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 Allstate announced 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 announced a partnership with Openbay, an online source for repairs and maintenance unrelated to collisions. The marketplace matches consumers with service providers in their locality.

This service has been added to Allstate's website, the Allstate mobile app's 'My Rides' section, and the Drivewise app. The tie-up connects drivers to a national network of service centers that take part in the Allstate Dealer Agency program. Consumers can use it to schedule service, from major repairs to an oil change.

The Allstate Mobile app and Drivewise apps are available as a free download in the iTunes App Store or on Google Play.

Multiple estimates to choose from

Once consumers access the app and explain what they need, they receive multiple estimates from local providers. Before making a decision, they can read reviews and look over warranties. A record of any work done through Openbay goes in a digital file, which can be accessed in the future and provided to a buyer when the vehicle is sold.

Besides the obvious connection with automobiles, Allstate sees the collaboration as helping to fulfill its corporate mission.

 "Well maintained vehicles make the road safer for everyone,” said Gary Hallgren, President of Allstate Connected Car. “Consumers consistently indicate that identifying a quality auto-repair facility is a major pain point, which may serve as a deterrent to regular maintenance and repairs. Integrating with Openbay enables Allstate to ease the burden of comparing and booking vehicle service."

Rob Infantino, founder and CEO of Openbay, says the U.S. auto fleet continues to age, increasing the need for quality repair services – not just to increase reliability but also safety.

According to IHS Automotive, the average age of cars and light trucks on U.S. roads hit a record 11.5 years in 2014. Mark Seng, global aftermarket practice leader at IHS Automotive, says cars and trucks are getting older because their quality has improved in recent years.  

Insurance companies have the same problem everyone else does -- poor return on their investments. With their investment portfolios lagging, insurers are jacking up premiums, a tactic that is not going down well with consumers.

In the latest skirmish, a federal lawsuit filed in Los Angeles says that consumers who bought life insurance from Transamerica decades ago are now being hit with large increases in their premiums, leaving many with little alternative but to cancel the policies they've been paying on for years. 

Calling it a "betrayal of the baby boomers," Consumer Watchdog says Transamerica is betraying the trust of seniors who bought life insurance policies in the 1980s and early 1990s. The "universal life" policies promised to pay monthly interest of no less than 5.5% annually as well as death benefits in exchange for premiums paid into a "policy savings account."

But in June 2015, policyholders began receiving letters announcing an increase of 38% iin the monthly premium, leaving them with the choice of paying sharply higher premiums or losing the policies.

Dumping the elderly

“After taking their premiums for many years, Transamerica is attempting to dump its elderly and retired policyholders at a time in their lives when they are counting on the policies,” said Harvey Rosenfield, founder of Consumer Watchdog and one of the lawyers working on the case. 


Transamerica says it is raising the monthly charges based on “our future costs of providing this coverage.” But the lawsuit alleges that Transamerica breached its contract and acted in bad faith, claiming it is raising its rates as the time nears when policyholders will begin collecting on the policies.

The lawsuit argues that because people are living longer, life insurers' costs should be lower, since fewer policyholders die in a given year. Instead, it says, Transamerica is improperly trying to recoup losses it has sustained as the result of low interest rates since the Great Recession.

Named plaintiffs in the suit include Mary and Gordon Feller, who bought their policy in 1989 and planned to save the accumulated interest for their retirement.

“Now, 26 years later, after we have paid tens of thousands of dollars in premiums all these years, the company has put us in the position of either paying much higher premiums or losing our policy and all the savings we put into it. Transamerica has betrayed our trust and the trust of its policyholders across the nation," Mary Feller said in a statement issued by Consumer Watchdog.

The idea behind an annuity is that, in exchange for an upfront investment, it guarantees you an agreed-upon income for the rest of your life. But annuities have never sold as well as most economists think they should and no one seems to know why.

Two Boston College marketing professors say they think they have found the answer: people don't like to think about dying. 

This doesn't appear to make sense on the surface. After all, the whole idea of an annuity is that it keeps you from outliving your money -- no small concern in an era when people are routinely living into their 90s. You may be old, tired, sick, or whatever, but at least you have a few bucks coming in each month. But the process of setting up an annuity forces you to think about how long you have left and therein lies the rub, says Gergana Nenkov, Associate Professor of Marketing with the Carroll School of Management at Boston College.

"When you think about an annuity, you have to think about how long you have left to live, how many years you need to finance," says Nenkov. "You have to think about dying -- that's part of the annuity process, and when people do that, it turns them away."

Hoping it goes away

Previous explanations for Americans' poor record of annuity purchases have focused on low retirement savings, unfair pricing, and decreased flexibility in accessing one's money. 

Nenkov and fellow BC professor Linda Court Salisbury say they applied psychological theory to answer the question that's usually posed in economic terms. 

"Nobody has ever looked at it from the psychology of making the decision and going through with the decision," says Salisbury. "Our idea was the averseness of thinking about your own death is enough to make you use what we call 'mortality salience defense strategy,' which is to avoid it."

In other words, by not thinking about death and not planning for it, we're hoping it will go away. The theory was supported in four studies that included 748 adults. 

One study asked participants whether they would rather roll their retirement savings in an Individual Retirement Account, or purchase an annuity.

"When people considered an IRA, very few thought about dying or how long they have left to live," says Nenkov. "But when the people considered an annuity, a big proportion of them had those kinds of thoughts related to death."

Two of the studies presented participants with annuity descriptions that contained subtle differences. One description indicated the annuity "guaranteed payments for as long as you live," while another "guaranteed payments for as long as you live until you die." Whenever an annuity mentioned death, interest plummeted.

"We showed that even those subtle mentions of death decreased further the rate of choosing an annuity and made people stay away from the product even more than if we just talked about years left to live," says Nenkov.

It's not just annuities, of course.

"Wills, life insurance, estate planning -- all of those decisions are sometimes put off, and we think this issue of not wanting to think about death has a role," says Nenkov. "Maybe finding ways to deal with that anxiety could help consumers overcome it and make the important decisions because if they don't, there are devastating consequences later in life."

Republican presidential frontrunner Donald Trump has released a seven point health care policy containing items that likely both delight and horrify elements of both the Democrat and Republican bases.

A few proposals might even make consumers smile.

Item one is the complete repeal of the Affordable Care Act. Republicans have been trying to do it for six years while Democrats furiously defend it as the signature achievement of the Obama Administration. Perhaps no single issue has been so divisive along party lines.

Trump says he would replace Obamacare with a series of reforms to improve access to care through the free market and enhanced competition. He says he would achieve that, in part, with point two – allowing insurance companies to operate across state lines.

Tax deductible premiums

Point three is a tax break for everyone who pays for health insurance. Trump proposes allowing individuals to fully deduct health insurance premiums from their federal tax. Trump said consumers should get the same ability to write off their premiums that businesses currently enjoy.

Point four would allow consumers to set up Health Savings Accounts (HSAs) to pay for healthcare with tax-free contributions. The money would be allowed to accumulate and become part of an estate, passed on to heirs at death.

Trump would also change the way Medicaid is administered. His fifth point would convert funding for the federal healthcare program for the poor and turn it over to the states in the form of block grants.

Import cheaper drugs

The final point in his policy outline would allow consumers to legally import cheaper prescription drugs from other countries. This would be a tall order since both Republicans and Democrats have consistently joined to block this from happening.

“Congress will need the courage to step away from the special interests and do what is right for America,” the policy paper states. “Though the pharmaceutical industry is in the private sector, drug companies provide a public service. Allowing consumers access to imported, safe and dependable drugs from overseas will bring more options to consumers.”

In addition, Trump calls for eliminating healthcare services for people in the country illegally, reforming the mental health system, and growing the economy so that fewer Americans will need assistance to pay for healthcare.

Getting the most bang for your buck from your healthcare spending is not a simple matter. Since what you pay for care goes through an insurance provider, it tends to complicate things.

You have to factor in what you pay for health insurance as well as what you end up paying out of pocket to the provider. In nearly every case, it's more than you think.

There are several things to consider. Most people focus first on the monthly premiums. If you can't afford them, then the coverage doesn't do you much good.

The advisors at Healthcare.gov suggest that other things are just as important as the monthly premium. You also need to deliberate on what services will cost beyond your coverage.

You also need to consider the type of insurance plan and the provider network. Different plan types provide different levels of coverage for care you get inside and outside of the plan’s network of doctors, hospitals, pharmacies, and other medical service providers.

High deductible plans

Getting a health insurance plan with a high deductible will lower your monthly cost but can add a significant cost in the event of expensive medical care. New research shows consumers on high-deductible plans are no better at price shopping for health care professionals or services than people on traditional insurance.

“The main message of our research is this: Giving skin in the game or giving people financial incentives is not enough to prompt people to become better consumers of health care,” co-author Neeraj Sood, director of research at the University of Southern California (USC), said in a release.

More and more Americans are enrolled in high-deductible plans. Sood said about one in four U.S. employees are enrolled in high-deductible plans while about 80% of the people insured through the health care exchanges are enrolled in some sort of high-deductible plan.

Price differences

Since consumers with high-deductible plans pay much of their initial health care costs out of pocket, you would think they would be better at choosing lower-cost providers. The USC survey, in fact, found that most people with high-deductible plans aren't convinced that high cost providers provide better care. So why use them?

Yet the survey found only about 10% of consumers with high-deductible plans did comparison shopping for providers. Sood says there may be two reasons for that.

“For one, it’s a hassle and very difficult to get good information about the prices and the quality of care by doctors, labs or other services,” he said. “And two, when it comes to doctors and services, people are concerned about quality of care, but there is not much information available about quality.”

The way consumers with high-deductible plans usually save money on health care is by reducing the number of visits to the doctor. In some cases, that's counter productive if preventive care or early detection could have prevented major complications later on.

Other cars and pedestrians aren't the only things drivers have to look out for. This time of year, especially, deer crossing the roadway are a significant hazard.

Often the animals seem to appear out of nowhere, slamming into a vehicle before the driver has a chance to react. These collisions cause millions of dollars in property damage and even result in fatalities.

The Autumn months tend to be the most dangerous. That's when deer are most likely to be on the move. It's also hunting season, and a deer fleeing chasing dogs pays no attention to traffic as it makes its escape.

No less dangerous this year

In its annual survey, State Farm Insurance found American motorists are just as likely to have a claim involving a collision with deer, elk, or moose than they were last year. State Farm reached that conclusion after analyzing claims data.

The odds a driver will hit one of those animals is 1 out of 169, with the odds more than doubling during October, November, and December.

While a claim resulting from an accident often results in an insurance rate hike, a collision with a deer might not. Allstate says the typical traffic accident is certainly different than the random and unpredictable act of a deer dashing across a highway or rural road.

“Since deer accident claims are usually filed under your comprehensive coverage where there's no fault assigned, it's not likely that your auto insurance rates will increase,” according to Allstate. “Every state and scenario is different, though. For example, if your state allows it and you choose to file the loss under collision, your rates may be impacted.”

West Virginia still most dangerous state

State Farm has looked at where deer collisions are most likely to occur, and for the ninth year in a row, West Virginia tops the list. The odds of hitting a deer in West Virginia are one in 44.

Drivers face tough odds in other rural states, including Montana, Iowa, Pennsylvania, and South Dakota. Motorists in Hawaii have the least to fear from hitting a deer.

Collisions with deer often cause extensive damage to a vehicle. Because of the suddenness of the encounter, the driver rarely has time to brake and hits the animal at full speed. The vehicle's radiator, located in the front of the engine compartment, is usually a casualty, as well as other engine components.

Fatalities

The deer rarely survive these accidents that have been known to take human lives. In 2013, there were 191 deaths attributed to collisions with animals, with deer being the animal most often struck, according to the Insurance Information Institute and the Insurance Institute for Highway Safety.

There are a few safety steps you can take to reduce your odds of hitting a deer. At night drive with your high beam headlights on. If a deer darts into the roadway ahead of you, be on guard for a second or third animal that could be close behind. Deer usually travel in groups.

Finally, when you encounter one of those yellow, diamond-shaped road signs with the image of a running deer, slow down. Those signs usually go up where there have been a number of costly encounters between vehicles and deer.

Whenever you spend large amounts of money on things, some risk of loss is involved. That's why you purchase home and auto insurance.

With the skyrocketing cost of college tuition, many parents are beginning to seek protection if their children have to withdraw from school for medical reasons. Thousands of dollars in tuition expense would otherwise be wasted. If the wasted tuition is part of a student loan, it's even worse – it's money you don't have but have to pay back.

That's why part of the college application process is now likely to include a pitch for tuition refund insurance. Sallie Mae, a provider of student loans, offers tuition refund insurance on its website through a third-party company, Next Generation Insurance Group.

“Tuition refund insurance helps you and your family protect your investment in education by covering up to 100% of tuition and fees lost due to a medical withdrawal or a withdrawal due to a mental health condition,” according to Sallie Mae.

No protection from flunking out

To be clear, tuition insurance does you no good if your student flunks out of school, or is dismissed for disciplinary reasons. It does protect against unexpected, involuntary termination of the semester because of death, illness – including mental condition – or injury.

According to Sallie Mae, most insurance policies provide refunds of tuition, academic fees, and some other educational expenses.

Allianz Global Assistance, a major provider of travel insurance, has also recently moved into the tuition insurance field.

“With the average annual cost of tuition and fees passing $42,000 for a private, four-year university, the cost of education can be an enormous financial burden for American families,” the company says on its website. “Most colleges will give only a small tuition refund or none at all, if a student withdraws after classes begin.”

Costs

Like any insurance policy, the more coverage you receive the more you pay for the policy. Allianz says its basic policy costs just $29.95 but reimbursement is limited to $2,500.

Allianz's Preferred policy, which it says is its most popular, pays up to $50,000 of eligible, non-refundable expenses. The cost is 1.35% of the covered expenses. If the tuition, fees and room and board totaled $42,000, the cost of the policy would be $567.

The Advantage policy, which provides more coverage, costs significantly more – 6% of the covered expense.

Some colleges and universities offer tuition insurance through third party companies. Whether you should purchase depends on your risk tolerance and what the institution's refund polices are like. If the college has a generous refund policy in case of an illness, then tuition insurance might be less useful.

Pre-existing conditions

FinAid.org, a non-profit financial aid website, also points out that most tuition insurance policies exclude pre-existing conditions – at least for the first six months. That means if your child has a medical condition that might force her to withdraw from school before completing the term, the policy might not pay off.

The site's authors conclude that because most 17 to 21 year-olds are healthy, tuition insurance might not be a good investment, even though it does provide peace of mind.

Studies show that when consumers are presented with information about what health services cost, they tend to make better decisions. The hard part, however, is finding out what things cost.

New research by Public Agenda, a non-profit research organization, has found that 57% of consumers with health insurance and 51% of those lacking coverage are unaware of what their health care provider charges.

Without this information, the group says, consumers can't compare prices or look for less expensive providers when they are quoted a price they can't afford.

The study found that 56% of U.S. consumers have actively looked for prices before getting care, and 21% say they have compared prices across several providers. Of that group, nearly all say the price comparison influenced their decisions and ended up saving them money.

Consumers who compare prices charged by different providers tend to get more regular medical treatment. The study shows 42% of people who have compared prices before getting care receive regular medical treatment, compared with 33% of those who have not ever sought price information before getting care.

