News You Can Use

Bad Dogs Bite All Home Owners

Fri, 18 May 2012 04:18:57 GMT

Dog bite claims continue to grow in numbers and cost which increases premiums for all Homeowners Insurance. In fact, from 2003 to 2011, the cost of the average dog bite claim increased by 53.4 percent. Dog bites accounted for more than one-third of all homeowners insurance liability claims paid out in 2011, costing nearly $479 million, according to the Insurance Information Institute (I.I.I.).

An analysis of homeowners insurance data by the I.I.I. found that the average cost of dog bite claims was $29,396 in 2011, up 12.3 percent from $26,166 in 2010. The number of claims rose 3.3 percent from 15,770 in 2010 to 16,292 in 2011. These increases can be attributed to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which have risen well above the rate of inflation in recent years, according to the I.I.I.

Dog Owner Liability
Dog owners don’t realize that they have few legal defenses if their dog bites anyone – for any reason. Under tort law the owner of a dog has "absolute liability" for any injury without regard to fault or negligence. Depending on where the offense occurs there are three kinds of law that impose liability on dog owners; not all the laws apply in every state:

Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
“One-bite” rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a “vicious propensity,” the owner can be held liable. Some states have moved away from the one-bite rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone.
Negligence laws: The dog owner is liable if the injury occurred because he or she was unreasonably careless (negligent) in controlling the dog.

In most states, dog owners are not liable for losses incurred by trespassers who are injured by a dog. However, if a dog owner is considered legally responsible for an injury to a person or property the owner may have to reimburse the injured person for medical bills, lost wages, pain and suffering and property damage. Some people purchase dogs for the purpose of guarding their homes; however, deadbolt locks and home security systems can be safer burglary deterrents, and can often earn you a discount on your insurance premium, the I.I.I noted.

How to Protect Yourself—And Your Assets
Homeowners and renters insurance policies typically cover dog bite liability as part of the standard policy’s liability coverage, which can range from a limit of $100,000 to $500,000. If the claim exceeds the policy limit, the dog owner is personally responsible for all damages above that amount, including legal expenses. A liability policy also provides no-fault medical coverage in the event a dog bites a friend or neighbor. This allows for minor medical bills to be submitted directly to the homeowner’s insurance company. Homeowners can generally get from $1,000 to $5,000 worth of this coverage under premises medical.

Most insurance companies will insure homeowners with dogs. However, once a dog has bitten someone, your insurance company may charge a higher premium, exclude the dog from coverage, or non-renew your policy. Some companies require dog owners to sign liability waivers for dog bites. Others will cover a pet only if the owner takes the dog to classes aimed at modifying its behavior.

A single lawsuit—even if won by the dog owner who is being sued—can end up costing thousands of dollars in legal fees and lost wages. The greater a person’s assets, the higher the risk of a costly lawsuit. The personal liability coverage available through a standard homeowners may not be enough. Therefore, the I.I.I. advises homeowners to consider purchasing a personal excess liability policy (umbrella) to provide additional liability limit to protect you against personal liabilities, such as dog bites, that could impact a substantial portion of your assets.

Umbrella liability coverage usually ranges from $1 million to $10 million, and covers broad types of liability. Most insurance companies have required minimum amounts of underlying coverage—typically at least $250,000 of protection from your auto policy and $300,000 of protection from your homeowners policy. If you own a boat, you must also have boat insurance with a specified minimum amount of coverage. Personal excess liability insurance is relatively inexpensive. The first $1 million of coverage costs about $150 to $300 per year, the second million about $75, and subsequent increments of $1 million cost about $50 per year.

Source: Insurance Information Institute, News Release – May 17, 2012

WA & OR Take Health Exchange Grants

Thu, 17 May 2012 17:01:01 GMT

Washington and Oregon were among the six new states to take Health Exchange grants to implement the new health care law. Idaho, a highly conservative and Republican majority state, snubbed HHS and did not take the money as they await a final decision on whether the Affordable Care Act will be overturned by the US Supreme Court. The high court heard six hours of oral arguments in March and is expected to issue a decision by the end of June 2012.

