many where prices seem to fall by the day.
A 26-year-old first-time buyer, Ms. Vaughn closed on a three-bedroom, three-bathroom townhouse in November, paying $87,000 for the foreclosed property with an F.H.A. loan. The price was far below the $261,000 the house sold for in October 2006, but a few weeks ago, a townhouse with the same layout and fancier features sold for $75,000. And a third is about to close for $65,000, said Andy Lopez, a real estate agent at Keyes Company Realtors who found Ms. Vaughn her townhouse. So already, she appears to owe more than her home is worth. Not that she minds.
“I’m going to stay for five or six years at least,” Ms. Vaughn said, “and I’m sure prices will go up somewhat by then.”
She also has one of the recession’s safest job: she works for a collection agency. Ms. Vaughn said she could afford her $1,100 monthly payment, which includes taxes and insurance, and had already settled in.
“It’s like the best feeling,” she said, admiring the arches in her doorways. “I never thought I could own.”
Many other buyers are equally giddy.
Julio Cesar Memeses, 45, a construction worker who is about to close on a three-bedroom home in West Phoenix for $50,000, said he and his family were thrilled to own “a piece of the American dream.” He said they were not worried about making their mortgage payments because the price was so low.
Ms. Goldman, too, said she felt pleased. “It’s like, wow, I accomplished something,” she said.
She said she had visited 200 properties before finding her current home late one night and deciding she had to have it. Sliding open the glass door to the pool on a sunny afternoon, she said: “I love the light. That’s what captured me.”
Her daughter, Tiffany Munro, 14, stood beside her. “I’m, like, this is my house,” Tiffany said, looking skyward, and smiling. “I get to live here.”
The house, a foreclosure in the Kendall neighborhood, needed a little work. Some lights had been removed, and the fence had been painted the colors of a rainbow. Tiffany insisted that the fence be repainted white (“like white picket fences in the old movies,” she said).
Tiffany also asked permission to paint her bedroom wall with a mural of her own design — a drawing with dozens of small hearts.
In all, Ms. Goldman said she spent about $6,000 fixing up the house. Like Ms. Vaughn, Ms. Goldman said she did not worry about declining prices because she had no plans to leave.
Asked if she felt vindicated — rewarded for saving when so many others spent — she said no. “It’s sad that for me to buy a house, the economy had to be like it is,” she said.
Sitting on her couch, overlooking the pool, Ms. Goldman said she feared that the drop in prices would draw back the same investors who created the housing bubble in the first place. Real estate agents said this was already happening, even as the wave of foreclosures and evicted families would most likely continue.
“It’s not worth it in the end,” Ms. Goldman said, adding, “It’s unfortunate that I have to build my happiness on top of tears.”
Health Insurance rates soaring above wages
According to a study for the Robert Wood Johnson Foundation, nearly 20 percent of workers in the U.S. are uninsured reports the Associated Press. In the mid-1990s, about 14 percent of workers-or one in seven-did not have health insurance.
The main cause for such high uninsured rates has been cost. According to the study, premiums are rising six to eight times faster than corresponding wages, making coverage virtually unaffordable. Currently, about 26.9 million workers are uninsured. Twenty percent of the working age population is uninsured in 14 states (Alaska, Arizona, California, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina and Texas), up from just eight states a decade earlier.
Despite those numbers, income and payroll taxes continue to pay for healthcare coverage for the poor, the elderly and children of low-income working parents.
Dr. Risa Lavizzo-Mourey, president of the Robert Wood Johnson Foundation, thinks that the healthcare system in the U.S. is on the brink of collapse, and needs to be overhauled sooner rather than later. "I don't think we can delay action beyond this year," she said.
Obama Public Health Care Plan
Though President Obama and 73 percent of voters strongly support a new public health insurance plan that can compete with private insurers equally and transparently within an insurance exchange, some lawmakers have indicated that a public plan may not be part of the final reform legislation. Yesterday, the Congressional Progressive Caucus threatened "to vote against any health plan that doesn't include a public plan option."
"We have polled CPC members very carefully in recent weeks and a strong majority will only support comprehensive healthcare reform legislation that includes a public plan option on a level playing field with private health insurance plans," explained CPC co-chairmen Reps. Lynn Woolsey (D-CA) and Raul Grijalva (D-AZ)." Senate Finance Committee Chairman Max Baucus (D-MT) has recently said that the public plan is just a bargaining chip to "encourage the private health insurance industry to move in the direction it knows it should move toward -- namely, health insurance reform, which means eliminating pre-existing conditions, guaranteed issue, modified community rating." "I think we can accomplish" health care reform "without" a public plan, Baucus said in an interview with The Progress Report.
The insurance industry asserts that a new public plan would underpay medical providers, increase costs for Americans with insurance, and force millions to leave the employer market and move into a public plan. There is also limited bipartisan support for the plan. Sen. Ron Wyden (D-OR) has warned that there is "no GOP support for a plan that included a government option" and in March, Sen. Mitch McConnell (R-KY) sent a letter to Obama, effectively taking this option off the table.
LOWERS COST:
Despite the opposition, a new public health inurance plan could restore competition into the consolidated health insurance market, lower health care premiums, lead the way in innovation, and improve health quality. As CAPAF Senior Fellow Peter Harbage and Director of Health Policy Karen Davenport argue in a new report about the public plan, "in the face of tremendous consolidation in the health insurance market, employers and individuals have a shrinking set of health insurance options. Private insurers have used this market power to boost their profits." Harbage and Davenport add, "By including a public health insurance plan as another insurance option and creating a health insurance exchange that delivers transparency and accountability to the market, we can assure both viable competitors and real competition."
As former Gov. Howard Dean (D-VT) argues, health reform "rises and falls on whether the public is allowed to choose" a public option. In a recent interview with The Progress Report, Dean explained that "the free market does not work in health care, except in very perverse ways. So, you have to find a system that works better in addition to the free market...it's a structural problem in delivering health insurance."
According to the Urban Institute, "the presence of a well-run public plan would constrain private spending, as the plans would have to compete on price." Forcing private insurers to compete fairly with a public model that has lower administrative costs and operates with greater efficiency could "reduce projected health care costs by about $2 trillion over 11 years, and lower premiums by about 20 percent on average."
IMPROVES QUALITY:
Traditionally, public health insurance plans like Medicare have "been the source of important payment innovations" that private plans have generally adopted." Today's Medicare program, for instance, "promotes quality care alongside cost containment. ... Medicare's refusal to pay medical care providers for 'never events' where a patient suffers a knowable and catastrophic mistake such as having the wrong limb removed is something other major insurers are now adopting."
Similarly, Medicare development of its provider- payments systems and its investments in measuring and reporting quality care indicators are "two things that private insurers are now following the Medicare lead in doing." Moreover, "the way in which Medicare pays hospitals -- on a per stay basis rather than by reimbursing on a system that charges for each service or treatment delivered -- helped to change the way that care is delivered in the United States."
The Veterans Health Administration has also "implemented a sophisticated electronic medical record systems and a quality measurement approach that focuses on preventive care and chronic disease management." A new public plan has the potential to do even more "to drive improvements in the health care system" and set the standard for developing new payment models and investing in preventive care and care coordination.
DESIGNING FAIR PUBLIC-PRIVATE COMPETITION:
While the public option has become the subject of heated debate, few have spent much time sketching out the details for how to foster fair private-public competition. Robert E. Moffit of the Heritage Foundations has argued that it would be impossible to design a framework that pits for-profit private insurers against a government program that need not turn a profit. The government will institute lower rates, taxpayers will assume liability, and private insurers, Moffit warns, will simply go out of business. But eliminating medical underwriting will lower the administrative costs for private insurers and force companies to compete on quality, not risk.
As health care economist Uwe Reinhardt explains, "if the new public plan had to negotiate its own prices, then it would not have a competitive advantage any more 'unfair' than is the ability iof large insurers -- such as Aetna and Wellpoint -- to negotiate lower prices with hospitals and physicians than these providers charge smaller insurers. For some reason, no one has ever called this form of price discrimination 'unfair.'" In fact, more than 30 states already have public health insurance options. In their role as self-insured employers, states are responsible for containing costs, promoting quality, and assuring that employees get the benefits and the care they need. In these states, employees may choose between private plans and the public plan, while in some states this pool is open to private employers as well -- a clear example of a public health insurance plan offering additional choices.
Len Nichols of the New America Foundation has designed a framework that would ensure that the same body that's running the government plan isn't setting the rules of the competition, charging unreasonably low rates, or assuming too much risk. Such models already exist. Under Nichols' conception of a competing public option, the new program would "be accountable to an entity other than the one identified to govern the marketplace." The managers would be evaluated by patient satisfaction, not profits, and the people running the plan would have no incentive to stint on patient care in favor of the bottom line. In other words, public and private payers compete on a completely level playing field and follow all of the rules of the marketplace.
The public plan would be actuarially sound, would not leverage Medicare to force providers to participate or use Medicare payment rates, and would have to adhere to the same rules regarding reserve funds. Costs would be lowered through competition and system-wide reform. By changing the way Medicare and the public option reimburse for services and increasing the efficiency of both programs, the government can encourage private insurers -- who are now competing directly with the new public plan -- to also adopt more efficient payment practices.
"We have polled CPC members very carefully in recent weeks and a strong majority will only support comprehensive healthcare reform legislation that includes a public plan option on a level playing field with private health insurance plans," explained CPC co-chairmen Reps. Lynn Woolsey (D-CA) and Raul Grijalva (D-AZ)." Senate Finance Committee Chairman Max Baucus (D-MT) has recently said that the public plan is just a bargaining chip to "encourage the private health insurance industry to move in the direction it knows it should move toward -- namely, health insurance reform, which means eliminating pre-existing conditions, guaranteed issue, modified community rating." "I think we can accomplish" health care reform "without" a public plan, Baucus said in an interview with The Progress Report.
The insurance industry asserts that a new public plan would underpay medical providers, increase costs for Americans with insurance, and force millions to leave the employer market and move into a public plan. There is also limited bipartisan support for the plan. Sen. Ron Wyden (D-OR) has warned that there is "no GOP support for a plan that included a government option" and in March, Sen. Mitch McConnell (R-KY) sent a letter to Obama, effectively taking this option off the table.
LOWERS COST:
Despite the opposition, a new public health inurance plan could restore competition into the consolidated health insurance market, lower health care premiums, lead the way in innovation, and improve health quality. As CAPAF Senior Fellow Peter Harbage and Director of Health Policy Karen Davenport argue in a new report about the public plan, "in the face of tremendous consolidation in the health insurance market, employers and individuals have a shrinking set of health insurance options. Private insurers have used this market power to boost their profits." Harbage and Davenport add, "By including a public health insurance plan as another insurance option and creating a health insurance exchange that delivers transparency and accountability to the market, we can assure both viable competitors and real competition."
As former Gov. Howard Dean (D-VT) argues, health reform "rises and falls on whether the public is allowed to choose" a public option. In a recent interview with The Progress Report, Dean explained that "the free market does not work in health care, except in very perverse ways. So, you have to find a system that works better in addition to the free market...it's a structural problem in delivering health insurance."
According to the Urban Institute, "the presence of a well-run public plan would constrain private spending, as the plans would have to compete on price." Forcing private insurers to compete fairly with a public model that has lower administrative costs and operates with greater efficiency could "reduce projected health care costs by about $2 trillion over 11 years, and lower premiums by about 20 percent on average."
IMPROVES QUALITY:
Traditionally, public health insurance plans like Medicare have "been the source of important payment innovations" that private plans have generally adopted." Today's Medicare program, for instance, "promotes quality care alongside cost containment. ... Medicare's refusal to pay medical care providers for 'never events' where a patient suffers a knowable and catastrophic mistake such as having the wrong limb removed is something other major insurers are now adopting."
Similarly, Medicare development of its provider- payments systems and its investments in measuring and reporting quality care indicators are "two things that private insurers are now following the Medicare lead in doing." Moreover, "the way in which Medicare pays hospitals -- on a per stay basis rather than by reimbursing on a system that charges for each service or treatment delivered -- helped to change the way that care is delivered in the United States."
The Veterans Health Administration has also "implemented a sophisticated electronic medical record systems and a quality measurement approach that focuses on preventive care and chronic disease management." A new public plan has the potential to do even more "to drive improvements in the health care system" and set the standard for developing new payment models and investing in preventive care and care coordination.
DESIGNING FAIR PUBLIC-PRIVATE COMPETITION:
While the public option has become the subject of heated debate, few have spent much time sketching out the details for how to foster fair private-public competition. Robert E. Moffit of the Heritage Foundations has argued that it would be impossible to design a framework that pits for-profit private insurers against a government program that need not turn a profit. The government will institute lower rates, taxpayers will assume liability, and private insurers, Moffit warns, will simply go out of business. But eliminating medical underwriting will lower the administrative costs for private insurers and force companies to compete on quality, not risk.