Make it easier to discuss prices

The authors say their findings suggest consumers want price information about their health care. They urge the industry to make it easier for providers, staff and insurance company personnel to discuss prices.

“The finding that many Americans are already trying to get price information from receptionists and hospital staff, insurance companies, doctors, hospital billing departments and nurses suggests a need to strengthen these professionals’ capacity to provide and discuss price information,” the authors write.

Consumers also need assistance in knowing where to look for price information. Part of the problem is health insurance. Some providers charge different rates, depending on whether the patient has a healthcare policy, and if so, what kind. However, a federal report recently found this does not happen as much as it once did.

Here's an example of a health care provider that posts its fee schedule, for both insured and uninsured patients.

More out-of-pocket costs

Since the Affordable Care Act (ACA) went into effect, health care consumers have been getting familiar with high deductible health insurance policies, according to the latest Survey of Consumer Finances (SCF).

A high deductible means the consumer pays the first $5000 or so of medical costs each year before certain aspects of the coverage kick in. It's designed to give consumers incentive to seek out lower health care prices.

But again, if consumers don't know what the care costs, and don't know where to look for the information, they aren't in a position to save money.

While ACA has made coverage more affordable, the high deductibles often mean many consumers can't afford to use their coverage.

“We assume that households pay premiums out of current income, but that they may need to use savings or other assets if they become seriously ill in order to meet the deductible or the out-of-pocket limit under their health insurance policies,” the SCF authors write. “We show that many households, in particular those with lower incomes or where someone lacks insurance, have low levels of resources that would make it difficult for them to meet health insurance cost sharing demands.”

All the more reason, it would seem, that health care consumers need an easy, transparent way to find out what things cost.

Last week, when we reported how hackers had breached a database containing the records of 80 million current or former Anthem insurance customers, we also included a “pre-emptive scam warning” alerting you to the fake emails or text messages which scammers were certain to start sending out in Anthem's name.

Sure enough, the scam artists of the world immediate started producing so much Anthem-themed malware and phishing bait that the Better Business Bureau and Anthem itself have both posted warnings about it.

To clarify: Anthem has not emailed anybody about the hacking, and it hasn't called anybody either. Therefore, if you get any email supposedly from Anthem about the hacking, you should delete it at once. And if you get a phone call from someone purporting to be an Anthem representative wanting to discuss hacking-security matters with you, hang up. That wasn't a genuine Anthem representative reaching out to you; that was a scammer.

Anthem posted a scam alert on its “Investor relations” website:

“Individuals who may have been impacted by the cyber attack against Anthem, should be aware of scam email campaigns targeting current and former Anthem members. These scams, designed to capture personal information (known as “phishing”) are designed to appear as if they are from Anthem and the emails include a “click here” link for credit monitoring. These emails are NOT from Anthem.”

The scam alert went on to say that “Anthem is not calling members regarding the cyber attack and is not asking for credit card information or social security numbers over the phone.”

When Anthem starts contacting certain customers about the hacking, these communications will be done through the old-fashioned U.S. Postal Service – no electronic communication at all. Nor will Anthem ask thse customers for any personal information. Indeed, Anthem's online scam-email warning includes this bold-print statement:

Anthem will contact current and former members via mail delivered by the U.S. Postal Service about the cyber attack with specific information on how to enroll in credit monitoring. Affected members will receive free credit monitoring and ID protection services.

Midland National Life Insurance Company has agreed to pay a $1.3 million settlement after the California Department of Insurance charged that the insurer was taking advantage of seniors in the sale of inappropriate annuities by using deceptive and misleading tactics.

“Midland’s illegal tactics provided big commissions for their agents and handsome profits for Midland while seniors lost money,” said Insurance Commissioner Dave Jones, who said a new state law "requires document and product suitability reviews for annuity sales and documentation of the review to protect the consumer.”

In one example, a 75-year-old consumer paid approximately $91,000 to Midland National for one of its annuity products. The annuity had a 14-year surrender period, which meant the consumer could not fully liquidate the annuity without paying a penalty until she was 89 years old.

Two years after buying the annuity, the consumer had to surrender it because she needed money to pay her bills after her husband had a stroke and was placed in a board and care facility. As a result, she ended up paying a surrender penalty of approximately $27,500 to Midland National.

“Selling a long-term annuity with a 10- or 15-year surrender period to someone of advanced age can have dangerous financial consequence,” said Jones. “[The] law also gives me the authority to revoke an agent’s license, impose fines, and restore money lost to the consumer.”

Consumer grievances

The settlement was reached in an enforcement action based on findings from a market conduct examination done after the department received consumer grievances.

The investigation covered an 18-month period and revealed Midland National agents were selling certificates to group annuities that were issued out of state and Midland National did not make its own agents or consumers aware that the annuity products had not been filed with the California Department of Insurance and did not provide important consumer protections.

Midland National has agreed to business practice reforms that eliminate this practice, which other life insurance companies are encouraged to follow.

Investigators also found numerous instances in which Midland National agents earned commissions by selling unnecessary replacement annuities to senior citizens. Seniors are more vulnerable because they are trusting and often do not have someone looking out for their best interest.

Annuities usually include large surrender payments, if a consumer needs to liquidate the annuity, which is more likely to occur for a senior that might need cash for medical care or long-term care payments. 

Unnecessary replacements

Unnecessary replacement of an existing annuity was another practice uncovered by investigators.

In one case the state probe uncovered, an agent replaced an existing higher-interest annuity for an 85-year-old woman with one that left her locked into a lower-earning rate for eight years.

Her existing annuity had no surrender charges and guaranteed a 5.5 percent interest. She was sold a Midland National annuity that guaranteed a 4.35 percent interest rate for eight years and three percent in interest thereafter—substantially less than her existing investment.

Additionally, the Midland annuity had a surrender charge of 10 percent for five years, grading down to zero after eight years.

The number of people renting homes instead of buying continues to rise, especially in high-cost urban areas. And it just so happens those are the same areas that are the most disaster-prone, according to the Insurance Information Institute, which says only 37% of renters have insurance on their belongings. 

The insurance group is quoting  a 2014 I.I.I. poll conducted by ORC International, which found that only 37% of renters have renters insurance, compared to 95% of homeowners who have a homeowners policy.

“Renters insurance provides a very important financial safety net when there is a disaster,” points out Jeanne M. Salvatore, senior vice president and chief communications officer for the I.I.I. “And, renters insurance is relatively inexpensive — the average cost of a renter’s policy is only $187 per year, or less than four dollars per week.”

Homeownership has fallen for over the past decade, according to Pew Research. And, in major cities such as New York, Los Angeles, Chicago and Houston, renters outnumber homeowners, the U.S. Census Bureau reports. These cities are also at risk from natural disasters such as hurricanes, flooding, earthquakes and severe winter weather, as well as fire, theft and vandalism.

“Many renters are under the misperception that their landlord’s insurance policy will reimburse them if their personal property is damaged or destroyed, but that’s just not the case,” says Salvatore.

Types of coverage

The Insurance Institute provided this rundown of the types of policies available to renters:

Renters/Tenants Insurance
Renters insurance provides financial protection against damage to or loss of personal possessions due to hurricanes, fire, lightning, theft, explosion and other disasters listed in the policy. There is also coverage for water damage caused by burst pipes or a neighbor who forgets to shut off the water in the tub. Renters insurance does NOT cover flooding and earthquake, but separate policies can be purchased for these events.

Renters insurance also provides coverage for additional living expenses, in the event you are unable to live in your home due to a fire or other insured disaster. It also includes liability insurance if you, a family member (or even your pet) accidently injure someone and they sue you. 

Flood Insurance
Flood insurance is available from the National Flood Insurance Program (NFIP) and a few private insurance companies. It provides coverage for personal possessions on an actual cash value basis, generally up to about $100,000. More information is available at www.floodsmart.gov. 

Earthquake Coverage
Renters can purchase insurance for damage to their personal possessions due to earthquakes from private insurance companies or in California from the California Earthquake Authority. Coverage is available either in the form of an endorsement or as a separate policy. Earthquake insurance provides protection from the shaking and cracking that can destroy buildings and personal possessions.

Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is provided by a standard renters insurance policy.

Umbrella Liability
An umbrella liability policy can be a cost-effective option for increasing your level of liability protection. The policy kicks in when the limit on your renters insurance has been reached. It will also provide coverage for libel and slander.

Umbrella policies generally cost about $150 to $300 per year and will also provide additional liability protection if you own a car, boat and even a snowmobile.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, most insurers will require specific underlying limits on your policies. For instance, you may be required to have $300,000 of liability insurance on your renters insurance policy and at least $250,000 on an auto insurance policy.

Floater for Expensive items
If you own expensive jewelry, collectibles, musical instruments or even high-end sports equipment, you may want to add a floater or endorsement to your renters policy. This would provide broader coverage for risks such as “mysterious disappearance.”

More information is available on the institute's website.

Louisiana Attorney General Buddy Caldwell is suing State Farm Insurance, alleging the nationwide insurer has engaged in a pattern of unfair and fraudulent business practices aimed at controlling the auto repair industry and forcing unsafe repairs on vehicles without the knowledge or consent of consumers.

“State Farm has created a culture of unsafe business practices in which consumer vehicle repairs are performed with cost-savings as the primary goal rather than safety and reliability,” Caldwell said.

The suit alleges State Farm violated Louisiana’s Unfair Trade Practices Act and Monopolies Law by using scare tactics to steer Louisiana consumers to State Farm’s preferred repair shops and forcing shops to perform vehicle repairs cheaply and quickly, rather than in accordance with consumer safety and vehicle manufacturer performance standards.

The lawsuit also charges that State Farm steers consumers to direct repair providers that have signed agreements with the insurance company. As part of the terms of the agreement, those repair shops must comply with the standards for repair laid out by State Farm.

The insurance company, not the repair shop, dictates how long the repair should take, what types of repairs are made and the quality of replacement parts. In many cases, the repairs are completed with sub-standard parts without the consent of the policy holder, the suit charges.

“In some cases, we’ve found that these parts are nothing more than used junk yard parts. In others, we’ve found them to be foreign knock-off parts of questionable quality,” said Caldwell. “Auto repair is not an industry where you can cut corners to save a little money,” he said. “It could be a matter of life and death.”

“Each month Louisiana consumers give their hard earned money to State Farm under the assumption that the insurer will take care of them if an accident occurs. This simply isn’t happening. Quite frankly, State Farm has been there for State Farm, not the Louisiana consumer,” Caldwell stated.

Among the costs of modern life that have risen sharply in recent years is auto insurance. A recent analysis shows its average cost is up 335% over five years. It goes without saying that anything you can do to lower your insurance cost, you should do. Still, many of us don't.

Doug Whiteman, Bankrate.com's insurance analyst, says the 10 largest U.S. auto insurance companies offer a wide range of discounts to customers who meet certain criteria and these companies add new discounts each year.

“Discounts are one of the ways insurers try to win business and separate themselves from the pack,” Whiteman told ConsumerAffairs. “And it seems they're coming up with new and more creative discounts all the time.”

Safety features help

For example, this year Whiteman found more insurers – State Farm, Geico, Farmers and USAA among them – offering discounts on cars that have daytime running lights. If your car has them, but you haven't told your insurance company, you most likely aren't getting the discount.

Anti-lock brakes also get you a discount with all of the big 10 except Progressive, Nationwide and American Family. In fact, the more safety features you car has, the more discounts you can get.

“With a lot of these safety features, the insurance companies believe they are making the vehicle safer and it's less likely you'll be in an accident,” Whiteman said.

An excuse to buy a new car?

Since safety features are more likely to be found standard on later model cars, rather than one 10 years old, you can probably get a lower rate just by driving a newer car.

“Five out of the 10 largest insurers have a newer vehicle discount,” Whiteman said. “What they mean by newer vehicle tends to vary. Typically we're talking 3 years old or less.”

Keeping your mileage low – meaning you do less driving and are less likely to be in an accident – can also get you a lower rate with all but Geico and Farmers. However, some insurers might require you to install a device that feeds data about your driving habits to the company.

“Consumers do have concerns about privacy and this might be one of the reasons this type of discount, or this type of telematics gadget hasn't swept the industry,” Whiteman said. “We found that the low mileage discount is offered by most of the insurance companies but it doesn't necessarily mean they all require you to have one of these onboard devices.”

Good grades

If you have a student driver in your household making all A's and B's, all 10 of the surveyed insurance companies will give you a discount. If all drivers take a defensive driving course, 8 of the 10 discount your rate.

All but American Family provide a discount for having an anti-theft device. And if you bundle your policies – insuring your vehicles and home with one carrier, all 10 reward you with a discount.

How much of a discount? It's hard to say. Different companies have different discounts. And since insurance regulations vary state-to-state, one company's discounts in California may differ for those offered in Louisiana.

In most instances Whiteman says discounts are around 3% to 5%. In some cases, however, he said he's found discounts of 30% or more.

Checking to see what discounts you qualify for and notifying your insurance company could be a profitable use of your time.

The Affordable Care Act (ACA), also known as ObamaCare, brought many changes to the health care market last year. Even bigger changes may be ahead.

HealthCare.com, not to be confused with the government health insurance site HealthCare.gov, is a private technology company that assists consumers in the health insurance marketplace. It predicts that the upcoming “open enrollment” period, when consumers can buy insurance in the ACA marketplace, will be even more active than the first one, which ended in March.

"We expect between 12-16 million people will purchase plans during the next Open Enrollment period which starts on November 15, 2014 and ends on February 15, 2015," said Jeff Smedsrud, CEO of HealthCare.com. "This surge in activity will demand that both private companies and federal and state marketplaces become more efficient in serving new buyers of ObamaCare."

The types of policies consumers purchase may also be changing. The lowest-priced coverage under ObamaCare typically carries a very high deductible, meaning the consumers must pay the first $5,000 or more of initial expenses before benefits kick in.

That often comes as a surprise to some consumers who assume that ACA policies cover all expenses. That may open the door for an expansion of what are known as consumer-directed health plans (CDHP).

15% growth

According to the American Association of Preferred Provider Organizations (AAPPO), CDHPs grew by 15% last year.

A CDHP allows a consumer to use a tax-deferred health savings account or health reimbursement account to pay for routine, inexpensive medical care. The inexpensive but high deductible comprehensive health insurance policy is there to cover major health expenses.

As health insurance premiums have skyrocketed, many businesses have moved to CDHPs, funding the health savings accounts but saving money by switching to high deductible health care policies.

These plans grew from 39 million in 2012 to 45 million in 2013, according to an AAPPO analysis of the Mercer National Survey of Employer Sponsored Health Plans.

"As major changes to the health system loomed last year, employers continued to look to consumer-directed health plans to offer the affordability, flexibility and stability to ensure their workforces get the care they need," said Karen Greenrose, AAPPO President and CEO.

Mixed reception

Historically CDHPs have been popular with some consumers but not so much with others. If you had health coverage with a little or no deductible, there wasn't much of an advantage. But those types of policies are either disappearing or getting a lot more expensive.

The AAPPO survey found that 23% of all employers offered CDHPs last year, a 1% gain from 2012. The larger the employer the more likely it was to offer a CDHP. Of companies employing 500 or more people, 39% offered CDHPs in 2013 – up from 36% the year before.