The grants will help states establish Affordable Insurance Exchanges announced Health and Human Services (HHS) Secretary Kathleen Sebelius. Starting in 2014, Affordable Insurance Exchanges will help consumers and small businesses in every state to choose a private health insurance plan. These comprehensive health plans will ensure consumers have the same kinds of insurance choices as members of Congress. Including today’s awards, 34 states and the District of Columbia have received Establishment grants to fund their progress toward building Exchanges.

“States across the country are implementing the new health care law,” said Secretary Sebelius. “In 2014, consumers in every state will have access to a new marketplace where they will be able to easily purchase affordable insurance.”

States can apply for Exchange grants through the end of 2014, and these funds are available for states to use beyond 2014 as they continue to establish Exchange functionality. This ensures that states have the support and time necessary to build the best Exchange for their residents.

HHS also issued two guidance documents today to help states build Affordable Insurance Exchanges.

New guidance for states: Today’s guidance includes an Exchange Blueprint states may use to demonstrate how their Affordable Insurance Exchange will work to offer a wide range of competitively priced private health insurance options. The Blueprint also sets forth the application process for states seeking to enter into a Partnership Exchange. If a state chooses to operate its own Exchange or a Partnership Exchange, HHS will review and potentially approve or conditionally approve the Exchange no later than Jan. 1, 2013, so it can begin offering coverage on Jan. 1, 2014. To see the state Exchange Blueprint, visit http://cciio.cms.gov/resources/other/index.html#hie
Exchanges in every state: Consumers in every state will have access to coverage through an Affordable Insurance Exchange on Jan. 1, 2014. If a state decides not to operate an Exchange for its residents, HHS will operate a Federally-facilitated Exchange (FFE). This guidance describes how HHS will consult with a variety of stakeholders to implement an FFE, where necessary, how states can partner with HHS to implement selected functions in an FFE, and key policies organized by Exchange function. To see the guidance on the FFEs, visit http://cciio.cms.gov/resources/regulations/index.html#hie

The Department will conduct implementation forums in the coming months to work with states and stakeholders on their questions and the work to be done in building Exchanges. The Department will also engage in consultation with Tribes, Tribal Governments, and Tribal Organizations on how Exchanges can serve their populations.

For more information on these implementation forums, visit http://cciio.cms.gov/resources/factsheets/index.html#hie

For more information on Exchanges, including fact sheets, visit http://www.healthcare.gov/exchanges.

Source: US Department of Health & Human Services, News Release – May 16, 2012

Stolen! 1 in 10 of these vehicles

Thu, 17 May 2012 01:22:03 GMT

Corvettes...we love to look at them and thieves love to steal them! The Chevrolet Corvette holds the title as America’s oldest, continuously produced sports car. According to a National Insurance Crime Bureau (NICB) study, during the 30-year period from 1981-2011, a total of 90,427 Corvettes were reported stolen in the United States and Puerto Rico. During that same period, a total of 862,918 Corvettes were produced in the United States – that’s more than 1 in 10 stolen.

With the Corvette’s history of sleek styles, speed, performance, and affordability, it’s no surprise to find Corvette owners doting over their cars and keeping them in showroom condition. But like other items of high value and popular attraction, they get stolen.

AUTO THEFT PREVENTION:

Whether or not you own a classic 1963 split-window coupe or a 2012 Centennial Edition ZR1 Corvette, owners need to take steps to protect their vehicle from theft. Although vehicle thefts have been declining in recent years, if it happens to you it can be financially devastating and just an all-around hassle. NICB urges motorists to follow its “layered approach” to auto theft prevention. By employing these simple, low-cost suggestions, people can make their vehicles less attractive to thieves.

