Understanding and Navigating Insurance

It’s tough being a teenager. Tough on parents, too – especially when they have to pay for their teen’s car insurance.

Research shows that insurers have little mercy, though. Over the last several years, insurance rates for young drivers have risen 50%.

These days, a 16-year-old might have to pay more than $7,200 a year for full-coverage auto insurance, according to CarInsurance.com. Of course, with time, that dollar figure will come down, and by the time they reach 25, they’ll pay $2,010. Still, all added up, that’s nearly $38,000 it could cost whoever is paying for the insurance policy.

Actuaries – the people at insurance companies who determine risk – aren’t trying to line their companies’ pockets, but merely playing the odds so their company doesn’t lose on its bets. A 16-year-old given a set of car keys is a dicey proposition, as any of us know.

Still, there are ways that parents can lower both the risk that their young drivers face as well as lower the cost of paying for the risks those actuaries think are clear and present.

My mama told me, you better shop around

In the insurance world, companies may monitor what the others do, but they each take multiple variables into account when weighting risk, which can lead to different costs. Some may think age is a bigger risk than credit score while another may think about the make and model of the car or how many miles it’s rung up.

And because of the variations of factors, Kate Long, a consumer financial wellness advocate at Assurance IQ, says consumers shouldn’t just jump at the first rate they’re pitched – especially when there’s a younger driver involved.

Long says that for new drivers, gender is also a factor. “Most states do take this into account for car insurance rates and men tend to pay higher premiums than women because insurers consider them to be higher risk,” she told ConsumerAffairs, pointing to a study by The National Highway Traffic Safety Administration (NHTSA) which reported that male drivers were more likely to be speeding in speeding-related fatal crashes than female drivers.

Long suggests that before you pick out a car for your young driver, you should consider the types of vehicles that will impact the insurance premiums the most. 

“The cost to repair is one major factor in determining premiums," she said. "For example, hybrid and electric vehicles can be more expensive to insure than other cars because they can be more expensive to repair, and some require specialty mechanics to complete repairs. Older vehicles cost less to repair than newer, more expensive vehicles.”

But, remember that if you’re going to shop things around, make sure you shop the same factors with each insurer, Mark Snyder, principal consultant and claims subject matter expert at Hi Marley, suggested. That will ensure you’ll get the best deal possible.

“And, don’t forget to explore increasing auto collision and comprehensive deductibles as a potential strategy," Snyder said. "Identifying opportunities to bundle homeowners coverage with auto and umbrella coverages, or qualify for additional household discounts is a good strategy, too.”

You can also use ConsumerAffairs comparative analysis of auto insurance companies, rates, etc. including who’s our research team’s pick for young drivers and a special "how to get cheap insurance" report.

Good grades, off at college, monitoring programs

There are other things parents can do to lower their kid’s insurance costs, too. ConsumerAffairs auto insurance expert Chris Butsch says one is to enroll in the insurance provider’s driver monitoring (“telematics”) program.

Most major providers have a program that monitors a person’s driving behavior and rewards them with as much as a 30% discount for safe driving. Sometimes, there’s even a discount just for signing up.

But, no good deed goes unpunished, as Cassie Sheets, data insights writer at Insurify, reminded ConsumerAffairs. “The downside is that poor driving is penalized with higher rates. Teenagers are still learning. They’re more likely to make mistakes like bumping into the mailbox or sudden braking, which could drive up premiums."

Sheets says that younger drivers can do more than just be a safe driver to reduce premiums. 

“Many insurers offer discounts to good students, and the savings can be significant. State Farm offers up to 25% off for high grades or test scores. GEICO offers up to 15% off, and Progressive’s discount is around 10%,” she said.

Sticking with the subject of school, she said that some insurance companies also provide away-at-school discounts for college students who don’t drive during the semester.

Nearly every industry is trying to learn how artificial intelligence (AI) can improve workflow and profits. As the technology quickly develops there are bound to be conflicts.

One such conflict has arisen in a lawsuit filed against UnitedHealthcare. The plaintiffs – the estates of two elderly men who recently died – claim the health insurance giant used AI to review their relatives’ claims and to wrongly deny them.

The complaint, filed in federal court in Minneapolis, claims UnitedHealth wrongfully denied claims filed by the two patients, both of whom had Medicare Advantage Plans. As a result, the two families said they were forced to pay $210,000 for the men to receive treatment ordered by their doctors.

The plaintiffs contend that UnitedHealth began routinely denying these types of claims in 2020 when it acquired Navihealth, a company that provides post-acute care management services.

STAT News Investigation

A recent investigation by STAT News reported that Navihealth uses a computer algorithm to predict the length of treatment required for acute illnesses and injuries, such as those treatments provided in rehab centers and nursing homes. According to the investigation, the algorithm makes its predictions by accessing 6 million similar cases.

The plaintiffs further contend that the algorithm is prone to mistakes. In fact, the complaint claims the AI tool overrules patients’ physicians 90% of the time. Many times, the plaintiffs say, the denials have been overruled on appeal.

UnitedHealth denies the claims made in the lawsuit. Optum Health, a UnitedHealth subsidiary, released a statement to Ars Technica saying the tool is not used to make coverage decisions.

“The tool is used as a guide to help us inform providers, families, and other caregivers about what sort of assistance and care the patient may need both in the facility and after returning home,” a spokesperson said. “Coverage decisions are based on CMS coverage criteria and the terms of the member's plan. This lawsuit has no merit, and we will defend ourselves vigorously."

In the middle of having to deal with tornadoes and hurricanes, consumers may have to deal with another storm – one from insurance companies.

The Consumer Financial Protection Bureau (CFPB) says that in response to the extreme weather events and natural disasters we’ve been facing, some home insurance companies are going out of business.

In California – hit the hardest by these calamities – several insurers have stopped selling home policies completely. California was such a lose-lose proposition that State Farm pulled out. 

Farmers recently pulled out of Florida, too. Still, others have hiked the price of insurance to a breaking point that homeowners can’t afford. 

“A notice from your insurer dropping your home insurance policy can feel like your largest investment is at risk,” the agency said.

“And, problems with getting the right amount and type of insurance can make your home more difficult to sell. Changes in the insurance business across the country are making these problems more common for homeowners.”

Is this you?

It is up to the homeowner to choose their own insurer, but if they cease payments or let their insurance expire, their mortgage lender can purchase coverage and charge them for it.

This “force-place insurance” protects the lender, though – not the homeowner. The CFPB says the cost back to the homeowner can be twice as much as they would regularly pay for insurance.

Under federal law, a mortgage servicer has to notify you at least 45 days before it charges you for force-placed insurance. If the clock is ticking on your policy, the agency offers suggestions on how to deal with these various situations. 

Check your current insurance policy’s renewal date. The CFPB says at a minimum of one to three months before a policy renews, your insurer should notify you if it decides not to renew your coverage. That window may seem short, but it’s enough time to shop for another policy.

“Even if the insurer renews your coverage, the cost can still go up – for some properties, the increase could be $100 a month or more. About a month before the renewal date, your insurer tells you the cost for the next year,” the agency says.

Ask your insurer to reconsider. If you receive a notice from your insurer informing you that your coverage won’t be renewed, you should ask why. The CFPB says asking won’t hurt and, depending on the situation, the insurer might reverse their decision and renew your policy after all.

Shop around for the right coverage. To keep force-placed insurance off your stoop, keep in mind that any coverage you buy has to match the unique requirements of your specific property.

For example, if you’re in a flood plain, you’ll need coverage for that. Some mortgages require policies to have other risks such as fire, so make sure those boxes are checked, too. 

State insurance regulators may be able to help

Fortunately, the state in which you live is on your side thanks to state insurance regulators approving which companies can offer policies to homeowners in their states. Find out what companies are available in your state by contacting your state's insurance department. That list is available here. 

Choose insurance through your state’s FAIR plan. All states in the U.S. have some form of a FAIR plan – Fair Access to Insurance Requirements. However, how FAIR is constructed and regulated varies from state to state. Through these plans, every homeowner can have a basic level of protection from natural disasters, but note that it generally costs more than a standard policy.

Notify your mortgage servicer. The CFPB’s last word to the wise is that once you have gotten your own coverage, you need to inform your mortgage servicer about the change.

“You have the right to remove force-placed insurance once you have your own insurance policy,” the agency asserted, suggesting anyone in this situation review its guide on removing force-placed insurance.

Looking to lower your insurance costs?

If you're simply looking for a way to lower your outlay for homeowner's insurance, there are several ways as ConsumerAffairs' Mark Huffman recently discovered.

Experts that Huffman spoke with explained how consumers can reduce the cost of insurance while still maintaining some coverage, even in the event of major damage. 

You can find those tips out here.

The question must now be asked. Will California homeowners be able to buy insurance coverage for their homes?

Allstate has become the second major insurance company to announce it will stop writing homeowners insurance policies in the state. Because of wildfires and other natural disasters, the company says the risk is too great. In fact, the company confirmed it stopped writing new policies at the end of 2022.

Last week State Farm announced it is pulling out of California for the same reason. It also pointed to the high cost of rebuilding and repairing homes in California.

State Farm was the largest home insurance provider in California. Allstate was the fourth-largest.

Amy Bach of the consumer group United Policyholders says California homeowners shouldn’t panic, pointing out there are still more than 100 carriers offering coverage. But she told KSFN-TV in Fresno that it’s a worrisome trend.

"State Farm's announcement is definitely not helpful news, but we have to keep it in perspective,” she told the station. "Ever since the fires, I talk to insurance executives, they're all worried about wildfires in the west... They don't take blind risks anymore because they can buy data and they can see the pine needles in your gutter."

Prop 103

In March, United Policyholders sent an alert to state legislators, warning that Proposition 103, which controls insurance premium rate hikes in the state, could cause the insurance industry to push for less regulation.

“Lawmakers are being bombarded by complaints from constituents who’ve been dropped by their insurers, (even after making risk reduction improvements), and unable to find replacement coverage outside the last-resort, expensive, bare-bones protection California Fair Plan, so they are all ears and seeking solutions,” the group said. 

The group also noted that from the time Prop 103 was enacted, California insurers have been vocal about wanting less regulation generally, and have dramatically intensified their campaign in recent months.

The failure of a couple of banks last month sent a case of the jitters through a lot of folks. Not to the point where they started putting their money under the mattress, but still...

So, the logical questions that were raised include, is my money safe, how do I know, and what should I be doing?

The answer to the first question is, if your money -- up to $250,000 -- is in a bank insured by Federal Deposit Insurance Corporation (FDIC), you can be confident that it's safe.

What's covered and what's not

FDIC deposit insurance is backed by the full faith and credit of the United States government, and covers the following:

• Checking accounts
• Negotiable Order of Withdrawal (NOW) accounts
• Savings accounts
• Money Market Deposit Accounts (MMDAs)
• Certificates of Deposit (CDs)
• Cashier’s checks
• Money orders
• Other official items issued by an insured bank

On the other hand, FDIC deposit insurance does not cover:

• Stock investments
• Bond investments
• Mutual funds
• Life insurance policies
• Annuities
• Municipal securities
• Safe deposit boxes or their contents
• U.S. Treasury bills, bonds, or notes
• Crypto assets

It's important to understand that non-bank companies and financial institutions that offer various banking services but do not have a banking license are never FDIC-insured.

Even if they are partners with insured banks, the money you send to a non-bank company is not FDIC insured unless the company deposits it in an insured bank.

What if my bank fails?

If your money in a failed bank is covered by FDIC and your account is less than $250,000, you should get full reimbursement from Uncle Sam.

You don’t really have to do anything to get your money as it'll be transferred to another FDIC bank and you’ll be notified about your new account.

More than $250,000 in a failed bank? You’ll be reimbursed that amount but you may or may not get the rest.

If you want to protect yourself from that $250,000 limit, here are a couple of suggestions from banking experts:

• Split up your money by opening an account at a second FDIC member bank.
• If you're using accounts that earn interest at a bank with only FDIC insurance, be sure your deposits are low enough that your balance with interest will be within that limit. Once an account reaches the $250,000 limit, you can open another new account at another institution.

While single, individually owned accounts are insured up to $250,000 total at FDIC member banks, joint accounts — with two or more owners — are insured up to $500,000 total. So to double the insured amount in deposit accounts at a single bank, you can add another owner.

Don’t expect to see grandma and gramps much this year. After dropping from nearly 50% of all travelers in 2019 to 16% in COVID-ridden 2020, people aged 60-plus seem to be buying up all the trips they can.

According to statistics from travel insurance marketplace Squaremouth.com, the share of seniors hitting the road has risen by 125% and now account for the largest travel demographic for the first time since the start of the pandemic – double those 50-59 and nearly double those 35-49.

And with that, what those consumers want from a travel insurance policy is changing, too. Not only do the insurance companies have to address health issues that COVID-19 may have created, but older travelers are looking for assurances that their trip insurance will cover everything that’s especially important to them. 

Topping the list these days are more searches by seniors for policies with medical coverage. Seniors remain the most concerned demographic when it comes to contracting COVID-19 while traveling, despite a 21% drop in searches for COVID-related coverage over the past year.

What things are other seniors looking for in their travel insurance?

ConsumerAffairs asked Squaremouth’s analysts to dig into its study a little deeper to find out specifically what seniors are looking for in travel insurance so their demographic peers could have a better idea of what to look for.

The biggest increase in the types of searches is for Cruise insurance – up 76% year over year. Logging a 45% uptick from 2022 are popular medical-related benefits – Emergency Medical, Medical Evac, Pre-Existing Condition and Primary Medical. Next on the checklist of coverages is a 20% increase in searches for Travel Delays -- which, in a situation like Southwest's recent cancellation downfall, may have covered some parts of a person's trip.

Overall, Squaremouth’s total searches break out like this for seniors:

• Contracting COVID-19: 30.18%
• Emergency Medical: 17.50%
• Medical Evacuation: 13.90%
• Trip Interruption: 13.73%
• Cancel for Any Reason: 11.36%
• Pre-Existing Condition Coverage: 8.92%
• Primary Medical: 8.55%
• Travel Delay: 8.32%
• Quarantine Coverage: 6.29%
• Cruise: 6.28%

State Farm’s website and app are reportedly back up and running after several days of outages that prevented many customers from accessing their accounts and paying bills.

The internet monitoring site, IsItDownRightNow.com, reported Thursday morning that the website is up and reachable. But some customers posting their experiences on the site reported issues as recently as 24 hours earlier.

A customer named Janine posted “Still unable to log in” on Wednesday. In another Wednesday post, Kelly reported “Error with login. Need to pay my bill.” Other users reported getting a “403 error” message when trying to log in.

In a statement to ConsumerAffairs, a State Farm spokesperson said the system experienced interruptions that limited some customer account access, including bill pay. 

“We are taking action and customer access has been restored,” the spokesperson said. “We apologize for any inconvenience this may have caused. Our State Farm agents and customer care teams are available to assist with customer questions.”

The experts at IsItDownRightNow.com offered some suggestions to State Farm customers who are still unable to access the website. They say the issue may lie in the customer’s web browser.

“Force a full refresh for the site,” they advise. “This can be achieved by pressing CTRL + F5 keys at the same time on your favorite browser. “Try alternative URLs such as online2.statefarm.com.”

Also, it’s a good idea to clear the temporary cache and cookies on your browser to make sure that you have the most recent version of the web page. 

Auto insurance premiums are rising for a number of reasons linked to inflation, but that’s not the only aspect of the industry that is wearing on customers.  Consumers say the real trouble starts when they file a claim.

The J.D. Power 2022 U.S. Auto Claims Satisfaction Study shows customer satisfaction with the auto claims process has dropped seven points on a 1,000-point scale from 2021 as customers start to lose patience with the process of getting their vehicles repaired.

As we recently reported, car insurance premiums are rising because it costs more to repair or place vehicles that have been in an accident. Medical costs associated with auto accidents are also surging.

“Insurers are in a tight spot with their own profitability strained and a host of external factors causing their customers to grow increasingly disillusioned with the entire claims experience,” said Mark Garrett, director of global insurance intelligence at J.D. Power. 

Consumer frustration

Satisfaction is down across nearly all factors in the study but the J.D. Power study shows satisfaction with the repair process registered a 9-point year-over-year decline. Consumers have expressed growing frustration with the slow pace.

Maryam, of Scottsdale, Ariz., said she was in a recent car accident and didn’t enjoy the Geico claims experience.

“No adjuster was assigned to my claim and no one contacted me to process the claim,” she wrote in a ConsumerAffairs review. “The claim representatives are extremely unprofessional and unknowledgeable of how to answer questions regarding an insurance claim.”

Empathy helps

The study found that when insurance companies provided customers with an accurate time cycle for a claim to be settled their satisfaction score rose. The authors also found that a little empathy goes a long way.

“In a world that seems to have become rude and disingenuous, the customer service department at Progressive, in my experience, are (sic) their Greatest Brand Ambassadors,” Bryan, or Corpus Christi, Texas, wrote in a glowing ConsumerAffairs review. “I will look at Progressive for business based solely on the respect EARNED by the employees I have had the pleasure to interact with.”

Who’s handling the claims process the best? None of the Big 5 companies show up in J.D. Power’s top 3. Amica Mutual ranks highest in overall customer satisfaction with a score of 903. NJM Insurance Co. ranks second and Erie Insurance ranks third.

The study also concludes that insurance companies’ effort to manage expenses by pushing customers to use digital channels of communication is counterproductive, noting that not all customers are comfortable using them.

Just about every car-buyer is taking fuel economy into consideration. That’s why sales – and prices – of electric and fuel-efficient vehicles are rising.

But the cost of insuring the vehicle is an important, but often overlooked consideration. After all, fuel prices rise and fall. Insurance premiums usually just move in one direction – up.

CarInsurance.com, an online source of insurance information, has analyzed car insurance rates for all cars in all 50 states. It found there is a wide variation between the costliest vehicles to insure and the cheapest.

Insurance for the priciest cars ranges from $4,000 to more than $5,000 per year on average, while rates for the cheapest cars to insure run around $1,300 per year. Lots of other factors can make the rate higher or lower but those numbers are about average.

According to the analysis, the Subaru Forrester Wilderness is the most cost-effective when it comes to finding an insurance policy. The average premium is $1,353 per year, or almost $112 a month.

With a combined city/highway 29 MPG, the Forrester also saves at the gas pump. With its low cost of insurance, the Subaru Forester has been a multiple recipient of the Kelley Blue Book 5-Year Cost to Own title.

Insurance companies like small engines

The Hyundai Venue SE is second on the list, with an average annual insurance cost of $1,360, or just over $113 a month. Its super low starting MSRP of $19,000 certainly helps keep insurance costs low as does its smallish 1.6L DPI 4-cylinder engine ⁠that puts out only 121 HP.

“The Hyundai is not particularly powerful. The power-to-weight ratio is such that an experienced driver should be able to handle the car in a variety of situations,” said Brian Moody, executive editor for Autotrader and Kelley Blue Book.

The Honda CR-V LX also has a low annual insurance premium, placing third on the list. The average annual premium is $1,366, or nearly $114 a month.

In fourth place is the Mazda CX-30 S. Its average annual insurance premium is $1,379, or nearly $115 a month.

Rounding out the top five is the Toyota CH-R XLE. It’s average annual premium is $1,384, just over $115 a month.

Compare those rates with the annual cost of insuring a Maserati Quattroporte, which if you can afford, then insurance premiums might not be a consideration. Still, CarInsurance.com estimates it costs $5,176 a year, or $431 a month to insure.

A mid-year report from Chainalysis revealed that just under $2 billion has been stolen in cryptocurrency hacks in the first seven months of 2022. This is a significant increase from this same point in 2021, as experts found that crypto hacks were at $1.2 billion last July. 

The report points to decentralized finance (DeFi) as the primary reason for this increase in cryptocurrency hacks. Rather than going through trusted banks, DeFi programs allow consumers to make crypto transactions with blockchain technology. These programs don’t typically have strong security and privacy measures, which makes them susceptible to hackers. 

“...DeFi protocols are uniquely vulnerable to hacking, as their open source code can be studied ad nauseum by cybercriminals looking for exploits (though this can be helpful for security as it allows for auditing of the code), and it’s possible that protocols’ incentives to reach the market and grow quickly lead to lapses in security best practices,” wrote Eric Jardine in the Chainalysis report. 

Crypto experts have reason to believe that many of these hackers are from North Korea. So far this year, North Korean hackers have stolen a total of $1 billion in crypto. This includes $625 million that came from the video game Axie Infinity. 

Crypto scams are declining

Though crypto hackers are stealing more and more money, the Chainalysis report also found that fewer consumers are falling for crypto scams. Both money generated from crypto scams and the number of scams that consumers fell prey to are 65% lower than what they were at this point last year. 