Thirty-five percent of all employers say they expect to offer CDHPs in 2016, with 64% of large employers expecting to offer them.

From a health policy standpoint, the growth of CDHPs can either be seen as a positive or negative. Those favoring these plans argue they will reduce the number of uninsured while encouraging consumers to shop carefully for routine health services.

Critics, on the other hand, say CDHPs mostly shift health care costs to employees. The also say these plans are favored by healthy consumers, since they have less need of services. Someone with a chronic illness, for example, might quickly exhaust the money in the health savings account.

The car insurance marketplace continues to get more crowded. There's Progressive, Allstate, State Farm, Liberty Mutual and Nationwide, along with newcomers Esurance and Elephant.

Add to the list the nation's largest retailer. At the end of last month Walmart  announced a partnership with AutoInsurance.com to offer car insurance to online shoppers. The company that promises to have lower prices pledges lower insurance rates as well.

While Walmart isn't actually selling the policies it stands to profit by providing the way for consumers to comparison-shop for insurance. While Walmart pulled back from entering the bank business a few years ago, this foray into insurance gives the retailer more exposure in financial services.

Big savings reported

The service launched after a pilot project in Pennsylvania last year won favorable reviews from customers, who Walmart says reported average annual savings over their old policies by $1,168 per year.

“Our business is driven by a commitment to taking products and services that are complex and pricey and making them easy and affordable,” said Daniel Eckert, senior vice president of services for Walmart U.S. “Our customers too often have to settle for auto insurance policies that aren’t the best fit and cost more than they want to spend. With AutoInsurance.com, we're helping our customers save money on one of their largest household expenses in a new, quick and easy way.”

Independent agents skeptical

Among the early skeptics of the venture are local, independent insurance agents, who already have to face pretty stiff competition. The National Association of Professional Insurance Agents (PIA), the trade group representing local insurance agents, isn't buying the $1,168 savings claim.

"As an average saving, that figure sounds unrealistic," said PIA National Executive Vice President & CEO Mike Becker. "Walmart says that the system it is using compares rates on an existing policy with rates on policies with the same coverage. If that is the case, we are skeptical that the average price difference for the same level of coverage can be that large."

While Walmart says its new service allows consumers to shop around for the best rate, Becker says independent agents do the same thing. But he says that when it comes to insurance, consumers should remember that price is just one factor.

The Insurance Information Institute (I.I.I.) advises that consumers should select an insurance company that has a good reputation for settling claims promptly, has good customer service and is financially stable.

Few shop online for insurance

AutoInsurance.com has conducted research it says indicates that only 1 in 5 consumers shops for car insurance, even though 90% say they comparison shop online for other types of products.

“We want to make comparison shopping for auto insurance much simpler and faster for everyone who wants to save money on their premiums,” said Joshua Kazam, founder of AutoInsurance.com. “We believe strongly in the power of comparing. It’s how you know you got a great deal on auto insurance.”

Here's how it will work: when consumers visit the website they enter their name, address, date of birth and contact information.

Next they can opt-in to have the site retrieve their current auto insurance policy. This allows AutoInsurance.com to automatically auto-fill most of the necessary coverage information and provide a direct apples-to-apples comparison.

Then the customer receives multiple quotes from participating insurance carriers. Coverage may be customized, including raising or lowering deductibles, and changes are immediately reflected in the quotes.

If satisfied, the consumer can purchase the policy online. If they have questions, they can call a toll-free number and speak with a licensed agent.

Lending its name

Walmart's role in this venture appears to be mostly branding. The company will not sell the insurance directly but will direct consumers to the AutoInsurance.com site through Walmart.com and in-store signage.

Consumers in only 8 states – Arkansas, Louisiana, Mississippi, Missouri, Oklahoma, Pennsylvania, Tennessee, and Texas – can purchase policies right away. But both companies say they plan to expand the business nationwide within months.

Sometimes it's what you're not expecting that winds up causing the most damage. Take sinkholes, for example. We all know about tornadoes, hurricanes and fires but, really, who expects his house or car to fall into a sinkhole?

Sure, it's rare but it does happen. And it often brings with it an unpleasant surprise -- sinkhole damage may not be covered in your homeowners insurance.

There's only one sure way to find out, and that's to read your policy carefully. This is, of course, easier said than done since policies often appear to be written in the most obtuse language possible.

In Florida, the state with the dubious distinction of being the nation's sinkhole leader, the state requires insurers to cover  “catastrophic ground cover collapse,” but state regulators warn that not every catastrophic ground cover collapse is a sinkhole.

The logic may be a little hard to follow but, basically, if your home is damaged by a ground collapse but is not condemned as uninhabitable, the damage may not be covered by your policy. However, Florida requires all insurers to offer sinkhole coverage at an extra charge, so that may be worth looking into. 

Other states don't seem to have thought through the problem quite as extensively. In Baltimore, a street collapsed into a sinkhole yesterday, taking many cars with it. Several homes were evacuated and it's not yet known if they sustained severe damage.

As for the cars, city officials had little advice to offer and suggested the motorists contact their insurance companies.

Sinkholes occur worldwide but are most common in areas with a long history of erosion, or those with an abundance of caves and abandoned mines or tunnels. They also occur frequently in urban areas, where water mains and sewers may break and undermine the ground surface.

If your home falls into any of these categories, it may be wise to talk to your insurance agent and, if you're not satisfied with the answers, contact your state insurance commission for more answers. 

Homeowners in coastal and flood-prone areas are getting at least some relief from huge spikes in flood insurance costs, although many will still face premium increases of 18% per year.

President Obama earlier this month signed legislation that modifies the more horrifying provisions of a 2012 rewrite of the National Flood Insurance Program, which covers 5.5 million homeowners and is currently drowing in a $24 billion sea of red ink that threatens to lap even higher as future storms come roaring ashore.

“At a time when ordinary families are frustrated because government doesn’t seem to listen, I heard you loud and clear and thankfully both sides of the aisle came together to fix this problem so middle class families can afford flood insurance and stay in their homes, businesses can stay open, and property values won’t plummet," said Sen. Robert Menendez (D-N.J.), who co-sponsored the bill in the Senate. "This fight isn’t just about insurance-rate-tables and actuarial risk rates – it’s all about hardworking people.  People who played by the rules their whole lives." 

Shore it up

The 2012 rewrite was intended to shore up the program by making property owners pay insurance rates that would have driven many middle-class taxpayers from their homes.

Congress acted to modify the program after lawmakers from both parties were haranged for months by homeowners who said there was no way they could afford to pay increases of 100% or more. Critics say the relief measure simply will simply shift costs to taxpayers the next time a hurricane strikes.

"That's fine," said a property owner on New York's Long Island. "But if we're not going to insure taxpayers who live in flood plains, people that live in tornado or earthquake zones should be on their own too."

Most homeowners in flood-prone areas have no choice but to buy the federal flood program, since private insurers have largely abandoned coastal areas. Even simple homeowner's policies are barely affordable and, in some areas, can't be found at any price.

Grandfathered properties

Those who stand to benefit the most from the revision are those whose properties were originally built to code but subsequently were found to be at greater flood risk.

Such “grandfathered” homeowners currently benefit from below-market rates that are subsidized by other policyholders, and the new legislation preserves that status and caps premium increases at 18 percent a year. The 2012 overhaul required premiums to increase to actuarially sound rates over five years and required extensive remapping.

“Today, draconian flood insurance rate increases have been stopped, and we have returned affordability as a centerpiece of the National Flood Insurance Program,” Sen. Mary Landrieu, D-La., said in a statement.

In another provision intended to provide relief to middle-class voters, sellers of older homes -- those built before flood insurance risk maps were drafted -- will be able to pass their subsidized policies on to buyers of their homes. 

However, homeowners whose homes have flooded repeatedly and those whose second home is in a flood zone will still see premiums go up by 25% a year until they reach a point that's deemed consistent with the risk of flooding.

Few government programs lose as much money as the National Flood Insurance Program, currently $24 billion in debt and likely to sink even further below the waterline as a new summer storm season approaches. 

The problem is pretty simple: subsidized flood insurance encourages people to live in flood-prone areas. Congress addressed the issue in 2012 with the Biggert-Waters Law that would begin raising premiums to more realistic levels this year.

But a measure passed by the Senate last month would delay implementation of the premium increases, ostensibly to give low- and middle-income homeowners more time to prepare for the sharply higher insurance rates.

The Consumer Federation of America thinks this is a bad idea, saying it would mislead homeowners about their vulnerability to flooding, undermine the flood program’s financial viability and increase costs to taxpayers.

Risking lives

“The Senate proposal for reforming flood insurance asks America to stick its head in the mud, rather than address the problem of a flood program that is encouraging people to live in high-risk flood plains, unnecessarily risking people’s lives and possessions,” said J. Robert Hunter, CFA’s Director of Insurance and former Administrator of the flood insurance program and Texas Insurance Commissioner. “You cannot lower prices by ignoring the real risk of flood; real reform requires transparency and honesty about the true cost of living in flood zones for homeowners, developers and taxpayers.

In a letter to Congress, CFA urges the House to reject the Senate bill and let the higher rates go into effect.

“It is much worse for consumers to be misled by inadequate rates from their own government than to have high rates that signal the real risk and informs the consumer to be careful,” CFA wrote in its letter to Congress. “Homeowners who buy new homes in areas that they think are safe from floods are harmed when old maps underestimate risk. ... These homebuyers and their families are at risk of being killed or injured if a storm hits, or of having their homes or treasured possessions destroyed. Paying a little more and being truly aware of the risk is a blessing, not a curse, for consumers.”

Now that the Healthcare.gov web site is working a lot better than it did on its disastrous roll-out, more uninsured consumers are beginning to sign up and choose healthcare plans on the marketplace.

But how do you decide which plan is best for you? There are a lot of things to consider, especially if you have a doctor you like. If you go with a cheaper HMO policy your doctor might not be part of that network.

In addition to making sure your relationship with your current healthcare provider continues without interruption, you will likely consider what the policy covers and what it costs. Even then, however, there are plenty of pitfalls.

Alarming results

Using simulated exchanges modeled on the design of the actual exchanges, researchers at Columbia Business School say their findings suggest that more than 80% of consumers may be unable to make a clear–eyed estimate of their needs and will unknowingly choose a higher-cost plan than they need. Researchers at Washington University School of Medicine in St. Louis reached a similar conclusion in November.

Essentially, consumers tend to choose a plan with low deductibles and co-pay and high monthly premiums, regardless of their healthcare needs.

"Consumers' failure to identify the most appropriate plan has considerable consequences on both their pocketbooks as well as the cost of the overall system," said Eric Johnson, co–author of the report and co–director of Columbia Business School's Center for Decision Sciences.

Two problems

The problem is twofold. First, consumers spend more on health coverage than they should. Second, Johnson says if consumers can't identify the most cost–efficient plan for their needs, the exchanges will fail to produce competitive pressures on healthcare providers and bring down costs across the board, which, after all, was one of the main reasons for relying upon choice and markets.

Because the federal government will subsidize many of these healthcare policies, American taxpayers could pay an additional $9 billion for consumers' mistakes in choosing more costly plans, according to the Columbia research.

What you should look for

If you are in the market for a new health benefits policy, what kinds of things should you look for? All the plans, regardless of their cost, are required to cover certain essential health services. The difference is how much of the cost you pay and what you pay for this coverage.

For example, some plans pay for more of the medical services you receive. As you might expect, it costs more each month for that kind of coverage. A plan that requires you to pay a bigger share of your healthcare costs will have a lower monthly premium.

Key question

So one question you need to answer before selecting a plan is how much healthcare do you expect to consume? If you have a chronic ailment that requires frequent trips to the doctor and expensive medication, a policy that covers more of those costs might be prudent.

But if you are in reasonably good health and maybe see a doctor once or twice a year, it almost always will pay to select a plan with a lower premium and higher out of pocket costs. Why would you pay an extra $1,000 a year in premiums in order to save $100 on a office visit?

Yet researchers have found that consumers, left to their own devices, seem to gravitate to more expensive policies because they want to avoid out-of-pocket expenses. The numbers simply don't add up.

Johnson and his colleagues identified several things that significantly helped consumers pick a more appropriate policy. These include:

• Estimate First, Peruse the Plans Second: Estimating your medical services before choosing a plan increases your chances of choosing the best plan.
• Educate: Tutorial links and pop-ups that explain basic terms like "deductibles" that might not be known to new buyers, increase your chances of choosing the best plan.
• Implement smart tools: Adding a calculator to the process improves your chances of choosing the right plan and reduces the size of errors by over $216.
• Implement other "smart defaults": Including a tool that defaults to the most cost-effective plan drastically improves a participant's chances at selecting the most cost-effective plan by 20%, they say. Together, calculators and defaults reduce the average mistake saving consumers and the government $453.
• Limit the number of choices: Exchanges that limit their amount of choices in healthcare plans will help to avoid confusion among consumers  

It sometimes seems that the Affordable Care Act, unpopularly known as Obamacare, is being blamed for everything except the weather, and now large retailers say they're seeing signs it's hurting sales.

Walmart has been suffering anemic sales lately -- it just reported its third consecutive drop in comparable-store sales -- and says it's afraid the looming implementation of Obamacare could make things even worse. 

"For many of our customers, having to afford health care and insurance may be another line item in their personal budget that they may not have had to cover previously." Carol Schumacher, vice president of investor relations, told analysts on Thursday, the Wall Street Journal reported.

The idea behind Obamacare, of course, is to provide insurance coverage for families that currently have no coverage. But for lower-income consumers who are barely scraping by already, the addition of even a small monthly premium could cause them to cut back on other purchases, Walmart and other retailers fear.

Walmart's not alone. True Value hardware's CEO says Obamacare is "a massive concern." 

"Discretionary spending will certainly be impacted by the changes in the contribution Americans will have to make for health care," John Hartmann said Friday, the Journal reported.

Disaster or blip?

So is this a disaster in the making or just a blip?

Many economists vote for the blip. After all, Americans now spend 17.7% percent of GDP on health care, far more than any other developed country.

As Ezra Klein and Evan Soltas point out in the Washington Post's Wonkblog, if the U.S. could get health care spending down to 12%, there'd be an extra $893 or so billion floating around in the economy, money that could be spent on consumer goods, education, infrastructure and, presumably, the lottery.

Of course, the lottery is what uninsured Americans have now: by going without health insurance, they're basically gambling that they won't get sick. But as with most games of chance, the odds favor the house; after all, everyone gets sick eventually and without insurance, the options are to go to the emergency room and let everyone else pick up the tab, or take an even riskier gamble by going without medical care.

Who benefits?

A recent RAND Corporation study, meanwhile, may provide some comfort to the Walmarts of the world, if they're able to pause and look beyond same-store sales over the next quarter.

The study finds that people who are currently uninsured -- which would include many of the lower-income consumers who are Walmart customers -- will see the largest drop in health care spending when they become insured under Medicaid. 

"Among the groups we studied, a clear benefit of the Affordable Care Act is that it will reduce the risk of facing catastrophic medical costs,” said Christine Eibner, a study author and a senior economist at RAND, a nonprofit research organization. “Consumers with the lowest incomes will see the most-dramatic reductions of their risks.”