As health care economist Uwe Reinhardt explains, "if the new public plan had to negotiate its own prices, then it would not have a competitive advantage any more 'unfair' than is the ability iof large insurers -- such as Aetna and Wellpoint -- to negotiate lower prices with hospitals and physicians than these providers charge smaller insurers. For some reason, no one has ever called this form of price discrimination 'unfair.'" In fact, more than 30 states already have public health insurance options. In their role as self-insured employers, states are responsible for containing costs, promoting quality, and assuring that employees get the benefits and the care they need. In these states, employees may choose between private plans and the public plan, while in some states this pool is open to private employers as well -- a clear example of a public health insurance plan offering additional choices.
Len Nichols of the New America Foundation has designed a framework that would ensure that the same body that's running the government plan isn't setting the rules of the competition, charging unreasonably low rates, or assuming too much risk. Such models already exist. Under Nichols' conception of a competing public option, the new program would "be accountable to an entity other than the one identified to govern the marketplace." The managers would be evaluated by patient satisfaction, not profits, and the people running the plan would have no incentive to stint on patient care in favor of the bottom line. In other words, public and private payers compete on a completely level playing field and follow all of the rules of the marketplace.
The public plan would be actuarially sound, would not leverage Medicare to force providers to participate or use Medicare payment rates, and would have to adhere to the same rules regarding reserve funds. Costs would be lowered through competition and system-wide reform. By changing the way Medicare and the public option reimburse for services and increasing the efficiency of both programs, the government can encourage private insurers -- who are now competing directly with the new public plan -- to also adopt more efficient payment practices.
Las Vegas Home Insurance: Expect lower home prices next year
A new report shows the Las Vegas Valley has a 99.8 percent chance of seeing lower home prices through 2010.
PMI Mortgage Insurance Co., the second largest U.S. mortgage insurer, released its risk index for 381 metropolitan areas across the country. Las Vegas joined several cities in Florida and California in having greater than a 99 percent chance of seeing lower prices by the fourth quarter of 2010.
"Combined with upward movements in excess housing supply in many parts of the country, these deteriorating conditions are increasing the risk of house price declines in the next two years," the report said. "Florida, California, Arizona and Nevada continue to lead the nation in risk and significantly rising level of delinquency rates."
In its third quarter report, PMI reported that Las Vegas had a 99.4 percent chance of seeing lower home prices in two years, but the number was revised to 99.8 percent in the fourth quarter of 2008.
The index factors in previous home price appreciation/depreciation, affordability and a city's unemployment rate.
"Even with the modest home sales gains that we project for the second half of 2009, we still expect that national home prices will fall further because of the large number of homes for sale," the PMI report said. "The worst national price drops are probably behind us, however, and by 2010 national prices begin to stabilize."
The Greater Las Vegas Association of Realtors said the median price of a home in February was $155,603 -- off 37 percent from February 2008 and down more than 50 percent from the peak in 2006.
COMMENTS
I am a poker player and sometimes I get those 2% outers to win.
I'm going to buy now, because there is a .02% chance that the prices will go up. Anyone with me?
***
I am buying now and the competition was FIERCE!!!! It took me months of price wars to buy a home here. If the prices go down I cannot see it being by much and the North and Northwest parts of the valley are the areas which will drag prices down IMO...
***
Lower prices will not necessarily mean those trying to get back into the area...will. Those with cash are those buying now.The tighter requirements on getting a mortgage today will still keep many many people out.Home building is still going on at a very restricted rate (as it should). So many new homes are sitting there collecting dust. Hope LV has learned a hard lesson and change the way they do business. Gone at the days of building a 1,000 home track and then standing on the corner for buyers.
***
***
excellent point. I was at a presentation yesterday where it was noted that the population in Las Vegas has DECREASED in the past 12 months, presumably due to the lack of jobs in the area.
I am tempted to buy but am going to rent for at least another year since rental prices are falling steadily and I don't see home prices going up in the foreseeable future.
***
A month ago a buddy called to inform me that if he'd had the money he'd be buying homes right now. I laughed, reminding him of the perfect timing he possessed on the previous two homes he purchased, foreclosing on one and upside down at half the note value on the other.
Those claiming to be experts buying now remind me of my expert buddy.
***
Anyone buying a home today as an investment to flip next year or the year after is looking for trouble. Only buy a home if you are planning to stay here for at least 5 years, otherwise you will likely lose several thousand dollars.
The decline in home prices as and will continue to slow, but as the article states it is not at its bottom. Remember there is another round of forclosures coming thanks to those interest only payments kicking into interest plus balance payments.
***
House flipping looked so easy on HGTV. I guess the cab driver that was in the process of flipping ten two years ago might be in trouble.
***
There are some great buys right now. They may drop a little more, but within a few years 2009 prices will look pretty good. I just bought a rental investment and with a strong cash flow, I do not worry about appreciation anytime soon.
***
I can't believe all the people trying to get rich off housing, still.... How soon fools forget, a home is a place to live.
Look how many people thought they were going to get rich quick investing in housing. A few got rich, the rest got stuck with multiple mortgages or an enormously overpriced card board box.
Once again greed rules the roost.
***
Understanding your Auto Insurance Policy
At its core, auto insurance is simply a contract between you and your insurance company to protect against financial loss in the unfortunate event that you have an accident. Depending on what you purchase, the insurance coverage can provide financial assistance to:
* repair your vehicle or replace it in the event it is damaged or stolen;
* reimburse others if you cause an accident that hurts them or their vehicle; and
* pay for any medical expenses arising from injuries you or your passengers sustain in an accident.
At a minimum, most states require you to have liability insurance coverage to protect others in case you are at fault in an accident. There are two primary kinds of liability coverage that you need:
Bodily injury liability is coverage for injuries you might cause to someone else. Most states stipulate a minimum amount of this coverage, although you can elect to purchase higher policy limits if you’re willing to pay higher premiums. Note that the coverage amount for bodily injury liability is always stated using two numbers, e.g. $100,000/$300,000. The first number is the maximum amount the policy will pay for damages to one person, and the second number is the maximum amount payable for injuries for the entire accident.
Property damage liability is coverage for damage you might cause to someone else’s property. Typically this will be damage done to another person’s car, but it also covers any other object you hit including buildings, fences, or street signs. Again, most states stipulate a minimum amount of this coverage per accident, with more coverage available at higher premiums.
Although purely optional for drivers in most states, some states also require two other types of coverage:
Medical payments or personal injury protection is coverage to treat injuries to you and your passengers, regardless of who is at fault in the accident. This type of coverage may also pay funeral expenses and lost wages in some circumstances. If you have an accident that requires medical payments and you have this coverage, you will be required to pay a certain amount of the cost out of your own pocket, known as the deductible, and the insurance company will pay the remainder of the claim. The higher your deductible, the lower your premiums will be.
Under-insured and uninsured motorist coverage is protection for you, your passengers, and your vehicle in case you have an accident with an uninsured driver, a hit-and-run driver, or a driver with insufficient insurance coverage. This type of insurance also covers you and your family members as pedestrians if you are injured by a hit-and-run driver.
Finally, there are two additional types of auto insurance to cover the cost of repairs to your car. These coverages are never required by the state, but if you have a loan or lease on your car, your lender will usually require both:
Collision insurance pays to repair damage to your car from a collision, regardless of who is at fault. (In the event that you are not at fault, your insurer will generally try to get the other party’s insurance company to reimburse them for the damage to your vehicle.) Collision coverage usually has a deductible between $250 and $1,000 that you must pay toward the repairs before your insurer will pay its portion. The higher your deductible, the lower your premiums will be.
Comprehensive insurance covers your car for everything that is not covered by collision insurance. This includes the cost to replace or repair your vehicle due to theft or damage from things like hail, water, flood, fire, wind, explosion, earthquake, animals, or vandalism. This coverage also has a deductible, which is usually equal to or lower than the deductible on your collision insurance.
* repair your vehicle or replace it in the event it is damaged or stolen;
* reimburse others if you cause an accident that hurts them or their vehicle; and
* pay for any medical expenses arising from injuries you or your passengers sustain in an accident.
At a minimum, most states require you to have liability insurance coverage to protect others in case you are at fault in an accident. There are two primary kinds of liability coverage that you need:
Bodily injury liability is coverage for injuries you might cause to someone else. Most states stipulate a minimum amount of this coverage, although you can elect to purchase higher policy limits if you’re willing to pay higher premiums. Note that the coverage amount for bodily injury liability is always stated using two numbers, e.g. $100,000/$300,000. The first number is the maximum amount the policy will pay for damages to one person, and the second number is the maximum amount payable for injuries for the entire accident.
Property damage liability is coverage for damage you might cause to someone else’s property. Typically this will be damage done to another person’s car, but it also covers any other object you hit including buildings, fences, or street signs. Again, most states stipulate a minimum amount of this coverage per accident, with more coverage available at higher premiums.
Although purely optional for drivers in most states, some states also require two other types of coverage:
Medical payments or personal injury protection is coverage to treat injuries to you and your passengers, regardless of who is at fault in the accident. This type of coverage may also pay funeral expenses and lost wages in some circumstances. If you have an accident that requires medical payments and you have this coverage, you will be required to pay a certain amount of the cost out of your own pocket, known as the deductible, and the insurance company will pay the remainder of the claim. The higher your deductible, the lower your premiums will be.
Under-insured and uninsured motorist coverage is protection for you, your passengers, and your vehicle in case you have an accident with an uninsured driver, a hit-and-run driver, or a driver with insufficient insurance coverage. This type of insurance also covers you and your family members as pedestrians if you are injured by a hit-and-run driver.
Finally, there are two additional types of auto insurance to cover the cost of repairs to your car. These coverages are never required by the state, but if you have a loan or lease on your car, your lender will usually require both:
Collision insurance pays to repair damage to your car from a collision, regardless of who is at fault. (In the event that you are not at fault, your insurer will generally try to get the other party’s insurance company to reimburse them for the damage to your vehicle.) Collision coverage usually has a deductible between $250 and $1,000 that you must pay toward the repairs before your insurer will pay its portion. The higher your deductible, the lower your premiums will be.
Comprehensive insurance covers your car for everything that is not covered by collision insurance. This includes the cost to replace or repair your vehicle due to theft or damage from things like hail, water, flood, fire, wind, explosion, earthquake, animals, or vandalism. This coverage also has a deductible, which is usually equal to or lower than the deductible on your collision insurance.
Pre-existent condition Health Insurance: Changes Expected
Insurance executives held out hope to the afflicted late last month by announcing their willingness to end a notorious industry practice: charging higher premiums to people with health problems or denying them coverage altogether.
But don’t breathe easy just yet. The change, promised at a Senate hearing, would hinge on the condition that Congress in turn require everyone in the land to carry health insurance. And Congress is still at least months away from taking up major health legislation.
So for now, consumers with pre-existing medical conditions must continue the struggle to obtain and keep medical coverage.
“It is arguably the biggest minefield out there when it comes to getting and keeping your health insurance,” said Karen Pollitz, project director at the Health Policy Institute at Georgetown University. “Under the current system, the people who need insurance most can’t afford or can’t get coverage.”
Until the system changes, here is basic guidance for people with pre-existing conditions, whether you’re currently covered or shopping for insurance.
TRY TO KEEP EMPLOYER’S COVERAGE
Under the Health Insurance Portability and Accountability Act, known as Hipaa, employers cannot exclude you from a health plan because of a pre-existing condition. They must offer you coverage and pay the same percentage of your premium as they do for healthy employees. The same rule applies to spouses and children if the employer offers family coverage.
Keep in mind, new employees can be denied coverage for treatment related to their pre-existing conditions for up to 12 months. But if you have had continuing coverage from another group plan, the amount of time you held that coverage can be credited to the 12-month exclusion.
More troublesome is if you had a gap in coverage of 63 days or more. In that case, employers can exclude coverage of your health problem for up to 18 months, but then must give you full coverage.
LEARN YOUR STATE’S RULES
Not everyone can get insurance through an employer, of course. And that’s when things get tricky.
In reality, most insurers deny individual coverage to sick people. As a safety net, federal law mandates that each state offer at least one nongroup, or individual, option that cannot deny anyone coverage. The details vary from state to state.
To find out what’s available where you live, check with your state’s insurance department. Contact information for each state can be found at the Web site of the National Association of Insurance Commissioners, www.naic.org/state_web_map.htm.