Experts speculate that as Bitcoin prices have steadily declined over the course of the year, fewer people are interested in taking the risk with potentially volatile crypto investments. While this helps in losing large sums of money, it also helps protect consumers from potential scams – which could cause them to lose even more money. 

Because crypto remains unregulated, investors don’t have the support of a traditional bank to fall back on in case of emergencies. Consumers are encouraged to do their own research before investing, while lawmakers are urged to continue interfering in stolen crypto cases. 

Anyone who has ever looked for a health insurance provider knows that it’s anything but easy. The Federal Trade Commission (FTC) says some unprincipled companies may be feasting on that confusion by trying to convince consumers that they have an easy, clear-cut answer.

Officials say they have discovered a trick used by one insurer that involves deliberately misleading consumers into signing up for insurance or health products that don't deliver. To make matters worse, canceling those products and services was very difficult once a victim became ensnared. 

On Monday, the FTC announced that its investigation into Benefytt Technologies Inc. has resulted in $100 million in refunds for consumers who were tricked into sham health plans. Officials say the company also charged exorbitant junk fees that continued to plague victims after they requested cancellation. 

“Benefytt pocketed millions selling sham insurance to seniors and other consumers looking for health coverage,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “And we’re holding its executives accountable for this fraud.”

A valid cancellation policy is a must

The FTC says consumers need to beware of companies that conduct these kinds of schemes. It suggests taking the following steps to avoid becoming a victim:

Compare plans, coverage, and prices at a trusted source. Instead of doing a simple internet search, the FTC says consumers should go to something more objective and comprehensive. It suggests HealthCare.gov and state marketplaces as the first stop for information about comprehensive, ACA-compliant health insurance coverage.

Ask for info in writing. Is the plan really comprehensive health insurance? Before signing on the dotted line, ask these three questions: Does it offer the coverage you need? What’s the total cost? Are there caps or limitations to coverage?

Research any company offering health coverage or products. If a consumer finds an insurance provider that has an interesting pitch, take the time to search online for the name of that company plus “complaint,” “scam,” or “fraud.” Read reviews and see what others have to say. Check with your state insurance commissioner’s office to find out if there are complaints. 

Consumers can check out reviews on sites like ConsumerAffairs and the Better Business Bureau (BBB) to read specific reviews about companies. ConsumerAffairs also has an overview of health insurance companies for consumers who want to learn more.

You can add the cost of homeowners’ insurance to the list of life’s necessities that keep getting more expensive.

We recently wrote that homeowners should review their insurance policies to ensure they have enough coverage to offset the effects of inflation. Now, it turns out the cost of the insurance policy itself is going up.

A new report from Policygenius shows that the cost of a home insurance policy outpaced the inflation rate from May 2021, to May of this year. While the official inflation rate clocked in at 8.6% during that time, home insurance premiums rose much faster – at 12.1%.

The study found that the cost increase for the typical policy increased faster than inflation in all but one state. Thirteen states saw the average premium rise more than 50% higher than the current inflation rate.

From May 2021, to May 2022, 90% of homeowners saw their quoted annual premium increase. For those whose premiums went up, the average increase was $134.

Higher building and repair costs

Reasons for the sharply escalating premiums vary. One reason is the staggering rise in building and repair costs over the last few years. Many policies offer some inflation adjustment protection, and insurance underwriters are raising premiums to reduce their risk.

The study also found the following:

• In multiple states, home insurance costs have increased at more than double the rate of inflation. Over the past 12 months, home insurance premiums are up as much as 18.5% in Arkansas, 18.1% in Washington, and 17.5% in Colorado, increasing by more than twice the rise of inflation during that same period.

• New York was the only state in Policygenius' analysis with a premium increase that was lower than the inflation rate, at 8%. Homeowners in New York saw the lowest increases at renewal since last year, with an average premium hike of just $56.

• Oklahoma saw the largest premium increases, with policyholders seeing their premiums go up $257 on average.

Shop around

Pat Howard, a licensed property and casualty insurance expert at Policygenius, points out that home insurance coverage and premium amounts are based on the rebuild cost, which considers the price of lumber, roofing, contractors, and anything else that goes into building a home.

"It's important for consumers to know there are multiple ways to lower your premium, including regularly re-shopping your home insurance, bundling insurance policies, or installing smart home devices," he said.

An easy way to compare your current home insurance premiums with the most competitive in the industry is to check out the ConsumerAffairs Buyer’s Guide to Best Homeowners Insurance Companies.

The price of a home is not the only thing going up. The cost of insuring a home is also rising in most states.

A new report from QuoteWizard, an online insurance marketplace, found that the average premium has risen by as much as 34% in some states since last year. To make that determination, the company analyzed homeowners insurance rates from every major insurance company in all 50 states. 

Insurance coverage is regulated by each individual state, so rates can differ across the country. QuoteWizard found that rates are up just 2% on a nationwide basis, but the premiums surged much higher in some states.

"Prices have changed wildly in the last year,” said Nick VinZant, a senior research analyst at QuoteWizard. “Depending on where you live you could be paying a lot more or a lot less. We've seen everything from a 25% decrease in Kentucky to a 34% increase in Idaho." 

Sherece, of Nashville, Ind., told us she has seen her State Farm homeowners insurance premium fluctuate from month to month, even though she bundled her homeowners and auto policies to get a discount.

“Downside, the rates change by a few dollars every month,” Sherece wrote in a ConsumerAffairs review. “Wish it was consistent but it’s only a few dollars and goes up and down. Evens out in the end I believe.”

Oklahoma is the most expensive state

The QuoteWizard analysis found that the average cost of homeowners insurance is now $1,766 nationwide, which works out to about $147 a month. Oklahoma is the most expensive state for homeowners insurance, with the average homeowner paying $3,735 a year. Hawaii is the cheapest at only $412 annually.

In the last 12 months, homeowners insurance premiums have increased in 30 states but have gone down in 16 states. Inflation is at least partly to blame in states where rates are rising.

Even though many consumers are paying more for their coverage, they may be underinsured. As we recently reported, building costs have skyrocketed since the start of the pandemic. Replacement costs are much higher than they were two years ago, and most carriers have adjusted their rates to account for that.

"It now costs around $40,000 more to build the same home and if you haven't updated your coverage that extra cost is going to come out of your pocket," said VinZant.

If you own a car, you almost certainly have an auto insurance policy. You write a check each month and have the peace of mind that, in case of an accident, you’re protected from a major loss.

For the most part, that’s true. But how much do you really know about what your auto insurance covers and what it doesn't? A new survey from Insurify has found that there are at least four major myths about car insurance.

The biggest myth is that everything is covered if you have comprehensive coverage. The survey found that 78% of policyholders believe that to be true.

It’s not. Despite the name, comprehensive coverage doesn’t cover all damage suffered in an accident. In reality, comprehensive coverage covers damage unrelated to a car accident like theft, vandalism, or a tree falling on your car in the driveway.

Bodily injury liability

Bodily injury liability coverage is also poorly understood. Nearly every state requires drivers to have this coverage. In the event of an accident in which the insured driver is at fault, the insurance pays medical bills for those in the other car.

But 52% of people in the survey believe this coverage also pays for their medical bills. It doesn’t. Bodily injury liability will not cover the at-fault driver’s medical expenses if they also get injured.

Maybe you’ve heard that if you drive a flashy vehicle – perhaps red or bright yellow – you are more likely to be pulled over by a police officer for a moving violation. That may or may not be the case, but many people make the assumption that these colors also raise insurance rates.

In fact, 36% of survey respondents said they would expect to pay a higher premium for a brightly colored vehicle. Car color, however, is not a factor used to set rates. Insurance companies establish rates based on a driver’s record, location, and personal profile, as well as their vehicle’s age, make, and model.

Discounts

Finally, there is a widespread belief among auto policyholders that car insurance is basically a “one size fits all” situation. Once an insurance company quotes a rate, 33% of drivers believe there is no way to pay less.

But nearly every insurance provider offers discounts. Safe driver discounts are based on the insured’s driving record. There may be other discounts for not driving many miles or for bundling home and auto insurance.

Katrina, of Newark, N.J., is aware of insurance discounts because she got one, at least temporarily, from State Farm.

“My premium was discounted due to the pandemic,” Katrina wrote in a ConsumerAffairs review. “It increased because the world opened back up. They offer many discounts to assist you with the lowest possible rate.”

There are many ways to deal with rising inflation, but saving money on things you already pay for is a good place to start. For example, a new survey shows that shopping around for a better rate on car insurance almost always pays off.

The survey by ValuePenguin shows that 92% of consumers who switched to another company saved money.

“This impact was limited, however, as 65% of policyholders didn’t seek additional quotes during their renewal period,” the authors write, suggesting that they might have saved more if they did more legwork.

Even so, some of the savings were substantial. The survey found that 26% of those who recently switched to a new insurer saved $200 or more per year.

Rate optimization

If you haven’t shopped around, chances are you are paying more than you should. The survey found that nearly 40% of auto insurance policyholders saw their rates increase during their most recent renewal period. According to ValuePenguin’s "State of Auto Insurance," rates were expected to increase by an average of 0.6% across the U.S. in 2022.

There can be many reasons for that, but one of them may be something called “rate optimization.” In the past, some car insurance companies have slowly raised the rate on their long-time customers because they believe these people won't shop around.

Jacqueline, of Queens, N.Y., told us she started shopping for a new provider when her Geico bill began to go up.  

“They increase insurance rates rather than drop them for long-term customers,” Jacqueline wrote in a recent ConsumerAffairs review. “I am shopping around now to get the best deal because Geico is super expensive compared to other auto insurance companies. I have a good driving record and do not see the benefit.”

For consumers who want to lower their car insurance bills, ConsumerAffairs has compiled some helpful advice here. The first thing we suggest is getting multiple quotes. You may be surprised at how the rates vary.

How to lower your bill

Another thing consumers should do is determine how much and what coverage they need. Liberty Mutal has incorporated this into its marketing strategy with the tagline “only pay for what you need.” However, nearly all insurance companies now tailor policies to customer needs.

Many insurance companies offer a number of discounts, including safe driver discounts. When pricing a policy, ask what discounts are available. They may also offer lower prices when you bundle insurance policies. If you are a homeowner, it probably pays to have your homeowners insurance and car insurance with the same company.

Consumers should also consider raising their deductible – the amount of money you will pay for a covered repair before the insurance kicks in. If you have ample savings and are willing to take on more risk yourself, you can save money each month by raising your deductible from $500 to $1,000.

Finally, all consumers should take steps to raise your credit score. That’s one of the factors car insurance companies consider when they set rates. Paying all of your bills on time every month is the best and easiest way to raise your credit score and it will probably result in a more attractive rate on car insurance.

When was the last time you looked at your homeowner’s insurance policy? If you haven’t checked it in a while, it may be wise to do so. That’s because inflation is rapidly increasing building costs. If your house is damaged or destroyed, having inadequate coverage might result in a significant loss.

For example, if your dwelling is insured for $300,000 but the cost of rebuilding your home is $375,000, you would have to make up the difference in the event of a total loss. 

To get around this issue, most insurance companies now offer something called “replacement cost guarantee,” although different carriers may use different terminology. That provision covers the entire cost to repair or replace your home, even if the amount exceeds your coverage.

Sometimes called "RCV," the replacement cost value is what would be required to replace your damaged or destroyed home with the exact same or similar home in today's market. 

“This is generally the most recommended option, since it gets homeowners closest to their living situation before a covered peril occurred,” ValuePenguin advises.

Inflation guard endorsement

P.J. Miller, a partner with Ohio-based Wallace & Turner Insurance, says the forerunner of the current day “guaranteed replacement cost” was the “inflation guard endorsement.” While it’s not known if all carriers provided this option, he says most did and for various reasons.

“An example would be the simple fact that you don’t have to remember to contact your carrier to increase coverage and the peace of mind knowing that it’s done automatically,” Miller told ConsumerAffairs. 

But Miller says it’s important to understand how your policy’s inflation adjustment works. Some policies might increase the coverage only for the policy term and then reset it to the prior term’s coverage amount. 

“Typically, this form would offer an increase of a small amount, maybe 2% per quarter, so by the end of the policy term you could potentially have 8% more coverage than you started with on that policy term,” Miller said. “Some carriers include this coverage, others charge a very nominal premium, $10, for example.”

Miller says the recent California wildfires exposed gaps in many homeowners’ insurance coverage. 

Replacement costs are rising

Bill Martin, president and CEO of Plymouth Rock Home Assurance Corporation, says homeowners should be prepared for much higher repair costs when they make a claim. In short, he says it will probably cost more to provide adequate insurance coverage.

“Most insurers will offer an option to buy extra coverage for the current cost to repair your home,” Martin told ConsumerAffairs. “The amount of insurance coverage available to repair or replace a house is tied to the dollar amount it would take to rebuild, not market value.”

Martin’s advice is to check with your insurance agent or insurer to see if you can afford to buy the extra coverage for what a replacement will cost as opposed to its insured or actual depreciated value, which is included in most base policies. In the event of a major claim, the extra cost will be worth it.

“I recommend you boost your coverage, especially ‘Coverage A,’ which is the part of a homeowners policy that may help to rebuild or repair the physical structure of your home if it’s damaged by a covered hazard,” Martin said. “The majority of damage doesn’t destroy your entire house, which makes it relatively inexpensive to increase your coverage in the event of needing to replace the whole house and its contents.”

Drugmaker Viatris has agreed to settle a class-action lawsuit over the pricing of its EpiPen allergy device by paying $264 million. The suit was brought by a coalition of consumers and health insurance providers.

The company, which recently changed its name from Mylan, got caught up in the debate over prescription drug prices in 2008 when it hiked the cost of the EpiPen, which is used to treat severe allergic shock, from $100 to $600.

The plaintiffs brought a lawsuit against the drug company, charging that it engaged in a scheme to pay generic drugmakers to put off production of a generic version of the Epipen. Originally, the plaintiffs sought $1 billion in damages.

A large part of that case was dismissed in court last year. The judge, however, left intact the suit’s claim that Mylan’s 2012 patent litigation settlement with generic drugmaker Teva Pharmaceutical included a “pay-for-delay” agreement. 

Seventeen price increases

The 2017 suit claimed that Mylan increased the list price of the EpiPen 17 times after acquiring the rights to market and distribute it, increasing prices from  $90.28 to $608.62. This caused some patients to resort to carrying expired EpiPens or using syringes to manually inject epinephrine, the drug that helps counteract severe allergic reactions.

The plaintiffs charged that this once-affordable drug that has been available for more than 100 years and costs pennies to produce is now out of reach for many patients. Since then, the company and its widely used product have been at the forefront of a consumer backlash about the high cost of prescription drugs.

Viatris said in a statement that by agreeing to the settlement, which is pending court approval, the company does not admit any liability.

Last year was a tough one for property insurers and the consumers they cover. A wave of natural disasters and routine accidents resulted in skyrocketing claims.

According to the J.D. Power 2022 U.S. Property Claims Satisfaction Study, insurance companies were challenged by slower settlement times, along with growing pains associated with the transition to digital servicing channels.

As a result, J.D. Power reports that overall satisfaction scores for property and casualty insurers declined to a five-year low.

“Insurers really struggled last year, partly due to circumstances beyond their control,” said Mark Garrett, director, insurance intelligence at J.D. Power. “Longer cycle times, material shortages, and personnel availability put added pressure on insurers to keep customers informed and expectations managed.”

The push toward digital communication

Increasingly, consumers were encouraged to use digital tools to communicate with their insurance companies. Customers were told to upload photographs and received estimates in return.

“Unfortunately, these digital tools are not always meeting expectations, resulting in support staff needing to get involved,” Garrett said. “That disconnect creates a major drag on customer satisfaction.”

Dean, of Scottsdale, Ariz., might be a prime example. He told us he recently switched to State Farm when a bathroom leak flooded a bedroom in December, resulting in a substantial claim.

“Claim still has not been resolved, the internal and field adjusters for State Farm are rude and unexperienced and I am beginning to think this is by design,” Dean wrote in a ConsumerAffairs review in mid-February. “I cannot get any answers on a small $13k claim or updates.”

In general, smaller claims appear to be handled more smoothly. David, of Murfreesboro, Tenn., filed a claim with Allstate when the dehumidifier on his furnace stopped working.

“I took pictures of the code that came up on it then I sent an email and Allstate responded to that,” David told us. “Within just a few days, I had the money in the bank. It was a good experience.” 

Problems are industry-wide

According to J.D. Power, the problems are industry-wide and not limited to one or two companies. Its study shows that every company’s score went down in 2021. It found that the claims process is more complicated than before, and it takes longer to settle claims.

On average, it took 17.8 days for claimants to have their repairs completed in 2021, up 2.9 days from a year earlier.

The study also found that many consumers don’t like the push toward digital communication and away from human interaction. The study found that consumers who fully embraced digital channels had faster claims settlements and reported a better experience.

No one wants to think about it, but as they say, “nothing is certain in life except death and taxes.” Of the two, taxes are probably easier to deal with.

Death, on the other hand, exacts both an emotional and financial toll on a family. That’s why financial advisers highly recommend that couples prepare for the unexpected through life insurance.

The issue may have taken on added importance during the COVID-19 pandemic, which has claimed nearly 1 million lives in the U.S. The evidence suggests that more people are considering adding the protection.

Research conducted by ConsumerAffairs found that 65% of respondents to a survey had both a will and a life insurance policy. Fifty-two percent said they created a will to avoid a financial crisis for their family — the most common motivation for doing so.

However, 38% of the sample of over 1,000 people said they don’t have life insurance because they can’t afford it.

More affordable than you think

In actuality, a life insurance policy can be very affordable depending on your age, your health, the amount of coverage, and the type.

The least expensive coverage is a “term” policy, meaning the coverage is only for a set term, usually 10 or 20 years. The cost is lower because the risk for the underwriter is lower. The odds of someone dying during that time period are fairly low.

Research conducted by LIMRA and Life Happens found that more than half of Americans believe a life insurance policy costs three times its actual rate, with that belief especially strong among young people. According to Fidelity Life, a healthy 30-year-old woman can buy a 10-year, $100,000 term life insurance policy starting at $13 a month, about the cost of a streaming subscription.

Lots of options

Because so many companies now offer life insurance coverage, the competition has kept premium rates in line. Debbie, of Channahon, Ill., told us she found an affordable policy through Haven Life.

“I have never had an easier time purchasing life insurance,” Debbie wrote in a ConsumerAffairs review. “Usually it would take weeks and I would have to send documents and have multiple calls. I was able to secure life insurance in 30 minutes and it didn't cost me any more than other life insurance. Also, really liked how simple and easy the website was."

According to Fidelity Life, a number of important factors besides age and health will affect what you pay for life insurance. Women tend to pay less than men, and smokers pay quite a bit more than non-smokers.

High-risk jobs and hobbies will also result in higher rates, meaning life insurance typically costs more for first-responders and construction workers and less for accountants.

It seems the price of everything is going up because of inflation, and car insurance is no exception. A new report from ValuePenguin predicts that auto insurance rates will rise by 0.6% this year after going down a bit last year.

According to the report, drivers in 22 states will face higher premiums in 2022, with the average motorist nationwide paying $1,935 a year.

The survey found that COVID-19 has very little to do with the anticipated rate hikes. Researchers also point out that insurance companies are not likely to give out COVID-19 discounts to drivers unless there is another nationwide lockdown.

It predicts that drivers in Michigan, Florida, and Louisiana will pay the highest auto insurance premiums this year. Drivers in Maine, Texas, and Wisconsin should get the lowest car insurance premiums in the year ahead.

"Prior to 2020, we saw premiums increase anywhere from 5% to 6%. Rates increased every year from 2011 to 2020," said Divya Sangam, insurance spokesperson at ValuePenguin.com, "While Insurers may not be giving out COVID discounts, there are still ways to save. 76% of Americans who shopped around for insurance say they saved hundreds of dollars doing so."

Consumers give low ratings to major insurance companies

In fact, if you have been with the same insurance company for five years or more, you are probably paying more than you should. Previous research has shown that the industry as a whole tends to increase rates for longtime policyholders, saving the best rates for new customers.

Car insurance advertisements are sometimes funny and entertaining because auto insurance rates are determined by a lot of things that can’t be covered in a thirty-second commercial. So consumers should do their homework, starting with consulting online reviews that show what other consumers like and dislike about various companies.

When we analyzed reviews posted at ConsumerAffairs, we discovered that the big four insurance companies are not that popular. On a 5-star rating system, the average rating was only 1.95 stars.