People who will be newly insured and do not qualify for government subsidies -- younger, healthier consumers with relatively well-paying jobs -- are those who are most likely to see increased total spending as they begin paying premiums for health coverage. 

Overall, the RAND study found that out-of-pocket medical expenses will decline for most consumers who become newly insured or change their source of health insurance under Obamacare.

In other words, costs may rise slightly for higher-income Americans and go down for lower-income individuals -- which seems to be what most fair-minded people would vote for. 

Leaving aside politics and economics for a minute, the primary goal of the Affordable Care Act is to deliver better health care at lower cost. This is a big order and one that's not likely to happen quickly or smoothly, as the frothy run-up to implementation shows.  

The problems with the government's roll-out of the Affordable Care Act have been well-documented. The Department of Health and Human Services' (HHS) national sign-up website, Healthcare.gov, has been a disaster. Some state sites have also had issues.

But technical issues aside, consumers – especially those who have never had health benefits – may face even bigger challenges in the new healthcare marketplace. A study by Washington University School of Medicine in St. Louis finds the whole process, even under the best of conditions, is not exactly a walk in the park.

“Selecting the best health insurance option can be confusing, even for people who have gone through the process for many years,” said Mary Politi, an assistant professor of surgery and the study’s lead author. “We need to do a better job communicating information about health insurance to help people make the choices that work best for them.”

Conducted before the roll-out

The study was conducted just before the Oct. 1 launch of Healthcare.gov and did not anticipate the problems that would occur with the website. However, it did identify difficulties that appear to be common among consumers lacking health coverage.

Most people who have never been insured, the researchers say, are going to be unfamiliar with the language of health benefits, such as “coinsurance” and “deductible,” that are necessary to compare and choose among available health plans.

Even individuals who have had previous experience with health insurance confused the meaning of similar terms, such as urgent care and emergency care or co-insurance and co-payment.

The conclusion that researchers have drawn from all of this is that uninsured consumers are going to be heavily dependent on navigators, individuals and groups hired under the new law to help guide consumers in their local communities through the process.

The researchers say navigators can simplify details, use visuals and provide context for unfamiliar terms to help people better understand their health insurance choices. How that plays out is yet to be seen.

Missed deadline

In northwest Ohio the Toledo Blade reports the Neighborhood Health Association and CareNet, two community groups receiving thousands of dollars in grant money from HHS to train health care navigators has yet to get started, missing a Nov. 1 deadline.

Republican opponents of the health care law have been quick to highlight problems with navigators, which supporters of the law contend is unfair and misleading. They suggest that states with GOP-controlled legislatures have thrown up bureaucratic obstacles for the community groups who are trying to get navigators on the job. Officials in those states say the extra regulators are needed to protect consumers and their personal information.

Success stories

Despite problems, some regions of the country report navigators are in place and signing people up. ACR Health, a community group in Syracuse, N.Y., reports problems are few and far between and it has a number of success stories to report.

Community organizations around the country are receiving $67 million under the ACA to train and deploy navigators who help consumers choose a health benefits package and get enrolled. The researchers say they may be able to help.

Based on their findings, they are testing ways to improve communication about health insurance and the newly created state and federal health insurance exchanges.

“This effort is especially important for individuals with limited health literacy and math skills, given the complex information required to understand plan differences,” Politi said.

The dysfunctional Healthcare.gov website, where residents of 36 states are attempting to shop for health care coverage under the Affordable Care Act, remains an embarrassment for the White House and all but useless to consumers.

The Obama Administration has brought in technology experts to fix the site. Consumer Reports has suggested that consumers wait until the site is ready for prime time before trying to use it. 

But are there alternatives to signing up on the federal government's website? There are, with some caveats.

States with healthcare exchanges

If you are a resident of California, Colorado, Connecticut, District of Columbia, Hawaii, Kentucky, Maryland, Massachusetts, Minnesota, New York, Nevada, Oregon, Rhode Island, Vermont, and Washington, you shouldn't be using Healthcare.gov in the first place. Your state has its own website for health plan shopping. That's where you should shop.

If you think you will qualify for a subsidy to offset the cost of premiums, you should definitely wait to sign up through Healthcare.gov or use your state's online marketplace. It's the only way you can lower the cost of your premiums and maybe even your deductibles.

But some consumers have incomes high enough to preclude a subsidy. They may be eager to shop for a new healthcare policy because a pre-existing condition may have prevented them from getting better coverage in the past – an obstacle removed by the Affordable Care Act. For them, there are alternatives to signing up online.

Insurance agents offer help

The National Association of Professional Insurance Agents (PIA) says independent insurance agents and brokers can help consumers find the right plan and enroll. The trade group says many independent insurance agents and brokers have already been trained and certified to assist consumers to enroll in health plans offered as part of the Affordable Care Act. They can also make consumers aware of insurance choices not available through the exchanges.

"Choosing a health insurance plan is a serious matter," said PIA National President John Lee. "It is a complex process that cannot be compared to purchasing a book from a website. Insurance is not a commodity. The implications of making a poor choice due to lack of adequate knowledge include paying too much or getting inadequate coverage for yourself or your family.”

Lee says consumers shopping for health insurance should take their time, consider all the options, and make the choice that's best for them. Agents, he says, are qualified to offer advice.

"We have always been licensed, regulated and required to carry professional liability insurance coverage,” Lee said.

Other online shopping

Consumers can also shop online at privately operated health insurance websites, though the list may not always be as comprehensive. Companies such as GoHealth, Get Insured and eHealthinsurance have been approved to allow shopping and enrollment through federal health policy marketplaces.

But it bears repeating, if you think you may qualify for a subsidy to reduce the cost of health insurance, you should wait until you can shop and enrolled through your state or federal health policy exchange.

Fortunately, you have plenty of time, even allowing for repairs to Healthcare.gov. Under the law, you have until December 15 to sign up for coverage to begin on January 1. Open enrollment runs through the end of March.

CNN's Wolf Blitzer is the latest to suggest that Obamacare should be delayed for a year. Why? Well, Blitzer, not previously known as a healthcare policy analyst, says the Healthcare.gov website works so poorly it needs to be taken apart and rebuilt.

"They had three years to get this ready. If they weren’t fully ready, they should accept the advice Republicans are giving them, delay it for a year, get it ready and make sure it works,” Blitzer said in a recent broadcast that reported on problems with the site.

Blitzer's comments ignore the fact that Healthcare.gov is the default site for 36 states like Mississippi and Virginia that chose not to set up their own health insurance exchanges. 

The experience has been different in New York, California, Illinois and other megastates that put ideology aside and got to work early building exchanges that actually work.

California, the nation's most populous state, signed up 28,000 people in the first week its exchange was operating and New York has signed more than 40,000. 

“Looking back at this one week, the response has been nothing short of phenomenal,” Peter V. Lee, executive director of Covered California, said. “We anticipated we’d have very low enrollment in the first week.”

California expects to sign more than half a million people before the open enrollment periods ends March 31. New York expects to sign more than 1 million.

In Illinois, officials said GetCoveredIllinois.gov served more than half a million page views on its first day of operations.

In Washington state, 9,452 people had been fully enrolled as of Tuesday. Another 10,000 people have completed applications for coverage from private health insurers through the exchange but have not yet paid for it.

"The number of applications we've received is a strong start to our six-month open enrollment period," said Richard Onizuka, CEO for the Washington Health Benefit Exchange. 

National data lacking

There's been a shortage of data on nationwide sign-ups, partly because the federal government's public affairs staffs are largely on furlough and not much new information is being released as a result.

In its first two days of operation, HealthCare.gov got 7 million visits, an HHS spokeswoman said a few days ago. That doesn't translate directly to sign-ups since most consumers visiting the site for the first time appeared to be gathering information about what types of coverage was available in their state.

Others were waiting by their computers as the sign-up sites went live.

"I've been waiting a year for this," said a 23-year-old actor in Los Angeles who asked that her name not be used. "I have been on my mom's policy but she is turning 65 and going on Medicare so I will be S-O-L if Wolf Blitzer gets his way."

The actor said that, besides the much higher cost of a traditional policy, she would not be able to get coverage because of a pre-existing medical condition.  

Now that the new health care exchange marketplaces are open for business under the Affordable Care Act, popularly known as Obamacare,  that doesn't mean you should rush online and buy a new policy.

For starters, there are the predictable glitches with the websites offering the plans. That makes it hard for many consumers to navigate the system. But there may be bigger issues at play.

Researchers at the Columbia Business School set up simulated exchanges, modeled on the design of the actual exchanges, to see how consumers would use them. The researchers said they were alarmed to discover that 80% of the consumers enlisted in the test were unable to figure out what they needed and ended up choosing a more expensive plan. 

Over-insuring

"Consumers' failure to identify the most appropriate plan has considerable consequences on both their pocketbooks as well as the cost of the overall system," said Eric Johnson, a professor and co-author of the report. "If consumers can't identify the most cost-efficient plan for their needs, the exchanges will fail to produce competitive pressures on health care providers and bring down costs across the board, one of the main advantages of relying upon choice and markets."

Johnson is well-acquainted with the system being put into place by the new law. He spent the last year advising several state health exchange systems on their design and structure. He serves as a member of an advisory board run by Pacific Business Group on Health.

The Columbia experiment consisted of six experiments in which consumers were told to choose the most cost-effective policy when they logged onto websites that were near-duplicates of the ones being operated by the real exchanges.

Startling

Johnson calls the results “startling.” The average consumer stands to lose $611 simply by failing to choose the most cost-effective option. That's bad for the consumers, but also taxpayers. Since the U.S. government is subsidizing costs that exceed a certain percentage of the policyholder's salary, the taxpayer will absorb a portion of the cost of that over-payment.

Johnson is well aware of how opponents of the Affordable Care Act might pounce on this research to make a political point but insists it in no way makes an argument for or against the program. Rather, he says it simply underscores the complexity of creating the delivery systems for health care policies.

Take it slow

The take away from the research may be that choosing a plan should not be done quickly and probably should not be done without some assistance. The ACA provides for qualified groups and individuals to serve as “navigators” for each exchange, helping consumers and answering their questions. Talking with one of these navigators – or at the very least doing some research before making a selection – may help with making a good decision.

Johnson and his team have some additional advice:

• Estimate your health care needs: How often do you go to the doctor? Once a year? Then why would you need a plan with no deductible and no co-pay? The monthly cost of such a plan would be a lot more than what you'd pay out of pocket for your annual visit.
• Get educated: Take advantage of 'just-in-time' education: tutorial links and pop-ups that explain basic terms like "deductibles" that might not be known to new buyers, increase your chances of choosing the best plan.
• Use available tools: Adding a calculator to the process improves your chances of choosing the right plan and reduces the size of errors by over $216, the researchers found.

What exchanges can do

Johnson says the exchanges can help consumers make better choices by tweaking the design of their sites and offering helpful tools.

"Designers of the exchanges should take heart and know that they can significantly improve consumer performance by implementing some easy, straightforward tools such as just-in-time education, smart defaults, and cost calculators," he said.

Consumers should also not rush into the marketplace because, chances are, they don't need to make a change from their present coverage. The marketplaces are mostly designed for people not currently covered by a health care policy – a number estimated at about 48 million.

Millions of Americans are starting to sign up for health insurance and financial assistance as the Affordable Care Act, commonly known as Obamacare, goes into effect today, creating a fertile field of scam artists and identity thieves.

In some cases, criminals will try to collect personal or financial information to steal your identity and your money. In other cases, unscrupulous sales people will try to sell “discount medical plans.” Those so-called discount plans may be insurance plans that really do not save you money, or they may not be legitimate health insurance plans at all, Illinois Attorney General Lisa Madigan warned.

What to do

• Do not pay for help. The government will not charge for its services. You never have to pay to receive help. If you receive an offer to sign up on for insurance under Obamacare for a fee, you should hang up, delete or walk away. Do not give cash, your credit card or banking information to someone you do not know or did not contact.
• Make sure any specialist you work with is certified. If you are working with a specialist made available by your state, make sure the specialist is certified. Most states are listing the names and contact information of their specialists on their state health exchange sites. You can find your state site through HealthCare.gov.
• Never open your door to a stranger, even if they claim to be a certified specialist.
• Guard your personal information. Do not give out your Social Security number, bank account number, or other sensitive personal or financial information to someone who calls you, emails you or comes to your door. However, be aware that when you enroll for an insurance plan through the Health Insurance Marketplace, you will be asked to provide your Social Security number and payment information, among other personal information. Before you do this, make sure you are on the official website and if you sign up in person, ask the specialist who is helping you to look away while you enter this information online.
• The state health exchanges do not offer Medicare. Medicare is not affected by the Affordable Care Act, and you cannot enroll in Medicare through the state exchanges. You should not share your Medicare number with anyone who contacts you uninvited. If you have Medicare questions, please call Medicare at 1-800-MEDICARE (1-800-877-9392).
• Use the state exchanges for one-stop safe insurance shopping. Consumers who enroll for insurance through their state exchanges can be sure they are accessing approved insurance plans and at the same time determine, based on their income, whether they are eligible for Medicaid coverage under the newly expanded program, or for tax credits to help offset their premium payments.

The Affordable Care Act tends to divide people along ideological lines, but come January it will also divide consumers along mostly economic lines.

Many people who purchase and pay for their own health insurance will get a subsidy from the government to help pay for it. Some won't. Those who get their insurance through their employers or labor union won't either, and in some cases may end up paying more.

Starting in October, consumers who purchase their own health insurance can start signing up for coverage through state health care insurance exchanges or, for those in states that refuse to set up an exchange, through a federal exchange.

Four levels of coverage

The exchanges will offer four levels of coverage, called Bronze, Silver, Gold and Platinum, with Bronze being the least expensive and Patinum the most expensive. These policies are more comprehensive than the high-deductible plans favored by many who pay for their own insurance. In many cases those who currently pay for their own policies are “grandfathered,” and will not have to switch to a more expensive Obamacare policy. However, it may pay them to switch.

Under the Affordable Care Act, consumers purchasing the more expensive and more comprehensive coverage through the exchanges will get a generous tax credit from the government to offset the cost. The net cost of the better Obamacare policy will likely be significantly less than they are now paying for less coverage.

The Kaiser Family Foundation (KFF), which has conducted an extensive analysis of the impending changes in health care, finds that eliminating premium surcharges based on health conditions and limiting premium variation due to age will tend to lower costs for older and sicker consumers while raising premiums for consumers who are younger and healthier.

How it works

It will all depend on your income. The law has limits on the percentage of your income that your health insurance can cost. KFF has broken it down. Here is how it might work for a 40-year-old individual making $30,000 a year (modified adjusted gross income):

• Estimated benchmark premium for a 40-year old = $3,857 per year (which will vary from area to area)
• Consumer is responsible for paying 8.37% of their income = $2,512, or $209 per month

The lower premium is derived by subtracting a $1,345 subsidy tax credit from the federal government.

The tax credit can be used in any plan offered in the health insurance marketplace, so the person would end up paying a lower premium for the lowest cost silver plan or a lower cost bronze plan, and more to enroll in a higher cost plan.

The lower your income, the higher your subsidy. The higher your income, however, the less your subsidy. And once your income rises to a certain level, you get no subsidy at all, but must pay the full cost yourself.