NICB, has been in the business of identifying and recovering stolen vehicles since 1912. Their expertise has been sought by law enforcement agencies all over the nation to assist with major auto theft investigations. Frequently, NICB recovers stolen vehicles that have long since been forgotten—except by their owners.

Anyone with information concerning vehicle theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422), texting keyword “fraud” to TIP411 (847411) or by visiting our website at www.nicb.org. Or, iPhone or iPad users can download the NICB Fraud Tips app to make it easy to quickly send a tip and get a response.

Source: NICB, News Release – Hot Wheels Classics: Chevrolet Corvette, May 14, 2012

Obesity's Heavy Health Care Cost

Tue, 15 May 2012 22:27:02 GMT

Obesity now accounts for almost 21 percent of U.S. health care costs -- more than twice the previous estimates, reports a revised Cornell University study.

The research, originally done in 2010, was the first to show the causal effect of obesity on medical care costs, uses new methods and makes a stronger case for government intervention to prevent obesity, the authors say in the January issue of the Journal of Health Economics.

The updated study reports that an obese person incurs medical costs that are $2,741 higher (in 2005 dollars) than if they were not obese. Nationwide, that translates into $190.2 billion per year, or 20.6 percent of national health expenditures. Previous estimates had pegged the cost of obesity at $85.7 billion, or 9.1 percent of national health expenditures. A Duke University study predicts obesity rates in the US will continue to rise over the next 20 years. By 2030, 42 percent of people in the US, will be obese. Currently, about 34 percent of adults and 17 percent of children are obese.

“The higher costs are not incurred so much by the nearly two-thirds of American adults who are overweight or obese, said co-author John Cawley, associate professor of policy analysis and management. Rather, they are driven by the skyrocketing costs of medical care for a small percentage of highly obese individuals, for example the 4.8 percent of Americans who are classified as "morbidly obese."

As the nation struggles with higher and higher medical insurance costs, the focus on obesity will likely intensify. The Affordable Care Act of 2010 allows employers to charge obese workers 30 percent to 50 percent more for health insurance if they decline to participate in a qualified wellness program. The US Food and Drug Administration (FDA) panel approved on May 10^th the prescription diet drug Lorcaserin. Time reports that it’s the second diet pill to be endorsed by an FDA advisory panel this year and, if approved, would be the first new weight-loss drug in more than decade (read more). The battle of the bulge is just beginning and will become a national priority in the years to come.

Sources:
Journal of Health Economics - Vol 31, Issue 1, January 2012:
The medical care costs of obesity: An instrumental variables approach

Cornell University – ChronicleOnline, Oct 20, 2010 Study: Obesity

Healthcare Costs Now Exceed $20,000 Per Family - Milliman Study

Tue, 15 May 2012 18:10:45 GMT

A typical American family of four receiving healthcare through an employer-sponsored preferred provider organization (PPO) plan now pays $20,728. This according to the latest study by Milliman, Inc., a premier global consulting and actuarial firm. While the 6.9% increase over 2011 is the lowest rate of increase in the ten years of this study, the $1,335 increase surpasses last year’s record of $1,319.

“The average rate of increase this year dips below 7% for the first time since we began analyzing these costs, but the total dollar increase is still the highest we have seen,” said Lorraine Mayne, principal and consulting actuary with the Salt Lake City office of Milliman. “This helps illustrate the challenge of controlling healthcare costs. When the total cost is already so high, even a slower rate of growth has a serious impact on family budgets.”

The release of this study falls during an uncertain time for American healthcare, with the nation awaiting the outcome of the US Supreme Court’s decision on the future of the Patient Protection and Affordable Care Act (PPACA). To date, PPACA has only a limited effect on healthcare costs for families covered by an employer-sponsored PPO plan. Read more….

Editor’s Note: Regardless of the Supreme Court’s decision on the PPACA, the act primarily expanded access to health care for the uninsured and does not address cost. In fact, expanding benefits with coverage mandates and providing guaranteed acceptance for insurance regardless of current health conditions by 2014 will likely cause medical insurance pricing to increase dramatically over current levels in the years to come.