Here’s how the big four stack up:

• State Farm: 3.4

• Geico: 1.6

• Allstate 1.5

• Progressive: 1.3

State Farm was the highest-rated car insurance company of the four we studied. Jacqueline, of Alexandria, La., gave State Farm 5 stars, mainly because she thought she received fair rates.

“You can get discounts for multi-car, safe driving etc.,” Jacqueline wrote in a ConsumerAffairs review. “Whenever I have had a claim they paid promptly and my rates did not increase. I have been insured with State Farm for about 20 years. I have gotten quotes from other auto insures and the rates were higher with less coverage.”

The ConsumerAffairs research team has done a deep dive into the policies offered by a number of different carriers, vetting 50 car insurance companies that are rated by more than 28,754 customers.

As consumers are well aware, the price of everything has been going up significantly. But a new survey suggests that the cost of health insurance might be an exception.

A ValuePenguin analysis of health plans available under the Affordable Care Act (ACA) found that Americans will spend an average of $541 per month, or $6,492 for the year, on health insurance in 2022. That’s just 0.67% more than this year’s average premium.

However, there may be fairly significant variations depending on the state and the type of coverage the plan provides.

“For states with larger rate increases, insurers cite an overall jump in health care costs, including prescription drug prices, as drivers," said Robin Townsend, a health insurance specialist at ValuePenguin. "Other factors mentioned by insurers include the ongoing COVID-19 pandemic, with an increase in vaccine administration and the impact of the Delta variant prompting higher rates in 2022."

Five states will pay significantly more

According to the analysis, West Virginia, South Dakota, Wyoming, Vermont, and Louisiana residents will pay the highest health insurance premiums next year. Premiums in those states will range anywhere from 35% to 54% above the national average.

At the same time, people in Georgia, New Hampshire, Maryland, Minnesota, and Colorado will enjoy the lowest health insurance premiums in 2022. Premiums for these states’ residents will range from 25% to 43% below the national average.

South Dakota, West Virginia, New Mexico, Arizona, and Texas will experience the biggest jump in health insurance costs next year. ACA plans in those states will rise anywhere from 13% to 23%.

Three states may see lower premiums

Three states -- Georgia, South Carolina, and Nebraska -- will see health insurance costs actually go down next year. Plans will be anywhere from 11% to 41% cheaper next year.

Among the different plans, the survey found that the Platinum tier of health insurance plans will produce the biggest savings in 2022; those costs are expected to fall by a little over 4%. Bronze tier plans are projected to increase in cost by as much as 3%.

The ValuePenguin analysts looked at the thousands of plans available from the Centers for Medicare & Medicaid Services (CMS). However, private employer-sponsored plans were not included in the analysis. Neither was Medicare for those 65 and older. When the CMS makes the premium adjustment for 2022, it will be deducted from recipients’ Social Security payments, which are increasing next year by 5.9%.

The winter storm that recently shook Texas may be an aberration for the Lone Star State's typically mild winter, but it put both homeowners and insurers in a tough spot when it came to resolving the damage. The Insurance Council of Texas said it anticipated that hundreds of thousands of claims for water damage, leaking roofs, fallen trees, and auto accidents would be filed, and that one single week was the costliest in the state's history.

But a more profound pain may be waiting for Texans seeking insurance relief for their damaged homes and property: will I be protected?

Spring promises more bad weather and potential problems for homeowners

What happened in Texas can happen anywhere. In fact, Mother Nature has already started her move from winter to spring, and with that comes flooding and tornado season. Tornado activity is forecast to be slightly above normal this year, with the number of tornadoes expected to hit somewhere between 1,350 to 1,500, according to AccuWeather meteorologists. The mid- to lower-Mississippi Valley and the mid-Atlantic regions will have the highest risk for severe weather this spring, and activity can last well into June across the Plains.

A study from last year found that 14 million homes in the U.S. have a higher chance of being affected by flooding than they might think. That could result in millions of dollars in damages if they’re not covered.

When it comes specifically to floods, ConsumerAffairs has prepared a guide on flood insurance with added tips, expert opinions, and brand comparisons. You can find that guide here.

Getting ahead of the problems

ConsumerAffairs reached out to insurance law expert John Kelly of the Kelly Law Team to determine what consumers should look for in getting coverage for potential flood or wind damage. Here's what we found:

What should someone look for regarding the language of a homeowner's insurance policy? "The language of your homeowner's policy is important, especially when you need it the most when disaster strikes. In the wake of the historical power outages in Texas, homeowners need to understand how to protect themselves," Kelly told ConsumerAffairs.

"If you look closely at the insurance industry, you know that insurance companies like to mitigate their own risk of costly payouts during disasters. Homeowners can take some simple steps to ensure they have the best chance of getting coverage in the future if disaster strikes again."

What should be at the top of every homeowner's checklist? Kelly told ConsumerAffairs that the first step is to make sure you are covered. "You may be surprised to hear that there are countless claims denied because the insurance policy has lapsed due to lack of payment or failure to renew. Many people who have set up autopay options forget to update the insurance company when they get new credit cards or change banks. This can result in unexpected policy terminations and therefore a denial of coverage."

Is there specific documentation a homeowner should have? After making sure you’re covered, Kelly says to request a copy of your homeowners' policy from your insurance company -- and be prepared because it could be dozens of pages long. 

"You should read it carefully and be sure to understand it to the best of your ability. There may be exclusions in your policy that may restrict the types of damage you thought would be covered. For instance, many policies exclude flood damage unless you specifically elect to include the additional coverage under the policy," Kelly said.

How do homeowners know if they are covered for all the various weather scenarios? "If you are uncertain, call your insurance company, and talk about some scenarios that you expect to be covered. For instance, tell them that you want your insurance to include any damage from power outages, including water and fire damage," Kelly said. 

"Ask them to refer you to any exclusions in the policy that may apply. Watch out for 'Force Majeure'* clauses that may give an insurance company a reason to deny coverage during unexpected circumstances.  (*"Force Majeure" clauses are provisions that are common to contracts. In essence, they free both parties from any obligation if an extraordinary or unpredictable event -- like a tornado -- prevents either party from fulfilling their obligation.)

What does a homeowner do if their coverage is denied? If that happens, Kelly says to consult with a local attorney who focuses on "insurance bad faith claims." "They may be able to direct you to a winning argument, but they may also have other resources for recovery such as Federal funding through FEMA," Kelly said.

The Securities and Exchange Commission (SEC) has charged General Electric (GE) with misleading stockholders about the financial problems in its insurance and power businesses prior to the tumbling of its stock. 

The SEC said Wednesday that GE didn’t adequately explain to stockholders that its insurance and power businesses had been deteriorating, or about how cash flowed between its industrial and financial businesses. 

In its order, the SEC further accused GE of misleading investors in 2016 and 2017 about the source of profitability in its power unit. The agency also said GE didn’t do a good enough job of explaining to investors the risks related to its portfolio of long-term health insurance liabilities between 2015 and 2017.

‘Disclosure failures’

The company’s stock plunged nearly 76 percent from the beginning of 2016 through the end of 2018. The SEC opened an investigation into the company’s accounting practices in 2017 after it recorded an accounting charge of $6.2 billion. 

GE has agreed to pay $200 million to settle the three-year investigation. 

“Investors are entitled to an accurate picture of a company’s material operating results,” said Stephanie Avakian, Director of the Division of Enforcement in a statement.  “GE’s repeated disclosure failures across multiple businesses materially misled investors about how it was generating reported earnings and cash growth as well as latent risks in its insurance business.”

GE told Reuters that it’s “never a proud moment for a company to have to settle an SEC accounting investigation and pay a civil fine.” However, officials said the company considers the settlement reached Wednesday to be a “favorable outcome for GE.” 

Under the settlement, the company does not have to admit wrongdoing or make any further corrections or revisions to financial statements. GE will be required to report to the SEC on its accounting and disclosure controls for one year. 

"We are pleased to have reached an agreement that puts the matter behind us," GE said in a statement. "Under the current leadership team, we have significantly enhanced our disclosures and internal controls and are a stronger company today."

If you’re a senior citizen and Medicare insurance subscriber, you probably know that open enrollment is nearly upon us. This year, Walmart has decided to enter the Medicare insurance arena.

During the annual enrollment period (AEP) beginning October 15 and running through December 7, Walmart’s new licensed insurance brokerage -- Insurance Services, LLC -- will help interested parties enroll in insurance plans. While it’s not calling out its competitors, Walmart is posturing itself by saying it’s simplifying what has historically been a “cumbersome, confusing process.” 

“Health care can be complicated. But we think quality health care should be within reach of everyone, and pricing should be transparent and affordable,” said Lori Flees, SVP and COO, Walmart U.S. Health & Wellness, in the company’s announcement.

“Our money-saving $4 generic prescription program and, more recently, Walmart Health locations are helping customers save money and live healthier. Similarly, our Healthcare Begins Here program has helped customers navigate the very complex health insurance system for years.”

Ready for competition

Walmart has its geographic ducks in a row and is licensed in all 50 U.S. states and Washington, D.C., but its move into Medicare insurance won’t be a cakewalk. There are beaucoup insurance brands offering direct-to-consumer Medicare plans already. However, Walmart thinks it has a way to circumnavigate all those issues. 

At launch, Walmart Insurance Services will provide Medicare plans (Part D, Medicare Advantage and Medicare Supplement plans) offered by many of the larger insurers: Humana, UnitedHealthcare, Anthem Blue Cross Blue Shield, Amerigroup, Simply Health, Wellcare (Centene), Clover Health and Arkansas Blue Cross and Blue Shield. 

And that’s just the starting point. Flees said that more carriers may be added in the future. 

The Trump administration is seeking to put an end to the Affordable Care Act, the health care law created under the Obama administration that enabled millions of Americans to get insurance protection. 

In a filing with the Supreme Court on Thursday, the Trump administration asked to have Obamacare invalidated on the grounds that Congress eliminated the individual tax penalty for failing to purchase medical insurance.

Solicitor General Noel Francisco said in a legal brief that once the individual coverage mandate and two other Obamacare provisions are invalidated, "the remainder of the ACA should not be allowed to remain in effect."

"Nothing the 2017 Congress did demonstrates it would have intended the rest of the ACA to continue to operate in the absence of these three integral provisions,” Francisco said. “The entire ACA thus must fall with the individual mandate, though the scope of relief entered in this case should be limited to provisions shown to injure the plaintiffs."

Millions would lose coverage

Earlier on Thursday, likely Democratic presidential candidate Joe Biden expressed dismay at Trump’s continued support for eliminating Obamacare.

"Today, his Administration is filing a brief with the Supreme Court to rip health care coverage away from 23 million Americans — including 224,000 Wisconsinites," Biden said. "Every American deserves the peace of mind that comes (with) access to affordable, high-quality health care."

House Speaker Nancy Pelosi said eliminating the ACA in the middle of a pandemic would be particularly cruel. 

"President Trump and the Republicans' campaign to rip away the protections and benefits of the Affordable Care Act in the middle of the coronavirus crisis is an act of unfathomable cruelty,” Pelosi said in a statement. 

“If President Trump gets his way, 130 million Americans with pre-existing conditions will lose the ACA’s lifesaving protections and 23 million Americans will lose their health coverage entirely,” she added. “There is no legal justification and no moral excuse for the Trump Administration’s disastrous efforts to take away Americans’ health care.” 

States defending ACA

California and 19 other Democrat-led states are pushing for the law to remain.

"The ACA has been life-changing and now through this pandemic, we can all see the value in having greater access to quality healthcare at affordable prices," said California attorney general Xavier Becerra who is leading the defense. "Now is not the time to rip away our best tool to address very real and very deadly health disparities in our communities."

Experts say wiping out the ACA would have a dramatic impact on the health care coverage in the U.S. According to the Kaiser Family Foundation, an estimated 52 million Americans have preexisting health conditions that insurers could have denied coverage to under rules in place before the ACA was instated in most states. 

Supreme Court justices will hear arguments in the case as soon as October.

If your health insurance provider hasn’t reduced your premiums during the coronavirus (COVID-19) pandemic, maybe you should be shopping for a new provider.

As counterintuitive as it may sound, when a virus has hospitalized millions of Americans, major health insurance companies have begun reducing premiums for policyholders because of the money they are saving. Despite the threat of the coronavirus, overall health care spending has plunged since early March.

Over the last three months, the health care system has focused entirely on the virus. Elective surgery was postponed. Many patients, fearful of contracting the virus, put off going to the doctor for routine matters.

As a result, health insurance companies have been paying out a lot less money. Auto insurers found themselves in the same situation in April when stay-at-home orders drastically reduced traffic on highways and led to fewer accidents. Most major carriers, including Allstate and Geico, temporarily reduced policyholder premiums by up to 15 percent.

Anthem cuts premiums

Anthem has become the latest major health benefits provider to announce a premium reduction. The company said it is returning $2.5 billion to its policyholders and health care providers with premium credits of up to 15 percent next month.

Other major providers have already instituted customer rebates, including UnitedHealth Group, which announced last month it was cutting premiums by 20 percent in the month of June, citing fewer health care expenses. The company estimated that the move will put $1.5 billion back in customers’ pockets.

Mississippi Insurance Commissioner Mike Chaney and some of his colleagues in other states had been lobbying health benefits providers to do just that, and in May he was quick to praise UnitedHealth Group’s action.

“The coronavirus pandemic has placed a financial strain on thousands of people,” Chaney said in a statement. “The virus has disrupted how people are receiving care and negatively impacted our economy. I commend UnitedHealthcare for their response to relieve some of the burden consumers are facing.”

It’s possible more health insurance providers will follow suit. The Wall Street Journal reports that there are a number of reasons providers may decide its good business to cut policyholders a break.

“They don’t want to report windfall profits amid so much economic distress,” Matthew Borsch, an analyst with BMO Capital Markets, told The Journal. “It just won’t look good.”

Auto insurance customers have a couple more insurance company jingles to sing out loud. State Farm and Nationwide have joined Allstate, Geico, and American Family in announcing dividends that will go directly back to its customers. 

State Farm’s Good Neighbor Relief Program

The total program:  $2 billion

The amount of credit per customer: On average, State Farm Mutual auto customers can expect to receive a credit of about 25 percent of premium on their coverage. The percentage will vary state-to-state.

Dates the credit applies toward: The credit applies to coverage from March 20 through May 31 

When the credit will go out: State Farm says that every single auto insurance customer will receive credits applied against bills, beginning as early as June.

Could this continue if COVID continues: The company didn’t say if it would extend the program should COVID-19’s rampage continue, but it did say that it would “continue to monitor our loss experience and respond appropriately.”

Nationwide’s premium refund

Nationwide also announced that it is offering a one-time premium refund on top of existing discounts that customers may have already earned.

Here are the program’s particulars:

Who will receive the refund? Anyone who has a personal auto policy active as of March 31, 2020. PowerSports and motorcycle policies are excluded.

The amount per policy: A one-time payment of $50 -- equivalent to about 15 percent in Nationwide’s estimation.

Dates the credit applies toward: Nationwide said the refund is for two months worth of premiums, but it did not specify exact dates. 

What customers have to do: “You don't need to do anything,” Nationwide wrote in an email to its customers. 

How it will show up:  It will be returned to customers in the last form of payment they have made, whether electronic or paper. The refund will arrive in the next 30 days and is subject to individual state regulatory approval.

When will customers see theirs? “Refunds will automatically be credited to your most recent method of payment (for example, automatic withdrawal, credit card, personal check) within the next 30 days, subject to regulatory approval,” Nationwide said. 

Could this continue if COVID-19 continues: The company didn’t say if it would extend the program should COVID-19’s rampage continue.

As a side note, Nationwide is also offering extended payment terms for customers who might be experiencing hardship due to the pandemic. 

Giving back to the communities

State Farm and Nationwide are both taking a chunk of what they’ve saved in out-of-pocket costs during COVID-19’s impact on traffic.

State Farm is taking its good neighbor mantra past the customer level by providing $5 million in donations across the country. Nationwide is matching that with a $5 million contribution from its  Nationwide Foundation. The company said those funds will be directed toward local and national charities to support pandemic response efforts.

Questions?

As it typically goes with things like this, consumers are going to have questions that State Farm or Nationwide didn’t cover in their announcements. 

If that’s the case, State Farm and Nationwide both have FAQ pages that might answer any additional questions. State Farm’s can be accessed here, and Nationwide’s can be found here.

Auto insurance companies are saving billions of dollars during the coronavirus (COVID-19) pandemic, and some of that money is being returned to customers.

Hours after Allstateannounced that it would return $600 million to consumers, Geico upped the ante by telling policyholders that it will be sending $2.5 billion their way.

With stay-at-home orders keeping millions of Americans off the highways there has been a sharp drop in the number of auto accidents. Fewer accidents translate into fewer claims and fewer claims mean insurance companies are suddenly more profitable. 

In a letter to policyholders, Geico CEO Todd Combs announced what he called the GEICO Giveback. The company will provide a 15 percent credit to all auto and motorcycle policies coming up for renewal between now and October 7.

“This credit will also apply to any new policies purchased during this period as part of our commitment to protecting the wellbeing of our customers,” Combs wrote. “Current customers can expect to see this credit when they renew. Customers do not need to take any action to receive this credit.

Also applies to new policies

Geico said it expects the credit to average $150 for each auto policy and $30 for the typical motorcycle policy. The company projects that the total of the discounts given to policyholders will be around $2.5 billion.

At the end of March, Geico announced a pause in policy cancellations for non-payment through the end of April. Its discount offer comes as rival Allstate announced Tuesday that it was sending $600 million in premiums back to customers.

That program is called Shelter-in-Place Payback, and it includes Allstate, Esurance, and Encompass personal auto insurance customers. Allstate says most customers will get a 15 percent rebate on their premium for the months of April and May.

The fastest way for customers to receive this payback is to utilize the Allstate Mobile app.  Allstate said it’s working with state insurance regulators to move forward as quickly as possible.

Reduced risk

Auto insurance rates are based on a number of factors, but it usually comes down to risk; that’s why drivers with good records usually get better rates. One factor determining risk is the number of miles driven in a given year.

With stay-at-home orders in place in wide areas of the U.S., insured motorists could see their annual miles driven fall by well over 1,000 miles, lowering their risk to the insurance underwriter.

Because of that fact -- and with Allstate and Geico announcing their policies -- pressure is likely to build on other insurance companies to make similar accommodations with their customers.

Allstate brought its “in good hands” jingle to life on Monday, saying that it would return more than $600 million in auto insurance premiums to its customers. Why? For the simple reason that most of the United States is staying at home and not out on the streets and highways in their cars and trucks.

“This crisis is pervasive. Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback of more than $600 million over the next two months,” announced Allstate CEO Tom Wilson. 

“This is fair because less driving means fewer accidents. We are also providing free identity protection for the rest of the year to all U.S residents who sign up, since our lives have become more digital.”

Deal points

Allstate’s rebate program is called Shelter-in-Place Payback, and here’s what it includes:

Customers: Allstate, Esurance, and Encompass personal auto insurance customers. 

How much: Most customers will receive 15 percent of their monthly premium in April and May (which is where the $600 million number comes from). 

Where it will show up: The Payback will show up either through a credit to customers’ bank accounts, via a credit card, or in their Allstate account. 

When will it show up: The fastest way for customers to receive this payback is to utilize the Allstate Mobile app.  Allstate said it’s working with state insurance regulators to move forward as quickly as possible.

For consumers with financial challenges: The company added a benefit for insurance customers who may be facing money issues, too. “Allstate auto, home and powersport insurance customers facing financial challenges can request a special payment plan that delays payments for 60 days with no penalty,” the company said. 

Full details of Shelter-in-Place Payback are available, here.

Are other insurance companies doing the same thing?

In ConsumerAffairs research, we were hoping that other major companies would follow suit, but there’s not much in the way of good news there. The only other company currently making a move similar to Allstate is American Family, the 10th largest auto insurer in the U.S. It’s giving its customers a one-time full payment of $50 per vehicle covered by an American Family personal auto policy. All told, American Family says that rebate totals close to $200 million. 

In checking for similar announcements from other top 10 auto insurers -- Nationwide, State Farm, Progressive, Geico, Farmers, USAA, Liberty Mutual, and Travelers -- there were none published by the time this story was published.

Insurance watchdog says Allstate should be returning a LOT more

Dan Karr, the founder and CEO of free insurance grading service ValChoice, estimates that Allstate’s $600 million figure should be closer to $2 billion. Overall, his number-crunching came up with $100 billion in windfall profits that insurance carriers will gain due to the slowdown COVID-19 has created in vehicle use. 