Nearly half to get subsidy

“About half -- 48% -- of people now buying their own insurance would be eligible for a tax credit that would offset their premium,” KFF said in its analysis. “This does not include over one million adults buying individual insurance today who will be eligible for Medicaid starting in 2014.”

Assuming all eligible current enrollees applied for a tax credit, KFF estimates the subsidy would reduce the premium for the second-lowest-cost silver plan by an average of 32% across all people now buying insurance in the individual market. If they were to opt for the most expensive plan, they would have to cover more of the cost out of pocket. Choosing a Bronze or Silver plan would lower premiums the most.

KFF has produced this calculator to help consumers estimate the amount of their subsidy, or whether they would qualify for a subsidy. Many will not. 

For example, a family of four earning $47,000 would receive no subsidy at all. According to KFF's calculate, the family's cost for health coverage would be $11,547 a year, or $962.25 a month.

Again, this would be for families purchasing their own health coverage. As long as an employer continued to provide health benefits, that coverage would continue.

"From Bergdorf's to Filene's" is how one official described the cost of health insurance in New York under Obamacare. New Yorkers, traditionally hard to shock, are still assimilating the news that the average individual health insurance premium will fall 50 percent next year when the Affordable Care Act takes effect.

"Health insurance has suddenly become affordable in New York,” said Elisabeth Benjamin, vice president for health initiatives with the Community Service Society of New York, according to The New York Times. 

Gov. Mario M. Cuomo broke the news, as he announced that state insurance regulators have approved rates for 2014 that are at least 50 percent lower on average than those currently available. 

“New York’s health benefits exchange will offer the type of real competition that helps drive down health insurance costs for consumers and businesses,” said Cuomo. “The opportunity to choose among affordable, quality health insurance options will mean improved health outcomes, stronger economic security, and better peace of mind for New York families.”

New Yorkers who now pay $1,000 a month or more for insurance will be able to find policies for as little as $308 per month. Federal subsidies for low-income people will drive their out-of-pocket cost down ever further.

“In setting these rates, we worked hard to do right by consumers and small businesses so they have access to affordable, quality health insurance," said Benjamin M. Lawsky, Superintendent of Financial Services. "Moreover, where New York previously had a dizzying array of thousands upon thousands of plans, small businesses will now be able to truly comparison shop for the best prices. New York will continue to move ahead rapidly so the exchange is up and running for 2014.”

Invisible hand or iron fist?

How can this be? Is it that fabled invisible hand of the marketplace? Or is the iron fist of the state?

Well, it's actually a little of each. It's competition, something that has been sadly lacking in health insurance recently, and it's being stimulated by the state health insurance exchanges established under Obamacare, as it's widely known.

The New York situation mirrors that in the biggest megastate of all -- California, which was quick to set up its health insurance exchanges. In the most competitive markets, like Los Angeles, a 25-year-old could pay as little as $190 per month for a basic plan, much less than had been expected.

Insurers have been rushing to get in on the action, not wanting to see Blue Cross Blue Shield and other big players wrap up the market. New York says it has approved 17 insurers to sell individual policies in the state, eight of them new to New York.

Small-business premiums will not fall as sharply as individual premiums but they are much lower to start with, insurance experts note.

We're just 100 or so days away from the Oct. 1 implementation of the state health insurance exchanges called for by Obamacare but some major insurers, not to mention Republican governors, are hanging back, refusing to have anything to do with the exchanges.

Not so Blue Cross-Blue Shield. They're expected to operate in nearly every state, while UnitedHealth Group and Aetna are proceeding more cautiously.

The idea behind the exchanges is to make it easier for consumers who don't have health insurance through their job to get a health plan that covers their basic health needs at an affordable price -- something that's nearly impossible for most Americans of modest or moderate means  these days.

Anyone who has ever stood in an emergency room while a family member was being treated and tried to remember if the insurance premium was up to date will know how important this is.

It's not just poor people who have trouble getting health insurance. Many self-employed and entrepreneurial types are in the same boat. With premiums for a family of four easily exceeding $1,200 per month in most states and a list of exclusions as long as a stretch limo, health insurance is a very expensive and frayed safety net.

Higher risk

The reason individual premiums are so high -- at least in theory -- is that individuals present a higher risk since the insurance company can't spread the risk over a larger group, as is the case when it writes a policy for Monsanto or General Motors. 

Of course, if everyone could buy insurance, that would create a larger group, no? This is, to over-simplify greatly, the general idea behind the health exchanges that are at the heart of Obamacare, more formally known as the Patient Protection and Affordable Care Act.

In California, which is way ahead of the rest of the states in implementing the exchanges, initial premiums have been lower than expected. They vary by location and plan but a 25-year-old in Los Angeles could pay as little as $190 per month for a bare-bones plan while a 40-year-old in San Francisco would pay up to $525 per month for moderate coverage.

In some parts of the state, there are as many as six companies offering plans while in others, there is only one so far.  

Out to lunch

Why governors in states like Texas and Virginia have decided to deny this coverage to their constitutents is something they'll have to explain. Of course, they're covered now and, in most cases, forever by health plans paid for by the taxpayers who can't afford insurance themselves, so perhaps that makes it OK.

Conservatives have objected to the so-called "mandate" -- the requirement that everyone must buy insurance or pay a penalty. By forcing everyone to either buy insurance of pay a fine, the government creates the enormous risk pool that is supposed to make the program attractive to insurers. Those who can't afford the full premium can qualify for a subsidy.

In states where the governors and legislators have been successful in blocking state-run exchanges, the feds will be in charge, which will provide something else for the local impresarios to complain about.

So why are the Blues going full-bore into the exchanges? Well, the simplest answer, as analysts quoted in various press reports explain it, is that they are already the largest insurer in most states, a position they want to protect.

If the Blues sat out the game, in other words, someone else would walk off with a big batch of their customers. So top Blues executives have decided the best strategy is to aggressively go after as much business as they can get, thus protecting their market share and -- not coincidentally -- creating a very large group across which to spread the risk they incur by taking on everyone who applies.

Enough talk

So, after years of political claptrap, Big Business is about to take over and the competition that the Republican governors claim they yearn for is about to commence.

While they may initially be on the sidelines, UnitedHealth, Aetna and others are not likely to stay there long if, as expected, they see Big Blue poaching their customers and portraying themselves as champions of the little guy.

You can expect the Blues to launch an aggressive advertising campaign that will in next to no time blow away the political fog that now surrounds the issue and provide the kind of consumer education that only Madison Avenue can.

Like it or not, Big Government has set up this system but it is now about to step out of the way and let the marketplace do its thing. Soon, as is already happening in California, there will be demands that the government get back into the game and regulate the insurance companies more harshly to ensure that premiums don't get out of line.

What to do

To find information about your state, go to the official Health and Human Services site -- https://www.healthcare.gov/  

Google and other search engines have not taken the trouble to identify the official government health exchange sites and will most likely direct you to advertisements or sites cleverly disguised to look like official sites. Nor do the commercial sites bother to offer a translation for "Obamacare." 

The search box in the upper right corner of HealthCare.gov will direct you to the insurance exchange site for your state, if there is one. You can also sign up for email updates.

It's not a subject we like to think about, but it's prudent to plan for your death. Usually, part of that plan will include a life insurance policy.

Life insurance is most important when a family is young. In previous generations a husband took out a policy to provide for his wife and children should something happen to him. Today, it's usually important for both husband and wife to be covered since the family may depend on both their incomes.

Buying life insurance is an important financial decision and shouldn't be taken lightly. Christine, of Old Lyme, Conn., realizes she needed to ask more questions when a Colonial Life and Accident agent signed her up at work.

Miscommunication

“He told me this 'term' policy was what I needed,” Christine wrote in a ConsumerAffairs post. “Seven years later, when I was cut back on my hours and needed to re-think the deduction, I contacted the new agent and she told me that all the money I had contributed in this term policy would be gone! I could not change policy, I could not touch the money I contributed, and she was very sorry. Seems that the previous agent did not explain things to me, and I did not ask questions.”

Christine admits that she was naive when she signed up for the policy but her real problem is that she did not understand what she was buying. She purchased a “term” policy and not permanent insurance. Term insurance is in force only as long as you continue to make the payments. Once you stop the payments, the coverage ends. It's like renting your insurance.

The advantage to term life is that it costs much less than other types of policies. If you only want insurance coverage over the 25-year period that your children are being born and growing up, then a term policy may be just what you need. Once the last child graduates and gets a job, you let the policy lapse.

Christine apparently believed she was getting a policy that would eventually be paid up, or have a cash value that she could redeem should she cancel. These policies typically cost more and may or may not be a good use of your money.

Not always good investments

Whole life policies, for example, are more expensive because it is generally assumed they will be in effect longer than term policies and therefore, the odds the company may have to pay off are greater. Many financial advisers caution that non-term policies are generally not a good place to put your money. And because the products are so costly, a consumer typically under-insures, buying less coverage than they need.

A term policy, on the other hand, provides more coverage per dollar, allowing you to put the savings into more productive investments. The key, of course, is actually investing your savings. If you do, you should have a significant nest egg by the time you discontinue your term policy and can, in effect, self-insure.

Before considering the purchase of a life insurance product, learn the basics. Make sure you understand the difference between term insurance and permanent insurance.

When it comes time to purchase an insurance policy, make sure you buy the right kind for your needs. Once you understand the differences in policies it will be easier to avoid these mistakes.

How much?

How much insurance do you need? You need to answer this question before making a final decision. If you have a young family, both spouses need a policy that will provide enough money to help meet the family's needs for several years.

Buy insurance when you are young. Insurance is all about odds, with the company betting you won't die and you betting you will. The numbers suggest a 25-year old has a better chance of staying alive than a 45-year old. When you purchase life insurance when you are young and in good health, you'll get a better deal.

It's been more than three years since the Patient Protection and Affordable Care Act, also known as Obamacare, was signed into law, and nearly a year since it was upheld by the Supreme Court and still the debate rages: “Will it increase costs or won't it?”

In 2006, Massachusetts reformed its healthcare system and, according to data presented at the American Heart Association's Quality of Care and Outcomes Research Scientific Sessions 2013, there was no substantial increase in hospital use or costs. The reforms increased the number of people insured by 300,000.

And, the findings were true even among safety-net hospitals, which often have an open-door policy to accept patients regardless of the ability to pay. These hospitals are most likely to care for people who need free services, use Medicaid or must pay their own hospital bills.

Little difference

"In light of the Affordable Healthcare Act, we wanted to validate concerns that insurance reform would lead to dramatic increases in healthcare use and costs," said Amresh D. Hanchate, Ph.D., the study's lead author, an economist at the V.A. Boston Healthcare System and assistant professor at Boston University School of Medicine. "We were surprised to find little impact on healthcare use. Changes we saw in Massachusetts are very similar to those we saw in New Jersey, New York and Pennsylvania — states without reform."

The study analyzed information on more than 2.6 million patients ages 18-64 discharged from 66 short-term acute care hospitals in Massachusetts in 2004-2010.

Prior to reform, in 2004-2006, the number of average quarterly admissions for each hospital was 1,502. After reform, in 2008 -2010, the average was 1,557 -- a 3.6% increase versus a 3.3% increase in the comparison states.

Further findings

The researchers also found:

• The total days of inpatient care increased by 0.94% in Massachusetts, compared with 0.80% in the comparison states.
• Hospital charges per quarter rose 1.1% more in Massachusetts than in the comparison states.
• Hospital use increased among previously high uninsured groups; the number of hospitalizations increased by 2.8% among blacks and by 4.5% among Hispanics.
• The results were similar to those of safety-net hospitals and Medicare patients.

"These results are more applicable for states similar to Massachusetts in terms of the current healthcare system and government policy," Hanchate said. "Because states vary a lot, it's hard to say how this would compare for the rest of the country."

Further study is needed to determine if the delivery of services changed, including whether inpatient services being moved to an outpatient setting, he said.

State Farm is looking for 5,000 people to download and test its RightLane Android app, a smartphone app that the company is developing.

The first 5,000 volunteers will get a $50 gift card and State Farm promises that none of the information collected will influence your insurance premiums.

The testers need only to have an Android phone running version 4.0 or greater and Bluetooth factory installed in their car. The test period is 120 days and requires at least 500 miles of driving over 25 of those days.

State Farm says that for now, it's testing the feasibility of using smartphones to gather widespread data that can be used in its research.

Most insurance companies recruit volunteers to install plug-in devices in their cars, with possible rate discounts if the device shows them driving safely. State Farm is trying to see if an app can do the same thing without requiring a separate device.

Consumers who've posted reviews on Google Play seem pleased so far. 

"The app works perfectly now," said Tom Lendy, who said there had been some initial glitches that the app's developers worked through. "In fact I would say that it is pretty impressive, especially for being a Beta. It has a nice, simple to use interface. It is simple to understand as well."

"Love that Bluetooth was automatically configured/active... HATE that I could NEVER turn it off. Thanks for the money!" said Jaymes Williams. 

Interested? You can download the app from Google Play.

According to the Armed Forces Health Surveillance Center, one in eight troops coming back from Iraq and Afghanistan were referred to counseling for alcohol dependency. One in four had a substance abuse disorder.

But when it comes to receiving help for their addictions and other needs, many veterans are put on long waiting lists and aren't getting the quick help they need.

Yesterday, the Department of Veterans Affairs (VA) said it would finally try to clean up some of its claims backlog (story). 

Veterans who have been waiting one year or more for their benefits will have their cases expedited so they can receive things like compensation, educational reimbursement and help with alcohol or substance abuse, the VA said.

Paul Rieckhoff, CEO and Founder of Iraq and Afghanistan Veterans of America (IAVA), said officials on both sides of the political aisle have come together to solve this issue.

"The growing impatience over the VA disabilities backlog is one of the few genuine bipartisan issues in Washington today," he said. "IAVA thanks leaders in the Senate for their bipartisan efforts to help end the backlog and ensure that veterans get the care they need. Our veterans now need to hear from the President about how he plans to bring the number of veterans in the backlog to zero."

Letter to Obama

In a letter to President Obama, a number of senators specified just how bad the backlog is. They wrote:

"In the last four years, the number of claims pending for over a year has grown by over 2000% despite a 40% increase in the VA's budget.

As a reminder, during this same time period, Congress has given VA everything it has asked for in terms of more funding and more employees; however, this has not eliminated the backlog of claims. Solving this problem is critical for veterans of all generations.

We need direct and public involvement from you to establish a clear plan to end the backlog once and for all."

The promise to clean up some of the backlog is great news for people like Army veteran Paul Barron, who has been waiting a ridiculous amount of time to receive his benefits.

"I've been waiting three years for disability," he told a Connecticut news outlet. "I got Hepatitis C from the shots they give you in the Army."

Many times veterans pass away before every getting to see their benefits.

Dramatic increase

During President Obama's first term in office the number of surviving families waiting for burial benefits has dramatically increased.

Before Obama took office the number of people waiting for burial benefits was 23,000 and now it's swelled to 65,000. And the dollar amount that families are waiting for is somewhere between $600 and $2,000, reports show.

But veterans and their families finally receiving benefits isn't all about money, said Sheryl Ann Cornelius.