Cost is a big problem with all of these last-gasp policies, said Sandy Praeger, the insurance commissioner for Kansas and chairwoman of the national association’s health insurance committee. Because there are no federal laws regulating premiums, they can be prohibitively expensive. “Unfortunately, there aren’t many affordable alternatives,” Ms. Praeger said.
If you do find yourself turned down by an insurer for a pre-existing condition, you can appeal that decision. With your doctor’s help you may be able to convince a carrier that denied you coverage because of, say, high blood pressure, that you now have the condition under control.
SEEK OTHER GROUP COVERAGE
Even as an individual, you may be able to join a group health plan, especially if you run your own business. Your chamber of commerce may offer health coverage for local business owners. And professional and trade associations sometimes offer group insurance to qualified members regardless of their health.
But “be very careful when dealing with associations,” Ms. Pollitz warns. “This has been an area riddled with fraud and insolvencies.” Check out any potential group carefully with your state insurance department.
You may also want to research group purchasing alliances in your state. In these, small businesses band together to buy group health insurance plans at rates that might otherwise be available only to big employers. Check with your state insurance department on how to join an alliance — or to form a new one.
IF COVERAGE IS TERMINATED
If you seek treatment for a health problem under an individual insurance plan, the insurer may look into your medical history for proof that you had the problem before applying for coverage, said Kevin Flynn, president of HealthCare Advocates. His company, in Philadelphia, works with patients who are in dispute with their insurers.
Insurers also may review your application and determine that you omitted important information related to a pre-existing condition, Mr. Flynn said. If the insurer finds evidence of either transgression, it may rescind your policy.
That’s what happened last year to Melissa Klettke, a 26-year-old who lives near Portland, Ore. Because her employer’s group insurance was expensive, Ms. Klettke shopped for a less expensive individual policy. Finding one online, she applied and was accepted.
About three weeks after getting coverage, Ms. Klettke began having symptoms that her doctor worried could signal multiple sclerosis. Terrified, she started a battery of diagnostic tests including expensive M.R.I.’s and consultations with a specialist.
Amid all this, her insurer wrote to say her coverage was being dropped because she had failed to disclose a trip to the doctor months earlier during which she complained of vertigo. That, the insurance company said, was proof of a prior condition.
“Here I was, scared to death, not knowing what was going on with me, and then I find out I have no insurance,” Ms. Klettke said.
The good news is that Ms. Klettke does not have multiple sclerosis. But she has paid about $5,000 out of pocket for tests and doctors’ fees. Happily, though, she recently got a new job at a shipping company that offers health insurance, and she is covered under her employer’s group plan.
Although Ms. Klettke got nowhere with her appeals to the former insurer, Mr. Flynn urges people who find themselves in her position to push back. Ask your doctor for help in proving to the insurer that the reason you were dropped is not proof of a pre-existing condition.
Mr. Flynn recalls a client who lost his insurance because he had been treated for a canker sore on his tongue six months before he was diagnosed with mouth cancer. “We were successful in reinstating coverage when his doctors made it clear the two things had nothing to do with each other,” he said.
Make your appeal in writing first, then follow up by phone, Mr. Flynn advises. If you get the chance to make your case in person, by all means do so, he added. And always file a complaint with, and enlist help from, your state insurance department.
BEWARE OF TEMPORARY POLICIES.
Relatively inexpensive policies offering coverage for a limited period, usually six months to a year, have become a popular alternative for people who may be out of work but hope to soon have a job with employer coverage.
But if you get sick or injured while holding one of these policies, Ms. Pollitz said, the insurer will most likely deny you coverage when you try to renew — because now you have a pre-existing condition. If possible, she said, you’re better off paying for a longer-term, more comprehensive policy.
But don’t breathe easy just yet. The change, promised at a Senate hearing, would hinge on the condition that Congress in turn require everyone in the land to carry health insurance. And Congress is still at least months away from taking up major health legislation.
So for now, consumers with pre-existing medical conditions must continue the struggle to obtain and keep medical coverage.
“It is arguably the biggest minefield out there when it comes to getting and keeping your health insurance,” said Karen Pollitz, project director at the Health Policy Institute at Georgetown University. “Under the current system, the people who need insurance most can’t afford or can’t get coverage.”
Until the system changes, here is basic guidance for people with pre-existing conditions, whether you’re currently covered or shopping for insurance.
TRY TO KEEP EMPLOYER’S COVERAGE
Under the Health Insurance Portability and Accountability Act, known as Hipaa, employers cannot exclude you from a health plan because of a pre-existing condition. They must offer you coverage and pay the same percentage of your premium as they do for healthy employees. The same rule applies to spouses and children if the employer offers family coverage.
Keep in mind, new employees can be denied coverage for treatment related to their pre-existing conditions for up to 12 months. But if you have had continuing coverage from another group plan, the amount of time you held that coverage can be credited to the 12-month exclusion.
More troublesome is if you had a gap in coverage of 63 days or more. In that case, employers can exclude coverage of your health problem for up to 18 months, but then must give you full coverage.
LEARN YOUR STATE’S RULES
Not everyone can get insurance through an employer, of course. And that’s when things get tricky.
In reality, most insurers deny individual coverage to sick people. As a safety net, federal law mandates that each state offer at least one nongroup, or individual, option that cannot deny anyone coverage. The details vary from state to state.
To find out what’s available where you live, check with your state’s insurance department. Contact information for each state can be found at the Web site of the National Association of Insurance Commissioners, www.naic.org/state_web_map.htm.
Cost is a big problem with all of these last-gasp policies, said Sandy Praeger, the insurance commissioner for Kansas and chairwoman of the national association’s health insurance committee. Because there are no federal laws regulating premiums, they can be prohibitively expensive. “Unfortunately, there aren’t many affordable alternatives,” Ms. Praeger said.
If you do find yourself turned down by an insurer for a pre-existing condition, you can appeal that decision. With your doctor’s help you may be able to convince a carrier that denied you coverage because of, say, high blood pressure, that you now have the condition under control.
SEEK OTHER GROUP COVERAGE
Even as an individual, you may be able to join a group health plan, especially if you run your own business. Your chamber of commerce may offer health coverage for local business owners. And professional and trade associations sometimes offer group insurance to qualified members regardless of their health.
But “be very careful when dealing with associations,” Ms. Pollitz warns. “This has been an area riddled with fraud and insolvencies.” Check out any potential group carefully with your state insurance department.
You may also want to research group purchasing alliances in your state. In these, small businesses band together to buy group health insurance plans at rates that might otherwise be available only to big employers. Check with your state insurance department on how to join an alliance — or to form a new one.
IF COVERAGE IS TERMINATED
If you seek treatment for a health problem under an individual insurance plan, the insurer may look into your medical history for proof that you had the problem before applying for coverage, said Kevin Flynn, president of HealthCare Advocates. His company, in Philadelphia, works with patients who are in dispute with their insurers.
Insurers also may review your application and determine that you omitted important information related to a pre-existing condition, Mr. Flynn said. If the insurer finds evidence of either transgression, it may rescind your policy.
That’s what happened last year to Melissa Klettke, a 26-year-old who lives near Portland, Ore. Because her employer’s group insurance was expensive, Ms. Klettke shopped for a less expensive individual policy. Finding one online, she applied and was accepted.
About three weeks after getting coverage, Ms. Klettke began having symptoms that her doctor worried could signal multiple sclerosis. Terrified, she started a battery of diagnostic tests including expensive M.R.I.’s and consultations with a specialist.
Amid all this, her insurer wrote to say her coverage was being dropped because she had failed to disclose a trip to the doctor months earlier during which she complained of vertigo. That, the insurance company said, was proof of a prior condition.
“Here I was, scared to death, not knowing what was going on with me, and then I find out I have no insurance,” Ms. Klettke said.
The good news is that Ms. Klettke does not have multiple sclerosis. But she has paid about $5,000 out of pocket for tests and doctors’ fees. Happily, though, she recently got a new job at a shipping company that offers health insurance, and she is covered under her employer’s group plan.
Although Ms. Klettke got nowhere with her appeals to the former insurer, Mr. Flynn urges people who find themselves in her position to push back. Ask your doctor for help in proving to the insurer that the reason you were dropped is not proof of a pre-existing condition.
Mr. Flynn recalls a client who lost his insurance because he had been treated for a canker sore on his tongue six months before he was diagnosed with mouth cancer. “We were successful in reinstating coverage when his doctors made it clear the two things had nothing to do with each other,” he said.
Make your appeal in writing first, then follow up by phone, Mr. Flynn advises. If you get the chance to make your case in person, by all means do so, he added. And always file a complaint with, and enlist help from, your state insurance department.
BEWARE OF TEMPORARY POLICIES.
Relatively inexpensive policies offering coverage for a limited period, usually six months to a year, have become a popular alternative for people who may be out of work but hope to soon have a job with employer coverage.
But if you get sick or injured while holding one of these policies, Ms. Pollitz said, the insurer will most likely deny you coverage when you try to renew — because now you have a pre-existing condition. If possible, she said, you’re better off paying for a longer-term, more comprehensive policy.
Florida Home Insurance: Bill to increase rates progresses
A measure that would increase Floridians' homeowner insurance premiums, while reducing the state's financial risk if a major hurricane struck, cleared its first legislative hurdle Friday.
The House insurance committee approved the bill, which, among other things, would:
Those laws in part expanded state insurance entities such as Citizens and the catastrophe fund. Rep. Scott Plakon, R-Longwood, said the laws were "the largest expansion of gambling" in the state's history.
"But in this case, we're gambling and risking our state on the next weather report," he said.
Former Sen. Steve Geller, D- Cooper City, who co-sponsored the insurance law last year, said Friday he was "absolutely appalled at where they're going right now."
The House insurance committee approved the bill, which, among other things, would:
- Increase Citizens Property Insurance Corp. rates by a statewide average of 10 percent, or by up to 20 percent for individual policyholders.
- Increase rates for the Florida Hurricane Catastrophe Fund, which provides cheap backup coverage, and extend and gradually phase out a $12 billion portion of it.
- Prohibit state insurance regulators from denying rate increases they think are excessive for insurers that want an annual average rate increase of up to 15 percent for certain regions.
- Prohibit regulators from denying rate increases because they think advertising costs or agent commissions are too high.
Those laws in part expanded state insurance entities such as Citizens and the catastrophe fund. Rep. Scott Plakon, R-Longwood, said the laws were "the largest expansion of gambling" in the state's history.
"But in this case, we're gambling and risking our state on the next weather report," he said.
Former Sen. Steve Geller, D- Cooper City, who co-sponsored the insurance law last year, said Friday he was "absolutely appalled at where they're going right now."
Managing Health Insurance Costs
Twyla and Robert House have excellent health-insurance coverage. But after Robert was hospitalized twice within eight months, they ended up owing more than $6,500 in out-of-pocket medical expenses. The Little River, S.C., couple dutifully paid a portion of the balance each month until they whittled it to about $2,000. At that point, Robert offered to pay off his bill in a lump sum if the hospitals would give him a discount.
"We had an extra $1,300 in savings," says Twyla. "Robert told them, 'This is how much I have, and if you want your money, or at least a big chunk of it, you’ll cut me a deal."’ The gambit worked. The hospitals agreed to deduct more than $650.
Your out-of-pocket share of a hospital bill can be a budget buster, and now health insurers are passing along more of the costs. For example, many are raising deductibles, and some are switching from co-payments (such as $20 per doctor’s visit or per prescription) to a co-insurance system that makes policyholders liable for a percentage of the total bill. Over the past five years, 70 percent of Cigna insurance policies have shifted from co-payments to co-insurance.
By comparison-shopping and negotiating the best price — the same tactics you would use for any other major purchase — you can trim your bills. "You have to wonder why some people don’t give the same time, effort and attention to their health-care costs as they do to other major financial decisions," says Tom Bridenstine, the managed-care ombudsman with the Virginia Bureau of Insurance, who helps consumers with health-insurance issues.
Evaluating healthcare services based on price doesn’t mean you’ll sacrifice quality. And you’ll find plenty of help from employers and insurers, who also benefit from lower costs. The following tactics will help you save hundreds, if not thousands, of dollars on your medical expenses.
Ways to save
1. Ask for a price break. Each hospital has its own rules about negotiating bills, but it doesn’t hurt to ask. The same goes for doctors and other health providers.
2. Pick the appropriate facility. Where you go to receive care can make a huge difference in your costs. Emergency-room visits tend to cost $300 to $1,000, compared with $150 at an urgent-care center, $65 to $75 at a doctor’s office, and $35 to $45 at a convenience-care clinic. With a 20 percent co-insurance charge, that trip to the emergency room could cost you $200 vs. just $7 for a visit to a convenience-care clinic. For nonemergencies, it pays to call your insurer’s 24-hour advice hotline for guidance on where to go for care. Make sure the facility and provider are in your health plan’s network.