Karr’s not trying to be a Debbie Downer. In fact, he told ConsumerAffairs he thinks the reductions that carriers are making are great, and they are to be commended. However, in his stepping back to share the bigger picture, he notes that sheltering-in-place mandates mean hundreds of thousands of fewer accidents and billions of dollars in claim dollars that won't be paid.

“Big-name insurance carriers will be the chief beneficiaries in this scenario, leaving consumers high and dry,” Karr said. “Consumers aren’t driving. They don’t need as much insurance coverage.”

How consumers can save money on auto insurance during the pandemic

If a consumer is backed by someone other than Allstate, Karr says they should immediately contact their carrier and ask for relief. When the insurance agent asks for a reason, Karr’s suggested response is to tell the agent that their vehicle use is no longer for job commuting. If that doesn’t do the trick, Karr’s other cost-saving moves include:

• Reducing the miles driven on the vehicle to 3000 or fewer per year

• Change use to “for pleasure”

• If the carrier uses mileage as an input, reduce the annual mileage

• For consumers who own their car, they can drop collision and comprehensive insurance

• If you don’t drive the car at all, you can drop liability insurance.

• If the vehicle is not being used at all, eliminate insurance

But what should consumers do if all else fails? Karr says that if the carrier refuses to make the adjustments, switch immediately. “Insurance companies must refund any unused amount of prepaid premiums should the consumer switch carriers,” he said.

Uber is facing a $642 million charge from New Jersey’s labor department for overdue unemployment and disability insurance taxes covering the past four years, Bloomberg Law reported Thursday. 

The state’s labor department accuses the ride-hailing firm of misclassifying its employees as independent contractors and says Uber and its Rasier subsidiary should have to pay several years’ worth of taxes, interest, and penalties.  

Uber has argued that it correctly classifies its drivers as gig workers despite efforts from lawmakers to have ride-hailing drivers classified as employees who receive protections like minimum wage, overtime, paid parental leave, and workers' compensation. 

New Jersey’s labor department told Uber it owes $523 million in overdue taxes from the last four years. The company is also facing fines and interest totaling $119 million.

Uber plans to contest

In a statement, Uber said it intends to challenge the state’s “preliminary but incorrect determination.” It added that it continues to believe its drivers are independent contractors “in New Jersey and elsewhere.” 

The company has previously argued that reclassifying its drivers as employees would limit their flexibility to set their own hours. Meanwhile, critics of the classification have pointed out that many Uber drivers rely on their driving job as their only source of income and should therefore be treated like employees. 

Uber has claimed that it is a technology platform, not a transportation business. For this reason, the company believes it could pass the legal “ABC” test to determine if people are contractors. However, New Jersey has its own version of the test to determine if someone is an independent contractor, and it’s among the strictest in the country. 

The New York Taxi Workers Alliance, which has long supported measures to increase driver fairness, hailed the state’s findings as a victory. 

“This would be life-changing for thousands of drivers, to know that they will be earning at least the minimum wage,” Bhairavi Desai, founder of The New York Taxi Workers Alliance, told Bloomberg Law. “The companies being required to pay into the unemployment insurance fund will mean that they can’t just toss drivers off the app.”

A new study conducted by researchers from the American Cancer Society explored the financial implications that cancer survivors need to contend with and how health insurance plays a role. 

According to the researchers, struggling to understand health insurance policies or medical bills is rather common. In these instances, that stress can spill out into financial decisions that aren’t medical, as well as into other areas of life. 

“Growing evidence suggests that health insurance literacy is a nationwide problem in the United States, and is associated with adverse effects,” the researchers explained. 

Health insurance literacy

To better understand how health insurance literacy plays a role in cancer survivors’ day-to-day lives, the researchers conducted a survey of over 900 adult cancer survivors. 

The survey covered a wide variety of questions designed to gauge participants’ current financial status, including how confident they feel reading and understanding medical bills and other medical documents, to what extent their medical care has been compromised by that lack of knowledge, and how their daily habits are affected or have changed following treatment. 

Overall, nearly 19 percent of survivors under the age of 65 and over 14 percent of survivors over the age of 65 reported problems with health insurance literacy. The researchers learned that when survivors struggled to understand their medical bills, or had questions regarding their health insurance policies, they felt it in other areas of their lives. 

Survivors were more likely to make financial sacrifices in other areas of their lives -- such as dipping into their savings earlier than planned or changing their living situation -- when they struggled with understanding the full spectrum of their health insurance. 

The study also revealed that health insurance literacy problems contributed to higher instances of mental health concerns for cancer survivors. The researchers suggest that work be done in this area to help ease the financial burden associated with medical care. 

“Interventions such as financial and health insurance navigation, decision aids, and more user-friendly and easier-to-read medical bills, which improve patients’ understanding of health insurance and medical costs, could potentially be applied to improve health insurance literacy and benefit cancer survivors,” the researchers wrote. 

Car insurance customers who purchase the bare minimum coverage required by their state pay a higher rate when they upgrade insurance policies.

That’s the conclusion of a Consumer Federation of America (CFA) analysis that compared  premium quotes from six companies in several cities for consumers who bought the least coverage and those who purchased more extensive coverage.

“Auto insurance is not just mandatory in most states, it is an important asset protection tool,” said J. Robert Hunter, CFA Director of Insurance and a former Texas Insurance Commissioner. “As folks’ financial situations improve and they opt to buy more coverage, they should expect equal access to the products and services available to others. Pricing auto insurance based on drivers’ prior purchases is both actuarially unwarranted and an entirely unfair tax for being poor.”

A la carte

Getting the best rate on car insurance, it seems, is based on a lot more than just a driving record. In all but a handful of states, carriers often use a consumers’ zip code or credit score to assign risk. Fabio Faschi,  Property and Casualty Team Lead at Policygenius, says that’s why consumers need to understand how car insurance works and what it is they’re buying.

“Auto insurance, compared to some other types of insurance, is very ala carte in terms of choosing the types of coverages you might or might not want, and how much of that coverage you want,” Faschi told ConsumerAffairs.

And that, unfortunately, leaves a lot of room for confusion. Auto insurance has two functions: it protects a consumer’s property and it also protects them from being held responsible for the damage they cause to other people’s property.

Liability coverage

The minimum coverage states require drivers to have is liability insurance. It pays the other driver if you cause an accident. 

“This is what most consumers should be most concerned about because liability coverage is what’s going to protect you if you cause damage to others,” Faschi said.

Collision insurance pays you if you damage your car in a single-vehicle accident. If you’re financing your vehicle, the lender will likely require some collision coverage, as well as what’s known as comprehensive insurance.

“Comprehensive is essentially going to protect your car from other types of damage, such as weather-related damage,” Faschi said.

All three types of coverage add to the cost of the monthly premium. If you have all three, your cost will be higher than if you only have liability coverage.

Deductibles

Deductibles are another feature that can add to or reduce the cost of insurance. In the event of a claim, the deductible is the amount you have agreed to pay out-of-pocket before the insurance company starts to pay. 

Deductibles generally range from a low of $100 to a high of $1,000 or $1,500. The higher your deductible, the lower your premium because the insurance company is shifting more of the risk to you.

“Insurance is generally all about risk tolerance and the trade off between what you would be guaranteed to pay (through higher premiums) or between what you might potentially have to pay (out of pocket) in the event of an incident,” Faschi said.

But the best way to make sure you are getting the best car insurance rate is to shop your policy around to other companies. And Faschi says, it’s a good idea to do that often -- even once a year.

“The market does shift, though it’s not going to shift drastically from year to year. It’s really just a matter of covering your bases and making sure there weren’t any shifts that create a better deal.”

Major discrepancies are present between the prices paid to hospitals for privately insured patients and what the federal Medicare program pays, according to a RAND analysis of hospital prices in 25 states.

Overall, hospitals treating patients with private health insurance were paid 2.4 times the Medicare rates in 2017. RAND researchers found that the difference was most significant for outpatient care. In those cases, private prices were nearly triple what Medicare would have paid.

"The widely varying prices among hospitals suggests that employers have opportunities to redesign their health plans to better align hospital prices with the value of care provided," said lead author Chapin White in a statement. "Employers can exert pressure on their health plans and hospitals to shift from current pricing system to one that is based on a multiple of Medicare or another similar benchmark."

Suggested interventions

The researchers say changes are needed to drive down hospital prices in the private sector, whether they be in the form of federal intervention or a shift in industry behavior.

The study authors recommend that private insurers switch from discounted charge contracts for hospital services and to contracts “based on a percent of Medicare or another similar fixed-price arrangement.”

"Employers can also encourage expanded price transparency by participating in existing state-based all payer claims databases and promoting the development of such tools," White said. "Transparency by itself is likely to be insufficient to control costs so employers may need state or federal policy changes to rebalance negotiating leverage between hospitals and their health plans."

Legislative interventions might include placing limits on payments for out-of-network hospital care or allowing employers to buy into Medicare or another public option that pays providers based on Medicare rates.

Hospitals raise concerns

After the study was published, the American Hospital Association said it had a “number of concerns” about the results of the analysis.

In addition to pointing out the limitations of the small sample size, the group argued that paying hospitals at Medicare rates would have a huge impact on the industry and could cause many hospitals to close.

“Medicare payment rates, which reimburse below the cost of care, should not be held as a standard benchmark for hospital prices,” the AHA said in a statement. “In 2017, hospitals received payment of only 87 cents for every dollar spent caring for Medicare patients.”  

“Simply shifting to prices based on artificially low Medicare payment rates would strip vital resources from already strapped communities, seriously impeding access to care. Hospitals would not have the resources needed to keep our doors open, innovate to adapt to a rapidly changing field and maintain the services communities need and expect,” the AHA said.

If your car insurance rates are going up, you aren't alone. The Zebra, an insurance rate search engine, reports that 83 percent of drivers paid more for insurance over the last 12 months. The company says insurance rates are the highest they've ever been, rising 23 percent since 2011.

The researchers say the average motorist in the U.S. is paying $1,470 a year for car insurance. They arrived at that number by analyzing more than 61 million auto insurance rates in every zip code. That method breaks down the criteria insurance companies use to set rates — and how that pricing is unique to every individual.

"Some people are paying $500 a year while others are paying $5,000. Why? It could be weather in your state, your driving habits, or even your gender, marital status, or credit score," said Alyssa Connolly, director of Market Insights at The Zebra. "Car insurance is a major expense for most Americans, and drivers want to know how much their rates are changing  — especially as new technology comes into play."

Every state is different

Car insurance rates vary widely from state to state since every jurisdiction has its own set of policies. The least expensive states in which to insure a car are Michigan, Louisiana, and Rhode Island. The most expensive cities for car insurance are Detroit, New Orleans, and Hialeah, Fla.

In Colorado, auto insurance rates have surged 80 percent since 2011. But during that same time, they have fallen 20 percent in Oklahoma. The Zebra analysis also found that, even within a state, rates can vary as much as 265 percent depending upon the zip code.

One reason rates can vary so much by state is that some states have different rules for insurance providers. For example, some states have barred insurance companies from using non-driving factors such as credit scores to set car insurance rates.

Insurance companies say they use zip codes to measure a customer’s risk by looking at the number of vehicle crimes -- things like theft and vandalism -- within specific areas. Some providers also consider credit scores -- where allowed by law to do so -- because they believe the score is an accurate reflection of risk.

Type of coverage affects cost

The rate consumers pay also depends on the extent of coverage they select. Policies with a high deductible -- meaning the consumer pays for most minor damage and doesn’t file a claim -- cost less with low deductible policies with features like accident forgiveness.

Rates also tend to be higher for motorists with speeding tickets and other moving violations. The Zebra report found that a crackdown on distracted driving such as texting behind the wheel has resulted in an average rate increase of 20 percent.

Insurance companies are also making wider use of apps and plug-in devices to monitor how a driver operates their vehicle. This monitoring has resulted in some drivers seeing their rates go down while others are paying more.

Sometimes changing insurance providers will result in a lower rate. Read what consumers have to say about car insurance companies in these ConsumerAffairs reviews.

A lot of factors go into setting a consumer’s insurance rate but California officials say rates should mostly rest on the consumer’s driving record, not other things they can’t control.

The California Insurance Commission has issued new rules that bar insurance companies from using a policyholder’s sex to determine their rates. The state already prohibits insurance companies from using credit scores to influence a consumer’s rate.

“My priority as insurance commissioner is to protect all California consumers, and these regulations ensure that auto insurance rates are based on factors within a driver’s control, rather than personal characteristics over which drivers have no control,” said California Insurance Commissioner Dave Jones.

The rules, which took effect in early January, bring car insurance rates into line with provisions of Proposition 103, which was approved by California voters. That proposition prohibits unfair and discriminatory prices. It orders insurance companies to set rates based upon a consumer’s driving record.

Has no bearing on safety

The new rules were applauded by the consumer group Consumer Watchdog.

“Gender and sex have no more place in what we pay for auto insurance than race or ethnicity do,” said Carmen Balber, executive director of Consumer Watchdog. “These new rules will finally end gender-based discrimination in auto insurance pricing in California.”

The state’s Proposition 103 requires car insurance premiums to be based primarily on factors that a consumer can control. Legitimate factors include the consumer’s driving record, the number of miles they drive, and how many years they’ve had a license. It strictly applies California’s civil rights laws to insurance, banning the use of sex, race, or sexual orientation to determine what a consumer pays for insurance.

It’s a common belief that insurance companies always charge male drivers more than females for insurance, but a Consumer Federation of America (CFA) study suggests that is not always the case.

Different companies had different policies

CFA has reported that, in some markets, one insurance company would give a break on rates to a female driver while another insurance provider, in the same state, would charge a female customer more.

According to Consumer Watchdog, Geico often classifies women drivers as a higher risk. At the same time, studies have shown that State Farm usually treats men and women the same.

The California Department of Insurance found that gender’s effect on insurance rates previously tended to vary widely by geographic location.

Amid Trump administration efforts to diminish Obamacare, the number of consumers who have enrolled for coverage under the exchanges in 2019 has declined slightly.

The Centers for Medicare and Medicaid Service (CMS) report open enrollment for 2019 coverage ended with about 8.5 million people enrolled in coverage under the healthcare exchanges. That compares to 8.8 million people who enrolled at the same time last year.

“This Administration has taken strong steps to promote a more competitive, stable health insurance market and these steady enrollment numbers are yet another sign that the Administration’s efforts are working,” said Administrator Seema Verma. “With the lowest unemployment rate in 50 years, it’s possible that more Americans have employer-based coverage, and don’t need exchange plans.

While the government counts it as a “stable” number, the fact is that enrollment in Obamacare coverage under the Affordable Care Act (ACA) has fallen 4 percent in a year. The program has remained under attack by Republicans even though two attempts to repeal it in Congress have failed.

Uncertainty over the future of Obamacare

Meanwhile, uncertainty over Obamacare’s future grows. Last week a federal judge declared Obamacare is unconstitutional, undoubtedly setting up an appeal process that could run into the 2020 election.

The 2019 enrollment season is also the first since Congress removed the tax penalty for people who do not purchase a healthcare policy. ACA supporters warned that removing the individual mandate would weaken the system, predicting that fewer people would sign up.

The Trump Administration prefers to pin the drop in enrollment on the possibility that more Americans are covered through their employers. It points out that so far this year employment increased by two million in states using the HealthCare.gov platform.

It estimates that 90 percent of American workers work for companies offering health benefits to at least some of its workers. It also points out that due to the expansion of the state’s Medicaid population, approximately 100,000 current exchange enrollees in Virginia will be eligible for expanded Medicaid.

“While enrollment remained steady through HealthCare.gov, many Americans don’t qualify for subsidies on HealthCare.gov and remain priced out of the insurance market. At the end of the day, lower premiums will lead to increased enrollment,” said Verma.

The six-week-long Affordable Care Act enrollment season kicked off on Thursday, and this year consumers will find more choices and stabilizing premiums.

“From a consumer perspective, the experience should be pretty good,” Kelley Turek, a policy specialist at America’s Health Insurance Plans, told Axios.

Here’s what’s new in the ACA’s sixth signup season:

• Short-term plans, which are typically cheaper, will be available for consumers to purchase as an alternative to comprehensive ACA plans;

• Nationally, average premiums are going up only by low single-digit percentages for 2019;

• Insurance brokers are expanding their participation this year because President Trump has cut funding for healthcare navigators -- people who get federal money to help customers compare their options and sign up for health coverage; and

• There won’t be a penalty for not buying health insurance, a change that takes effect in January.

Alternative coverage

Administration officials view the availability of short-term health plans and “association health plans” as a means of expanding lower-cost options for consumers. Premiums for short-term plans are around 54 percent lower than they are for comprehensive policies, according to a new study from the Henry J. Kaiser Family Foundation.

However, some say the additional options could lead to consumers buying less coverage than they need. Turek noted that they could also be a practical option for individuals who can’t afford ACA coverage, but consumers should be sure they know what they’re signing up for because short-term plans can have big gaps in coverage.

Consumers can enroll for health care coverage under the ACA by visiting www.HealthCare.gov. Enrollment for 2019 ends on December 15.

A change in emergency coverage announced by Anthem Blue Cross Blue Shield earlier this year means fewer visits to the emergency room are covered.

A study published in the JAMA Network Open contends that one in six ER visits wouldn't be covered by insurance if all carriers adopted this policy.

Patients head for the ER for all sorts of treatment, from broken arms to heart palpitations. Anthem has begun to deny coverage for ER visits if the patient's condition turns out not to be an emergency.

Some other providers have adopted similar policies, as has the federal government. In July, the American College of Emergency Physicians (ACEP) and Medical Association of George sued the Department of Health and Human Services, claiming the new policy is impeding ER doctors from getting paid for all of their services.

At the moment, Anthem's policy is active in six states -- Indiana, Kentucky, Missouri, New Hampshire, Ohio, and Georgia. If it expands to all 50 states, the study's authors conclude that nearly 16 percent of ER visit claims would be denied.

'Unreasonable and dangerous'

The goal of the policy is to discourage patients from using ER services to treat non-emergency conditions. But Dr. Vidor Friedman, president of ACEP, says it's both unreasonable and dangerous to ask patients to self-diagnose what's wrong and whether a trip to the ER is justified.

"Insurers cannot expect a patient to know in advance whether a headache is a migraine or an aneurysm, or if abdominal pain is indigestion or something far worse. In addition to sticking patients with large medical bills, this policy could deter people from going to the emergency department in a situation where they need immediate medical attention," Friedman said.

The study found it is often hard to tell whether a condition is an emergency or a non-emergency symptom since the two have been shown to overlap nearly 88 percent of the time.

Risk of coverage denial

"Our results demonstrate the inaccuracy of such a policy in identifying unnecessary emergency department visits,” the authors wrote. “This policy could place many patients who reasonably seek emergency care at risk of coverage denial."

The Urgent Care Association of America (UCAOA) advises patients to use good judgment when suffering a condition that may or may not be an emergency. If the condition is serious or life-threatening, you should immediately head for a hospital ER.

If there is doubt, visiting the nearest walk-in clinic or urgent care facility will allow qualified medical personnel to evaluate the condition and make the call.

The cost of employer-provided family health coverage rose 5 percent in 2018 to an average of $19,616, while single coverage premiums rose 3 percent to $6,896, according to a survey released Wednesday by the Kaiser Family Foundation (KFF).

The annual survey, which drew on responses from more than 4,000 employers with three or more workers, found that workers are contributing an average of $5,547 toward the cost of family coverage while the rest is being paid by employers. For single coverage, workers are contributing roughly $1,200 a year.

Over the last decade, the general annual deductible for workers has climbed about eight times as fast as wages, Kaiser said. And with employer-sponsored health coverage being the most common form of health insurance in the U.S., that means more workers are pulling from their take-home pay in order to pay medical bills, despite having coverage.

Burden of deductibles

KFF found that premium increases exceeded both wage increases (2.6 percent) and inflation (2.5 percent) over the past year and decade. Moreover, employers are increasingly heaping more out-of-pocket costs onto employees.

The report said that 85 percent of workers have plans with deductibles compared to 81 percent in 2017 and 57 percent a decade ago.

“Health costs don’t rise in a vacuum. As long as out-of-pocket costs for deductibles, drugs, surprise bills and more continue to outpace wage growth, people will be frustrated by their medical bills and see health costs as huge pocketbook and political issues,” KFF President and CEO Drew Altman said in a statement.

Cognizant of the challenge posed by the current healthcare system, Amazon, Berkshire Hathaway, and JPMorgan Chase announced earlier this year that they were forming a joint venture to give their employees better health care choices and bring down costs.

In its report, Kaiser said it believed companies will soon need to find other ways to shift costs.