She is the widow of Jack Cornelius, who committed suicide in 2009 after  suffering from alcoholism, depression and post-traumatic stress. Sheryl was initially denied burial benefits after her husband killed himself and it took a whole year for the VA to reverse its decision.

In the amount of time that Sheryl had to wait for an appeal decision, she lost her home through foreclosure and accumulated even more debt as she tried to pay off a loan that she took out for the funeral.

But receiving money from the VA was only part of what Sheryl needed: "I needed the money," she said in an interview with The Daily Beast. "But it was more important to me that the government admit that his death was caused by the war, that someone take responsibility for it."

More can be done

Although the VA is trying to clear out some of its backlog by making provisional decisions on its most outstanding claims, many believe a lot more can be done. Rep. Tom Graves (R-Ga.) said the VA should bring in outside companies to help with the backlog.

"It's also time to think outside the box when it comes to fixing the VA," he wrote in a recent op-ed piece. "In a digital age, they are under a crush of paper files -- literally. An inspector general report on the Winston-Salem VA office found that 37,000 claims folders were stacked on top of file cabinets."

"Why don't we ask tech giants like Apple, Microsoft, Google and Facebook to help?"

"Our veterans deserve the best system, and it makes sense to ask some of the most innovative companies of our time to either collaborate, or bid for a contract, to create a paperless claims system of ease and efficiency for veterans and the employees at the VA," Graves said.

The October 1 start of registration for the Affordable Care Act (ACA), also known as Obamacare, is closing in fast. Reacting to criticism from both Democrats and Republicans that Obama Administration planners are behind the curve, there are new efforts to explain how the law works and make signing up easier.

The latest step is a major overhaul of the forms consumers will use to shop for health benefits at a health exchange and receive a subsidy. The original form was 21 pages long and packed with insurance industry jargon. The new form, introduced by the Department of Health and Human Services (HSS), is only four pages long, not counting the page of instructions.

Information to provide

The form, to be used by a single person seeking a subsidy to help pay for benefits, requests:

• Name, address, phone, email
• Preferred language
• Date of birth
• Race/ethnic origin
• Income
• Health conditions
• Employment/income
• Current health coverage

You then mail a printed copy of the application to the health insurance marketplace and wait for a representative to contact you. If things go smoothly, that contact will come in a timely manner. But some are worried the system won't work that way.

Train wreck?

Sen. Max Baucus (D-Mont.), an architect of the ACA, worried aloud recently that implementation of the new health law “could be a train wreck.” Even President Obama, at a news conference, acknowledged it won't be easy.

“The challenge in setting up a market-based system, basically an online marketplace where you can go on and sign up and figure out what kind of insurance you can afford and figuring out how to get the subsidies, that's still a big complicated piece of business,” Obama said.

“And when you're doing it nationwide, relatively fast, and you've got half of Congress who is determined to try to block implementation and not adequately funding implementation, and then you've got a number of Republican governors who know that it's bad politics for them to try to implement this effectively, when you have that kind of situation, that makes it harder,” he said.

California prepares

In California, state officials have released a new guide that explains how ACA will change the insurance marketplace. The California Association of Health Plans (CAHP) says the biggest change will be in the individual market, where some small businesses and individuals purchase coverage.

The officials concede that, while residents will get more comprehensive benefits, many will pay more than they are paying now.

"The ACA will provide a host of benefits for Californians, from expanded coverage to federal subsidies," said Patrick Johnston, president and CEO of the CAHP. "However, premiums will still rise for some individuals. Lower out-of-pocket expenses, more comprehensive benefits and the elimination of annual and lifetime limits will ultimately help offset those increased premiums."

If you are receiving health benefits through your employer, these changes won't affect you. The individual market will work with people who currently have no insurance – and consumers who are currently paying for an individual policy – to find the best deal. In California, that's estimated to be less than six percent of the population.

The Affordable Care Act (ACA), also known as ObamaCare, has been politically controversial from the start, dividing the parties, surviving a Supreme Court challenge, and serving as a major issue in the 2012 election.

But after all the fuss, it's still standing and later this year will begin to transform the way consumers obtain and pay for health insurance. The law goes into effect January 1, 2014.

For consumers who currently purchase their own health insurance, or who have no health benefits at all, it will bring about big changes. Currently, consumers must go to a variety of different insurance carriers to shop for and obtain a policy. The new law streamlines the process.

New marketplaces

Health insurance exchanges, or marketplaces, form the bedrock of ACA. Each state will have one or more exchanges that will offer these benefit packages. Individuals may use the exchange to find the policy that's right for them and small businesses can turn to an exchange to shop for a group plan.

The exchanges will offer a variety of certified health plans and provide information and educational services to help consumers understand their options. Under the law, states have the option to establish one or more state or regional exchanges, partner with the federal government to run the exchange, or to merge with other state exchanges.

Regardless of how they go about it, every state is required to have a health insurance exchange for its residents by January 2014. Some states, like Virginia, have refused to set up their own, so their citizens will be covered by an exchange set up by the federal government.

Sign up in October

The health insurance exchanges will open for business October 1, at which time consumers under age 65 may select a health plan. Those 65 and older will continue to be covered by Medicare.

The exchanges will only offer benefit packages that are “certified.” In other words, they must cover certain things. If you currently have an individual policy with a very high deductible and minimal coverage, it is possible that you will be required to replace it.

California is among a handful of states that moved quickly to establish a health insurance exchange. Its exchange, known as Covered California, received federal approval in January.

“This is another significant step in California's long but determined march toward better health at an affordable price," Covered California’s Board Chair Diana Dooley said at the time.

Since then Covered California has been working with interested private health care plans to offer certified health benefit products online for individuals and small businesses. Starting October 1, consumers can begin using the exchange's website to shop for a plan.

Variety of plans

Insurance plans will vary — from generous to modest — but each plan must include basic, comprehensive medical coverage and prescription drug benefits. As with an online travel site, where you can compare airline fares and hotel rates, you’ll be able to compare the plans’ costs and benefits head-to-head online.

These certified health benefit plans are not cheap, which brings us to paying for these benefits. What you, as a consumer, pays will depend largely on your income.

Families below a certain income level will continue to receive Medicaid coverage. Most middle-class families who purchase individual policies will receive a federal subsidy to offset the cost.

Calculating your cost

How much? There are a number of online calculators that help you find out. The Henry J. Kaiser Family Foundation has created this calculator to help you determine your cost. 

Here's an example using the calculator. Let's assume a family of four, in a “medium” cost area of the country, is covered by an individual health insurance plan because the 45-year old principal policy holder is self-employed. According to the calculator, the unsubsidized cost of the average policy would be $14,245, or $1,187 a month.

But under ACA, the family would only have to pay a maximum of 9.5% of their income in premiums. The government would provide a subsidy of $7,120, meaning the premium would be $7,125, or less than $600 a month.

The subsidy will be provided through a tax credit. Ordinarily, consumers would have to wait until they file their federal returns before they receive the benefit. However, under ACA the tax credit available through the health exchange will be available immediately, to offset the cost of the monthly premium.

What to do

Starting October 1, go to your state's online health exchange and begin shopping for a plan. You can find it by using a search engine, entering the name of your state and the words “health insurance exchange.”

If you are currently covered by an employer-issued group plan, Medicare or Medicaid, you do not need to take any action.

With mortgages harder to get, more consumers are renting their homes these days, with rents rising sharply across the U.S.

While homeowners who have mortgages are required to have a homeowner's insurance policy, not all landlords require renter's insurance. In fact, a recent survey by InsuranceQuotes.com found only 34% of renters carried insurance policies.

Many renters may think the property owner's insurance covers them. It doesn't. In case of loss or damage, the landlord's policy just covers the building and their own liability from lawsuits. It doesn't cover the renter's belongings.

With more people now renting, all the major insurance companies offer renter's insurance policies. Whether you take out one depends on your risk tolerance because these policies are not very expensive. According to the National Association of Insurance Commissioners, the typical cost is $185 per year.

Surprisingly affordable

"Renter's insurance is a lot more affordable than most people think," said Laura Adams, senior insurance analyst, InsuranceQuotes.com. "Most renters don't realize that their landlord's insurance usually only covers the structure and not the renter's belongings. And even in a safe area, renters can fall victim to theft, fire, water damage or another calamity. Fifteen dollars a month is a small price to pay in order to protect your possessions and liability in a lawsuit."

Like any kind of insurance policy, your cost will depend on what you buy. There are different levels of coverage and you can select the deductible you're comfortable with. The lower the deductible – the amount you have to pay before coverage kicks in – the higher your premium.

What should rental insurance cover? According to insurance experts at the University at Buffalo, a renter's policy should cover personal property against theft, fire and wind damage. It should also cover:

• Personal liability for accidents of others on your premises
• Damage to property of others in your care
• Living expenses if you're forced to vacate the premises during disasters or repairs.

“Acts of God” excluded

Renter’s insurance usually will not cover you for "acts of God", such as floods and natural disasters.

To get a policy, ask friends or fellow tenants for a referral. If you have auto insurance, you may be able to get a discount by going through the same company.

Just like other types of insurance, renter's insurance coverage isn't always a sure thing. Companies are selective about who they insure.

“I'm sure you can imagine my surprise when they called back to tell me I was denied because I filed a claim over two years ago,” she wrote in a ConsumerAffairs post. “Okay, so I filled a claim for a service that I've paid for, for many years, and now I'm being denied because I actually used that service? Will someone please tell me the logic here?”

Kathleen was in a real jam because her apartment building is one that requires tenants to take out an insurance policy.

Even if you are not required by your landlord to take out a renter's insurance policy, it could still be the prudent thing to do. You might not believe your possessions are valuable, but once you start adding up their replacement value, their loss could hit you harder than you think.

A survey by the Consumer Federation of America (CFA) reaches the surprising conclusion that major insurance companies frequently charge higher premiums to safe drivers than to those who recently caused an accident.

In two-thirds of the 60 cases studied, large auto insurers quoted higher premiums to safe drivers than to those responsible for an accident. And in more than three-fifths of the cases with these higher premiums, the premium quoted the safe driver exceeded the premium quoted the unsafe driver by at least 25 percent.

These higher prices for “good drivers” mainly reflect insurer use of rating factors such as education and occupation that, in a 2012 nationwide survey, over two-thirds of Americans said were unfair.

“State insurance regulators should require auto insurers to explain why they believe factors such as education and income are better predictors of losses than are at-fault accidents,” said J. Robert Hunter, CFA’s Director of Insurance and former Texas Insurance Commissioner.

“Policymakers should ask why auto insurers are permitted to discriminate on the basis of non-driving-related factors such as occupation or education,” he added.

Discriminatory practices

“Unfortunately, the discriminatory practices of auto insurers mainly harm low- and moderate-income drivers,” noted Stephen Brobeck, CFA’s Executive Director. “This damage can be considerable since all states but one require drivers to carry auto insurance, and most Americans need a car to pursue work opportunities,” he added.

CFA priced policies in twelve cities using the websites of the five largest auto insurers – State Farm, Allstate, GEICO, Farmers and
Progressive – who together have over half the private auto insurance market.

It compared premiums quoted to two 30-year old women who each had driven for 10 years, lived on the same street in the same middle-income zip code, and sought minimum liability coverage required by that state.

But these two women differed in several important respects: One was a single receptionist with a high school education who rents, has been without insurance coverage for 45 days, and has never had an accident or moving violation. The other woman was a married executive with a Masters degree who owns a home, has had continuous insurance coverage, and has had an at-fault accident with $800 of damage within the past three years.

There were significant differences among the five major insurers. On the one hand, in every case Farmers, GEICO, and Progressive quoted the safe driver a higher premium than the driver causing an accident. (In several cases, companies refused a quote to the good driver but gave one to the accident-causer.)

On the other hand, in all twelve cities State Farm charged the good driver less. Moreover, in all twelve cities, the rates quoted by State Farm were
either the lowest (6 cities) or the second lowest (6 cities).

“With nearly one-quarter of the private passenger auto insurance business, State Farm dominates the market. If they can be a successful company without using highly discriminatory factors, other large companies should be able to do so as well,” Hunter said.

The full report is available on CFA's website.

It's said that only death and taxes are inevitable. You might want to add insurance to that short list, especially since the new healthcare law will require all of us to be covered

Are you paying more for insurance, less or about the same? According to Bankrate's Financial Security Index, more than a third of consumers in the U.S. saw their overall insurance spending increase last year -- mostly due to rising premiums. In its survey, Bankrate asked people about their household insurance budgets. Relatively few spent less on insurance, suggesting – according to experts -- consumers may be missing out on insurance savings.

The survey says...

The survey results show that 37 percent spent more overall for all kinds of insurance, including homeowners, renters, auto, life and health coverage, while 52 percent spent about the same; just seven percent saw their insurance bill decrease.

Of those whose overall insurance tab rose, 62 percent attributed the increase to a rise in premium costs. Other reasons included: the addition of coverage for a new home, vehicle, boat or RV (12 percent); changes in coverage due to family circumstances, such as marriage or addition to the family (nine percent); and a decision by the consumer to boost coverage on an existing policy (four percent).

Why you may be paying more

Michael Barry, spokesman for the Insurance Information Institute, an industry trade group, says an unusual streak of natural disasters in 2011 almost certainly contributed to a rise in homeowners insurance rates for many during 2012.

"We had Hurricane Irene, the Joplin tornado that was the single biggest insurance event in Missouri history, and widespread winter storms, tornadoes and flooding in interior states like Minnesota," he notes. "While homeowners rates don't move significantly in just one year, when you look at how some of the costliest natural disasters in U.S. history have all occurred in the last decade, this is not a surprise."

Consumer Federation of America's director of insurance J. Robert Hunter has a different prime suspect for the cost increase.

"It's probably health insurance," he says. "That's one that people recognize because a lot of times it comes through their employer, so they have an opportunity to look at various options and think about that policy a little more."

In Hunter's view, the percentage of survey respondents who actually faced higher insurance bills last year was probably higher than the survey shows.

"I'd guess more than half probably had premium increases and just don't realize it," he says. "Consumers are buying insurance in six-month pieces instead of annually, and insurance companies have taken advantage of that. Instead of raising rates 10 percent every two years, they raise them 2.5 percent every six months, and people don't notice that."

Some consumers aren't so sure why they're paying more. Pam of Anderson, SC, says she purchased a term life insurance policy for her husband approximately four years ago after he retired. "New York Life through AARP was happy to draft my checking account for the monthly premiums", she writes in a ConsumerAffairs post. "This month the premium increased with no notification from New York Life - AAPR. When I called to question the increase, NYL would not talk with me because the policy is on my husband. I only wanted to know why the premium increased, no other information. They draft from my account, therefore, I feel I have the right to ask why the draft amount increased!"

Ken of Pasadena, TX, has an auto insurance policy with Allstate. "I just received my premium statement," he writes in a ConsumerAffairs post. "Last year it went up 5%. This is to be expected, all prices increase in this economy. This year, my premiums went up 20%! I have been calling my agent and he is unable to find a cause for this jump. There was no warning this was about to happen, there is no explanation of why. This is unprofessional. I will be moving my account to another insurance carrier."

Inertia could cost you

Hunter says insurance companies know we dislike shopping for insurance, don't understand our policies, and so are prone to park ourselves with one carrier.