3. Use online tools to compare costs. Insurers are making it easier to compare hospitals and providers based on quality and cost. And pricier doesn’t always mean better.
"Hospitals with low complication rates and high survival rates tend to have lower costs," says Jeffrey Kang, Cigna’s chief medical officer. Companies such as Cigna and Aetna have integrated Web tools that let customers search by ailment (such as diabetes or wrist pain), then find appropriate local doctors, including an assessment of their fees and quality of service.
4. Compare prices for tests at hospitals as well as free-standing imaging centers, which tend to charge a lot less.
"One MRI facility may charge $500 for a scan, and a block away, another charges $1,500 for the same service," says Kang. "But the quality of care is pretty much the same." And it’s easy to calculate the cost of routine care. For example, MinuteClinic, located in CVS Pharmacy stores, charges $69 for treating strep throat and $59 for a child’s summer-camp physical (see the rate list for common treatments at www.minuteclinic.com).
5. Save on prescription drugs. You can save big money by switching to generic drugs, which tend to cost 30 percent to 60 percent less than brand-name equivalents, according to UnitedHealthcare. Or you may be able to switch to a "therapeutic alternative," a similar drug that costs less.
Most insurers now have Web tools showing the cost of all drugs — brand names and generics — that provide similar results, including the total price, as well as the amount you’ll pay under your health plan.
If your insurer’s site doesn’t have those tools, visit DestinationRx’s Web site ( www.drx.com) and use the Medicine Cabinet feature to compare prices for similar drugs and specific pharmacies in your area, as well as online and mail-order pharmacies that tend to be cheaper.
6. Take advantage of free services. Insurers save money when you stay healthy, and many provide free preventive care, such as annual mammograms and Pap tests for women in certain age groups, plus screenings for colorectal and prostate cancer.
7. Make the most of discounts. Many insurers offer discounts on services to promote healthy lifestyles, such as gym memberships, smoking-cessation and weight-loss programs, chiropractic service and acupuncture.
8. Sign up for employer incentives. To save money on medical costs, employers may offer premium discounts, contributions to health savings accounts and cash incentives to employees who sign up for a wellness program or health assessment. Some also offer perks to people with, say, asthma, lower-back pain or diabetes for enrolling in a disease-management program, says Steve Kaczmarek, an actuary with Milliman, a consulting firm in healthcare and employee benefits.
9. Review your bill. Bridenstine says people with high-deductible policies who pay the full amount for many healthcare services out-of-pocket (until they satisfy their deductible) are often charged the more-expensive, uninsured rate rather than the rate that the insurer negotiates with providers. Then, verify that all of your eligible out-of-pocket payments are credited to your deductible. Finally, check whether you must meet separate deductibles for in-network and out-of-network services.
"We had an extra $1,300 in savings," says Twyla. "Robert told them, 'This is how much I have, and if you want your money, or at least a big chunk of it, you’ll cut me a deal."’ The gambit worked. The hospitals agreed to deduct more than $650.
Your out-of-pocket share of a hospital bill can be a budget buster, and now health insurers are passing along more of the costs. For example, many are raising deductibles, and some are switching from co-payments (such as $20 per doctor’s visit or per prescription) to a co-insurance system that makes policyholders liable for a percentage of the total bill. Over the past five years, 70 percent of Cigna insurance policies have shifted from co-payments to co-insurance.
By comparison-shopping and negotiating the best price — the same tactics you would use for any other major purchase — you can trim your bills. "You have to wonder why some people don’t give the same time, effort and attention to their health-care costs as they do to other major financial decisions," says Tom Bridenstine, the managed-care ombudsman with the Virginia Bureau of Insurance, who helps consumers with health-insurance issues.
Evaluating healthcare services based on price doesn’t mean you’ll sacrifice quality. And you’ll find plenty of help from employers and insurers, who also benefit from lower costs. The following tactics will help you save hundreds, if not thousands, of dollars on your medical expenses.
Ways to save
1. Ask for a price break. Each hospital has its own rules about negotiating bills, but it doesn’t hurt to ask. The same goes for doctors and other health providers.
2. Pick the appropriate facility. Where you go to receive care can make a huge difference in your costs. Emergency-room visits tend to cost $300 to $1,000, compared with $150 at an urgent-care center, $65 to $75 at a doctor’s office, and $35 to $45 at a convenience-care clinic. With a 20 percent co-insurance charge, that trip to the emergency room could cost you $200 vs. just $7 for a visit to a convenience-care clinic. For nonemergencies, it pays to call your insurer’s 24-hour advice hotline for guidance on where to go for care. Make sure the facility and provider are in your health plan’s network.
3. Use online tools to compare costs. Insurers are making it easier to compare hospitals and providers based on quality and cost. And pricier doesn’t always mean better.
"Hospitals with low complication rates and high survival rates tend to have lower costs," says Jeffrey Kang, Cigna’s chief medical officer. Companies such as Cigna and Aetna have integrated Web tools that let customers search by ailment (such as diabetes or wrist pain), then find appropriate local doctors, including an assessment of their fees and quality of service.
4. Compare prices for tests at hospitals as well as free-standing imaging centers, which tend to charge a lot less.
"One MRI facility may charge $500 for a scan, and a block away, another charges $1,500 for the same service," says Kang. "But the quality of care is pretty much the same." And it’s easy to calculate the cost of routine care. For example, MinuteClinic, located in CVS Pharmacy stores, charges $69 for treating strep throat and $59 for a child’s summer-camp physical (see the rate list for common treatments at www.minuteclinic.com).
5. Save on prescription drugs. You can save big money by switching to generic drugs, which tend to cost 30 percent to 60 percent less than brand-name equivalents, according to UnitedHealthcare. Or you may be able to switch to a "therapeutic alternative," a similar drug that costs less.
Most insurers now have Web tools showing the cost of all drugs — brand names and generics — that provide similar results, including the total price, as well as the amount you’ll pay under your health plan.
If your insurer’s site doesn’t have those tools, visit DestinationRx’s Web site ( www.drx.com) and use the Medicine Cabinet feature to compare prices for similar drugs and specific pharmacies in your area, as well as online and mail-order pharmacies that tend to be cheaper.
6. Take advantage of free services. Insurers save money when you stay healthy, and many provide free preventive care, such as annual mammograms and Pap tests for women in certain age groups, plus screenings for colorectal and prostate cancer.
7. Make the most of discounts. Many insurers offer discounts on services to promote healthy lifestyles, such as gym memberships, smoking-cessation and weight-loss programs, chiropractic service and acupuncture.
8. Sign up for employer incentives. To save money on medical costs, employers may offer premium discounts, contributions to health savings accounts and cash incentives to employees who sign up for a wellness program or health assessment. Some also offer perks to people with, say, asthma, lower-back pain or diabetes for enrolling in a disease-management program, says Steve Kaczmarek, an actuary with Milliman, a consulting firm in healthcare and employee benefits.
9. Review your bill. Bridenstine says people with high-deductible policies who pay the full amount for many healthcare services out-of-pocket (until they satisfy their deductible) are often charged the more-expensive, uninsured rate rather than the rate that the insurer negotiates with providers. Then, verify that all of your eligible out-of-pocket payments are credited to your deductible. Finally, check whether you must meet separate deductibles for in-network and out-of-network services.
Thursday, April 2, 2009
Mandatory Health Insurance: Democrats Agree
Efforts to overhaul the health care system have moved ahead rapidly, with the insurance industry making several major concessions and the chairmen of five Congressional committees reaching a consensus on the main ingredients of legislation.
The chairmen, all Democrats, agree that everyone must carry insurance and that employers should be required to help pay for it. They also agree that the government should offer a public health insurance plan as an alternative to private insurance.
But members of Congress are just now turning to the most explosive issues, which could delay or derail the process.
They have yet to tackle the question of how to pay for coverage of the uninsured.
They have not wrestled with vehement Republican objections to the idea of a new government-run insurance plan, competing directly with private insurers.
And they have not figured out the role of state insurance regulators, who enforce hundreds of state laws mandating coverage of a myriad of items, including infertility treatments, prostate cancer screening and acupuncture.
“There’s too much happy talk,” said Senator John D. Rockefeller IV, Democrat of West Virginia.
“It’s time to start thrashing out decisions on the tough issues.”
The White House, displaying a surprisingly light touch, has encouraged Democrats in Congress to make the hard decisions while the administration holds forums around the country to hear suggestions from ordinary citizens.
Congressional leaders have set an ambitious timetable, under which the House and the Senate would vote on separate bills by the end of July. Senator Edward M. Kennedy, Democrat of Massachusetts, has kept the heat on negotiators.
President Obama’s pick for secretary of health and human services, Gov. Kathleen Sebelius of Kansas, told senators at a hearing on Tuesday that “health reform would be my mission” if the Senate confirmed her nomination. Ms. Sebelius backed Mr. Obama’s call for giving Americans the option of a government health plan as an alternative to private coverage — “a public option, side by side with private insurers,” she said.
Nancy-Ann DeParle, director of the White House Office for Health Reform, who is on Capitol Hill almost every day, said, “In my view, there’s been a steady progression toward getting a health care reform bill done this year, as the president has urged and requested.”
Asked if she had recommended any specific policy options to Congress, Ms. DeParle said, “That has not come up yet.”
Since last fall, Senate Democrats have been meeting regularly with consumer advocates and lobbyists for the health care, insurance and pharmaceutical industries. The talks have narrowed the differences.
In November, two weeks after the presidential election, the health insurance industry said it would accept all applicants, regardless of illness or disability, if Congress required everyone to have coverage. The industry went a step further last week, offering to end the practice of charging higher premiums to sick people in the individual insurance market.
But each point of agreement raises a host of questions. The government cannot require people to have insurance if they cannot afford it, so lawmakers must decide: Who would get subsidies?
How much? And if the government subsidizes insurance, should it also prescribe the items and services that must be covered — the specific benefits or their overall value?
Leading the effort on Capitol Hill are the five committee chairmen, Representatives George Miller and Henry A. Waxman of California and Charles B. Rangel of New York, Senator Max Baucus of Montana and Mr. Kennedy.
The serious negotiations are being conducted in a secretive process that looks a little like the one that President Bill Clinton and the first lady, Hillary Rodham Clinton, used to devise their ill-fated plan for universal health insurance in 1993.
To be sure, the players are different this year. Congress, rather than the White House, has taken the lead in drafting a proposal to reorder one-sixth of the nation’s economy. Ms. DeParle, the White House official, said: “My job is to work with members of Congress. They are the ones doing the hard work. We are providing technical assistance. We help them with the nuts and bolts.”
And whereas the Clintons attacked special interests and excluded them from policy-making deliberations, Kennedy aides have welcomed them to twice-weekly meetings of stakeholders, known as the “workhorse group.”
Still, including the lobbyists in the negotiations does not guarantee that they will support whatever emerges. “The lobbyists talk more gently,” Mr. Rockefeller said, “but could be just as lethal to health care reform as they were 15 years ago.”
Mr. Baucus, the chairman of the Senate Finance Committee, periodically summons senators to his office for meetings of the “board of directors,” a group of six Democrats and five Republicans mulling ways to steer health legislation through the Senate.
Democrats insist that consumers should have a choice between private insurance and a government health plan. Private insurers will hold down costs and improve care if they have to compete with a public plan, said the House Democratic leader, Representative Steny H. Hoyer of Maryland.
But Republicans say a government plan would have unfair advantages and could drive private insurers from the market.
Lobbyists and Congressional aides have discussed a possible compromise: Congress would authorize a new government-run insurance program, but it would come into existence only if certain conditions were met — if, for example, private insurers failed to rein in health costs by a certain amount after several years. Such a condition would serve as a strong incentive for insurers to ratchet down payments to doctors and hospitals.
Representative Roy Blunt of Missouri, the chairman of a 21-member group that is shaping health policy for House Republicans, said he saw the Medicare prescription drug benefit as a model, “a good pattern of how a competitive marketplace works.”
The drug benefit is delivered entirely by private insurers under contract with the federal government, which supervises their activities. Costs have been far lower than originally expected.
The 2003 Medicare law allowed the government to establish a prescription drug plan in any geographic area with fewer than two private plans. But insurers, seeing a lucrative business opportunity, rushed into the market, and the government never had to establish a plan of its own.
The cost of universal coverage is likely to be one of the most difficult issues. Democrats readily concede that their proposals will be expensive.
In his budget, Mr. Obama showed he was serious when he asked Congress to set aside more than $600 billion as a down payment on efforts to remake the health care system over the next 10 years, partly by limiting the income tax deductions that the most affluent taxpayers claim.