"If underlying healthcare prices and service use begin to grow as part of stronger economic growth, employer and health plans may need to look for tools other than higher cost sharing to address the pressures that would lead to higher premium growth," the authors wrote.

You may know what your health insurance deductible is and what network your provider is in, but how much more do you know about your policy?

For example, if you plan a trip outside the U.S., as more and more consumers are doing these days, how much (if any) coverage does your policy provide?

A survey conducted for InsureMyTrip, an online travel insurance marketplace, found that more than half of consumers weren't sure if their health policy would cover them if they got sick or injured in a foreign country.

Over 21 percent said their policy would provide coverage outside the U.S. and 22 percent said it would not.

Justified confusion

The confusion may be justified since health insurance policies vary widely in what they cover outside the U.S. Not only does it depend on the specific plan, it also depends on what country the policyholder is visiting.

Before making any trip outside the U.S., InsureMyTrip recommends checking with your health insurance provider to learn what the plan covers and what it doesn't. Medicare, for example, does not generally provide coverage outside U.S. borders, although there are a few rare exceptions.

Sometimes, lack of information from a provider keeps policyholders in the dark. A survey by HealthMine, a clinical technology company, found that 71 percent of Medicare health plan members say their plan does not inform them if a provider drops out of the health plan's provider network.

Lack of communication

Without access to that information, the patient may be exposed to higher out-of-pocket expenses if they continue to use a provider no longer in an approved network.

The survey also found that only 22 percent of consumers in the survey reported follow-up contacts from their health plan to assess quality of service.

"Plans are much more than claims processors – they are the central hubs of members' health information," said HealthMine CEO Bryce Williams. "In this central role, plans have the knowledge to communicate with members in a timely manner about plan changes."

Williams said the highest-rated Medicare Advantage plans are usually the best at communicating with members.

If you've started your first job and moved into your first apartment, chances are you'll shop for renters insurance.

But what if you're still in college and living in a dormitory? College Parents of America, which offers a number of college-related insurance products, suggests renters insurance should be on most college students' back-to-school shopping list.

The group cites recent data which shows the number of fires that occurred in on-campus student housing facilities was up 6.7 percent in 2016, from 1,916 in 2015.

Renters insurance also covers break-ins and thefts, something the group says is occurring with greater frequency on campus. It says the number of reported criminal offenses on campus increased by almost 3 percent in 2016.

At the same time, the typical college student now has more valuable belongings than in the past, including computers, TV sets, and bicycles.

Disruptive events

"We recommend families consider renters insurance because college students and their parents are often caught unprepared, and these unexpected incidents can also disrupt a students' education," said Bob Soza, President of College Parents of America: "In fact, a majority of state insurance commissioners recommend college students consider renters’ insurance.”

According to ConsumerAffairs' Insurance Contributing Editor Matthew Brodsky, renters are often exposed because a landlord's insurance will not cover their loss. He says renters' policies are usually very affordable, in comparison to homeowner insurance.

Nearly every major insurance company offers renters insurance coverage. You'll find ConsumerAffairs reviews of top renters' insurance policies here.

Especially important for off-campus housing

The National Association of Insurance Commissioners recommends renters insurance for college students, but it may be most important for those living off campus.

"Even if a student is a dependent under his or her parent's insurance, the student's personal property, in many cases, is not covered if the student lives off campus," the group advises. "Parents should check their policy or contact their insurance agent to see if renters insurance is right for their son or daughter who is away at school."

If a student is living in a dorm, the college may provide some coverage, but it will vary from institution to institution. Also, if a college student is under 26 years old, enrolled in classes, and living in on-campus housing, the student may be covered under his or her parents’ homeowners or renters insurance policy.

A lawsuit filed by 20 states could have a huge impact on the millions of consumers who still have health insurance under the Affordable Care Act (ACA), also known as Obamacare.

While Congress has been unsuccessful in its attempts to repeal the law, the Trump administration has taken steps to dismantle parts of it.

The tax cut passed by Congress in December removed the fine associated with the individual mandate, the requirement that everyone have health insurance. That led to the lawsuit, currently making its way through the courts.

The states claim that ACA is now unconstitutional, since the Supreme Court upheld the law only because it said the individual mandate penalty was a tax. Now that the penalty is not being imposed, the states say the individual mandate -- forcing consumers to purchase something the might or might not want -- is unconstitutional.

But the government estimates nearly 9 million consumers are covered by an ACA policy, even though the law has been weakened and insurance premiums have skyrocketed.

In many cases, policyholders can't get insurance through their employers or couldn't afford health insurance before ACA was passed.

Preexisting condition protection at stake

Many who could afford policies were denied coverage because they had preexisting conditions. Under ACA, insurance companies can't deny coverage because of a preexisting condition, but public health advocates now worry that protection is in the crosshairs.

The National Patient Advocate Foundation (NPAF) says the Trump Administration's support of the states' lawsuit is worrisome.

"The Administration's decision to oppose existing federal law imperils millions of patients nationwide," said the group's CEO, Alan Balch. "Not only does it bring back uncertainty to individuals' lives, it also destabilizes the entire marketplace, driving up costs for everyone."

Balch says if the states win in their court battle to overturn the ACA, consumers will return to the time when health insurance was unaffordable -- and for millions of people with a preexisting condition, such as diabetes or high blood pressure, unattainable.

Back to the past

"By allowing insurers to discriminate against people with preexisting conditions, the Administration will thrust millions of Americans back into that life," Balch said.

As the states' lawsuit awaits action by the courts, the Trump administration continues to whittle away at the law, which it has vowed to abolish. This month it all but eliminated advertising to encourage enrollment. It also cut funding for "navigators," people to help consumers select the right policy, by 40 percent.

It also cut $10 billion in "risk adjustment" payments to health insurance companies that provide policies to the sickest customers.

The Center for Medicare and Medicaid Services (CMS) has suspended payments to health insurers with a large number of sick Obamacare clients.

The agency said it had no choice after a U.S. District Court in New Mexico said the payments are invalid, due to the formula used to make them.

The risk-adjustment payments – from insurance companies with a majority of healthy clients to those companies insuring people with chronic illnesses – were written into the Affordable Care Act (ACA) as a way to stabilize the system. Companies that end up insuring a large number of people who require ongoing care tend to be less profitable than those insuring mostly healthy people.

Insurance is normally based on risk, with premiums costing more for clients who are expected to require more healthcare services. However, under Obamacare, insurance companies cannot charge higher premiums, or even deny coverage, to clients with pre-existing conditions.

February court ruling

CMS cites the late February court ruling in deciding to place a freeze on the $10.4 billion which it collected last year, and which ordinarily would be dispersed among high-risk insurers. The agency says the court ruling also prevents it from collecting additional risk-adjustment funds until the issue is resolved.

Without the funds, insurance companies insuring a large number of sick clients may be forced to raise premiums on all clients.

“We were disappointed by the court’s recent ruling,” said CMS Administrator Seema Verma. “As a result of this litigation, billions of dollars in risk adjustment payments and collections are now on hold.”

Verma says CMS has asked the court to reconsider its ruling, and is hoping for a speedy resolution that allows CMS to “prevent more adverse impacts on Americans who receive their insurance in the individual and small group markets.”

Hostile to Obamacare

The Trump administration has made no secret of its hostility to the healthcare program, enacted in 2010. The White House supported two attempts in Congress last year to repeal the program, which insures about 20 million Americans.

Since then, it has taken administrative steps to weaken the law, including the removal of the individual mandate – which required everyone to purchase health insurance.

Earlier this year, Republican officials in 20 states filed a suit claiming that the healthcare law is unconstitutional.

Republicans made this argument once before, claiming that the individual mandate for consumers to buy health insurance is unconstitutional. But the U.S. Supreme Court upheld the law, finding that the fine consumers faced for not buying insurance was actually a tax.

But since the Trump Administration removed the fine for not buying health insurance, Republicans argue that the removal of the threat of that "tax" now makes the law unconstitutional.

In his annual letter to shareholders, JP Morgan Chase CEO Jamie Dimon outlined some of the goals for his company’s new healthcare venture with Amazon and Berkshire Hathaway.

The CEO says his focus is on improving several failures with the US healthcare system, including poor outcomes, high administrative and fraud cost, and a high percentage of healthcare spending devoted to chronic care.

“While we don’t know the exact fix to this problem, we do know the process that will help us fix it,” he wrote. “We need to form a bipartisan group of experts whose direct charge is to fix our healthcare system. I am convinced that this can be done, and if done properly, it will actually improve the outcomes and satisfaction of all American citizens.”

Six focus areas

Dimon said the joint venture with Amazon and Berkshire Hathaway would focus on:

• Aligning incentives system-wide;

• Studying the amount of money spent on waste, administration, and fraud costs;

• Leveraging health data and telemedicine to drive a consumer-driven approach;

• Developing better wellness programs that focus on chronic diseases like cancer, stroke, and heart disease;

• Determining why costly and specialized medicine and pharmaceuticals are frequently over- and under-utilized; and

• Studying the costs associated with specialty care, drugs, and end-of-life care

“The effort will start very small, but there is much to do, and we are optimistic,” he wrote in the letter.

Dimon said the company plans to focus on using “top management, big data, virtual technology, better customer engagement and the improved creation of customer choice” to address critical problems and issues. However, he added that it could take “years” for notable progress to be seen.

Berkshire Hathaway CEO Warren Buffet also appeared to temper expectations in an interview with CNBC, in which he said that he’s “hopeful” about the new venture “but don’t expect any miracles out of us soon.”

An announcement of the joint venture was made back in January. At the time, Buffet referred to healthcare costs as “a hungry tapeworm on the American economy.”

After trying and failing twice last year to overturn the Affordable Care Act, also known as Obamacare, Republican leaders are turning once again to the courts.

GOP representatives from twenty states have joined together to sue the U.S. government, claiming the health care law is unconstitutional.

Republicans made this argument once before, stating that the individual mandate for consumers to buy health insurance is unconstitutional. But the U.S. Supreme Court upheld the law, finding that the fine consumers faced for not buying insurance was actually a tax.

Last year, the Trump Administration removed the fine for not buying health insurance, so Republicans argue that the removal of the threat of that "tax" now makes the law unconstitutional.

Removing the fine a key issue

According to Texas Attorney General Ken Paxton, the high court pinned its Obamacare ruling on the "tax." Now that the provision has been removed, Paxton says the law doesn't meet the constitutional standard.

“Obamacare’s irrational design wreaks havoc on health insurance markets,” said Wisconsin Attorney General Brad Schimel. “Obamacare causes premiums to rise and coverage to fall, forcing Wisconsin and other states to take extreme, costly measures to protect their citizens’ health and pocketbooks."

The National Federation of Independent Businesses (NFIB) brought the original court challenge to Obamacare in 2012. While the Constitution does not allow Congress to force individuals to purchase a product, the court narrowly interpreted the penalty for not purchasing health insurance as a tax, which Congress is authorized to levy.

Senate refused to repeal

The GOP-led House had no difficulty passing legislation last year that repealed Obamacare, but the measure faced obstacles in the Senate, where Republicans held only a two seat advantage. A handful of Republican lawmakers balked at repealing a law that resulted in more consumers being covered by health insurance.

The final attempt failed in late July when Sen. John McCain (R-Ariz.), who was battling cancer, dramatically returned to the capital to cast a deciding vote to allow a vote on the Senate's latest effort -- a straight repeal of the Affordable Care Act.

But on Twitter, McCain made clear he was only voting to allow debate on the GOP bill. He wasn't going to support the measure itself.

The Trump administration on Tuesday proposed a new rule that would allow people to remain on inexpensive, short-term health insurance plans that come with fewer consumer protections.

“Short-term, limited-duration insurance is a type of health insurance coverage that is designed to fill temporary gaps in coverage when an individual is transitioning from one plan or coverage to another form of coverage,” the Department of Health and Human Services (HHS) says.

Short-term health plans are already available in the United States, but under Obamacare rules, the plans cannot last longer than 90 days. The HHS proposal would allow the plans to last up to 12 months.

Under such plans, health insurers can exclude people with pre-existing conditions and charge more for certain health conditions. They would likely be more attractive to customers with fewer healthcare needs.

"Americans need more choices in health insurance so they can find coverage that meets their needs," HHS Secretary Alex Azar said in an announcement explaining the proposal. "The status quo is failing too many Americans who face skyrocketing costs and fewer and fewer choices.”

Less coverage and fraud risks

The move to expand access to short-term health insurance follows a similar proposal issued by the HHS last month to allow consumers to form their own “associations” across state lines to purchase health insurance. Both ideas were raised in response to a directive that Trump signed in October, which asked the HHS  to explore coverage options are “exempt from the onerous and expensive insurance mandates” stipulated by Obamacare.

Expansion of access to so-called “skinny” health insurance plans may seem attractive to the millions of Americans who remain uninsured, but experts warn that the cheaper health plans will offer less coverage, be vulnerable to fraud, and could take healthy, profitable customers out of the Affordable Care Act risk pool. Officials from the previous administration see the proposal as Trump’s latest attempt to undermine Obamacare.

The proposals have been publicly championed, on the other hand, by chain retailers and chain restaurants, some of the nation’s largest employers of uninsured workers. Both industries have bitterly fought the Affordable Care Act and its mandate that employers provide their full-time workers with health insurance.

From so-called Obamacare surcharges on customers’ bills to cutting workers’ hours and benefits, retailers and restaurants have protested the Affordable Care Act in a number of ways.

Wal-Mart, for instance, in 2014 terminated health benefits they offered to part-time workers just as the Affordable Care Act was rolling out. “Like every company, Wal-Mart continues to face rising health care costs,” Wal-Mart said of its decision at the time.

“Skinny” plans not the answer, providers say

The National Retail Federation, which represents Wal-Mart and other retailers, has championed Trump’s attempts to repeal the Affordable Care Act and his October directive calling for insurance plans exempt from “‘onerous” mandates.

“As an industry with extremely tight profit margins, retailers are unable to absorb the added costs, and could be forced to lay off workers,” the trade group claims.

Providers who want to expand access to affordable care are doubtful that “skinny” insurance plans are the answer.

"You can always make insurance more affordable by making insurance worse,” Dr. Adam Gaffney, a pulmonologist who advocates for single-payer healthcare, told ConsumerAffairs last month.

The U.S. Supreme court has rejected an insurance industry challenge to California's Proposition 103, a law reforming insurance company practices.

Mercury Insurance and State Farm led the challenge, unsuccessfully seeking the high court's review of a law requiring, among other things, state approval for insurance rate hikes.

California voters approved Proposition 103 in 1988. It mandated an immediate 20 percent insurance rate rollback and set up a system to make it easier for consumers to participate in rate-setting proceedings.

The case actually stemmed from a 2013 lower court ruling that rejected Mercury's request to raise homeowners’ insurance rates by eight percent. The court actually ordered Mercury to lower rates by eight percent, leading the company to argue that Proposition 103's provisions violated its right to earn a fair profit.

$100 billion in savings

Consumer Watchdog says Proposition 103 has saved California consumers at least $100 billion since it was enacted, and it believes that's the reason it is under industry attack.

"Insurance companies like Mercury and State Farm have not stopped attacking Proposition 103 since the voters passed it nearly three decades ago," said Pamela Pressley, Consumer Watchdog's lead attorney on the Mercury case.

"Today's action by the United States Supreme Court makes clear that the insurance industry has no constitutional right to rip us off."

Consumers' role

The California Department of Insurance, which opposed Mercury and State Farm in their Supreme Court appeal, said the success of Proposition 103 over the last three decades has largely depended upon consumer participation.

"The Department repeatedly found that consumers made a 'substantial contribution' to insurance rate decision making, bringing to the Department's attention issues it might not otherwise have considered and enabling the Department to reach the best decision possible for consumers," the agency said on its website.

A report by the Consumer Federation of America (CFA) found that California consumers sent 0.3 percent less on car insurance in 2010 than they did in 1989, while nationally consumers spent 43.3 percent more.

Insurance companies point to those same statistics to argue they are being denied a reasonable profit.

State Farm filed suit in San Diego Superior Court in 2016 to block $250 million in rate reductions and refunds, claiming it can't afford to lower its homeowners insurance premiums. The case is expected to go to trial next month.

Amazon, JP Morgan Chase, and Berkshire Hathaway announced today they are forming a non-profit joint venture to manage and streamline their employee healthcare programs.

The CEOs of these giant companies -- Jeff Bezos of Amazon, Jamie Dimon of Chase, and Warren Buffet of Berkshire Hathaway -- say the new company will focus on technology solutions that will provide high-quality health benefits at a reasonable cost.

Individually, the three firms have hundreds of thousands of employees who could participate in the new health benefits system. The three corporate leaders say the challenge posed by the current healthcare system is one of the biggest society faces today.

'Hungry tapeworm on the American economy'

“The ballooning costs of healthcare act as a hungry tapeworm on the American economy," said Buffett.

"Our group does not come to this problem with answers. But we also do not accept it as inevitable. Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”

The three participating companies each bring different areas of expertise to the venture. Amazon brings technology, Berkshire Hathaway is a major insurance player, and JPMorgan Chase offers financing.

“The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” said Bezos. “Hard as it might be, reducing healthcare’s burden on the economy while improving outcomes for employees and their families would be worth the effort."

As early as last September there was speculation that Amazon would make a move into the pharmacy business.

Dimon says Chase employees want transparency, knowledge, and control in the management of their health benefits.

“The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans,” Dimon said.

Few details so far

So far, there are very few details about how the proposed plan would operate or whether it would eventually be offered to consumers other than employees at the three companies. However, the announcement sent shockwaves through the corporate healthcare system.

In pre-market trading on Wall Street, stock prices in pharmacy benefit managers and insurance companies -- entities most likely to be affected by the new non-profit player in the space -- dropped as much as five percent.

Pharmacy benefit managers, in particular, have figured prominently in the debate over high prescription drug prices. Some pharmaceutical companies have blamed them for the high cost of their drugs, a charge the benefit managers have denied.

In the release announcing the new venture, Bezos, Buffet, and Dimon made a point of saying their companies would pursue lower costs "through an independent company that is free from profit-making incentives and constraints."

Well over half of U.S. consumers who have car insurance policies think they are paying too much for them, according to a recent survey.

Kyle Nakatsuji, CEO and founder of online insurance startup Clearcover, says there are a variety of reasons why many car insurance customers are paying more than they need to. It starts, he says, with the things that go into the cost of an insurance policy.

In setting your rate, an insurance company must measure your risk -- the likelihood that it will have to pay a claim -- and add in the cost of operating the company.

"There are a number of opportunities to reduce the costs of running an insurance company, and these operational expenses can cost consumers quite a bit of money," Nakatsuji told ConsumerAffairs.

Cost of advertising

One of the biggest expenses that insurance companies pay for is advertising. Most of the major car insurance companies have created humorous TV commercials that saturate the airwaves. Nakatsuji says these commercials are designed to make consumers think about car insurance.

"If you ask people, they will generally tell you they would like to think about insurance less, not more," he said. "But insurance companies tend to spend a lot of time and money paying for things intended to make you think about them and insurance more often."

Unfortunately, all those expensive advertising campaigns can add to the cost of your insurance policy. Choosing a company without a big ad budget might provide a better quote.

Deductibles

Deductibles can also make a big difference in what you pay for car insurance. By selecting a high deductible, a consumer agrees to pay for more of the damage out-of-pocket. Since that reduces the risk to the insurance company, it is willing to lower the premium.

But consumers who agree to a high deductible in exchange for a low rate must have the necessary money to meet the deductible in case of an accident. While a high deductible policy is almost always cheaper, Nakatsuji says it isn't for everyone.

"We use machine learning inside of our technology to help make smarter coverage recommendations," he says. "It's similar to what you would get if you were sitting in a local agent's office. They'd listen to information about your life, your car, and your coverage needs and make recommendations based on that."

Unnecessary coverage and shopping around

Consumers can also overpay for insurance when they purchase expensive coverage that may not be necessary. An insurance company may advertise that your rates won't go up after an accident, but Nakatsuji says consumers must pay for more than just a basic policy to get that kind of coverage.

Another way consumers can save on car insurance costs is to regularly shop around for a better deal. Nakatsuji says it's easy to get an auto insurance renewal bill and just pay it without looking to see if it has gone up significantly.

"Some companies have a rating system in which your rates go up over time, even though there has been no change in your risk profile," he said.

The Insurance Information Institute puts "shopping around" at the top of its list of ways to reduce insurance rates.

Watch your credit score

Other factors that are largely beyond consumers’ control -- such as age, marital status and Zip Code -- may also affect what you pay for car insurance. In most states, many insurance companies will also look at your credit score to determine your risk and set your rate.

