News You Can Use

EEOC Complaints Hit All-Time High

Fri, 27 Jan 2012 22:45:07 GMT

Private sector bias charges hit an all-time high. Employment discrimination complaints for businesses large and small increased to record levels during the “great recession”. Layoffs provide opportunity for employees to allege employment discrimination was the basis of why they were terminated. The U.S. Equal Employment Opportunity Commission (EEOC) received a record 99,947 charges of employment discrimination and obtained $455.6 million in relief through its administrative program and litigation in Fiscal Year 2011, the agency announced today.

“For the second year in a row, the EEOC received a record number of new charges of discrimination,” said EEOC Chair Jacqueline Berrien. “Nevertheless, the hard work of our employees, combined with increased investments in training, technology and staffing in 2009 and 2010, and strategic management of existing resources made 2011 a year of extraordinary achievements for the EEOC.”

Despite a record number of receipts, the Commission resolved more charges than it took in with 112,499 resolutions (7,500 more resolutions than FY 2010—an increase of 7%)—leaving 78,136 pending charges, a ten percent decrease in its inventory, the first year the agency has seen a reduction since 2002.

The total number of charges received was up slightly from last fiscal year’s record total. Once again, charges alleging retaliation under all the statutes the EEOC enforces were the most numerous at 37,334 charges received, or 37.4 percent of all charges, closely followed by charges involving claims of race discrimination at 35,395 charges or 35.4 percent. While the numbers of charges with race and sex discrimination allegations declined from the previous year, charges with the two other most frequently-cited allegations increased:

•Disability discrimination--25,742

•Age discrimination—23,465

Genetic Information Nondiscrimination Act - For the first full fiscal year of enforcement, the EEOC received 245 charges under the Genetic Information Nondiscrimination Act, which prohibits discrimination on the basis of genetic information, including family medical history. So far, none of these charges has proceeded to litigation.

Americans with Disabilities Act (ADA) - The agency’s enforcement of ADA produced the highest increase in monetary relief among all of the statutes: the administrative relief obtained for disability discrimination charges increased by almost 35.9 percent to $103.4 million compared to $76.1 million in the previous fiscal year. Back impairments were the most frequently cited impairment under the ADA, followed by other orthopedic impairments, depression, anxiety disorder and diabetes.

The EEOC is responsible for enforcing Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Equal Pay Act, the Americans with Disabilities Act, and the Genetic Information Nondiscrimination Act. To see the entire News Release read more.

The fiscal year 2011 enforcement and litigation statistics, which include trend data, are available on the EEOC’s website at: http://www.eeoc.gov/eeoc/statistics/enforcement/index.cfm.

More information about the EEOC is available on its website at www.eeoc.gov.

Source: US EEOC, News Release – Jan 25, 2012

Top Ten Senior Scams

Thu, 19 Jan 2012 01:02:45 GMT

If you are a senior or if have seniors in your life, please pass along this information. Every U.S. citizen older than 65 qualifies for Medicare, making Medicare/health insurance fraud one of the most common scams targeting seniors in 2011, according to the National Council on Aging (NCOA).

Click on the following link to the NCOA article “Top 10 Scams Targeting Seniors”. Medicare loses an estimated $50 billion a year nationally to health care swindlers.

Anyone age 65 or older is a target and “scammers know this; criminals do not have to do research to find their victims,” says Idaho Department of Insurance Director Bill Deal. “Medicare beneficiaries are easy prey. Most beneficiaries have a supplemental policy that picks up what Medicare does not pay leaving seniors vulnerable to pitches for services or equipment.”

The Department has the following tips for consumers, especially seniors:

Be suspicious of salespeople trying to sell you something they claim will be paid for by Medicare
Avoid telemarketing calls for medical goods, such as diabetes test strips or wheelchairs
Know if your physician has ordered equipment for you
Review Medicare Summary Notices to be sure the services listed have been received
Report suspicious activities or charges to the Medicare Medicaid Assistance Program at 800-803-7174

Idahoans with questions about Medicare can contact the Department’s Senior Health Insurance Benefits Advisors (SHIBA) office at 800-247-4422.