"There's a huge inertia in insurance," he says. "People are afraid if they move from a company after 20 years and then have an accident, the company might cancel them, so they pay the occasional $50 (increase) and stay put."

Now that insurers have the technology to identify those inert clients through online buying and other behaviors, chances are if you appear willing to spend a little more, you probably will, Hunter says.

Reining in costs

"Shopping is the key," says Hunter. "When I was insurance commissioner in Texas, we got 25 regular people to bring in their auto policies and 25 their home insurance policies, gave them our buyers guide and a telephone. In one hour, the average person saved $125 per car and $85 on home insurance. We called it the $100 hour."

Barry, of the Insurance Information Institute, offers these tips to save on insurance without unduly sacrificing on coverage:

• Increase your homeowners deductible. "A lot of people can achieve double-digit percentage decreases in their homeowners insurance premiums by going from a $500 to a $1,000 deductible, if you're in the position to pay the first $1,000 out of pocket," he says.
• Adjust your auto policy options. To trim your auto insurance bill, ditch collision coverage rather than comprehensive, especially if you drive an older vehicle. "Collision should be the first to go because it's the most expensive," Barry says. "I would recommend keeping the comprehensive coverage because it covers so many events such as a tree falling on a car or the car being flooded."
• Bump up your auto deductibles. As with your homeowners, it may make sense to increase your auto insurance deductibles, depending on how much risk you're willing to assume. "That will almost certainly result in premium savings," Barry says.
• Bundle home and auto policies. Most insurers offer a discount to customers who purchase more than one type of policy with them.
• Consider a new term life insurance policy. Premiums for term life policies have dropped significantly in recent years. If you currently own a waning term policy, you may be able to purchase the same or better coverage for less by shopping around.

Being in an auto accident is a traumatic event. Even if no one is seriously hurt there can be lasting repercussions, especially if you encounter resistance during the insurance claims process. And that appears to be happening a lot, industrywide.

Diana, of Fresh Meadows, N.Y., reports being in an accident on November 29.

"I was making a left turn in the proper turning lane when a minivan struck me on the right hand side attempting to make a left turn from a middle lane," Diane wrote in a recent ConsumerAffairs post. "Laws of driving, we know this is not allowed!"

Geico insured them both

To make matters worse Diana said the driver of the other car left the scene, but not before she got the make of the car and the license number. She phoned the police and initiated an accident report. She said she also called her insurance company, Geico, providing pictures of her car at the scene. Police quickly tracked down the other driver and Diana assumed all was well. But, she said, the other driver was also insured by Geico.

"Geico inspected the other party's car and found that he had past damage to his minivan but there was no concrete evidence that he had hit my car and now is denying the accident ever happened," Diana writes. "Now he is saying he never touched my car. I have the paint on my car still to prove it and pictures. Geico wants to dismiss this case."

Takeisha, of Ft. Lauderdale, Fla., writes that she was also involved in an accident. Though she says she was not at fault the company insuring the other driver initially refused to pay. She said she was forced to cover the repairs out-of-pocket until she was finally reimbursed. But it turned out she wasn't finished paying.

Escalating premiums

"I had zero fault for the accident yet my insurance premium at Allstateis now more than 200 percent more than it was before the accident," Takeisha wrote. "I have a good driving record. I am over 40 yet my premium is like that of a teen driver. I have paid for insurance and never used it . Why am I being penalized for something beyond my control?"

J.B., of Richmond, Va., reports a two-year wrangle with Progressive after a serious accident injured both him and his children.

"Progressive attempted to allow the statute of limitations to run out, thereby having no obligation to pay me a dime," J.B. wrote. "I had to file a Warrant in Debt to wrangle a settlement from them, which did produce a low ball offer, and they would not offer more."

Advice

J.B. said he went to court to get a higher settlement and said the court granted it, but that the company has yet to pay. His advice to those who get in an accident:

"Get a lawyer, day one," J.B. wrote. "That is the way the lawyers have written the statutes, ensuring their own business."

Lawyers at Lane & Lane, in Chicago, would probably agree with that advice. In the firm's blog, attorneys also recommend that you go to the emergency room, even if you don't feel hurt.

Getting immediate medical attention creates a paper trail you will need should things go sour with the insurance company, as an increasing number of consumers have found.

Residents of Pennsylvania who suffered damage in Hurricane Sandy have gotten some good news. Insurance companies will not enforce hurricane deductibles that normally bear on homeowners' policies.

"Insurance deductibles could have added significant costs to Pennsylvanians already struggling to clean up and rebuild after Hurricane Sandy," said Pennsylvania Gov. Tom Corbett. "Insurance companies have deployed catastrophe teams to Pennsylvania and they have been advised that hurricane deductibles should not be applied to any homeowner's insurance claims."

This is a departure from the norm. Most homeowners' policies carry special "hurricane," "tropical storm" or "named storm" deductibles based on a percentage of a property's insured value. These deductibles typically range from one percent of a home's insured value to five percent.

Proactive response

"We are very pleased with the initial, proactive response we're seeing from insurance companies and their commitment to helping Pennsylvanians recover," Pennsylvania Insurance Commissioner Michael Consedine said. "Insurance companies are experts in managing risk and responding to disaster. We will actively monitor the insurance industry to ensure they are fulfilling their commitments to their policyholders."

That doesn't mean there won't be any out-of-pocket costs. Homeowners, by and large, will still be responsible for paying their standard homeowner deductibles for wind and storm-related claims. They won't be hit with higher hurricane costs.

Regardless of whether you live in Pennsylvania or another northeast state that was in Sandy's path, if you have property damage from the storm you should contact your insurance company as soon as possible.

Here are some additional tips to help when filing a claim:

• Before calling your insurance company, try to locate your policy number and other relevant information. Your company representative will prepare a "Notice of Loss" form and an adjuster will be assigned to assist you. Ask for a timeline on when your agent can help you.
• Take photographs/video before clean-up or repairs. If you have already taken your damaged items out of the house, take pictures of the debris. After you've documented the damage, make the repairs necessary to prevent further damage, but do not make any permanent repairs until an adjuster or company representative is able to inspect the damage and your carrier approves the repairs.
• Save all receipts. Keep a diary of all discussions with your agent or carrier. Cooperate fully with the insurance company. Ask what documents, forms and data you will need to file the claim.

We often hear how unhappy some people are with the settlements they received from their auto insurers.

Take Gloria of Acworth, GA, who is insured by Allstate. “After over 30 years with no insurance claims, I had one minor accident backing out of my driveway,” she says in a ConsumerAffairs post. “Allstate paid $1105 for the repair of my neighbor's vehicle and jacked my premiums $353 every 6 months for the next 3 years. My premium is going up $2118 because they paid an $1105 claim.”

Or John of Congers, NY, regarding his experience with AAA: “Car broke down in Englewood Cliffs and was towed to White Plains. Front bumper was torn from car during the tow. AAA first accused me of doing the damage myself,” he wrote in a ConsumerAffairs post, “then lied and said car was inspected by me and tow truck driver which it was not. Car was towed to an AAA garage, who found the damage and quoted a repair. Then AAA asked me to settle for $150 for a $900 repair job.”

Despite these and other complaints, the J.D. Power and Associates 2012 U.S. Auto Claims Satisfaction Study found that claimant satisfaction with their auto claims experience has increased from last year, driven primarily by an improvement in their perceptions of the fairness of settlement terms.

The study measures claimant satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of the claim, a claimant may experience some or all of the following factors measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement.

Auto-Owners Insurance on top

For a fifth consecutive year, Auto-Owners Insurance ranks highest in overall satisfaction with a score of 887 (on a 1,000-point scale). Following Auto-Owners Insurance are Amica Mutual and Erie Insurance in a tie (876) and Automobile Club of Southern California (AAA) and COUNTRY in a tie (874).

Overall claimant satisfaction has increased significantly to 852 index points -- a 6-point improvement from 2011. Satisfaction has increased in five of the six factors year over year, with settlement, the most important factor contributing to overall satisfaction, increasing by nine points to 846.

Settlement satisfaction has increased by 16 points among claimants with a total loss. The average total loss settlement has increased by nearly $690, compared with 2011, driven by increasing used-vehicle values throughout much of 2012.

"As used vehicle sale prices increase, the value of the loss settlement also increases," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "According to our Power Information Network, a database of vehicle sales transactions, used-vehicle sales prices peaked in May and June of this year, averaging nearly $18,500, compared with approximately $17,700 in January of this year."

Rising costs

Satisfaction with settlement has improved overall despite claimants spending more of their own money. The average out-of-pocket costs incurred have increased by $26 from 2011, to $403. Out-of-pocket costs include claimants' deductible and any additional expenses incurred, such as rental car or repair costs. Settlement satisfaction relies heavily on claimants' perceptions of the fairness of the settlement. In the 2012 study, this is an indication that insurers are managing claimants' expectations more effectively, as satisfaction has increased despite the increase in costs incurred by claimants.

"Providing exceptional customer service is an important element in driving the perception of being treated fairly," said Bowler "Claimants' perception of fairness is more than just the amount of the settlement, especially for repairable vehicles, where claimants are more focused on their vehicle being returned in its pre-accident condition. Focusing on keeping claimants updated and quickly communicating what will be covered in the claim also have a major impact on their perceptions of how fairly they are treated."

Big improvement

One area in which insurers improve the most this year is increasingly offering more options to keep claimants informed of the progress of their claim, with 64 percent of claimants indicating having been offered options, compared with 61 percent in 2011.

Failing to explain and update claimants adequately may lead to their questioning the settlement offer and potentially increasing the rate of negotiations, which negatively impact overall satisfaction.

The 2012 U.S. Auto Claims Satisfaction Study is based on responses from more than 12,508 auto insurance customers who settled a claim within the past 6 months. The study excludes claimants whose vehicle only incurred glass/windshield damage or was stolen, or who only filed roadside assistance claims. Survey data were collected between November 2011 and September 2012.

Auto insurance companies are all about risk management. If you are considered too much of a risk, then you might be at risk of being dropped as a customer.

It happened to Hose, of Fort Mill, of Ft. Mill, SC, who says State Farm dropped him after nine years when he had two claims in two years. He doesn't understand why.

“Why pay for, and have the law mandate insurance if you're dropped when you use the coverage you pay for,” Hose asked in a ConsumerAffairs post. “It's the biggest legal scam going. Then, once they've dropped you, they can code you which makes your next policy cost higher.”

Sometimes consumers find they are not renewed, even though they have made no claims. Insurance companies sometimes do that if there has been an increase in claims in a particular zip code, for example. The company tries to manage its risk by insuring fewer people.

But companies that do that in Massachusetts can run afoul of the law. Massachusetts has a state law called the “clean-in-three” rule. If you haven't had an accident or traffic violation in three years, your insurance company can't drop you.

Two-year investigation

In 2010 Massachusetts Attorney General Martha Coakley's office began investigating Metropolitan Property and Casualty Insurance Company’s (Met P&C) termination of more than 2,600 Massachusetts automobile insurance policies and found some of them violated the law since the policyholders had clean driving records. As a result, the insurance company is required to pay close to $345,000 in restitution to consumers and $50,000 to the Commonwealth.

Under the terms of the settlement with the state, Met P&C will pay 56 consumers a total of $35,000 after their policies were allegedly terminated in violation of state law, and were unfairly assigned to the state’s more expensive residual market -- the Massachusetts Automobile Insurance Plan (MAIP). The company will also pay an approximate total of $310,000 to 2,583 policyholders who were wrongfully non-renewed but found alternative insurance in the voluntary market.

Along with an additional $50,000 in payments to the state, Met P&C has agreed that it will abide by Massachusetts' “clean-in-three” law in the future.

There is no doubt dog is man's best friend, but she can be expensive. There's food, flea and tick medicine and periodic visits to the vet, which can be as expensive as some trips to the doctor.

Then there's your insurance premiums, one of the hidden costs of living with a dog. The Hanover Insurance Group says dog bite claims are on the rise and accounted for more than one-third of all homeowners insurance liability claim dollars in 2011.

If you have a dog living in your household, your insurance company may increase your premium to reflect that. The Insurance Information Institute reports the cost of dog bite claims -- reflected in both medical costs and jury awards -- rose 53.4 percent from 2003 to 2011.

Some breeds aren't covered

While dog bites are covered under most homeowner liability policies, some policies exclude certain breeds. Before adopting, rescuing or buying a dog, The Hanover recommends checking with your insurance agent to see if the breed you are planning to add to your household can be covered.

Some dog owners have taken the precaution of purchasing an umbrella policy to add additional liability coverage. These policies kick in when a liability claim exceeds the normal homeowners policy coverage. Mark Desrochers, president of The Hanover's personal lines business, says a one million dollar umbrella policy can cost between $100 and $300 per year.

Advice

If you don't have a dog but are planning on getting one, the Insurance Information Institute offers these tips for reducing the risk of dog bites:

• Consult with a professional (e.g., veterinarian, animal behaviorist or responsible breeder) to learn about suitable breeds of dogs for your household and neighborhood
• Spend time with a dog before buying or adopting it. Use caution when bringing a dog into a home with an infant or toddler. A dog with a history of aggression is inappropriate in a household with children
• Be sensitive to cues that a child is fearful of or apprehensive about a dog. If a child is or seems fearful or apprehensive, delay acquiring a dog. Never leave infants or young children alone with any dog
• Have your dog spayed or neutered. Studies show that dogs are three times more likely to bite if they are not neutered
• Socialize your dog so it knows how to act with other people and animals
• Teach children to refrain from disturbing a dog that is eating or sleeping
• Play non-aggressive games with your dog, such as "go fetch." Playing aggressive games like "tug-of-war" can encourage inappropriate behavior
• Avoid exposing your dog to new situations in which you are unsure of its response
• Never approach a strange dog and always avoid eye contact with a dog that appears threatening
• Immediately seek professional advice from veterinarians, animal behaviorists, or responsible breeders if your dog develops aggressive or undesirable behaviors

Of course, most dogs are friendly and loving creatures and the insurance industry acknowledges that. Still, they're paid to look at the risks and in recent years, the risks have been rising. The numbers don't lie.

Insurance is one of those things you pay for every month but hope you never use. But when you are in an auto accident or your home is damaged, adequate coverage for your loses and liabilities is indispensable.

However, many consumers purchase insurance policies without fully understanding what they cover. They learn about the limitations in their policy at the worst possible time.

"I pay for free towing for a few different reasons, being I am a single female living in the southeast Houston area," Charity, of Pasadena, TX, wrote in a ConsumerAffairs post. "Now, when I think of free towing, I am under the impression that if for any reason, I should have to have my vehicle towed, it will be taken care of by State Farm because I pay for it with my policy. Wrong! I had to have my car towed due to a blown head gasket and manifold intake gasket."

More costly surprises

And there can be other more serious and costly surprises if you aren't clear what your policy covers and what it doesn't. Nieves, of Worthington, Ohio, got a nasty surprise when his basement flooded.

"I'm not an agent and didn't know until the crisis that I had to have an additional water back-up plan, which my agent finally told me it would have only cost me $35 a year," Nieves wrote. "His staff has offered me all kinds of marketing with regards to my car and knew I had a finished basement and never told me I needed sewage, water back-up etc. I thought this was included. I am not the agent here or his staff."