Improving your score by paying all your bills on time and reducing your levels of debt can raise your credit score and help get a better rate from your car insurance company.

A Canadian survey has uncovered some gaps in what millennials know about life insurance. The poll of young adults in Ontario, between the ages of 25 and 35, found that fewer than half said they fully understand their life insurance policies.

"I cannot imagine the U.S. market being much different," Bob Bland, CEO of online life insurance marketplace LifeQuotes, told ConsumerAffairs.

Bland says these knowledge gaps are likely due to the complexity of certain life insurance products and the fact that the industry has changed so much that consumers never talk to a salesperson when they buy insurance.

However, he says millennials who are starting families need to understand life insurance and how it fits into their lives.

Term life insurance and income replacement

"The purpose of life insurance is to replace the income of the family breadwinner," Bland said. "That includes not only the person earning the money but a spouse who is taking care of young or old family members at home. In this day and age, we absolutely recommend that a stay-at-home parent have life insurance."

But how much life insurance coverage do you really need? Bland says financial planners typically recommend 10 to 15 times your annual earnings. If you earn $50,000 a year, that means $500,000 in coverage is a good starting point.

Bland advises young families to consider term life insurance, which he says is very inexpensive. But just how inexpensive it is will depend on the amount of coverage, the term, and the health and lifestyle of the policyholder.

Term insurance can be taken out for a specified term -- usually 10, 20, or 30 years. Most of these policies don't require a medical exam and, best of all, the rate stays the same over the life of the policy.

"It's easy to understand, it covers death by any cause, at any time, at any place, except for suicide in the first two policy years," Bland said.

Option to convert to permanent insurance

At the end of the term, a policyholder may choose to convert the policy to permanent insurance. The premiums will be significantly higher than for the term policy, but Bland says many conversions can be done without a medical exam, an important detail if the policyholder has developed a chronic illness.

The Canadian survey, conducted by the Financial Services Commission of Ontario, found only 47 percent of older millennials have life insurance. Anatol Monid, a commission director, says most people don't want to think about what might happen, but it's important to ask questions so you can make good financial decisions.

Bland agrees, saying the more you know how life insurance works, the better protected you will be. You can start by comparing reviews of life insurance companies here.

If you've decided to pick up some extra cash driving for Uber, Lyft, or any of the other so-called transportation network companies (TNC), you'll need to review your auto insurance.

Your personal auto policy may not cover you while transporting passengers you picked up through a ridesharing app; in most cases it won't.

As ridesharing became a market force in the last few years, auto insurance companies responded by creating hybrid policies that are more than personal policies but less than those designed for a business.

However, not all insurance carriers provide them and they aren't available in every state. You may be able to modify your existing policy but it could require switching companies.

Here are the offerings by some major insurance providers:

Allstate

Last week Allstate expanded availability of its ridesharing coverage to seven more states -- Louisiana, Mississippi, North Dakota, New Hampshire, Pennsylvania, South Dakota, and Vermont -- bringing the total to 43.

Allstate's riding coverage is called Ride For Hire and is designed to fill gaps between your personal policy and the commercial coverage typically provided by the TNC you're driving for. Allstate says this extra coverage can cost as little as $15 to $20 per year extra.

Geico

Geico offers a ridesharing auto insurance policy that replaces a personal auto policy. It is valid at all times, whether you are picking up passengers or just driving yourself.

There are restrictions on the number of miles that can be driven and it is limited to passenger vehicles. The company recommends a commercial policy for full-time drivers.

The Geico ridesharing policy is currently available in 40 states. Rate information is provided online through a custom quote.

State Farm

State Farm insurance extends your personal auto policy to cover you when you drive as part of a ridesharing operation. Most parts of your personal policy are in effect when you are working for a TNC. Your full personal policy is in effect when you are off the clock.

Rideshare Driver Coverage can add 15 to 20 percent to your personal State Farm premium. The amount is going to depend on your personal policy coverage, discounts and other rating factors.

Farmers

Farmers provides a gap insurance to cover the time TNC drivers are on the road, but only when they have a TNC passenger in the vehicle. Otherwise, your personal auto policy covers you during this time.

The policy, available in 29 states, provides comprehensive and collision coverage that pays for damages to your car; uninsured motorist coverage, if you are hit by an uninsured driver; medical and personal injury protection.

Progressive

Progressive offers what it calls an endorsement to existing personal auto policyholders, enabling the customers to be covered while driving for Uber or Lyft.

The company says the endorsement fills most of the coverage gap between a personal auto policy and the commercial coverage held by a TNC. It extends roadside assistance, comprehensive and collision through all phases of TNC activity.

Currently, this coverage is only available in Pennsylvania and Texas

Northern California’s record-breaking wildfires have already claimed more than 20 lives and razed a landscape encompassing thousands of homes and businesses, and long-term effects of this disaster–particularly in agricultural industries–are just beginning to take shape.

The state's wine and cannabis industries face devastating repercussions. Each represents hundreds of thousands of jobs and billions in revenue, but only the former has access to insurance on their crops. Supply chains for both will likely remain stable for the time being, but without insurance, many growers may never fully recover.

"[No cannabis grower] right now has insurance," Nikki Lastreto, with the Mendocino Cannabis Industry Association, told CNN. "They might have insurance on their house, but not on their crop." While a small number of firms advertise cannabis crop insurance, industry experts say that the field is extremely limited due to the risk providers face under conflicting state and federal regulations.

Mark Sektnan of the Property Casualty Insurers Association says his trade group does have members who represent marijuana dispensaries, but none who protect the actual crops and growers.

"What we have to figure out is, who's going to provide these guys insurance?" he tells ConsumerAffairs.

Federal and state laws that don't mesh

Businesses have typically been deterred from accommodating marijuana users or businesses -- even in so-called “420-friendly” states -- because cannabis is still considered a controlled substance under federal law. In fact, disabled people who legally use cannabis as medicine can still be fired if they fail a drug test, and workers’ compensation insurance can deny coverage to employees with cannabis in their system.

However, property insurance is typically regulated under state law, which has brought some smaller insurance companies to the market. Both High Times and The Insurance Journal point to a niche market of insurers willing to offer coverage to cannabis businesses.

Restrictions include crop value being capped at $500 per plant and a mandate that all of the property is equipped with video cameras.

Shoppers shouldn't notice a change

California lawmakers have asked major, commercial insurers to consider covering the marijuana industry, but it will take some work getting name-brand insurers to protect crops or dispensaries.

"It's hard to quantify what the risk is when you have this disconnect between the federal government and the state government," Sektnan said. "The current administration has come out to be much more aggressive on marijuana enforcement."

For now, business at dispensaries likely won’t be affected by the fires. An industry representative told VICE news that they do not expect the supply chain to be disrupted due to the huge amount of crop being grown in the region.

Whether it's total devastation from a hurricane like Harvey, or a personal disaster like a fire, or even a tree falling through the roof, most insured homeowners are eager to get their hands on an insurance check.

It's understandable, of course, but Michael Perlmuter, who heads a company representing policyholders in insurance claims settlements, advises patience. Homeowners, he says, should resist the temptation to accept the first settlement offer from an insurance company.

"Insurers and their representatives often rush to get checks to eager property owners for full settlement of their claims," said Perlmuter, president of Alex N. Sill Company.

In many cases, homeowners who thought they were getting everything they were entitled to are stunned to find they were underpaid. To understand what the damage actually costs, he says, takes time -- and maybe a little outside help.

Public claims adjuster

While it's a good idea to immediately contact your insurance company when you suffer a loss, Perlmuter suggests you don't stop there. He says property owners have a right to hire their own public insurance claims adjuster, licensed by their state, who will work only for them.

If possible, he says choose an adjuster experienced with the kind of damage prompting the claim. It's really important if the damage occurred during a hurricane.

"Insurance coverage for hurricanes and the resulting wind and water damage is complicated and frequently not easily resolvable in the total favor of policyholders, especially when flooding also is present," Perlmuter said. "Experienced adjustment companies understand the policy language, will fully estimate the cost of all of the damage and be prepared to meet the insured's burden of proof for maximum recovery."

This issue cropped up numerous times in the aftermath of Hurricane Katrina, when it had to be determined whether a home was destroyed by wind or by flood waters.

What it costs

According to ValuePenguin, most public claims adjusters will visit the site of the damage for an initial inspection without charging a fee. But if the adjuster and property owner agree to move forward, the property owner should be ready to pay a percentage of what the insurance company ultimately pays, much like you would if you hired a personal injury lawyer to settle an auto insurance claim.

"If you decide to use a public adjuster to help you in settling your claim, this service could cost you as much as 15 percent of the total value of your settlement," the Insurance Information Institute (III) says on its website.

If you decide to hire your own adjuster, III suggests checking references carefully with consumer agencies and the state insurance commission.

Perlmuter offers similar advice, warning homeowners to also be on the lookout for unlicensed and unauthorized contractors.

The devastation caused by Hurricane Harvey along the Texas Gulf Coast is widespread, and will likely extend into the billions of dollars.

Once area residents are rescued and out of harm's way, the clean-up will begin in earnest. And that means companies and individuals will be filing insurance claims.

To make the claims process go more smoothly, and to speed up your insurance check, the Insurance Information Institute (III) says there are six steps consumers should follow.

First, contact your insurance company as soon as possible. That might sound obvious, but people who have suffered catastrophic damage may need some time to collect their wits. The point is, make contacting your insurance company a priority.

You'll need to provide a policy number and the best phone number and email address where you can be reached. Here's something else to consider -- insurance adjusters will first visit property with the most extensive damage. Be ready to provide an accurate description of your damage over the phone, along with any special needs your family has.

Document all losses

While waiting for the adjuster to arrive, document your loss. Take photographs of everything that was damaged or destroyed and provide them to your insurance company.

Don't throw anything away before checking with your insurance company first. If your local government requires that damaged possessions be removed as a safety precaution, take plenty of photographs first.

Make sure you sign up for text alerts. Most insurance companies offer them and its a great way to keep up with the status of your claim.

Take advantage of emergency services, if needed and available. If you need help removing water from your home, covering a damaged roof, or closing off damaged doors and windows, many insurance companies will send a licensed and approved provider to take care of it.

Besides documenting your claim visually, keep a good claim diary. Make a list of everyone you speak to about your claim, including the date and time, and what you talked about.

Virginia consumers who get their health insurance through the Obamacare marketplace will now only have one option in some counties.

More than 200,000 Virginia residents who currently have an Obamacare policy though Anthem Blue Cross Blue Shield will have to change providers, as a result of the company's announcement that it will no longer provide coverage under the Affordable Care Act (ACA).

It will continue to sell policies not marketed through the Obamacare exchange in two counties and one city.

“Our commitment to members has always been to provide greater access to affordable, quality healthcare, and we will continue to advocate solutions that will stabilize the market and allow us to return to a more robust presence in Virginia in the future,” the company said in a statement.

Governor blames Trump

In a statement late Friday, Virginia Gov. Terry McAuliff laid the blame at the door of the White House.

“Anthem leadership informed me this afternoon about its decision to leave the federal insurance exchange in Virginia, citing the President’s threats to cut off cost-sharing reduction payments to insurers and his deliberate efforts to dismantle the individual insurance market,” McAuliff said. “It’s unfortunate Anthem felt it could no longer participate in the exchange because of the uncertainty created by the President and Congress.”

As a result, more than 200,000 Virginians who currently have Anthem coverage will have to get a new policy from one of the few healthcare benefits providers in the Obamacare marketplace in Virginia. For many, their current healthcare service providers may no longer be in Network under their new insurance plan.

'Stop playing politics'

“I again urge the administration to stop playing politics with people’s lives and come together in a bipartisan way to provide certainty for insurers that cost-sharing reduction payments will continue to be funded through 2018, in order to stabilize the marketplace in the short term," McAuliffe said. "Congress and the Administration must immediately take action to stabilize the health insurance market in Virginia and across the nation, or risk further harm to the millions of Americans who rely on the exchanges for affordable coverage."

Virginia's two Democrats in the U.S. Senate, Mark Warner and Tim Kaine, also blamed Republicans. In a joint statement, the two lawmakers accused President Trump of “deliberate sabotage.” But the Republican Speaker of the Virginia House of Delegates, Bill Howell, said Anthem's decision is “further proof Obamacare is broken.”

Virginia is not the first state to face this problem. Anthem previously withdrew from Indiana, Nevada, Ohio, and Wisconsin.

Some Democratic members of the U.S. Senate have introduced a bill that would cover more consumers under Medicare.

In addition to covering every American age 65 and older, Americans between the ages of 55 and 64 would have the option of enrolling in the government-administered health care program.

The sponsors estimate there are around 41 million Americans that would be eligible for Medicare coverage under their bill, the Medicare At 55 Act.

Medicare provides health insurance for seniors, covering 80% of most healthcare costs and charging a relatively low premium. Consumers enrolled in Medicare may also purchase a supplemental health insurance policy that, in most cases, covers the remaining 20% of costs.

Believed to be popular

The sponsors of the bill say they believe it would be popular with their constituents.

“Wisconsinites have sent a clear message to Washington that they want us to work across party lines to make health care more affordable, not more costly,” said Sen. Tammy Baldwin (D-Wisc.). "Our legislation offers a choice for millions of older Americans to buy more affordable, quality health care coverage. For people between the ages of 55 and 64, this is a high quality option that can help reduce health insurance costs and increase competition.”

Michigan Democrat Debbie Stabenow says people between the ages of 55 and 64 often have more health problems and face higher health care costs. She says allowing consumers to buy into Medicare before age 65 would go a long way toward solving that problem.

“Giving people more quality choices at reasonable prices is something we can all agree on – that’s what letting Ohioans buy into Medicare is all about,” said Sen. Sherrod Brown (D-Ohio) and another of the co-sponsors. “This is a simple solution for folks who are 55 and can’t get healthcare through work, or those who are ready to retire but aren’t yet eligible for Medicare.”

Hoping for bipartisan support

The Democrats held out hope that their measure could gain bi-partisan support, but it has garnered no Republican co-sponsors. In the wake of the GOP's frustration at being unable to repeal and replace the affordable care act, it isn't clear how much appetite Republican lawmakers have for a measure that expands Medicare eligibility.

But Democrats say something is needed to help people in the 55 to 64 age bracket because they generally face higher health care costs. They say this age group pays more than $1,200 a year out-of-pocket for health care and is at greater risk of both chronic and acute health conditions.

Living to be 100 used to be unusual. But it's now becoming much more common and is causing a number of unanticipated problems, over and above the strain on Social Security and other benefit programs.

Take Gary Lebbin. He'll turn 100 in September, which he's happy about. But his $3.2 million life insurance policies will terminate on that date, which is making him unhappy. So unhappy that he is suing Transamerica Corp. His story is told in today's Wall Street Journal.

Lebbin argues that when he bought his policies in the 1990s, he was told that they would remain in force for the rest of his life. In fact, the policies have a clause that stipulates they terminate on his 100th birthday -- a common provision for policies written a few decades ago. Today, similar policies tend to expire at age 121, which actuaries figure is about the upper limit, at least for now. 

Transamerica said it is sympathetic but must adhere to the terms of its contract. "We take seriously our obligations to the millions of customers who rely on the solutions we provide and we abide fully by the terms and conditions of our policy contracts,” the company said in a statement to the Journal. 

More centenarians every year

Lebbin's case may sound unusual but with more people living to 100 every year, it is likely that others will find themselves in similar situations.

The policies in this case are what are called permanent life policies. They combine a tax-free death benefit with a tax-deferred savings plan. So Lebbin will get the savings portion -- the "net cash value" -- back, with interest, but the death benefit will expire on his birthday. 

Most consumers are not in a position to buy multi-million dollar policies but the expiration date issue may also affect much smaller permanent -- or "whole" -- life policies. Many Americans currently hold permanent life policies they bought years ago and assume they are still in force even though they are no longer required to pay premiums. It's a good idea to review those policies, just to be sure.

Many people look at their life insurance as a means to pay their final expenses -- funeral and burial costs -- and provide at least some benefit for their family.

For younger wage earners, a term policy -- sometimes called "temporary insurance" is usually the best option. It's sold for a term of 10 years, or some other predetermined period of time. 

Term insurance is relatively inexpensive for younger people in good health looking to support their dependents when a family's bread-earner dies, but it is not intended to provide a lifelong benefit. 

The cost of term insurance rises with each year of age and eventually becomes unaffordable for older consumers. That's why, once children are grown and the term insurance has run its course, many people rely on their savings to cover their final costs and provide a small benefit for their survivors. 

Higher income individuals, like Lebbin, have a more complex situation because they must try to shield assets from taxation. The average consumer is in many cases better off making prepaid funeral arrangements and simply passing on any accumulated assets to their survivors. 

The millions of consumers who have healthcare policies obtained through healthcare exchanges, established under the Affordable Care Act (ACA), can breathe a little easier.

At least, for the time being.

These consumers may have watched uneasily as the Republican-led Congress made several attempts to "repeal and replace" the ACA, also known as Obamacare. Critics of both the House-passed bill and the bill considered by the Senate charged it would result in millions of people losing their health insurance.

Senate Majority Leader Mitch McConnell (R-Ky.) has announced the Senate will end its attempts to bring its replacement legislation up for a vote. Monday, two additional Republican senators announced they would vote against the bill, dooming its chances of passage.

“Regretfully, it is now apparent that the effort to repeal and immediately replace the failure of Obamacare will not be successful," McConnell said in a statement.

Will vote on House bill

Instead, McConnell said the Senate will vote to take up the repeal and replace legislation that passed in the House. McConnell noted the Senate approved an identical measure in 2015, but that President Obama vetoed it.

McConnell said the House bill would repeal Obamacare and provide for a two-year delay for a transition period, with a goal of moving to what he called "a patient-centered health care system that gives Americans access to quality, affordable care.”

A pure repeal, however, would likely undo all the provisions of the current law, which among other things, bars health insurance companies from asking about pre-existing conditions. It would also remove subsidies many consumers receive to help pay health insurance premiums.

Maintaining the status quo isn't acceptable either, said David O. Barbe, M.D., president of the American Medical Association. 

Uncertain outlook

While anything can happen in the political arena, Senate passage of the House bill looks unlikely at this point. While it would probably please conservative senators who opposed the Senate measure because it didn't go far enough, it would likely earn the opposition of a number of moderate Republican senators.

President Trump Tweeted his disappointment, suggesting Congress just let Obamacare fail, then create another health care law.

McConnell has suggested there might be another alternative. The GOP leader has hinted that it might be necessary to work with Democrats to reform the current law. Since no Democrats supported either the House or Senate repeal and replace bills, a few Democratic votes might hold the keys to passage.

To win Democratic support, however, the legislation would probably be far different than either of the GOP-crafted bills considered in the House and Senate.

You might not know it, but what you pay for car insurance may have a lot to do with your credit score.

Nearly all auto insurance companies attach some weight to a customer's credit standing -- some companies more than others and in some states more than others.

Personal finance site WalletHub recently crunched the numbers to see which states and which companies penalize low credit scores the most and benefit high ones.

To reach their conclusions, the study authors obtained quotes from five major insurance companies -- Farmers, Progressive, Geico, State Farm, and Allstate. They obtained quotes for two drivers identical in all respects except one. One had excellent credit, the other had no credit.

65% high car insurance rates

The study found that the driver with no credit paid, on average, 65% more for car insurance than people with excellent credit. The spread was widest in Pennsylvania, New Jersey, Colorado, Oregon, and Michigan.

The authors say they also found that Farmers appeared to be the most reliant on credit score information while Geico used it the least. But even Geico charged the no-credit customer 40% more than the excellent-credit customer.

State laws in California, Hawaii, and Massachusetts bar auto insurance companies from using credit scores to set insurance rates, so those states were excluded from the study.

The ranking

The insurance companies, in order of their reliance on credit information, are:

1. Farmers
2. Allstate
3. State Farm
4. Progressive
5. Geico

In May, a NerdWallet study found that drivers in Michigan with poor credit paid the most for car insurance. The NerdWallet analysis found the rate disparity totaled $1,969 a year, or an extra $164 a month.

Second, third, and fourth on the list were Louisiana, Delaware, and Washington, DC, where drivers with poor credit all pay between $1,354 and $1,440 more per year than identical drivers with good credit. New Jersey drivers with poor credit pay an extra $1,204 per year in premiums.

If you happen to have poor credit, you could move to one of the three states where companies can't use credit scores to set insurance rates, or you could work to raise your credit score.

Personal finance experts say the easiest way to increase your credit score is to pay every bill on time, every month. If you have a high balance on your credit card, relative to your credit limit, work on paying down the balance, since credit utilization is also a major factor in establishing a credit score.