Neither the House nor the Senate has accepted Mr. Obama’s specific proposals. Both chambers are expected to vote later this week on spending plans that would allow Congress to move forward on health legislation, provided it does not increase the deficit.
The leading Democratic proposals would not only subsidize the purchase of private insurance, but also expand Medicaid, to cover more poor people, and Medicare, to eliminate a two-year waiting period for people with severe disabilities.
The White House and Democrats in Congress are operating on two optimistic assumptions.
One is that if everyone had health insurance, it would be easier to control health costs.
The other premise is that the nation could sharply reduce the growth of health care spending if doctors made less use of aggressive treatments that raise costs but do not result in better outcomes.
But no combination of tax increases and Medicare savings comes near to covering the full cost of the proposals, which Democrats say could easily top $1 trillion over 10 years.
The chairmen, all Democrats, agree that everyone must carry insurance and that employers should be required to help pay for it. They also agree that the government should offer a public health insurance plan as an alternative to private insurance.
But members of Congress are just now turning to the most explosive issues, which could delay or derail the process.
They have yet to tackle the question of how to pay for coverage of the uninsured.
They have not wrestled with vehement Republican objections to the idea of a new government-run insurance plan, competing directly with private insurers.
And they have not figured out the role of state insurance regulators, who enforce hundreds of state laws mandating coverage of a myriad of items, including infertility treatments, prostate cancer screening and acupuncture.
“There’s too much happy talk,” said Senator John D. Rockefeller IV, Democrat of West Virginia.
“It’s time to start thrashing out decisions on the tough issues.”
The White House, displaying a surprisingly light touch, has encouraged Democrats in Congress to make the hard decisions while the administration holds forums around the country to hear suggestions from ordinary citizens.
Congressional leaders have set an ambitious timetable, under which the House and the Senate would vote on separate bills by the end of July. Senator Edward M. Kennedy, Democrat of Massachusetts, has kept the heat on negotiators.
President Obama’s pick for secretary of health and human services, Gov. Kathleen Sebelius of Kansas, told senators at a hearing on Tuesday that “health reform would be my mission” if the Senate confirmed her nomination. Ms. Sebelius backed Mr. Obama’s call for giving Americans the option of a government health plan as an alternative to private coverage — “a public option, side by side with private insurers,” she said.
Nancy-Ann DeParle, director of the White House Office for Health Reform, who is on Capitol Hill almost every day, said, “In my view, there’s been a steady progression toward getting a health care reform bill done this year, as the president has urged and requested.”
Asked if she had recommended any specific policy options to Congress, Ms. DeParle said, “That has not come up yet.”
Since last fall, Senate Democrats have been meeting regularly with consumer advocates and lobbyists for the health care, insurance and pharmaceutical industries. The talks have narrowed the differences.
In November, two weeks after the presidential election, the health insurance industry said it would accept all applicants, regardless of illness or disability, if Congress required everyone to have coverage. The industry went a step further last week, offering to end the practice of charging higher premiums to sick people in the individual insurance market.
But each point of agreement raises a host of questions. The government cannot require people to have insurance if they cannot afford it, so lawmakers must decide: Who would get subsidies?
How much? And if the government subsidizes insurance, should it also prescribe the items and services that must be covered — the specific benefits or their overall value?
Leading the effort on Capitol Hill are the five committee chairmen, Representatives George Miller and Henry A. Waxman of California and Charles B. Rangel of New York, Senator Max Baucus of Montana and Mr. Kennedy.
The serious negotiations are being conducted in a secretive process that looks a little like the one that President Bill Clinton and the first lady, Hillary Rodham Clinton, used to devise their ill-fated plan for universal health insurance in 1993.
To be sure, the players are different this year. Congress, rather than the White House, has taken the lead in drafting a proposal to reorder one-sixth of the nation’s economy. Ms. DeParle, the White House official, said: “My job is to work with members of Congress. They are the ones doing the hard work. We are providing technical assistance. We help them with the nuts and bolts.”
And whereas the Clintons attacked special interests and excluded them from policy-making deliberations, Kennedy aides have welcomed them to twice-weekly meetings of stakeholders, known as the “workhorse group.”
Still, including the lobbyists in the negotiations does not guarantee that they will support whatever emerges. “The lobbyists talk more gently,” Mr. Rockefeller said, “but could be just as lethal to health care reform as they were 15 years ago.”
Mr. Baucus, the chairman of the Senate Finance Committee, periodically summons senators to his office for meetings of the “board of directors,” a group of six Democrats and five Republicans mulling ways to steer health legislation through the Senate.
Democrats insist that consumers should have a choice between private insurance and a government health plan. Private insurers will hold down costs and improve care if they have to compete with a public plan, said the House Democratic leader, Representative Steny H. Hoyer of Maryland.
But Republicans say a government plan would have unfair advantages and could drive private insurers from the market.
Lobbyists and Congressional aides have discussed a possible compromise: Congress would authorize a new government-run insurance program, but it would come into existence only if certain conditions were met — if, for example, private insurers failed to rein in health costs by a certain amount after several years. Such a condition would serve as a strong incentive for insurers to ratchet down payments to doctors and hospitals.
Representative Roy Blunt of Missouri, the chairman of a 21-member group that is shaping health policy for House Republicans, said he saw the Medicare prescription drug benefit as a model, “a good pattern of how a competitive marketplace works.”
The drug benefit is delivered entirely by private insurers under contract with the federal government, which supervises their activities. Costs have been far lower than originally expected.
The 2003 Medicare law allowed the government to establish a prescription drug plan in any geographic area with fewer than two private plans. But insurers, seeing a lucrative business opportunity, rushed into the market, and the government never had to establish a plan of its own.
The cost of universal coverage is likely to be one of the most difficult issues. Democrats readily concede that their proposals will be expensive.
In his budget, Mr. Obama showed he was serious when he asked Congress to set aside more than $600 billion as a down payment on efforts to remake the health care system over the next 10 years, partly by limiting the income tax deductions that the most affluent taxpayers claim.
Neither the House nor the Senate has accepted Mr. Obama’s specific proposals. Both chambers are expected to vote later this week on spending plans that would allow Congress to move forward on health legislation, provided it does not increase the deficit.
The leading Democratic proposals would not only subsidize the purchase of private insurance, but also expand Medicaid, to cover more poor people, and Medicare, to eliminate a two-year waiting period for people with severe disabilities.
The White House and Democrats in Congress are operating on two optimistic assumptions.
One is that if everyone had health insurance, it would be easier to control health costs.
The other premise is that the nation could sharply reduce the growth of health care spending if doctors made less use of aggressive treatments that raise costs but do not result in better outcomes.
But no combination of tax increases and Medicare savings comes near to covering the full cost of the proposals, which Democrats say could easily top $1 trillion over 10 years.
Florida Insurance: Brody Bill gets knocked down
A potentially precedent-setting $31 million claims bill for a Broward County teen catastrophically injured in a car wreck with a sheriff’s deputy is in deep trouble after a House committee slapped the bill down this afternoon.
The House Criminal & Civil Justice Policy Council tabled the so-called claims bill, amid contentious debate over who would pay the bill -- the Broward Sheriff’s Office or the insurance company that drug its feet in paying the claim.
Eric Brody, now 29, was a Sunrise high school senior involved in a car wreck in 1998 with a Broward sheriff’s deputy running late to work. The accident left Brody in a coma for six months.
Today, he’s wheelchair bound, has severe brain damage and slurred speech that makes him very difficult to understand.
But today’s committee hearing hinged on a point of insurance law: Did the insurance carrier, TIG Insurance Company, act in bad faith when it refused to pay Brody’s claim for years?
The insurance company has hired high-powered lobbyists and lawyers to kill Brody’s bill. Their argument is that, if a judge doesn’t find any bad faith on the part of the insurance company, the Broward Sheriff’s Office would be on the hook for the entire bill.
“My heart goes out to Mr. Brody,” said Rep. Kevin Ambler, R-Tampa. “By the same token, there are huge public policy implications behind what we’re doing.” If the sheriff’s office is forced to pay, there could be a “devastating impact to public safety,” he added. “I feel very uncomfortable voting for it today.”
The committee extended its one-hour meeting twice to air out the Brody bill, but in the end delayed the vote. Midway through the legislative session, that’s a bad sign: any delay can be a death knell, especially in a session with the focus squarely on the budget.
On the other hand, the bill does have a powerful proponent: Rep. Ellyn Bogdanoff, R-Fort Lauderdale. She watched the debate from the audience and has been helping advance it behind the scenes. After 11 years, it’s time to settle the issue, Bogdanoff said.
COMMENTS
1.
The only person or organization responsible is the officer. The BSO had nothing to do with it. The gold-diggers just went after the money.
2.
There is a precedent that he was acting on behalf of the BSO which makes them responsible. I don't like it either, but that is how our lawyers see things.
I would like to find out TGI's reasoning as to why they would not be responsible for this. If it is because the officer was off duty at the time, then BSO should not be responsible, either.
3.
The BSO officer was going over 70mph in a 45mph zone because he was runnning for late for roll call. He had caused a similar accident before, going 80mph in a 55mph zone. This man deserves the money and the insurance company should pay it. That's why the BSO bought the insurance in the first place.
4.
A reasonable settlement would be maybe 500K, but tens of millions of dollars of my tax money?? NO WAY...The stupid gold digging attorneys stand to get 33 1/3 percent of the tax free winnings? HELL NO!
5.
You are missing important journalistic information the public should be aware of, such as was the deputy driving his own vehicle, or a BSO vehicle, does the bill require the insurance company or the BSO to foot the bill, and who are the sponsors of the bill?
6.
A young man's life was destroyed by a BSO officer who should never have been entrusted with a BSO vehicle or been allowed to carry badge. The family has been nearly bankrupted with medical bills and has been struggling to support this young man. How can anyone withhold the money necessary to get him proper care? This is bureaucracy at its absolute worst.
And just an aside, the lawyers fees are capped by state law, so there is no way the lawyer will see anywhere near the 33 1/3 percent as suggested above. That is just more propaganda put forth by the insurance company who breached its obligations to the victim and the BSO. It was required by law to offer the victim the money needed for his care on day 1.
Disgusting.
7.
It is shocking that anyone would think that 500k is adequate consideration for someone who suffered significant brain damage and can no longer walk on his own or speak clearly. The medical bills incurred alone have to be a few million dollars. Then you have to think that the cost of continuing care over his life time are going to be ridiculously expensive. This judgment won't afford this young man the ability to live a life of luxury. Rather, it will enable him to get the services he needs.
It amazes me how ignorant people can weigh in on matters they know nothing about. I am not in a position to say whether the amount awarded to this young man were appropriate, and can't stand when others make judgments without knowing the facts. Clearly a judge and jury with all of the information at their fingertips made a decision that this was the amount necessary to get this young man the services he needs. Who are we to second guess that?
8.
I understand that most officers have drive home vehicles so neighborhoods can prevent maybe some crimes if they see a police vehicle. But I checked records and this officer has done this before, while speeding. His patrol car should of be taken away then cause he is considered a insurance risk, It was not Josh's choice to be struck and seriously hurt by this officer using seriously poor judgement with his actions on the morning of the accident by speeding. Josh didnt know when he woke up that day, that his life wa about to change for the worse and never get better.. And who is to blame the officer cause once the officer puts on his uniform and gets behind the wheel of a dept issued police vehicle then yes he is considered on duty, cause if he witnessed a traffic crime they he can by law pull the person over even if he hasnt got to roll-call, so yes the insurance should pay for all future medical, and pain and suffering, I only wish I was still a FLA resident and this was up for a vote. This officer and the dept along with the insurance company should be held accountable cause it has happened once and then once again same officer and same scenario in a police issued vehicle while speeding...
The House Criminal & Civil Justice Policy Council tabled the so-called claims bill, amid contentious debate over who would pay the bill -- the Broward Sheriff’s Office or the insurance company that drug its feet in paying the claim.
Eric Brody, now 29, was a Sunrise high school senior involved in a car wreck in 1998 with a Broward sheriff’s deputy running late to work. The accident left Brody in a coma for six months.
Today, he’s wheelchair bound, has severe brain damage and slurred speech that makes him very difficult to understand.
But today’s committee hearing hinged on a point of insurance law: Did the insurance carrier, TIG Insurance Company, act in bad faith when it refused to pay Brody’s claim for years?
The insurance company has hired high-powered lobbyists and lawyers to kill Brody’s bill. Their argument is that, if a judge doesn’t find any bad faith on the part of the insurance company, the Broward Sheriff’s Office would be on the hook for the entire bill.