Source: Milliman, News Release - May 15, 2012

4th Leading Cause of Death Is?

Thu, 03 May 2012 16:52:20 GMT

1 in 3 U.S. adults—an estimated 68 million of us—have this and it is the “silent killer”. Untreated high blood pressure, also called hypertension can damage the heart, brain, and kidneys without a single symptom. Each year, more than 795,000 Americans have a stroke and more than 130,000 people in the United States die every year after a stroke—an average of one stroke-related death every 4 minutes, making it the fourth leading cause of death in the United States. Right now, half of those Americans with high blood pressure still don’t have it adequately controlled. African Americans are at particular risk—often having more severe hypertension, and developing it at younger ages.

Together, the financial costs of high blood pressure and stroke are staggering: annual costs of hypertension are $156 billion, with medical costs accounting for nearly $131 billion and lost productivity from illness and premature death of about $25 billion a year. Annual stroke costs to the nation are more than a billion dollars a week. Fortunately, there are some things in life you can control—and blood pressure is one.

May is National High Blood Pressure Education Month and Stroke Awareness Month as announced by HHS Secretary Sebelius. “It makes sense to observe both in the same month because when you control your blood pressure, you reduce your risk of stroke. Helping Americans with high blood pressure get it under control to reduce strokes and other forms of cardiovascular disease is a high priority for the U.S. Department of Health and Human Services, and through their national Million Hearts initiative, they are making a difference. Co-led by the Centers for Disease Control and Prevention and the Centers for Medicare & Medicaid Services—and in collaboration with many other government and private partners—their aim is to prevent 1 million heart attacks and strokes by 2017”.

“Million Hearts is working to reduce high blood pressure with a one-two punch; the first, focusing health care professionals, health systems, insurers, employers, and individuals on the link between good blood pressure control and good health and, the second, encouraging all Americans to know their blood pressure, monitor it regularly, and talk with their doctor, nurse, pharmacist, or community health worker about how to keep it in the normal range. From diet and physical activity to medications, there are easy, effective and economical ways to measure, routinely monitor, and control blood pressure”.

“Million Hearts is supported by the many improvements to health care provided by the health care law, the Affordable Care Act, which now strengthens the prevention of stroke by ensuring that many adult patients receive preventive services, including blood pressure screenings, at no cost.”

For information about how you can join the Million Hearts effort, visit http://millionhearts.hhs.gov/.

For information on women and heart disease, visit http://www.nhlbi.nih.gov/educational/hearttruth/ or http://womenshealth.gov/heartattack/.

For information on preventive services available with no cost-sharing, visit http://www.healthcare.gov/prevention.

Source: US Health & Human Services, News Release – May 2, 2012

Idaho's Health Insurance Exchange - On Hold

Thu, 19 Apr 2012 23:25:21 GMT

What is the status of the Idaho Health Insurance Exchange? The US Supreme Court will be making its decision in June whether all, part or none of the Affordable Care Act will stand as constitutional. So, the Idaho legislature took a “wait and see” attitude on the formation of an Idaho Health Insurance Exchange. Idaho Insurance Commissioner, Bill Deal, provides an update in his spring edition of the Idaho Insurance News. Click to read more…

Taxpayers May Profit Billions From AIG Bailout

Tue, 17 Apr 2012 00:59:41 GMT

When all is said and done, AIG expects taxpayers to profit from $5B to $10B on the company’s 2008 rescue. Too big to fail, AIG ultimately received a $140 billion bailout from taxpayers in 2008 to avoid a feared cascading collapse of our financial system. In return, the US Government received nearly an 80% equity stake in the giant insurer. The Treasury has been steadily reducing its position in the insurer, whose shares have recently recovered to trade above the government’s $28.73 break-even point. This will be an incredibly fortunate outcome based on the unprecedented public bet on AIG.