Source: Idaho Department of Insurance, News Release - January 18, 2012

Market Forecast 2012

Thu, 05 Jan 2012 20:00:00 GMT

The headlines of 2011 mark the worst year ever recorded for insured losses across the globe. Worldwide natural disasters - earthquakes, tsunamis, tornadoes, hurricanes, flooding, winter storms, and unusual freakish weather.

Nearly $100 billion in insured losses in 2011 means the insurance industry is providing the money to rebuild homes, buildings, critical infrastructure, and lost revenues for the tens of thousands devastated by natural disasters. This is a reminder that a core mission of the insurance industry is to reserve large sums of ready cash to rebuild, stabilize economies and ease suffering after disasters strike.

How will natural disasters effect your insurance pricing in 2012?

In 2012 is appears we are seeing the end to the insurance "soft market cycle" and rising prices are on the horizon. Even with the record financial hit in 2011 the insurance industry remains strong. But, 2012 may bring more of the same or even worse natural disasters. So, the industry must look to replenish reserves to stay healthy. Over the last six years, business insurance pricing has discounted up to 40% and personal insurance has seen some reductions or held steady in the face of rising costs. Now, three factors are putting upward pressure on insurance premiums in 2012.

Following an unprecedented string of natural disasters that has drained nearly $100 billion in reserves, catastrophe losses have caused reinsurance pricing (the cost insurance companies pay to cap their catastrophe loss exposure) to increase up to 15%.
Prolonged low interest rates & low earnings on reserves provides less revenue to offset loss experience.
Claims – lots of claims, particularly property losses, have caused underwriting losses for most insurers.

How does all this effect insurance pricing for the average consumer and business owner? Fortunately, only small, modest price increases are expected here in the Pacific Northwest, while changes will be more dramatic in other parts of the country. Here is what you can expect in 2012…

Homeowners / Property – expect pricing increases from +5% to +10%. The homeowners - property line of insurance is the hardest hit by claims and has been very unprofitable the last five years for most insurance companies. Competitors like State Farm and Farmers Insurance already increased Homeowners pricing by double digits in 2011. Our homeowners policies will remain much lower cost than our competitors.

Auto Insurance - expect pricing changes from 0% to +5%. Personal auto insurance is highly segmented and rating formulas are very complex which makes individual rate predictions impossible. If you notice anything other than a small price change please contact us first so we find a solution for you.

Small Business – property/casualty pricing changes from 0% to +10%. Many small business owners can expect no change in rates. Increased rates will be targeted to business with claim experience and those in higher risk industries. A general increase is needed and expected in the property and business auto portions of package policies.

Workers Compensation(WC) - WC insurers were hard hit by the recession that cut employment and severely lowered WC premiums. Enhanced utilization of costly medical treatment options for WC claimants also adds upward pressure to medical claim costs. Many state funds are struggling but conditions are improving. Idaho is an exception with only an average increase of just 2.9% in workers compensation NCCI rates in 2012. Washington Labor & Industry announced there will be no general rate increase in 2012 following an average 12% increase taken in 2011.

Medical Insurance - Employee health care benefit costs are expected to increase at least 5.4% in 2012. While the projected health insurance increase would be the smallest recorded in 15 years, it still remains well above the general rate of inflation of 3.4%. Premium changes for individual and small group health plans will vary widely based on claim experience. The Heath Care Reform mandate of no cost preventative care benefits is adding to the needed increases.

THE AMERICAN ADVANTAGE: We monitor the insurance marketplace to find you the best coverage and pricing. We represent dozens of America’s best insurance companies each competing for your business. During periods of rising prices you may not be able to avoid modest increases but we can shop for you to find the best pricing available. Please contact us first with any pricing concern.