“My heart goes out to Mr. Brody,” said Rep. Kevin Ambler, R-Tampa. “By the same token, there are huge public policy implications behind what we’re doing.” If the sheriff’s office is forced to pay, there could be a “devastating impact to public safety,” he added. “I feel very uncomfortable voting for it today.”
The committee extended its one-hour meeting twice to air out the Brody bill, but in the end delayed the vote. Midway through the legislative session, that’s a bad sign: any delay can be a death knell, especially in a session with the focus squarely on the budget.
On the other hand, the bill does have a powerful proponent: Rep. Ellyn Bogdanoff, R-Fort Lauderdale. She watched the debate from the audience and has been helping advance it behind the scenes. After 11 years, it’s time to settle the issue, Bogdanoff said.
COMMENTS
1.
The only person or organization responsible is the officer. The BSO had nothing to do with it. The gold-diggers just went after the money.
2.
There is a precedent that he was acting on behalf of the BSO which makes them responsible. I don't like it either, but that is how our lawyers see things.
I would like to find out TGI's reasoning as to why they would not be responsible for this. If it is because the officer was off duty at the time, then BSO should not be responsible, either.
3.
The BSO officer was going over 70mph in a 45mph zone because he was runnning for late for roll call. He had caused a similar accident before, going 80mph in a 55mph zone. This man deserves the money and the insurance company should pay it. That's why the BSO bought the insurance in the first place.
4.
A reasonable settlement would be maybe 500K, but tens of millions of dollars of my tax money?? NO WAY...The stupid gold digging attorneys stand to get 33 1/3 percent of the tax free winnings? HELL NO!
5.
You are missing important journalistic information the public should be aware of, such as was the deputy driving his own vehicle, or a BSO vehicle, does the bill require the insurance company or the BSO to foot the bill, and who are the sponsors of the bill?
6.
A young man's life was destroyed by a BSO officer who should never have been entrusted with a BSO vehicle or been allowed to carry badge. The family has been nearly bankrupted with medical bills and has been struggling to support this young man. How can anyone withhold the money necessary to get him proper care? This is bureaucracy at its absolute worst.
And just an aside, the lawyers fees are capped by state law, so there is no way the lawyer will see anywhere near the 33 1/3 percent as suggested above. That is just more propaganda put forth by the insurance company who breached its obligations to the victim and the BSO. It was required by law to offer the victim the money needed for his care on day 1.
Disgusting.
7.
It is shocking that anyone would think that 500k is adequate consideration for someone who suffered significant brain damage and can no longer walk on his own or speak clearly. The medical bills incurred alone have to be a few million dollars. Then you have to think that the cost of continuing care over his life time are going to be ridiculously expensive. This judgment won't afford this young man the ability to live a life of luxury. Rather, it will enable him to get the services he needs.
It amazes me how ignorant people can weigh in on matters they know nothing about. I am not in a position to say whether the amount awarded to this young man were appropriate, and can't stand when others make judgments without knowing the facts. Clearly a judge and jury with all of the information at their fingertips made a decision that this was the amount necessary to get this young man the services he needs. Who are we to second guess that?
8.
I understand that most officers have drive home vehicles so neighborhoods can prevent maybe some crimes if they see a police vehicle. But I checked records and this officer has done this before, while speeding. His patrol car should of be taken away then cause he is considered a insurance risk, It was not Josh's choice to be struck and seriously hurt by this officer using seriously poor judgement with his actions on the morning of the accident by speeding. Josh didnt know when he woke up that day, that his life wa about to change for the worse and never get better.. And who is to blame the officer cause once the officer puts on his uniform and gets behind the wheel of a dept issued police vehicle then yes he is considered on duty, cause if he witnessed a traffic crime they he can by law pull the person over even if he hasnt got to roll-call, so yes the insurance should pay for all future medical, and pain and suffering, I only wish I was still a FLA resident and this was up for a vote. This officer and the dept along with the insurance company should be held accountable cause it has happened once and then once again same officer and same scenario in a police issued vehicle while speeding...
Affordable Health Insurance In Florida Still Possible
Finding affordable health insurance these days is very hard in the light of the rising health care costs, but the case may be different in Tampa, Florida. Many people think there are many barriers to obtaining affordable health insurance, but this is not the case. By utilizing a health insurance broker you can obtain affordable health insurance in the Tampa, FL area.
High deductible coverage plans are available in Tampa for individuals and families. The plans start from $40 per month for individuals and $250 for families. These plans are designed to give families health insurance coverage at an affordable price and prevent huge medical bills from causing financial problems.
Cobra coverage is always of great concern to many people. Cobra costs can be extreme making health insurance something not affordable for many people. With the new guidelines for COBRA set forth by the Obama administration there are new incentives for employers, which can make obtaining affordable health insurance through COBRA a reality for more employees. In Tampa, FL there are many employers who will be feeling the effects of the new laws and will see their COBRA elections begin to rise.
Contrary to common knowledge health insurance for small businesses in Tampa and the nearby areas in Florida is extremely affordable. Health insurance plans have begun to adapt to the changing market conditions and make the coverage more affordable. With the current economic climate it is even more important for the small business to look at its expenses. Insurance companies have created new plans designed to give employees benefits that they use most often.
They include office visit co-payments and prescription coverage. They also raise deductibles on ones they don't, which include hospital visits and advanced diagnostic services. Doing these things reduces the employers month insurance premiums.
Several different companies provide health insurance in the Tampa Florida area. The most popular and most affordable health insurance carriers in Tampa are Blue Cross Blue Shield of Florida, Humana, United Health Care, Aetna, Avalon, Coventry, and AvMed. Each health insurance provider has its advantages and disadvantages. Most people will find the pros and cons to be the monthly premium for each companies given plan. It is important when you are shopping for health insurance to use a company that is allowed to do business in the State of Florida and has a strong network in the Tampa, FL area. There is no value in having an affordable health insurance plan that has no provider in the area or a contract full of holes.
Health insurance plans are more accessible than ever before. With the modernization of health insurance company websites and use of technology it has become easier than ever before to understand what is happening with your insurance policy. It is important to take an avenue to obtaining affordable health insurance that is appropriate for your needs. Many people enjoy the ease of shopping for their insurance online. This ease of use is comfortable, but it lacks the personal attention that insurance brokers provide. Brokers understand what makes certain policies more affordable than others and know what companies get the best discount in the Tampa, Fl area saving you money when you do need treatment.
Options for affordable health insurance in Tampa, FL are out there and ready for online or agent analysis. Knowing how to find the correct plan for you is the key. While many companies many seem like they have affordable health coverage you may end up paying for it when you least expect and when you least need it, after you have had a claim. Contacting a qualified health insurance broker is important when trying to find affordable health insurance. Tampa has many insurance companies to choose from with many affordable options the important part is to know what plan provides the best value for you when you need it.
High deductible coverage plans are available in Tampa for individuals and families. The plans start from $40 per month for individuals and $250 for families. These plans are designed to give families health insurance coverage at an affordable price and prevent huge medical bills from causing financial problems.
Cobra coverage is always of great concern to many people. Cobra costs can be extreme making health insurance something not affordable for many people. With the new guidelines for COBRA set forth by the Obama administration there are new incentives for employers, which can make obtaining affordable health insurance through COBRA a reality for more employees. In Tampa, FL there are many employers who will be feeling the effects of the new laws and will see their COBRA elections begin to rise.
Contrary to common knowledge health insurance for small businesses in Tampa and the nearby areas in Florida is extremely affordable. Health insurance plans have begun to adapt to the changing market conditions and make the coverage more affordable. With the current economic climate it is even more important for the small business to look at its expenses. Insurance companies have created new plans designed to give employees benefits that they use most often.
They include office visit co-payments and prescription coverage. They also raise deductibles on ones they don't, which include hospital visits and advanced diagnostic services. Doing these things reduces the employers month insurance premiums.
Several different companies provide health insurance in the Tampa Florida area. The most popular and most affordable health insurance carriers in Tampa are Blue Cross Blue Shield of Florida, Humana, United Health Care, Aetna, Avalon, Coventry, and AvMed. Each health insurance provider has its advantages and disadvantages. Most people will find the pros and cons to be the monthly premium for each companies given plan. It is important when you are shopping for health insurance to use a company that is allowed to do business in the State of Florida and has a strong network in the Tampa, FL area. There is no value in having an affordable health insurance plan that has no provider in the area or a contract full of holes.
Health insurance plans are more accessible than ever before. With the modernization of health insurance company websites and use of technology it has become easier than ever before to understand what is happening with your insurance policy. It is important to take an avenue to obtaining affordable health insurance that is appropriate for your needs. Many people enjoy the ease of shopping for their insurance online. This ease of use is comfortable, but it lacks the personal attention that insurance brokers provide. Brokers understand what makes certain policies more affordable than others and know what companies get the best discount in the Tampa, Fl area saving you money when you do need treatment.
Options for affordable health insurance in Tampa, FL are out there and ready for online or agent analysis. Knowing how to find the correct plan for you is the key. While many companies many seem like they have affordable health coverage you may end up paying for it when you least expect and when you least need it, after you have had a claim. Contacting a qualified health insurance broker is important when trying to find affordable health insurance. Tampa has many insurance companies to choose from with many affordable options the important part is to know what plan provides the best value for you when you need it.
FLORIDA PROPERTY INSURANCE: RATES MAY INCREASE
In a stark admission that its efforts to reduce property insurance rates put Florida in an untenable financial risk, the Legislature is poised to retreat from some of the major cost controls it instituted just two years ago.
House and Senate leaders are moving toward agreement on legislation that would:
The bottom line means higher property insurance rates for many Floridians, although the state will reduce its risk - as well as the taxpayers' - in the event of a catastrophic storm season.
For the more than 1 million Citizens customers, they will face annual rate increases up to 10 percent beginning on Jan. 1, although the statewide average is expected to be in the range of 5 percent.
Customers of private insurance companies will pay as much as 3 percent a year in higher rates as the state reduces the size of the CAT fund over the next six years.
Rates will rise because the insurers will have to buy more costly reinsurance from the private market to replace the CAT fund backup.
Sen. Mike Fasano, R-New Port Richey, who supports keeping the Citizens rate freeze, said he would oppose the bill if it allows the company to raise its rates by as much as 20 percent.
"The constituents in my area could not afford a 20 percent rate increase," Fasano said.
The Senate bill filed late Tuesday capped the Citizens rate increases at 10 percent, with industry officials saying that should translate into a statewide average increase of about 5 percent.
But the bill would allow Citizens to raise its rates annually until they become "actuarially sound."
UNREALISTIC?
Citizens' current rates have been criticized by others as being unrealistically low, meaning that if Florida were hit by a big storm, Citizens' deficit would have to be made up by state taxpayers or by surcharges on private insurance policies - which is what happened following the hurricane seasons of 2004 and 2005.
Rep. Ron Reagan, R-Sarasota, who has been involved in the insurance bill negotiations, said lawmakers were keeping the "ultimate cost to our consumers" in mind as they put together the bill.
But the legislation is also driven by the belief that neither Citizens nor the CAT fund could pay off their claims after a major storm.
Questions about the CAT fund - which may be as much as $18 billion short if it had to pay out $28 billion - have been raised by rating agencies putting into question the viability of many Florida insurance companies that rely on the fund for their backup coverage.
"The reality is simply this: we're in a position if we were to have a catastrophic storm today, we can't pay the bill," Reagan said. "We need to get ourselves into a position where we can pay people's claims."
INDUSTRY SUPPORT
Insurance industry lobbyists said they supported the efforts to make Citizens and the CAT fund more financially viable.
"Everyone knows what the Legislature has to do," said Sam Miller, a spokesman for the Florida Insurance Council. "The CAT fund needs to be made real again. "
Miller called the emerging insurance bill "a comprehensive effort of dealing with the crisis that we are in."
For some, the Legislature's move to scale back the 2007 property insurance reforms - which were aggressively pushed by Gov. Charlie Crist in his first month in office - is a vindication of their argument that lawmakers pushed the state too far into the private insurance market.
ROSS PRAISES MOVE
Former state Rep. Dennis Ross, a Lakeland Republican, who was stripped of his post as House Insurance Committee chairman in 2007 after he opposed the legislation, said he welcomed the moves to increase Citizens' rates and reduce the size of the CAT fund.
Rate increases are to be expected with the end of the freeze, but they will go down, Ross said Tuesday.
"Anytime you remove price controls the cost will spike," Ross said, "but as more companies move in those prices will drop because of the increased competition."
"That has been the gist of my argument all along," said Ross, who currently is running for Congress. "The hardest thing politically is that prices may have to go up initially as the economic cycle rights itself."