The U.S. Senate's second attempt at legislation to repeal and replace the Affordable Care Act (ACA) may not have any brighter prospects than the first measure.

Two GOP senators have already said they will vote against it, meaning Republican backers have no wiggle room at this point. Meanwhile, groups that have a stake in the outcome continue to line up against it.

AARP Executive Vice President Nancy LeaMond says the second bill is nearly the same as the first when it comes imposing what she called an "age tax" on older consumers.

"We urge the Senate to vote 'no' and start from scratch on a new health bill that lowers costs and maintains vital protections and coverage that millions of Americans count on," LeaMond said in a statement.

Medicaid cuts

LeaMond also blasted the bill for what she termed drastic Medicaid cuts. She said those cuts would put 17.4 million poor seniors and people with disabilities, at risk of losing health coverage.

The American Psychological Association (APA) called the second healthcare bill worse than the first. The group said the second draft of the bill creates a two-tiered system with policies that don't provide mental health and substance abuse treatment.

"This bill will not only irreparably damage Medicaid, like the first version, but it will also fracture the private insurance market,” said APA President Antonio E. Puente. “We urge the Senate to reject this measure and instead focus on making improvements to the Affordable Care Act to strengthen the state health insurance exchanges and cover more people.”

Numbers crunchers

Actuaries, the people in the insurance industry who evaluate the likelihood of future events, are also finding fault with the legislation. The American Academy of Actuaries has sent a letter to Congress and the nation's governors, pointing out what they see as flaws.

"With legislation of this scope affecting millions of people and highly complex markets, assuring stable and sustainable markets is no simple feat," said Academy Senior Health Fellow Cori Uccello. "We provided a nonpartisan, actuarial examination of the BCRA component-by-component, and drew lawmakers' attention to critical issues."

Blue Cross Blue Shield of Massachusetts has also come out against the measure, with CEO Andrew Dreyfus expressing the concern that it would result in the loss of coverage for millions of Americans.

Dreyfus also criticized the proposed legislation for creating what he said would be a "new divide between those who are seriously ill and those who are healthy."

The Senate's vote on the measure has been delayed, due to the illness of Sen. John McCain (R-Ariz.). Republican moderates who are on the fence has also said they are waiting for a report from the Congressional Budget Office (CBO), expected this week, which will detail the expected impact of the legislation.

Summer travelers can encounter all sorts of obstacles. Nearly 20% of summertime flights get delayed or canceled, for example.

That's why many consumers -- particularly those traveling out of the country -- opt for travel insurance to cover delays, mishaps and cancellations.

But these policies are not all the same, with many offering subtle differences in coverage. Squaremouth, a website that studies and compares more than 100 policies from 22 providers, recently offered some tips for selecting policies and saving money.

Get medical coverage

While international travelers are often concerned about getting their money back if they get sick and can't make part of the trip, Squaremouth says a bigger concern should be paying for medical treatment.

It turns out that a lot of health insurance, including Medicare, does not usually cover you when you are outside the United States. A travel insurance policy can fill this gap.

Squaremouth recommends at least $50,000 in emergency medical coverage for international trips. However, you can save money by selecting a "secondary" medical policy. It's an extra step in the claims process but Squaremouth says it can be less expensive than a "primary" policy.

If you are taking a cruise or some other vacation package in which you commit upfront, you may consider taking out travel insurance to cover you in case something happens to prevent you from making the trip.

Not a bad idea, but Squaremouth offers this money-saving tip: read the fine print to see if you would be on the hook for the entire amount, or just a portion. If it's the latter, don't insure for the entire cost of the trip, just the amount you would have to forfeit.

How about road trips?

What if you're staying in the U.S. this summer and driving to your destination. Would you ever need travel insurance?

According to Squaremouth, road trip travel insurance usually covers just medical emergencies. If you already have health insurance, is it really necessary?

If your health insurance policy has a high deductible, it might be a savvy move. If you select a "primary" emergency medical policy, it would allow you to bypass your high-deductible coverage, which could require you to pay hundreds, even thousands of dollars out-of-pocket.

Squaremouth says the least expensive "primary" policy for two 50-year-olds taking a 10-day domestic road trip is $42.

Americans are driving less, relying more on public transportation, car-pooling, ride-sharing, and telecommuting.

Since 1983, the percentage of people with a driver's license has steadily decreased among consumers 16 to 44 years old, according to a University of Michigan study. That provides a cost savings since consumers aren't buying as much gasoline. In some cases, a family might get by with one car instead of two.

But there's another way it could be saving even more money, if more consumers knew about it. In the insurance industry, there's something called “usage-based insurance” (UBI), and the National Association of Insurance Commissioners (NAIC) says more consumers should look into it.

Transformations in mobility

"Exciting transformations in mobility, including ride-sharing, increased use of public transportation and self-driving vehicles mean consumer driving habits are and will continue to change," said NAIC President and Wisconsin Insurance Commissioner Ted Nickel. "New insurance products may be an option for some drivers whose habits have shifted.”

UBI examines driving habits, including miles driven, speed, time of day and other factors. Insurance costs are based on the result. Yet fewer than half of Americans are aware of UBI as an option and even fewer – just 6% – are using the product. When offered UBI as an option, a report from LexisNexis notes half of American drivers make the switch.

DiveCheck

NAIC has created a tool called DriveCheck to help consumers figure out if UBI would save them money. The tool allows insurance companies to track motorists' driving behavior to develop discounts for individual drivers. Safer drivers will pay less in premiums.

While that's good news for safer drivers, it's not so good for drivers who don't fit into that category. Also, if you drive your car a lot, it's possible your rates will go up more over time, to compensate for those drivers whose rates are going down.

There could also be some privacy concerns. An electronic device installed in the vehicle records its movements, including speed and distance.

Earlier this year researchers demonstrated that it is possible to compromise a driver's private information stored in the cloud for based on only part of the data collected.  

As the Senate inches towards a vote on its version of healthcare reform legislation, the influential American Medical Association (AMA) has declared itself against the measure.

“On behalf of the physician and medical student members of the American Medical Association (AMA), I am writing to express our opposition to the discussion draft of the ‘Better Care Reconciliation Act’ released on June 22, 2017,” said James L. Madara, M.D., CEO of the largest group representing physicians in the United States. 

Throughout the health system reform debate, the AMA has urged that reforms not result in individuals with health insurance losing access to affordable, quality coverage; that Medicaid, CHIP and other safety net programs be adequately funded; and that key market reforms, such as pre-existing conditions, be maintained. The Senate draft, however, violates many of those principles, Madara said.

Medicaid concerns

In the letter to Senate Majority Leader Mitch McConnell (R-Ky.) and Minority Leader Chuck Schumer (D-Ill.), Madara said the AMA is "particularly concerned with proposals to convert the Medicaid program into a system that limits the federal obligation to care for needy patients to a predetermined formula based on per-capita-caps."

"Per-capita-caps fail to take into account unanticipated costs of new medical innovations or the fiscal impact of public health epidemics, such as the crisis of opioid abuse currently ravaging our nation," the letter said.

Many Republicans have been dismayed at the widespread opposition to the measure, but reports from Capitol Hill say that McConnell is confident he can achieve passage of the bill over the next five days before Congress adjourns for the July 4 recess. An unlimited amendment process is in place, giving senators a chance to hammer out a compromise. 

Voters worried about healthcare

Tesla owners are saving money on gas, but they may soon be spending more for insurance. Automotive News reports today that AAA Insurance is raising its rates for Tesla Models S and X, based on data showing the electric luxury cars have abnormally high claim frequencies.

AAA says that based on the number and severity of accidents, premiums on the cars should go up 30 percent. Tesla disputes that.

"This analysis is severely flawed and is not reflective of reality," said the electric-vehicle maker, according to the report. "Among other things, it compares Model S and X to cars that are not remotely peers, including even a Volvo station wagon."

An AAA official said the firm noticed the high claim rates in its own data and then investigated other sources, including the Highway Loss Data Institute. Finding a similar pattern of elevated claims there, AAA instituted the rate increase.

The institute classifies the Model S as a large luxury vehicle, in the same class as the Volvo XC70, Audi A6, Mercedes-Benz E class, and BMW 5 series. Comparing claims for cars in that class, it found the frequency and severity of Tesla claims to be "much higher than usual."

More claims, higher costs

In other words, there are more claims than for similar cars and the repair costs are higher than normal.

This fits with the experience of ConsumerAffairs reader Thomas of Thousand Oaks, Calif., who said in a recent review it's "worse than you can imagine." 

"I've owned a Tesla for 3 months and was hit going about 2 mph -- scratched the front bumper and wheel and tire went flat," he said. 'Tesla Centinela' connected me to DC Autocraft. I asked for an estimate. They said they couldn't, as they had tow charges (tire flat), costs of storage, and other charges. I texted them notifying them that I'd pay for tow if they provided an estimate. They agreed. It's been two weeks, I still don't have an estimate but they're indicating that it would be more than $10,000 to fix - crazy ripoff."

Thomas found that Allstate's experience with Teslas was similar to AAA's.

"I spoke to my Allstate agent and filed a claim. The Allstate adjuster said that Teslas are a big problem. The lowest estimate that he'd approved is $7,000 and it takes weeks or months more to fix a Tesla -- the 'approved' body shops are all backed up and have no parts."

Bevila of Tucson had similar issues with her Tesla.

"Our car was damaged in an accident (I fully believe it was a car malfunction versus "driver error" even though they refuse to accept responsibility) and has been in one of their approved auto body shop for over a month and a half for repairs," she said. "The auto body shop says they have received 2 parts so far and hasn't started work."

Tesla's rejoinder

Tesla said the high rate of acceleration in both the Model S and Model X make it "false and misleading" to compare against vehicles such as the XC70, adding that the Model S also holds the lowest likelihood of injury, according to an evaluation by the National Highway Traffic Safety Administration.

That may well be, but for consumers like Thomas, who have invested a lot more in their Teslas than just the purchase price, such promises may come too late.

"To prepare for electric, I've spent $8,000 rewiring my house, putting in a Wall connector and getting ready to put in $70,000 of Tesla solar panels. After this experience, I'm selling this Tesla and getting a real car on which I can depend -- not a toy," he said.

In states where they are allowed to, auto insurance companies look at customers' credit scores, taking them into account when setting rates.

While it might not seem fair, insurance companies point to correlations between low credit scores and high claims.

So given that insurance companies factor in your credit score, just how much money does that cost you when the premium bill arrives? Personal finance site NerdWallet crunched the numbers to find out.

The analysts looked at quotes for a 30 year-old driver with poor credit and compared the rates with an identical driver who had good credit.

If you have poor credit and happen to live in Michigan, you'll pay the most. The NerdWallet analysis found the rate disparity totaled $1,969 a year, or an extra $164 a month.

Second, third, and fourth on the list are Louisiana, Delaware, and Washington, DC, where drivers with poor credit all pay between $1,354 and $1,340 more per year than identical drivers with good credit. New Jersey drivers with poor credit pay an extra $1,204 per year in premiums.

Wyoming rate disparity is the lowest

Wyoming drivers with poor credit are punished the least. Their premiums average only $275 a year more than drivers with a good credit score.

Of course, drivers in California, Hawaii, and Massachusetts don't pay anything extra for a low credit score, since insurance companies are barred from using credit information to set rates in those states.

The NerdWallet analysis also came up with this interesting factoid: the average rate discrepancy between all states that adjust rates based on credit scores is $690 a year.

But the rate increase for drivers in any credit category who cause an accident resulting in a claim is $446 -- meaning insurance companies charge you more if they think you might cause an accident than if you actually cause one.

The takeaway from the study is this: it's important to shop around for car insurance because rates can vary widely. It's also important to improve your credit score.

The best way to do that is always pay your bills on time, every time. Also, keep credit card balances well below the credit limits.

You may be aware that seemingly unconnected things can affect the rate you pay for auto insurance. Besides your driving record, companies in most states consider your credit score and even your Zip code, in deciding what your monthly premiums will be.

Now, a report from the Consumer Federation of America (CFA) adds another factor -- who your previous insurance provider was.

Up to 15% higher

The report claims three firms -- Allstate, Farmers, and American Family --  may charge up to 15% more to consumers with good driving records, who just happen to have had policies in the past with smaller, "non-standard" insurers, as opposed to those who were insured by another large insurance company.

CFA's director of insurance J. Robert Hunter, a former Texas Insurance Commissioner, says this penalizes motorists in lower-income communities, reducing their insurance options.

To test this hypothesis, CFA went to insurance company websites and sought quotes from seven major auto insurance providers. In every case, the driver for whom they sought a quote had a perfect driving record.

The only difference was some new customers were switching from a major provider, like State Farm, while others were changing after being insured by a "non-standard" carrier, which is defined as a smaller insurance company like Titan Insurance, Access Insurance, and Safe Auto Insurance.

The authors found that in most cities where insurance quotes were provided, Allstate, Farmers, and American Family cited a consumer's previous insurance company as a factor in determining the premium.

Most other major insurance companies took a new customer's previous insurer into account when setting rates, but not in every city. For example, the study found Geico charged more for consumers coming from a "non-standard" company if they lived in Tampa, but made no such distinction in other cities.

'Unfair punishment'

“It’s one thing to charge higher premiums to people with violations and accidents in their past, but it is unfair to punish a good driver simply because of where she previously purchased insurance,” said Hunter.

So why would big insurance companies charge a higher rate to consumers switching from a small insurance provider? Hunter believes it is because these small firms tend to serve riskier customers. But a lot of "non-standard" customers also fell into that category in the past because they could not obtain coverage from major insurance companies.

“After big insurers under-served many of America’s poorer communities, forcing drivers to turn to lesser known companies to buy coverage, the same big insurers later penalize them, effectively sentencing them to higher premiums for life,” Hunter said.

It's not known how many consumers are affected by this practice, but Hunter notes the "non-standard" insurance market in the U.S. is around $7.5 billion.

Learn more in the ConsumerAffairs Auto Insurance Buyers Guide.

Like ice wagons, kerosene lamps and apothecaries, individual auto insurance policies may be a thing of the past in a few decades. But until then, insurers will see billions of dollars in new business, an industry study predicts.

Beginning around 2026, individual consumers will begin dropping their traditional insurance policies as self-driving cars become commonplace, according to the report from Accenture and Stevens Institute of Technology.

“Autonomous-vehicle technology will drive a significant shift in risk from human error to malicious third party, software, hardware and infrastructure risk,” said Chen Liu, co-author of the report and a research assistant at Stevens Institute of Technology. “Understanding and proactively responding to this anticipated enterprise transformation is imperative.”

There will still be car insurance, but it will cover different risks. Most insurance now basically covers human error, which is the cause of most traffic accidents. Self-driving cars will be immune from human error, but things can still go wrong. They can be hacked, they can be swept away in floods, and, presumably, can still be stolen, maybe even remotely. 

Those risks are relatively slight, however, compared to the current risk every consumer assumes when climbing into the family truckster for the daily commute or shopping trip -- meaning that individual premiums should be quite low for self-driving cars.

Transition time

The next decade or so, however, is shaping up as a bonanza for insurance companies, as overall risks may actually increase during the transition from human drivers to self-driving cars. 

During that time, insurers can gorge on more than $80 billion in new revenue as automakers, fleet owners, software publishers, and others take out policies covering cybersecurity, product liability and public infrastructure insurance, the report predicts.

“Insurers are bracing for long-term declines in auto premiums as new and safer autonomous vehicles gain adoption,” said John Cusano, a senior managing director at Accenture and global head of the company’s insurance practice, according to Insurance Journal. “However, our research suggests that auto premiums will increase before they decline on this trend, so insurers that can navigate the changing technology environment could win market share.”

New lines of business

Cybersecurity insurance is expected to be the most essential new coverage and biggest source of new revenue, totaling $64 billion by 2025. After all, if someone hijacks your computer, the risk of actual physical damage or injury is slight. But if someone hijacks your car and plows it into other cars or a crowd of pedestrians, the risk of catastrophic loss is quite high.

A cybersecurity policy on a self-driving car would be expected to provide protection against remote vehicle theft, unauthorized entry, ransomware, and hijacking of vehicle controls, as well as coverage for identity theft, privacy breaches, and the theft or misuse of personal data.

Automakers and the companies that generate software and sensors will need product liability insurance and the cloud server systems that manage traffic and road networks will also need coverage, but that presumably won't be the responsibility of individual consumers.

While none of this is a certainty, it's a pretty good bet that if self-driving cars actually turn out to be as safe and reliable as expected, consumers should pocket big savings on their insurance costs.

See the ConsumerAffairs Auto Insurance Buyers Guide for more information.

The House has passed legislation to repeal and replace the Affordable Care Act (ACA), also known as Obamacare, and now the Senate is taking up the matter.

Republicans hold the majority in both chambers, but the measure is facing widespread opposition.

Democrats are universally opposed, but that's not unexpected. The ACA is the signature legislation of the previous Democratic administration. Democrats don't want to see it repealed.

But neither do a lot of consumers who have health insurance policies obtained through the Healthcare.gov marketplace. They've shown up at Republican lawmakers' town meetings to make their feelings known.

Both groups are now being joined by an increasing number of consumer and health organizations, which are voicing their concerns about what Republicans plan to put in place of Obamacare.

Organizations battling chronic disease

This week, 10 organizations that lead efforts against different chronic diseases joined forces to oppose the repeal legislation that is now pending in the Senate. The groups include:

• American Cancer Society Cancer Action Network

• American Diabetes Association

• American Heart Association

• American Lung Association

• Cystic Fibrosis Foundation

• JDRF

• March of Dimes

• National Organization for Rare Disorders

• National MS Society

• WomenHeart: The National Coalition for Women with Heart Disease

Concerns about coverage and costs

The groups say they oppose the GOP replacement bill -- the American Health Care Act -- because they say they are concerned too many people would lose health coverage under it. Cost of premiums, they say, would also go up.

"As introduced, the bill would profoundly reduce coverage for millions of Americans—including many low-income and disabled individuals who rely on Medicaid—and increase out-of-pocket costs for the sickest and oldest among us," the groups said in a joint statement.

The healthcare organizations also expressed alarm over what they called "recent harmful changes to the AHCA, including provisions that will weaken key consumer protections."

They say they oppose changes allowing states to waive the requirement for essential health benefits, which they say could deny care and treatment to patients.

Previously, the Paralyzed Veterans of America announced opposition to the repeal legislation, citing the adverse impact it could have on veterans with disabilities.

The International Myeloma Foundation (IMF) also expressed what it called "its deep concerns" with the American Health Care Act. The group said it is concerned that it could greatly impact how patients get access to treatment for multiple myeloma, the second most common blood cancer in the U.S.

As many homeowners have learned the hard way, homeowners insurance policies don't cover flood damage.

The damage caused by rising water, whether from a hurricane storm surge or an overflowing creek, is covered by flood insurance, which in recent years has become increasingly expensive.

The National Flood Insurance Program (NFIP), administered by FEMA, is supposed to make flood insurance more affordable for homeowners, but the program is scheduled to expire at the end of September. The National Association of Realtors (NAR) worries that there will be nothing to replace it.

NAR President William Brown says the elimination of NFIP would not only pose financial risks to homeowners living on or near bodies of water, it would bring sales of those properties to a standstill.

It's happened before

"When the NFIP expired in 2010, over 1,300 home sales were disrupted every day as a result," Brown said. "That's over 40,000 every month."

If property is located in a 100-year floodplain, mortgage lenders require the homeowner to have flood insurance. So if there is no NFIP, Brown says buyers simply won't be able to get a mortgage.

A rash of hurricanes in the early 2000s took a massive toll on the flood insurance program. Even with the program, homeowners have seen premiums surge. Brown says the problem doesn't just affect coastal communities.

22,000 communities need flood insurance

"Policyholders in over 22,000 communities across the country depend on the NFIP to protect homes and businesses from torrential rain, swollen rivers and lakes, snowmelt, failing infrastructure, as well as storm surges and hurricanes," he said. "When that lifeline is cut off, the NFIP can't issue new policies or renew existing residential or commercial policies that expire. That means current home and business owners may find their most important asset unprotected."

And even though last year was a relatively calm one for hurricanes, it was the third largest in claims payments in the history of the flood insurance program, costing the goverment more than $4 billion. There were five billion dollar floods last year, with four of them occurring inland, away from coastal areas.

House Republicans have released a long-awaited bill that would "repeal and replace" the Affordable Care Act (ACA), otherwise known as Obamacare. Consumers who have health insurance policies through the ACA exchanges may be understandably anxious about what it would mean for them.

If you'd like to read the bill for yourself, you may do so here.

As expected, the bill keeps some of the more popular provisions of the current law. Adult children can stay covered under their parents' policies until age 26. Consumers cannot be denied healthcare coverage because of a pre-existing condition.