Six Year-End Tax Reduction Tips

Sat, 24 Dec 2011 00:50:47 GMT

Before saving goodbye to 2011, check out these tax reduction tips. However, you usually need to take action no later than Dec. 31st in order to claim certain tax benefits. Here are six tax-saving tips for you to consider before the calendar turns to 2012 provided by the CPA firm of Su Brown and Associates:

Click and read Six Year-end Tips To Reduce 2011 Taxes

New Housing Starts Soar +9.3%

Wed, 21 Dec 2011 00:17:09 GMT

Housing starts soared to their highest level since April 2010, increasing 9.3 percent from October to November and 24.3 percent from November 2010 according to the Commerce Department’s US Census Bureau. Permits for new housing units rose 5.7 percent in November, well-above private-sector expectations of a 1.7 percent decline.

Today's news was driven in large part by a significant upturn in multi-family housing starts - an increase of 25.3 percent from October to November 2011. The three-month average of multi-family starts is also up.

In response to today’s numbers, U.S. Commerce Secretary John Bryson issued the following statement: "While multi-family starts can be volatile from month-to-month, there are reasons to think that their recent rebound is not temporary. Rents have been rising and other indices point to continued improvement in the sector. Renewed strength in U.S. housing, coupled with the House voting to extend a payroll tax cut that benefits 160 million Americans, would auger good things for the U.S. economy in the new year."

Source: The US Commerce Department, News Release – Dec 20, 2011

Distracted Driving Not Just Cell Phones

Mon, 19 Dec 2011 22:36:00 GMT

“Cell phone usage is only one of many bad habits that are distracting American drivers,” said Robert Passmore, senior director of personal lines for Property Casualty Insurers Association of America (PCI). “Distracted driving is a serious problem and in our increasingly mobile world, it is becoming the norm. As we have seen with other motor safety issues such as seatbelt use and drunk driving, there is no single answer to addressing the problem of distracted driving. Finding the solution involves addressing distracted driving on multiple fronts including laws, enforcement, public education and primarily personal responsibility.”

The U.S. National Transportation Safety Board’s (NTSB) call for a national ban on the cell phone use while driving brings needed attention to the issue but the discussion should focus on how to reduce all forms of distracted driving according to the PCI.

A new Harris Interactive/HealthDay poll found that a large majority of adult drivers in the United States admit to being dangerously distracted while behind the wheel, Specifically 86 percent of adults admitted to eating/drinking while driving, 59 percent talk on a non-hands-free cell phone, 41 percent set or adjust their GPS device, and 37 percent text. Additionally, a quarter of respondents said they have driven after having two or more drinks, and 44 percent said they've felt sleepy while driving, "sometimes even momentarily dozing off." Smaller percentages (7 and 12 percent, respectively) said they drive this way "sometimes or often."

According to the Insurance Information for Highway Safety (IIHS), 35 states and the District of Columbia have banned texting while driving and half of these bans were enacted in 2010. Ten states, including Washington State, have enacted hands-free laws restricting the use of hand-held cell phones. Beginner drivers are restricted from using cell phones in 30 states. For the entire news release read more…

Source: Property Casualty Insurers Association of American, News Release – Dec 15, 2011

States To Decide “Essential Health Benefits”

Sat, 17 Dec 2011 01:26:00 GMT

In a surprise move, the Obama Administration has announced that each state can decide what “essential health benefits” will be offered in their state Health Care Exchanges beginning in 2014. Under the Affordable Care Act it was assumed that health benefits would be mandated at a federal level making health coverage consistent across the country. This change may have been politically motivated to avoid fights with Republican controlled states and other advocacy groups.

“Under the Affordable Care Act, consumers and small businesses can be confident that the insurance plans they choose and purchase will cover a comprehensive and affordable set of health services,” said HHS Secretary Kathleen Sebelius. “Our approach will protect consumers and give states the flexibility to design coverage options that meet their unique needs.”

Under the Department’s intended approach announced today, states would have the flexibility to select an existing health plan to set the “benchmark” for the items and services included in the essential health benefits package. States would choose one of the following health insurance plans as a benchmark:

One of the three largest small group plans in the state;
One of the three largest state employee health plans;
One of the three largest federal employee health plan options;
The largest HMO plan offered in the state’s commercial market.