COMMENTS
1. People that choose to live on the beach should pay their on way. I know one thing I won't be voting for this governor in the next elections.
2. Even inland, people pay outrageous rates while the insurance companies get richer and richer. Insurance companies shouldn't be allowed to have special FL divisions. If they are a nationwide carrier, Florida should be part of the rest of the nation since they don't have special NH divisions or CA divisions.
3. Nice to see Dennis Ross is finally being recognized for being right all along. If another major storm hits or if three hit during a six week period like Jeanne, Francis and that other guy, Florida taxpayers would be on the hook like you wouldn't believe. Mr. Ross was absolutely correct. Governor Crist was dead wrong. People who think insurance companies are getting rich are just plain ignorant. Let State Farm raise their rates as much as they want. If people choose to pay the higher rates and stay with State Farm, let them. If you let the insurance companies set their own rates, the ensuing competition would actually drive rates down. There are many good companies still writing homeowner's policies in Florida that have rates well below State Farm and Citizens. Let the consumer decide. Also, can we do away with the special Florida divisions of insurance companies? A previous poster was correct. The insurance companies should put all of their claims into one big pot. Sure am glad Mr. Ross is running for Congress. Probably kept Paula Dockery out of it and that's a good thing.
4. So you would be happy to pay for the california mudslides & earthquakes, the midwest ice storms and tornados as well as the northern blizzards, and the hurricanes that can hit the carolinas, the flooding in places like ND and other places in the midwest? On top of the Florida hurricanes?You would have no problems with this? One argument people here use is that before 2004, there were very few hurricanes. So why did rates go up? (despite the fact that property appraisels also went up. But why introduce logic to people who think something should be free or close to it) But imagine if your rates went up because of a mudslide in California, or a atornado that flattened a town in Oklahoma or a flood that washed away parts of Missouri. Some people here would be crying 'But why should my rates go up because of something that didnt happen to or near me?'. Wah wah wah.You dont like it, then except in cases where it is illegal to do so, dont get insurance. Or get the base minimum. Put all that money youre saving into something like stocks or some other money making fund, and handle your own disasters yourself.Or feel free to go to Billy Bob's insurance world, who is brand new in the state and taking on more policies then it can handle. Then if something occurs, you can hope you actually get paid in a timely fashion.
5. So what do they intend to do with this $12 billion? There's no mention of this in the article. Things that make you go hmmmm...
6. Attorney retainers for all the lawsuits people will file when they dont get paid for their damage.
7. Good point. However, I've always been in favor of a National Catastrophe Fund.
Timeliness of payouts isn't an issue anymore - Emporer Crist instituted a law a couple years ago that requires insurers to pay all claims within 90 days of being reported, or pay interest on what should have been paid (unless the claim is out of the insurer's control, i.e. the policyholder hasn't gotten estimates or moved forward with his/her claim).I agree - go to Billy Bob's Insurance World while you're at the flea market buying your flip-flops, and see if Billy Bob is there with his checkbook when a storm tears off your roof.
House and Senate leaders are moving toward agreement on legislation that would:
- Allow the state-backed Citizens Property Insurance Corp. to raise its rates annually by by as much as 10 percent for some individual policyholders. Lawmakers imposed a Citizens rate freeze in 2007.
- Reduce the size of the state hurricane catastrophe fund by $12 billion, returning it to the $16 billion level of 2007. Lawmakers had nearly doubled the so-called CAT fund in 2007 in effort to drive down rates by providing cheaper backup insurance to private companies. The reduction could lead to rate hikes up to 3 percent for many Floridians.
- Allow state officials to use pension funds to buy bonds if the CAT fund cannot raise money otherwise following a major hurricane.
The bottom line means higher property insurance rates for many Floridians, although the state will reduce its risk - as well as the taxpayers' - in the event of a catastrophic storm season.
For the more than 1 million Citizens customers, they will face annual rate increases up to 10 percent beginning on Jan. 1, although the statewide average is expected to be in the range of 5 percent.
Customers of private insurance companies will pay as much as 3 percent a year in higher rates as the state reduces the size of the CAT fund over the next six years.
Rates will rise because the insurers will have to buy more costly reinsurance from the private market to replace the CAT fund backup.
Sen. Mike Fasano, R-New Port Richey, who supports keeping the Citizens rate freeze, said he would oppose the bill if it allows the company to raise its rates by as much as 20 percent.
"The constituents in my area could not afford a 20 percent rate increase," Fasano said.
The Senate bill filed late Tuesday capped the Citizens rate increases at 10 percent, with industry officials saying that should translate into a statewide average increase of about 5 percent.
But the bill would allow Citizens to raise its rates annually until they become "actuarially sound."
UNREALISTIC?
Citizens' current rates have been criticized by others as being unrealistically low, meaning that if Florida were hit by a big storm, Citizens' deficit would have to be made up by state taxpayers or by surcharges on private insurance policies - which is what happened following the hurricane seasons of 2004 and 2005.
Rep. Ron Reagan, R-Sarasota, who has been involved in the insurance bill negotiations, said lawmakers were keeping the "ultimate cost to our consumers" in mind as they put together the bill.
But the legislation is also driven by the belief that neither Citizens nor the CAT fund could pay off their claims after a major storm.
Questions about the CAT fund - which may be as much as $18 billion short if it had to pay out $28 billion - have been raised by rating agencies putting into question the viability of many Florida insurance companies that rely on the fund for their backup coverage.
"The reality is simply this: we're in a position if we were to have a catastrophic storm today, we can't pay the bill," Reagan said. "We need to get ourselves into a position where we can pay people's claims."
INDUSTRY SUPPORT
Insurance industry lobbyists said they supported the efforts to make Citizens and the CAT fund more financially viable.
"Everyone knows what the Legislature has to do," said Sam Miller, a spokesman for the Florida Insurance Council. "The CAT fund needs to be made real again. "
Miller called the emerging insurance bill "a comprehensive effort of dealing with the crisis that we are in."
For some, the Legislature's move to scale back the 2007 property insurance reforms - which were aggressively pushed by Gov. Charlie Crist in his first month in office - is a vindication of their argument that lawmakers pushed the state too far into the private insurance market.
ROSS PRAISES MOVE
Former state Rep. Dennis Ross, a Lakeland Republican, who was stripped of his post as House Insurance Committee chairman in 2007 after he opposed the legislation, said he welcomed the moves to increase Citizens' rates and reduce the size of the CAT fund.
Rate increases are to be expected with the end of the freeze, but they will go down, Ross said Tuesday.
"Anytime you remove price controls the cost will spike," Ross said, "but as more companies move in those prices will drop because of the increased competition."
"That has been the gist of my argument all along," said Ross, who currently is running for Congress. "The hardest thing politically is that prices may have to go up initially as the economic cycle rights itself."
COMMENTS
1. People that choose to live on the beach should pay their on way. I know one thing I won't be voting for this governor in the next elections.
2. Even inland, people pay outrageous rates while the insurance companies get richer and richer. Insurance companies shouldn't be allowed to have special FL divisions. If they are a nationwide carrier, Florida should be part of the rest of the nation since they don't have special NH divisions or CA divisions.
3. Nice to see Dennis Ross is finally being recognized for being right all along. If another major storm hits or if three hit during a six week period like Jeanne, Francis and that other guy, Florida taxpayers would be on the hook like you wouldn't believe. Mr. Ross was absolutely correct. Governor Crist was dead wrong. People who think insurance companies are getting rich are just plain ignorant. Let State Farm raise their rates as much as they want. If people choose to pay the higher rates and stay with State Farm, let them. If you let the insurance companies set their own rates, the ensuing competition would actually drive rates down. There are many good companies still writing homeowner's policies in Florida that have rates well below State Farm and Citizens. Let the consumer decide. Also, can we do away with the special Florida divisions of insurance companies? A previous poster was correct. The insurance companies should put all of their claims into one big pot. Sure am glad Mr. Ross is running for Congress. Probably kept Paula Dockery out of it and that's a good thing.
4. So you would be happy to pay for the california mudslides & earthquakes, the midwest ice storms and tornados as well as the northern blizzards, and the hurricanes that can hit the carolinas, the flooding in places like ND and other places in the midwest? On top of the Florida hurricanes?You would have no problems with this? One argument people here use is that before 2004, there were very few hurricanes. So why did rates go up? (despite the fact that property appraisels also went up. But why introduce logic to people who think something should be free or close to it) But imagine if your rates went up because of a mudslide in California, or a atornado that flattened a town in Oklahoma or a flood that washed away parts of Missouri. Some people here would be crying 'But why should my rates go up because of something that didnt happen to or near me?'. Wah wah wah.You dont like it, then except in cases where it is illegal to do so, dont get insurance. Or get the base minimum. Put all that money youre saving into something like stocks or some other money making fund, and handle your own disasters yourself.Or feel free to go to Billy Bob's insurance world, who is brand new in the state and taking on more policies then it can handle. Then if something occurs, you can hope you actually get paid in a timely fashion.
5. So what do they intend to do with this $12 billion? There's no mention of this in the article. Things that make you go hmmmm...
6. Attorney retainers for all the lawsuits people will file when they dont get paid for their damage.
7. Good point. However, I've always been in favor of a National Catastrophe Fund.
Timeliness of payouts isn't an issue anymore - Emporer Crist instituted a law a couple years ago that requires insurers to pay all claims within 90 days of being reported, or pay interest on what should have been paid (unless the claim is out of the insurer's control, i.e. the policyholder hasn't gotten estimates or moved forward with his/her claim).I agree - go to Billy Bob's Insurance World while you're at the flea market buying your flip-flops, and see if Billy Bob is there with his checkbook when a storm tears off your roof.
Wednesday, April 1, 2009
MINNESOTA INSURANCE AGENT GETS SUSPENSION
A Cloquet insurance agent’s license was suspended Tuesday by the Minnesota Department of Commerce for alleged failure to send premiums to insurance companies after collecting payments from his clients.
Robert Pavlatos, owner of All Sports Insurance, has five counts against his company, including failure to direct at least $200,000 to American Insurance Alliance and Premium Finance Specialists, according to legal documents filed by the commerce department.
The charges against All Sports include forged insurance documents and a diversion of money that resulted in clients operating without insurance.
All Sports insures sports camps, leagues and facilities nationwide. Pavlatos, who has 30 years of insurance experience, runs the family business with his son, Adam Pavlatos.
“I’m definitely going to fight these charges,” Robert Pavlatos said. “I need to talk to my attorney. This is a shock to me that it has gotten this far.”
Commerce Commissioner Glenn Wilson expressed equal resolve for pursuing the charges.
“There is no room in the marketplace for an agency that takes your money and leaves you without insurance,” he said in a statement.
The five counts against Pavlatos will be considered at an April 20 hearing with an administrative law judge in St. Paul.
The charges state that:
All Sports failed to pay $107,000 to American Insurance Alliance for about 35 insurance policies placed for All Sports clients.
All Sports withheld, misappropriated or converted money of about $20,000 intended to pay two premium payments from Premium Finance Specialists.
All Sports withheld, misappropriated or converted money from 17 clients totaling at least $64,000.
The charges also said that All Sports continues to owe clients between $25,000 and $48,000 for overpayment or diversion of money.
One client, Sharpstown Ice Center in the Houston area, suffered hurricane-related losses of about $50,000 because All Sports failed to forward its premium payment to the insurance company, according to the legal documents.
Not every client is dissatisfied, however. Brad Buetow, who runs the Buetow School of Hockey camps, clinics and leagues in Colorado, said he has held insurance through All Sports for about 10 years without having to file a claim.
“I have total confidence in Bob, and his son, Adam,” Beutow told the News Tribune. “I’ve referred them to other people. Things have been very efficient, and I absolutely have no complaints.”
Premium Finance Specialists in Kansas City, Mo., filed a complaint in August 2008, claiming that it paid $20,000 to All Sports in 2007 for two policies that were never issued and/or canceled, the documents state. All Sports wrote four checks to Premium Finance Specialists with insufficient funds from December 2007 to March 2008. All Sports paid $11,000 in April 2008, but still owes Premium Finance Specialists $10,000 with interest and late fees, the documents claim.
American Insurance Alliance in Bellingham, Wash., filed the complaint in November 2008, claiming that All Sports sent forged insurance documents, reinstatement papers and insurance binders, according to legal documents.
Robert Pavlatos, owner of All Sports Insurance, has five counts against his company, including failure to direct at least $200,000 to American Insurance Alliance and Premium Finance Specialists, according to legal documents filed by the commerce department.
The charges against All Sports include forged insurance documents and a diversion of money that resulted in clients operating without insurance.
All Sports insures sports camps, leagues and facilities nationwide. Pavlatos, who has 30 years of insurance experience, runs the family business with his son, Adam Pavlatos.