In a March 27th interview on CNBC, Bob Benmosche, CEO of AIG said the company now has an "awful lot of capacity" to buy back stock and that he assumes most of those buybacks will come from the U.S. Treasury's current 70 percent stake in the company.

Then on April 13^th, Robert Miller, Chairman of AIG indicated on Bloomberg TV that the U.S. Treasury might exit its stake in American International Group Inc. (AIG) within the next year.

"It will be Treasury's choice as to when they want to liquidate" their shares, Miller said. "But it is certainly within the realm of possibility that it could happen within the next 12 months."

AIG, the American International Group, is an international insurance and financial services organization, with operations in approximately 130 countries and jurisdictions. A downturn in the US economy in 2008 exposed the risks in the sub-prime mortgage-backed securities held by AIG and the now bankrupt Lehman Brothers. The financial services arm of the company in AIG's London unit sold credit protection in the form of credit default swaps (CDSs) on these collateralized debt obligations (CDOs) that had by that time declined in value. By September 16, 2008, AIG's share prices had fallen over 95% to just $1.25 causing a liquidity crisis following the downgrade of its credit rating. AIG’s financial obligations were so large and intertwined throughout the US and international banking systems that it’s imminent collapse was feared to lead to an economic depression the likes of 1929. Congress intervened by passing the Emergency Economic Stabilization Act of 2008 to rescue the nation’s banking system with Federal funds under the Troubled Asset Relief Program (TARP).

WA Gets $6.6M Health Care Grant

Fri, 13 Apr 2012 23:56:13 GMT

Ten states including Washington State received grants to provide early childhood support and home visits to families who volunteer to receive these services, Health and Human Services (HHS) Secretary Kathleen Sebelius announced today. Washington received $6.6 million of the nearly $72 million in funding announced today will allow states to expand or establish their home visiting program. These awards are part of the Maternal, Infant, and Early Childhood Home Visiting Program (MIECHV) created by the Affordable Care Act.

“Home visits from an experienced counselor can help provide skills and links to important services and early childhood education,” said Secretary Sebelius.

Today’s awards include states that have demonstrated a commitment to operating successful early childhood systems for pregnant women, parents, caregivers and children from birth-to-eight years of age. The awards also include states that are developing new home visiting programs, using proven strategies, to support families and improve health and developmental outcomes. Read more…

For more information on HRSA’s MIECHV program, please visit mchb.hrsa.gov/programs/homevisiting/. To learn more about the Affordable Care Act, visit www.HealthCare.gov.

The Health Resources and Services Administration (HRSA), part of the U.S. Department of Health and Human Services, is the primary Federal agency for improving access to health care services for people who are uninsured, isolated, or medically vulnerable. For more information about HRSA and its programs, visit www.hrsa.gov.

Source: US Department of Health & Human Services, News Release – April 3, 2012

Turns Out - Death & Taxes Are Linked!

Fri, 13 Apr 2012 20:42:34 GMT

Benjamin Franklin’s famous quip “in this world nothing can be said to be certain, except death and taxes” has a closer connection than he knew.

A 30-year study of traffic accidents in the United States has found that the country’s mid-April tax deadline day is associated with an increased risk of fatal crashes according to a study published in this week’s issue of the Journal of the American Medical Association.

The study indicates that you have a 6% increased risk of dying in a traffic accident on tax day! They suspect that a general elevated stress level is what causes driver errors leading to an increase in fatalities.

The Canadian Press article published April 11,2012 quoted, “We find about the same increase in risk both during the morning hours, the afternoon hours and the evening hours,” said lead researcher Donald Redelmeier, an internal medicine specialist at Sunnybrook Health Sciences Centre in Toronto. “So it’s not all confined to the 11th hour, right before the stroke of midnight. But it prevails for the full day.” Read more…

So, perhaps Ben Franklin should have added “except death and taxes – but cheat death by driving cautiously on tax day!”

Source: The Canadian Press - Apr 11, 2012 Tax filing stress boosts risk of fatal auto accidents: study