The benefits and services included in the health insurance plan selected by the state would be the essential health benefits package. Plans could modify coverage within a benefit category so long as they do not reduce the value of coverage. Consistent with the law, states must ensure the essential health benefits package covers items and services in at least ten categories of care, including preventive care, emergency services, maternity care, hospital and physician services, and prescription drugs. If a state selects a plan that does not cover all ten categories of care, the state will have the option to examine other benchmark insurance plans, including the Federal Employee Health Benefits Plan, to determine the type of benefits that will be included in the essential health benefits package.

Source: Health and Human Services, News Release – Dec 16, 2011

Driver Cell Phone Ban Urged

Wed, 14 Dec 2011 00:19:00 GMT

A ban on driver use of cell phones is urged by National Transportation Safety Board. The safety recommendation specifically calls for the 50 states and the District of Columbia to ban the non-emergency use of portable electronic devices (other than those designed to support the driving task) for all drivers. The NTSB also urges use of the NHTSA model of high-visibility enforcement to support these bans and implementation of targeted communication campaigns to inform motorists of the new law and heightened enforcement.

"According to NHTSA, more than 3,000 people lost their lives last year in distraction-related accidents", said Chairman Deborah A.P. Hersman. "It is time for all of us to stand up for safety by turning off electronic devices when driving. No call, no text, no update, is worth a human life."

On August 5, 2010, on a section of Interstate 44 in Gray Summit, Missouri, a pickup truck ran into the back of a truck-tractor that had slowed due to an active construction zone. The pickup truck, in turn, was struck from behind by a school bus. That school bus was then hit by a second school bus that had been following. As a result, two people died and 38 others were injured. The NTSB's investigation revealed that the pickup driver sent and received 11 text messages in the 11 minutes preceding the accident. The last text was received moments before the pickup struck the truck-tractor.

The Missouri accident is the most recent distraction accident the NTSB has investigated. However, the first investigation involving distraction from a wireless electronic device occurred in 2002, when a novice driver, distracted by a conversation on her cell phone, veered off the roadway in Largo, Maryland, crossed the median, flipped the car over, and killed five people.

In the last two decades, there has been exponential growth in the use of cell-phone and personal electronic devices. Globally, there are 5.3 billion mobile phone subscribers or 77 percent of the world population. In the United States, that percentage is even higher - it exceeds 100 percent.

Further, a Virginia Tech Transportation Institute study of commercial drivers found that a safety-critical event is 163 times more likely if a driver is texting, e-mailing, or accessing the Internet.

"The data is clear; the time to act is now. How many more lives will be lost before we, as a society, change our attitudes about the deadliness of distractions?" Hersman said.

Source: National Transportation Safety Board, Press Release – Dec 13, 2011

Newsletter - Winter 2011

Mon, 12 Dec 2011 19:33:16 GMT

Feature articles include:

Market Forecast 2012
Referral Reward’s Winner
Medical & Medicare Updates
Savings Tip
WATER DAMAGE - Am I Covered?

Click to read our newsletter online

ObamaCare vs Supreme Court 2012

Sun, 11 Dec 2011 19:48:00 GMT

The US Supreme Court has agreed to decide the constitution issues of the Affordable Care Act. The court will hear oral arguments in March and then is expected to render a decision in June 2012. So, President Barack Obama’s hard fought first-term landmark legislation with be decided at the height of a heated re-election campaign.

The central issue to be decided is whether the mandate forcing all Americans to participate in the health care system is constitutional. The challengers, which include 26 states, have argued that the insurance requirement is an intrusion on individual liberty and that Congress can’t use interstate commerce powers to force citizens to participate in the health-insurance market. The Administration has argued that the insurance mandate is an essential part of the law’s insurance reforms which require insurers to accept everyone, even those with pre-existing medical conditions. Also, those that do not participate in health insurance burden the US health care system with huge costs that are unfairly borne by the insured.

Conflicting rulings have come from four lower courts – 3 upholding the law and 1 striking down the insurance mandate. Even if the US Supreme Court rules the insurance mandate unconstitutional other provisions of the law would remain in effect. The full implementation of the law is set to take effect in 2014 including the state-based health exchanges.

For additional information read more at ProgramBusiness.com.