“I’m definitely going to fight these charges,” Robert Pavlatos said. “I need to talk to my attorney. This is a shock to me that it has gotten this far.”
Commerce Commissioner Glenn Wilson expressed equal resolve for pursuing the charges.
“There is no room in the marketplace for an agency that takes your money and leaves you without insurance,” he said in a statement.
The five counts against Pavlatos will be considered at an April 20 hearing with an administrative law judge in St. Paul.
The charges state that:
All Sports failed to pay $107,000 to American Insurance Alliance for about 35 insurance policies placed for All Sports clients.
All Sports withheld, misappropriated or converted money of about $20,000 intended to pay two premium payments from Premium Finance Specialists.
All Sports withheld, misappropriated or converted money from 17 clients totaling at least $64,000.
The charges also said that All Sports continues to owe clients between $25,000 and $48,000 for overpayment or diversion of money.
One client, Sharpstown Ice Center in the Houston area, suffered hurricane-related losses of about $50,000 because All Sports failed to forward its premium payment to the insurance company, according to the legal documents.
Not every client is dissatisfied, however. Brad Buetow, who runs the Buetow School of Hockey camps, clinics and leagues in Colorado, said he has held insurance through All Sports for about 10 years without having to file a claim.
“I have total confidence in Bob, and his son, Adam,” Beutow told the News Tribune. “I’ve referred them to other people. Things have been very efficient, and I absolutely have no complaints.”
Premium Finance Specialists in Kansas City, Mo., filed a complaint in August 2008, claiming that it paid $20,000 to All Sports in 2007 for two policies that were never issued and/or canceled, the documents state. All Sports wrote four checks to Premium Finance Specialists with insufficient funds from December 2007 to March 2008. All Sports paid $11,000 in April 2008, but still owes Premium Finance Specialists $10,000 with interest and late fees, the documents claim.
American Insurance Alliance in Bellingham, Wash., filed the complaint in November 2008, claiming that All Sports sent forged insurance documents, reinstatement papers and insurance binders, according to legal documents.
MINNESOTA HEALTH INSURANCE: INDIVIDUAL SALES CLIMBING
The bad economy has been good for at least one niche business -- individual health insurance.
Laid-off Minnesotans are signing up in big numbers for individual health plans to replace the coverage they've lost along with their jobs. Others, still employed, find that their companies have dropped medical coverage or that they can no longer afford their portion of group premiums.
"2008 was a huge year for us," said Craig Ashby, director of individual products at Medica, the state's third biggest seller of individual health insurance. Medica's individual enrollment has jumped almost 70 percent, from 8,660 members at the end of 2007 to 14,689 at the end of 2008.
HealthPartners, which was selling 200 to 300 new individual policies a month before the middle of last year, is now selling more than 1,000 a month. Because of high turnover, however, its total individual enrollment of 22,000 isn't much higher than it was at the beginning of 2007.
Blue Cross and Blue Shield of Minnesota, by far the biggest seller of individual policies, said 2008 sales were "steady and consistent" but declined to provide numbers.
"Many unemployed people are considering individual insurance for the first time in their lives," Shawn Patterson, vice president of marketing for Blue Cross, said in an e-mail.
A growing niche
Individual policies remain just a sliver of the health insurance market, but they are growing fast. The majority of Minnesotans -- about 60 percent -- still get coverage through their employers. In 2002, there were 192,942 enrollees, or 3.8 percent of Minnesotans, in the individual market. By 2007, the number had climbed to 246,190, or 4.7 percent of the population. 2008 numbers haven't been compiled yet.
One reason why the segment might keep growing is the potential for government health care reform.
"We believe the individual product is going to have a bigger place in the solution," said Doug Smith, HealthPartners' senior vice president for sales. "I don't know how much is related to economic conditions or how much is a sea change."
During the presidential campaign, Republican John McCain championed tax credits for individuals and families to help them buy individual insurance. He lost, but individual policies could still play a role in Washington's effort to expand coverage.
Last week, America's Health Insurance Plans, the industry trade group, said it would consider stopping the controversial practice of charging higher premiums to sick people if Congress required all Americans to have insurance. The concession was to counter Democratic proposals for a new government-run health insurance plan that would compete with private insurers.
For now, however, it's the weak economy that's driving people to individual coverage.
"Recently unemployed?" asks the website of Blue Cross and Blue Shield. "You have more options than Cobra," referring to the federal law that gives laid-off workers the right to stay on the company's group insurance for a limited period.
"Is Cobra too expensive?" asks Medica's website. "We have affordable plans."
In January, after Hutchinson Technology laid off 1,380 workers, many of them in Minnesota, Medica quickly partnered with a local Hutchinson insurance agent to host informational seminars and paper the city with fliers.
The seminars on Tuesdays and Thursdays at the Hutchinson Event Center haven't drawn the hoped-for crowds. "We expected to fill rooms of 100 people," said Alan Nagel, the local insurance agent. Instead, 15 to 20 people have shown up each time.
Nevertheless, Nagel said, he's selling a lot more individual policies these days through referrals.
Lower premiums
Health plans are well aware of the squeeze on consumers.
Last year, HealthPartners introduced its "Three-for-free" individual plan, which includes three free doctor visits. That now makes up 15 percent of the insurer's individual enrollees. Medica's Solo, aimed at young adults and introduced in mid-2007, is also a big success and now accounts for a third of individual enrollees. But a more expensive product launched mid-2008 for early retirees, Encore, hasn't taken off. It has fewer than 100 enrollees.
The biggest selling point for consumers is that these products carry premiums that are significantly lower than group premiums.
For example, Medica's average monthly premium is $375 for a single person in a group plan. Because employers often subsidize up to 90 percent of the premium, many people get sticker shock when they apply for Cobra after a layoff and have to pay the full premium.
By contrast, the average monthly premium for individual coverage at Medica is $150. It comes with an average annual deductible of between $2,000 and $3,000.
The trade-off is that benefits are stripped down. Maternity, for example, is not covered in some individual plans, and the policies usually come with a hefty annual deductible, up to $9,000 in Medica's case.
For the plans, individual policies have higher marketing and underwriting costs than group coverage, but they still contribute to the bottom line -- and are preferable to losing customers entirely. Also, while group plans have to take all comers, insurers can and do deny individual coverage to those with expensive health conditions.
The Cobra option
For those with chronic conditions, insurance experts say it's probably better to hang onto Cobra as long as they can. President Obama's recent economic stimulus package includes a plan to subsidize Cobra premiums by 65 percent for nine months as a temporary relief for those laid-off.
"Certainly it should encourage people to keep Cobra," said Marcus Merz, chief executive of PreferredOne, the state's fourth-largest health insurer. PreferredOne began selling individual policies three years ago, but it "really took off in 2008," Merz said. The insurer now has 5,000 individual enrollees.
Still, other forces are likely to continue to boost the individual market.
Late last year, Merz said, some small companies began dropping employee coverage altogether.
Three companies that were clients of PreferredOne did that in December 2008 and another two are dropping coverage in April.
"That's going to accelerate in 2009," he predicted.
Laid-off Minnesotans are signing up in big numbers for individual health plans to replace the coverage they've lost along with their jobs. Others, still employed, find that their companies have dropped medical coverage or that they can no longer afford their portion of group premiums.
"2008 was a huge year for us," said Craig Ashby, director of individual products at Medica, the state's third biggest seller of individual health insurance. Medica's individual enrollment has jumped almost 70 percent, from 8,660 members at the end of 2007 to 14,689 at the end of 2008.
HealthPartners, which was selling 200 to 300 new individual policies a month before the middle of last year, is now selling more than 1,000 a month. Because of high turnover, however, its total individual enrollment of 22,000 isn't much higher than it was at the beginning of 2007.
Blue Cross and Blue Shield of Minnesota, by far the biggest seller of individual policies, said 2008 sales were "steady and consistent" but declined to provide numbers.
"Many unemployed people are considering individual insurance for the first time in their lives," Shawn Patterson, vice president of marketing for Blue Cross, said in an e-mail.
A growing niche
Individual policies remain just a sliver of the health insurance market, but they are growing fast. The majority of Minnesotans -- about 60 percent -- still get coverage through their employers. In 2002, there were 192,942 enrollees, or 3.8 percent of Minnesotans, in the individual market. By 2007, the number had climbed to 246,190, or 4.7 percent of the population. 2008 numbers haven't been compiled yet.
One reason why the segment might keep growing is the potential for government health care reform.
"We believe the individual product is going to have a bigger place in the solution," said Doug Smith, HealthPartners' senior vice president for sales. "I don't know how much is related to economic conditions or how much is a sea change."
During the presidential campaign, Republican John McCain championed tax credits for individuals and families to help them buy individual insurance. He lost, but individual policies could still play a role in Washington's effort to expand coverage.
Last week, America's Health Insurance Plans, the industry trade group, said it would consider stopping the controversial practice of charging higher premiums to sick people if Congress required all Americans to have insurance. The concession was to counter Democratic proposals for a new government-run health insurance plan that would compete with private insurers.
For now, however, it's the weak economy that's driving people to individual coverage.
"Recently unemployed?" asks the website of Blue Cross and Blue Shield. "You have more options than Cobra," referring to the federal law that gives laid-off workers the right to stay on the company's group insurance for a limited period.
"Is Cobra too expensive?" asks Medica's website. "We have affordable plans."
In January, after Hutchinson Technology laid off 1,380 workers, many of them in Minnesota, Medica quickly partnered with a local Hutchinson insurance agent to host informational seminars and paper the city with fliers.
The seminars on Tuesdays and Thursdays at the Hutchinson Event Center haven't drawn the hoped-for crowds. "We expected to fill rooms of 100 people," said Alan Nagel, the local insurance agent. Instead, 15 to 20 people have shown up each time.
Nevertheless, Nagel said, he's selling a lot more individual policies these days through referrals.
Lower premiums
Health plans are well aware of the squeeze on consumers.
Last year, HealthPartners introduced its "Three-for-free" individual plan, which includes three free doctor visits. That now makes up 15 percent of the insurer's individual enrollees. Medica's Solo, aimed at young adults and introduced in mid-2007, is also a big success and now accounts for a third of individual enrollees. But a more expensive product launched mid-2008 for early retirees, Encore, hasn't taken off. It has fewer than 100 enrollees.
The biggest selling point for consumers is that these products carry premiums that are significantly lower than group premiums.
For example, Medica's average monthly premium is $375 for a single person in a group plan. Because employers often subsidize up to 90 percent of the premium, many people get sticker shock when they apply for Cobra after a layoff and have to pay the full premium.
By contrast, the average monthly premium for individual coverage at Medica is $150. It comes with an average annual deductible of between $2,000 and $3,000.
The trade-off is that benefits are stripped down. Maternity, for example, is not covered in some individual plans, and the policies usually come with a hefty annual deductible, up to $9,000 in Medica's case.
For the plans, individual policies have higher marketing and underwriting costs than group coverage, but they still contribute to the bottom line -- and are preferable to losing customers entirely. Also, while group plans have to take all comers, insurers can and do deny individual coverage to those with expensive health conditions.
The Cobra option
For those with chronic conditions, insurance experts say it's probably better to hang onto Cobra as long as they can. President Obama's recent economic stimulus package includes a plan to subsidize Cobra premiums by 65 percent for nine months as a temporary relief for those laid-off.
"Certainly it should encourage people to keep Cobra," said Marcus Merz, chief executive of PreferredOne, the state's fourth-largest health insurer. PreferredOne began selling individual policies three years ago, but it "really took off in 2008," Merz said. The insurer now has 5,000 individual enrollees.
Still, other forces are likely to continue to boost the individual market.
Late last year, Merz said, some small companies began dropping employee coverage altogether.
Three companies that were clients of PreferredOne did that in December 2008 and another two are dropping coverage in April.
"That's going to accelerate in 2009," he predicted.
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I didn't buy a house cash, nor is my credit perfect and I got a loan no problem at 5%...
I agree on the hoping Vegas learned from this. But can we really blame builders when they could throw a 2000sq/ft house on a 2500sq/ft lot and sell it for $300K? Supply and demand was a major factor here, and California and elsewhere was the real culprit, they flooded this city with investment $$ for homes nobody was living in. We should really thank them now for allowing the prices to be what they are here. I can almost guarantee that the pricing on homes won't ever return once it recovers.I just insured my home and if it was destroyed it would cost more to build it again than what i bought the home, land, pool, b-ball court, and putting green for.
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i'm a realtor and i'm worried that people are buying up homes to turn them into rental properties and figure they can sell them for a 20% return next year, and i don't see the jobs coming in to refill all those homes.