For consumers who now have a policy under an expansion of their states' Medicaid coverage, there would apparently be little change. But it would be up to the state to determine the extent to which the coverage would continue.

Mandate eliminated

The replacement would end the requirement that everyone purchase health insurance and the financial penalty against those who do not. Health insurance companies pushed for that mandate under the original law, saying without it healthy people wouldn't buy insurance and the companies would only be covering the sick.

In place of the mandate, the replacement bill would allow health insurance companies to increase premiums by 30% on consumers who were uncovered by a policy for 63 days or more. That's designed to discourage healthy consumers from going without coverage until they are faced with an illness.

The replacement bill specifically eliminates the tax that was imposed to subsidize policies purchased on healthcare exchanges. That subsidy came in the form of an instant tax credit that reduced the monthly premium cost.

Tax credits

The replacement bill, without specifying how it would be paid for, gives tax credits to people with incomes under $75,000 a year who purchase private health insurance. It is not clear whether they would pay more or less out of pocket than they now do, which is obviously a key question consumers currently covered under Obamacare might ask.

Older consumers with private health insurance obtained under the replacement law would likely pay more. The ACA limits the amount insurance companies can charge older consumers to three times what they charge younger policyholders. Under the replacement law, that increases to five times what young people pay.

The outlook for "replace and replace" is far from certain. Conservative lawmakers' initial reaction has not exactly been favorable. Rep. Justin Amash (R-Mich.) called it "Obamacare 2.0" in a Tweet. Democrats can hardly be expected to support the repeal of President Obama's signature piece of legislation.

Hearings on the bill may begin in two House committees later this week. Stay tuned.

You get in a fender bender, and aside from the hassle of being without your vehicle while it's being repaired, you aren't that concerned. After all, you have insurance.

But wait. If you are filing a claim with your car insurance company, the fender bender is going to cost you in the long run. That's because the insurance company will raise your rate when your policy comes up for renewal.

How much the rate goes up may surprise you. The annual study by InsuranceQuotes.com found drivers who make just one car insurance claim of at least $2,000 will see their premiums go up an average of 44.1%.

The study used a hypothetical 45 year-old married female driver with excellent credit as an example, analyzing how rates would be adjusted for three types of claims -- property damage, bodily injury, and comprehensive.

A second claim is even more expensive

If you are unfortunate enough to have to file a second claim within a year, your auto insurance rate, on average, could nearly double.

One claim is costly enough. The National Association of Insurance Commissioners (NAIC) says an average car insurance premium is $841. That means one claim that increases it 44.1% would add $371 to the bill.

Falling credit score

Unfortunately, that's not the only mishap that can raise your car insurance rates. Suppose you have a financial setback that causes you to miss some debt payments. Maybe something even goes to collections.

As your credit score falls, your car insurance rates will likely go up, unless you live in California, Hawaii, or Massachusetts, where state law forbids such a link. According to esurance, companies use credit scores to establish risk. The company defends the fairness of it, saying less-risky drivers should pay less.

Where you live

Moving to a different Zip Code may also raise your car insurance rates. According to AutoInsurance.org, insurance companies look at rural areas of the country, where there is less traffic, as a generally safer place to drive.

Moving to the city, where traffic is more dense, may result in your insurance rates going up, since insurance companies think you are more likely to file a claim.

If you move to a Zip Code that happens to have a higher crime rate, your insurance company may decide you have increased your risk of your car being stolen or broken into, and raise your rates.

The take-away from all of this is the importance of maintaining a good credit score and not overpaying for a low-deductible policy that will cost you dearly if you use it.

Better to pay less each month for a high-deductible insurance policy and put the savings aside to pay for a repair if you need it.

You sometimes hear about homeowners being "underwater" -- meaning they owe more on their home than it's worth. But you can also be literally underwater, a prospect homeowners in parts of northern California are currently facing.

If the Lake Oroville Dam's spillway fails, as disaster officials fear it may, more than 100,000 homes could potentially be flooded.

“The potential for flooding poses a significant threat to life and property in these ... northern California counties and has forced the evacuation of tens of thousands of residents,” said Janet Ruiz, the Insurance Information Institute's California Representative. “Standard homeowners, renters and business insurance policies do not cover flood-caused damage. A separate flood insurance policy is needed.” 

Read that again: Standard homeowners and renters insurance does not cover flooding. 

Or as California Insurance Commissioner Dave Jones puts it: "Flood insurance may be all that stands between you and devastating financial losses. ... I urge homeowners to review their coverage needs and consider a flood insurance policy. Consumers need to know their risks and prepare before disaster strikes."

Federally-subsidized flood insurance is available from FEMA’s National Flood Insurance Program (NFIP) and a few private insurance companies. It's important to note that NFIP policies have a 30-day waiting period before the coverage is activated, so you can't wait until it starts raining to sign up. 

Excess flood insurance policies are also available from some private insurers if additional coverage is needed above and beyond the basic FEMA NFIP policy. To learn more about flood insurance, visit FloodSmart.gov.

What to do

Got a lot of holiday parties on your calendar this month? There are plenty of good reasons not to over-indulge at the punch bowl, especially if you plan to drive yourself home afterward.

Not only is impaired driving extremely dangerous to you and others on the road, but a Driving Under the Influence (DUI) ticket is costly. A study by the personal finance site NerdWallet shows it's more costly in some states than others.

It should first be noted that alcohol was a contributing factor in 41% of fatal crashes on New Year's Day in 2015 and 44% on Christmas last year. The National Highway Traffic Safety Administration (NHTSA) says speed is always a major factor, and an impaired driver is more likely to have a heavy foot.

Unpleasant consequences

When a police officer pulls you over and tickets you for DUI, you could face a lot of unpleasant consequences, including an expensive fine and even jail. Should you be in an accident where alcohol was a factor, you could face more serious criminal charges and even higher fines.

But NerdWallet says there is another financial cost of a DUI ticket – what it does to your insurance rates. Nationwide, just one DUI conviction will raise your auto insurance rates an average of 62%. If you're speeding, tack on another 14%.

North Carolina is the toughest state

North Carolina is the toughest state on drunk drivers. There, a DUI conviction can raise your insurance rates 362%, from $872 to $4,077 a year. A simple speeding ticket can make your rates go up 62%.

At the other end of the scale, a DUI ticket is less costly in a handful of states. In Louisiana, rates will go up around 17%. The same infraction in Maryland will raise rates 19%, and in Utah the mark-up is around 21%.

The authors of the study point out that you might not see the rate hikes immediately. Rather, they'll show up in your bill when your policy comes up for renewal.

If your license is suspended after a DUI conviction, keep in mind that your insurance company might not even give you the option of renewing it.

So during holiday merry-making, it's always prudent to limit your alcohol intake, or use a designated driver, taxi, or ride-sharing service to get home.

Long-term care insurance is one of those things that responsible people buy, hoping to ensure that they don't become a burden on society or their family in their old age. Since Medicare doesn't pay for nursing home services, consumers must bear the cost themselves or rely on their families, or burn through their assets to become eligible for Medicaid.

But as so often happens to responsible people who try to do the right thing, affordable long-term care policies that provide decent coverage are becoming nearly impossible to find. Even worse, existing policyholders are facing sharp premium increases, decreased benefits, and, in some cases, the outright collapse of their insurer.

That's the case with those who bought policies from two units of Penn Treaty American Corp., a small Pennsylvania insurance company that has an estimated $4 billion in long-term care liabilities but assets of only $600 million. Liquidation is expected next year, which may leave consumers who paid their premiums for years facing reduced benefits when they need them.

Those who presently have policies from Penn Treaty should not abandon them, since they will receive at least some of the benefits owed them and, more importantly, may not be able to find coverage anywhere else. 

Because insurance is regulated on a state-by-state basis, Penn Treaty policyholders will fare better in some states than others but all are likely to receive far less coverage than they anticipated. 

Financial pressures

Many insurers have already gotten out of the long-term care business because of the same factors that have combined to sink Penn Treaty -- rising medical costs, longer life expectancies, and, perhaps most critical, low interest rates that have made it impossible for many insurers to earn the kind of returns they need in order to meet their obligations.

While not every case is as drastic as Penn Treaty, there are very few long-term care policyholders who haven't experienced major rate increases, including those who bought policyholders from Genworth, a major insurer that once enjoyed top ratings from consumer groups and state agencies. 

"After seven years with Genworth, we have been hit this year with a 60% rate increase," said Elizabeth of New York, N.Y., in a recent ConsumerAffairs review. "My husband and I simply cannot afford to pay the new rates, but we are in our seventies and are likely to need the coverage."

"I called the New York State Insurance Department, and their lawyer explained that the rate increase was approved by the state. Some consumer protection agency!" Elizabeth said. 

Linda of St. Joseph, Mo., has a similar problem. "When I (a widowed senior) purchased my LTC policy from Genworth, It was represented as a policy in which the premiums would not go up unless the entire class of policies had an increase. ... WOW! I just received the letter informing me that to retain my current policy would require an increase of 50.55% (correct, that is Fifty percent) effective January 1. This would be more than $1200 for the year for me."

Linda concluded by saying she will look elsewhere for coverage. "I will definitely be acquiring LTC insurance elsewhere."

Unfortunately, she will be hard-pressed to do so. The price of long-term care coverage is based on a number of factors, including the customer's age and state of health. If Linda is already a widowed senior, she is not going to be an attractive prospect to an insurance company, for the simple reason that as an older person, she is more likely to need long-term care within the next few years.

Young, healthy consumers are more attractive prospects because, barring an accident or rare illness, they are not likely to need long-term care for decades. By that time, in many cases, they will have canceled their policy because of -- you guessed it -- rising premiums. 

A different world

There is plenty of blame to go around and, while there have been lawsuits by aggrieved policyholders, it is difficult for consumers to prevail because insurers' rate increases are, as Elizabeth learned, approved by state insurance regulators. It's hard to sue someone for doing something legal. 

Regulators say their hands are tied because if they do not grant premium increases, insurance companies will be unable to meet their obligations and will wind up like Penn Treaty. This ends up costing everyone, since other insurers must pay into a fund to help cover the obligations of companies that fail, an expense that winds up contributing to future premium increases.

While there are arguments to be made on either side, long-term care insurance -- which was launched on a large scale back in the 1990s -- may simply turn out to be an idea that collided with unforeseen changes in healthcare costs, longevity, and the state of the financial markets.

All it would take to turn the situation around would be for Americans to resume dropping dead in their 60s, for someone to find a cure for Alzheimer's, and for inflation to bring back double-digit interest rates for institutional investors.  

What to do

What's a consumer to do? There's no easy answer. There are still a few companies writing long-term care insurance (including New York Life, Mutual of Omaha, and Northwestern Mutual, according to a recent Wall Street Journal report) but it is hard to qualify and any pre-existing condition will likely cause you to be rejected. 

With nursing homes costing $100,000 a year or more, even a millionaire could run out of money if incapacitated for a decade or more. Staying healthy is obviously the key, but there are many cases of people whose healthy diets and frequent exercise give them the heart of a horse but who nevertheless contract Alzheimer's or another form of dementia and live for many years in a state of total dependency.

The ultimate answer is beyond an individual consumer's control and lies in the realm of public policy. Whether you call it socialized medicine or sound governmental policy, federal action is needed to address the problem. Whether that's possible in today's sound-bite and Twitter-bit era is a question beyond the scope of this article. 

High-flying human resources and insurance start-up Zenefits has been hit with $7 million worth of penalties by California insurance regulators who accused it of allowing unlicensed employees to sell insurance. Half of the amount was suspended, pending continued compliance with state regulations.

San Francisco-based Zenefits has previously settled investigations with Tennessee, Arizona, and Minnesota, paying much smaller fines in the tens of thousands of dollars.

"Businesses and consumers should have confidence that anyone selling insurance to them in California is doing so in compliance with our consumer protection laws," said Insurance Commissioner Dave Jones. "Our enforcement action has resulted in Zenefits paying substantial monetary penalties for their licensing violations and ensures Zenefits complies with all of California's insurance laws and regulations or they will face additional automatic penalties and sanctions."

It's one of the largest penalties for licensing violations ever assessed in the department's history, Jones said.

Zenefits said it was pleased with the settlement and said it now has a "clean bill of health" from California and 16 other states.

Software as a service

A 2013 start-up, Zenefits is a San Francisco based company whose business model was to provide online HR services to businesses and then encourage those same businesses to use Zenefits as an insurance broker. 

Zenefits sees itself as a software-as-a-service company, providing software that automates much of the tedious work involved in human resources and employee benefits operations. The California investigation centered around a piece of software that enabled Zenefits staff to complete prelicensing coursework in less than the amount of time required by the state, which tightly regulates insurance sales.

Regulators opened an investigation in 2015, after receiving complaints that Zenefits employees were transacting insurance sales without a license. Shortly after the investigation began, the company announced publicly that it was not complying with insurance laws and regulations, which was followed by the resignation of Zenefits CEO, Parker Conrad.

"In California, we value innovation and new business models, including Internet based start-ups, but we also insist that consumer protections laws are followed," said Jones. "Zenefits is an example of an Internet based start-up whose former leaders created a culture where important consumer protection laws were broken -- a bad strategy that placed the company at risk and that other start-ups should not follow given our strong consumer protection laws and the Department of Insurance's rigorous enforcement of those laws."

Half of the penalty was suspended, pending Zenefits' continued compliance with licensing rules.

Liberty Mutual spends a lot of money advertising its "accident forgiveness" feature, which promises consumers that under certain conditions, they can escape premium increases even if they have an accident: 

Accident Forgiveness is a policy benefit where Liberty Mutual won’t raise your rate due to your first car accident if you’ve been accident-free and violation-free for 5 years.

The only problem is that a lot of those ads run in California, where the accident forgiveness feature is not available. The district attorneys in Los Angeles, Riverside and San Diego counties sued Liberty Mutual and the company has agreed to pay $925,000 to settle the suit.

70% to 80%

Boston-based Liberty Mutual's nationwide TV ad campaign for accident forgiveness insurance reached 70 to 80 percent of California households, according to the company's own estimates, the San Diego County attorney said in a statement Thursday. But accident forgiveness auto insurance was prohibited in California in 1988, by Proposition 103.

Liberty Mutual failed to disclose that except for a small disclaimer briefly visible at the bottom of the TV ads, which was "insufficient to adequately alert viewers," the district attorneys said.

“California consumers rightfully expect clear and accurate advertising about what is and is not contained in the automobile insurance policies offered to them,” said Los Angeles County District Attorney Jackie Lacey.

The settlement was signed by Riverside County Superior Court Judge John Molloy.

October begins open season for changes in health insurance plans under the Affordable Care Act (ACA), also known as Obamacare. Consumers are now reviewing their options, which are increasingly not that good.

For Minnesota consumers, the hikes in health plan premiums are breathtaking.

Minnesota Commerce Commissioner Mike Rothman has released the 2017 rates for individual and small group plans, noting they are increasing to the point of not being sustainable. The only way they remain affordable for consumers, he says, is taxpayers will pick up a bigger part of the bill through tax credits.

Currently, some 250,000 Minnesota residents get health benefit coverage through individual policies while a similar number are covered by small group policies through small employers.

Premiums rising as much as 67%

The Minnesota exchange has seven participating insurers in the individual market, which should give consumers plenty of choices. But all seven are raising their 2017 premiums from 50% to 67%. For consumers not eligible for tax credits, that will mean a huge increase in health care costs.

The premium increase is much less in the small group market. In Minnesota, the ten companies providing coverage are decreasing rates as much as 1% or raising them as much as 18%.

Rothman says Minnesota consumers who have coverage through Obamacare should take steps now to see if they qualify for increased federal tax credits. If they do, those credits can be automatically applied to the premium hikes to lessen the impact of the premium increases.

The tax credits apply to individual policies purchased through Mnsure, the Minnesota exchange, for people with incomes up to 400% of the federal poverty level. The top income for tax credit eligibility next year is $47,520 for a single person and $97,200 for a family of four.

Part of a national trend

Rothman says the Minnesota premium hikes are part of a national trend. He says nearly all states are looking at double-digit increases.

Some states have also seen large benefit providers withdraw from Obamacare exchanges this year. Most recently, Aetna announced it would be withdrawing from most Obamacare exchanges next year. The company said it is simply losing too much money to continue its participation.

In April, United Health Group announced that it was pulling out of most of the 34 states where it has been providing coverage. It also said it had experienced higher than expected losses from participating in the program, that was enacted in 2009.

From the beginning, Obamacare has been a highly partisan issue, with Democrats strong defending it from Republican attacks. But the latest events – skyrocketing premiums and a shrinking number of providers, have raised new questions about the future of a program intended to provide affordable health coverage to all Americans.

When gasoline price go up, consumers tend to drive less. It just makes economic sense.

But if your car insurance premium went down when you drove fewer miles, would you also drive less? Metromile, a car insurance start-up, is betting you would.

When you apply for a traditional car insurance policy, you are asked to estimate how many miles a year you drive. If you happen to drive fewer miles than your estimate, your rate doesn't go down.

That's not how it works at Metromile, a company dead set on disrupting the car insurance business the way Amazon has disrupted retail. According to Metromile, customers pay a base rate for insurance, then an additional charge for each mile.

A tracker that plugs into the vehicle's diagnostic port tracks the mileage for Metromile. The company said it only tracks miles and does not look at speed or other driving behaviors.

Road test

In a report last year, Metromile said it analyzed trips made by motorists who started a free test drive program and then later became pay-per-mile insurance customers. It found that, on average, these motorists drove 16.4 miles per day before paying by the mile. After switching, they drove on average 15.5 miles per day, 6% less.

The company says paying for insurance by the mile completely changes the equation.

“Drivers with below average mileage start to save money, whereas drivers with above average mileage pay more,” the company said in a release. “The less you drive, the lower your premium, so there’s a clear incentive to reduce your miles driven.”

Currently Metromile insurance is only available in seven states – California, Washington, Oregon, Illinois, Pennsylvania, New Jersey, and Virginia. However, the company said it is committed to expanding its product to other states.

In a review, NerdWallet says Metromile's advantages are that it does not measure driving habits other than mileage and that motorists who don't drive that much can save hundreds of dollars a year. However, there is no savings for those who regularly drive more than 10,000 miles a year.

Metromile says it provides other benefits besides reduced insurance costs. It says when motorists drive fewer miles, they are also less likely to have accidents. For individual drivers, putting fewer miles on their vehicles reduces wear and tear and slows the rate of depreciation.

California's health exchange has been one of the biggest and most successful state Obamacare programs. But today, Covered California, as it's known, announced an average statewide premium increase of 13.2 percent for 2017, setting off a round of criticism and defensive responses.

“These outrageous premium hikes are the consequence of California’s failure to adopt health insurance premium regulation like the majority of the states and the disappearance of federal subsidies for insurance companies to even out bumps in the road ,” said Jamie Court, president of Consumer Watchdog, which sponsored an unusccessful rate regulation initiative in 2014.

Insurance companies said the rate hikes -- more than three times the increases of the last two years -- were the result of factors beyond their control. 

“In 2017, Covered California prices are influenced by higher spending on medical care, particularly skyrocketing prices on specialty drugs, and the sunset of two federal programs," said California Association of Health Plans President & CEO Charles Bacchi.

“California’s health exchange opened up access to health care for millions, with 11 health plans in Covered California competing over price and quality and in most of the regions of the state," Bacchi said.

“Some rate increases are necessary to cover the cost of care as more and more Californians use medical services that have become increasingly expensive each year. As prices for hospitals, doctors, specialty drugs and other services keep climbing, we cannot lose focus on our goal of affordability,” he said.

"Regulation is the hammer"

But Consumer Watchdog, a nonprofit based in Santa Monica, said the increases could have been avoided if the rate regulation initiative had passed.

“When three health insurance companies control 90% of the market there is no bargaining with them absent a hammer. Rate regulation is the hammer," Court said. "California consumers cannot continue to pay more for very limited doctors and hospital networks. Rate regulation needs to move to the top of the legislature’s list.”

The ballot initiative failed to pass in a record-low turnout election, but it garnered 41% of the vote despite a $57 million insurance company campaign against it, Court noted.

The federal programs that are being phased out were intended to help stabilize the market during the first few years of the Affordable Care Act (ACA).

How much more individual consumers will have to pay depends on whether they are eligible for taxpayer-supported subsidies and whether they choose to switch to lower-cost plans that may have higher deductibles and co-pays.  

Insurance companies are there to write a check when someone runs into your car. But Allstate is expanding its role, teaming with a company to perform routine maintenance and repairs.

The insurance giant has