But ultimately, consumers like Nieves have to take the responsibility to educate themselves about insurance. True, a good agent will ask lots of questions and make suggestions but consumers should take the initiative.

Consumers often in the dark

But many times they don't. A recent survey by MetLife found that 30 percent of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance.

An additional 46 percent don’t know how much coverage they have for their homes’ contents, such as furniture and clothing. Additionally, many aren’t aware of coverage overlaps that may exist, which could result in opportunities to save money.

When it comes to auto insurance, consumers need to know exactly what coverages the policy contains. If a car is being financed, make sure that the payoff in the event of a total loss will be adequate to pay the amount owed. This is a major consideration for leased vehicles as well.

But don't over-insure

Part of getting educated about insurance policies means not paying for coverages you don't need. In some cases, opting for a higher deductible will mean you will pay more out of pocket in the case of an accident, but will result in lower monthly payments.

Insurance, after all, is shared risk. If you expect the insurance company to take on all the risk, you will pay a higher premium each month. But if you are willing to shoulder some of the risk -- raising the deductible for a claim to $1000, for example -- it lowers your monthly costs.

Just be sure the critical needs in both a homeowners and auto policy are covered and you know their limitations.

Most people pay for their homeowners insurance from an escrow fund managed by their mortgage servicer. It's part of their monthly house payment and they probably don't think much about it.

But they should. Insurance costs will vary significantly, depending on where you live, what kind of policy you have and how much your home is worth. Here are some ways insurance industry experts suggest keeping your rates as low as possible:

1. Shop around

It may seem obvious that getting more than one insurance quote would be helpful in getting the best price, but a surprising number of homeowners don't bother. They go with a particular agent or company without doing any price comparison.

Actually, shopping isn't all that hard. According to the Insurance Information Institute, states often make information available on typical rates charged by major insurers and many states provide the frequency of consumer complaints by company. When comparing prices, however, make sure you're comparing policies that provide the same coverage.

2. Increase your deductible

Insurance is something to cover you in the unlikely event you suffer major damage to your home. But some homeowners want a policy that covers them 100 percent, so that they have no out of pocket expense for any kind of damage.

That's very expensive insurance. By raising your deductible as much as you can and paying for minor repairs out of pocket, you'll save hundreds of dollars each year, more than enough to handle the minor repairs. If your home suffers a disaster, yes you will pay more out of pocket but the odds are your home isn't going to suffer a disaster. By assuming some of the risk, you save money.

3. Insure it for the right amount

How much would it cost to rebuild your house if it burned to the ground? Knowing that number is critical to not over- or under-insuring your home. In this market many new homeowners bought distressed properties for much less than what it cost to build an identical house. They should consider the replacement cost, not the purchase cost. By the same token, remember that part of the cost of your home is the land, which doesn't need to be insured.

4. Bundle

If you have done all of the above, you will still want to get the best rate possible from your insurer. While a lot of factors go into setting rates for insurance, most companies will provide some kind of discount if you insure your automobiles as well as your home with them. Some discounts can be as much as 15 percent. Just be sure that the combined price is lower than if you bought different coverages from different companies.

5. Protect your credit score

Insurance companies are increasingly using credit information to price homeowners insurance policies. To protect your credit standing, pay your bills on time, don't take more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.  

You might think the highest car insurance rates would be in the big crowded states -- the ones with lots of traffic, lots of accidents, lots of car thieves and so forth.

But you'd be wrong, for the most part. 

A new study finds that Michigan residents face the steepest car insurance cost burden in the nation, followed by Louisiana, Kentucky, West Virginia and Mississippi.

The study, conducted by CarInsuranceQuotes.com, a Bankrate company, found that the typical Michigan household pays a whopping eight percent of its annual income for car insurance.

CarInsuranceQuotes.com divided the median cost for car insurance by the median household income in each state (plus the District of Columbia) to come up with its list of the most and least expensive states.

The least expensive state is Massachusetts, where the typical household pays 1.43 percent of its annual income for car insurance. North Carolina, Hawaii, Alaska and Oregon round out the five most affordable states.

Click here for a comprehensive breakdown of the car insurance costs in all 50 states, plus the District of Columbia: www.carinsurancequotes.com/car_insurance-costs.

“The laws in each state vary widely,” explained John Egan of CarInsuranceQuotes.com. “For example, part of the reason why Michigan is so expensive is that it’s the only state that guarantees unlimited personal injury protection.

"While you’re probably not going to move to a new state just because of car insurance costs, the most important thing to remember is that – regardless of where you live – you can get a better deal than the Average Joe by shopping around,” Egan said.

To determine median car insurance rates, CarInsuranceQuotes.com used a proprietary system developed by Quadrant Information Services, Inc. that tracks the rates of car insurers in each state. Median car insurance rates were based on actual customer profiles of online car insurance shoppers that can include multiple drivers, multiple vehicles and other variables.

The car insurance data was collected in June 2012. The income data came from the 2010 Census.

If you own a home with a mortgage, the lender requires you to have a homeowners insurance policy. While some landlords require tenants to take out renters insurance, most don't.

Should you have renters insurance? It depends. In some cases it could provide protection and peace of mind at a fairly reasonable cost. The average renters insurance policy cost only $184 per year in 2009, ccording to the National Association of Insurance Commissioners.

But according to the Insurance Information Institute(III) only 31 percent of renters buy renters insurance, according to an survey conducted in May, 2012.

Assess your needs

For those considering renters insurance, a good place to start is a needs assessment, comparing that to what a policy actually covers.

"Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment," said Jeanne M. Salvatore, III's senior vice president for Public Affairs. "While your landlord may be sympathetic if you experience a burglary or a fire, your possessions are not covered by your landlord's insurance.”

Under most renters insurance policies your belongings are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage, not including floods. But if your upstairs neighbor's bathtub overflows, ruining items in your apartment, you're covered.

Another argument for renters insurance is its liability coverage. Just as a homeowners policy protects the homeowner from damages when someone is injured, renters insurance covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Additional living expenses

Most policies cover your additional living expenses (ALE) if you are unable to live in your home because of a fire or other covered peril. ALE pays for hotel bills, temporary rentals, restaurant meals and other expenses you incur while your home is being repaired or rebuilt. However, not all coverage is the same and there are limits.

Probably the biggest consideration in deciding on renters insurance is risk. What do you have to lose?

For example, if you're a college student with limited possessions, protecting those possessions may be less critical than if you are a professional with nice furniture, a big screen TV and an extensive wardrobe.

If you have expensive jewelry, furs, sports or musical equipment, or collectibles, the need for insurance is obviously greater. But keep in mind you may have to add what's called a “floater” to your policy to cover these items.

Most standard renters policies offer only a limited dollar amount for items of extra value. A floater is a separate policy that provides additional insurance for your valuables and even covers them if they are accidentally lost.

Large insurance companies routinely "lowball" personal injury claims to squeeze consumers and generate large profits, according to a report released  by the Consumer Federation of America (CFA).

CFA said that computerized claims’ systems used by most of the nation’s largest insurance companies can be easily adjusted to make broad-scale “lowball” claims’ payments to injured consumers that are less than what they should receive under their insurance policies. The primary author of the report is an expert on insurance claims’ practices and was a longtime insurance executive.

“This report is a wake-up call for consumers and regulators who are not aware of the many ways that computer claims’ software  can be manipulated to produce unjustifiably low injury payments to consumers and tens of millions of dollars in illegitimate ‘savings’ for insurers,” said Mark Romano, CFA’s Claims Project Director.  Romano was the “subject matter expert” on the Colossus injury claims’ evaluation system at Allstate and Encompass insurance companies for almost ten years. Colossus, which is the dominant claims’ system in the marketplace, is sold by Computer Sciences Corporation (CSC).

“When CSC and its competitors talk publicly about computer-based claims’ systems, they stress that the programs allow insurers to more consistently evaluate bodily injury claims,” said Romano.  “Consistency is a legitimate goal, but these companies tell a different story behind closed doors.   Software marketing representatives acknowledge that the real reason insurance companies are willing to invest millions in these systems is that they can dial down claims’ payments to thousands of consumers at a time, regardless of whether these payouts are fair.”

Tuned for profit

The report details the history of the use of Colossus and similar software products by insurance companies.  It provides considerable information about how these programs are set up, “tuned” to reach particular claims’ payment monetary goals and adjusted over time. 

The report also identifies specific techniques that insurers can use to directly and indirectly produce “lowball” claims:

• Directly reduce payments by a predetermined amount across-the-board, without determining whether this will lead to unjustifiably low payments for individual claims.
• Selectively remove higher-cost claims from data used to determine the acceptable range of payments for particular injuries.  This has the effect of lowering payments for all claims of this type.
• Require insurance adjusters without medical training or credentials to second-guess medical professionals by altering injury determinations, thus dictating lower payments for certain injuries.
• Encourage adjusters to downplay or even ignore the likelihood that injured consumers will need future medical treatment or will be permanently impaired, thus lowering payouts.
• Encourage adjusters to determine that drivers are partly at-fault for the auto accident that injured them, even when they may not be.

“Many of the concerns about Colossus and similar programs have focused on the potential for insurers to manipulate these systems directly in order to reduce claims’ payouts,” said Romano.  “But insurers can also use many techniques to unjustifiably lower payments in a more subtle manner, by putting biased or incomplete information into the system.”

The report includes excerpts from recently released court records in a major class action lawsuit, Hensley v. Computer Sciences Corporation, that reveal disturbing information about how Colossus and similar products are marketed to and used by insurance companies.

“These documents show that most of the nation’s top insurers used the Colossus system in ways that put millions of American consumers at risk of not getting the claims payments that they paid for with their premiums,” said J. Robert Hunter, CFA’s Director of Insurance and former Federal Insurance Administrator and Texas Insurance Commissioner.  “The documents also reveal, unfortunately, that top executives at these companies violated their obligation to deliver fair claims’ payments to their own policyholders on a huge scale, in order to increase profits.”

If you have a home mortgage, you are required to carry homeowners insurance. In nearly every case, the premiums are paid from an escrow account by the mortgage servicer.

Increasingly, homeowners like Tamara, of Houston, Tex., have complained that the mortgage company unilaterally insures the property and charges the homeowner. In Tamara's case, she said her premiums had always been paid out of escrow.

“One year we received a notice that Bank of America was attaching their own insurance because ours had been cancelled the year before,” Tamara wrote in a ConsumerAffairs post. “We never received any notice of this from our carrier or the bank until they attached their own insurance. They claimed they paid our home insurance from escrow, the money was definitely gone, but the carrier said they never received it.”

Calling on feds to investigate

The National Consumer Law Center is calling on the Consumer Financial Protection Bureau to investigate what it calls “forced-placed insurance” (FPI), calling it a growing problem for both borrowers and investors.

FPI, also known as lender-placed insurance, is insurance placed on the borrower’s home when the borrower fails to maintain their own insurance policy or provide evidence of insurance as required by the loan agreement.

FPI is a group credit insurance policy sold to the lender or loan servicer and names the lender or loan servicer as the insured. The lender or servicer pays the premium for the insurance when the coverage is placed and then bills the borrower for the FPI premium.

Profitable tactic

The National Consumer Law Center says the practice is increasing because it is lucrative for the lenders.

“FPI is much more expensive than regular, voluntary homeowners insurance—up to ten times more expensive,” the consumer group said in a report. “Because the additional cost of FPI is normally added to a homeowner’s mortgage payments, the high cost of this type of insurance can drive a borrower into default or prevent a borrower who is already in arrears from catching-up on missed payments. The difference in cost, however, is unjustified.”

The group notes that the recent mortgage abuse settlement federal and state governments reached with five major lenders specifically called for reducing instances of FPI. It says Fannie Mae has also revised its servicing guidelines in an attempt to address the problem.

Whether you're living or dying, it's costing you more. A report from consulting and actuarial firm Milliman, Inc., shows health care costs for families are up nearly seven percent in one year.

At the same time, Nursing Economic$, a medical journal, examines the escalating expenses incurred in the process of dying in a special May/June 2012 issue.

Healthcare costs -- mostly insurance premiums paid through employer-sponsored programs -- rose for the typical family to an average of $20,728 this year, according to Milliman. While the 6.9 percent increase over 2011 is the lowest rate of increase in the ten years of this study, the $1,335 increase surpasses last year's record of $1,319.

Illustrates the challenge

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

Families may be surprised to learn their health care costs have reached $20,000 since most only pay part of it. Their employers pick up the rest.

The study notes the future of healthcare remains uncertain, as the constitutionality of the Affordable Care Act is being decided by the U.S. Supreme Court. However, the report notes that, to date, the Act has had only a limited effect on healthcare costs for families covered by an employer-sponsored PPO plan. Longer term, the implications may be more pronounced, researchers say, and will depend on a number of changing and interrelated factors.

"We face a number of different potential scenarios depending on the future of reform," said Chris Girod, principal and consulting actuary with the San Diego office of Milliman. "We have tried to map out what those different scenarios may mean for consumers, employers, care providers, and the government."

High cost of dying

The special issue Nursing Economic$ examines the skyrocketing costs, the discomfort people experience in talking about death, and the emotional strain of end-of-life care. Six research reports are also presented. The authors outline alternatives to the care individuals usually receive at the end of life.

For example, in an article entitled "How Can We Afford To Die," the authors maintain that the U.S. cannot sustain society’s proportional cost commitment to end-of-life care as the baby-boomer generation ages.

"These crises beg the question: How does the United States deal with the substantial costs incurred in the last 6 months of life?" the authors ask.

The issues will get a thorough airing at the 5th Nursing Economic$ Summit, "June 6, 2012, in Washington, DC.

"Now is the time to bury past demons and discussions surrounding 'death panels' and replace them with conversations on progressive approaches to expanding hospice and palliative care, and the use of advanced directives, like living wills, in the United States," said Donna Nickitas, Nursing Economic$ editor.

April was a month of wild, destructive weather in the U.S., especially in the Midwestern states.

During the month's most notable outbreak, multiple central states sustained widespread tornado, hail and wind damage. At least 94 tornado touchdowns were recorded during a 72-hour stretch.

In Kansas, an EF-3 tornado just outside the city of Wichita affected at least 777 homes and 165 businesses. Additional tornado damage occurred in southwest Iowa and northwest Oklahoma, killing at least six people. The economic toll was also staggering.

A report by Impact Forecasting shows the series of severe weather events across central and southern sections of the United States caused upwards of $1 billion in insured losses. Economic losses were even higher.

Consumers feel it

This is relevant to consumers because major losses by insurance companies are usually passed on, in the form of higher premiums or cancelled policies. Even consumers living outside the recent area of destructive impact can feel the impact.

"Without notice, Allstate increased our home owners insurance 24 percent due to 'weather related claims,'" Ray, of Amherst, N.Y., wrote in a ConsumerAffairs post. "There has been no significant weather event in this area since the ice storm of 2007. Adding to the anger is that our insurance rep failed to inform us of the increase while visiting beforehand to review our policy and was non-responsive when asked for some notice from Allstate justifying the increase."

Tina, from Tennessee, says she filed two weather-related claims with State Farm, one in 2008 and one last year.

"We received a letter from them stating that as of May, we would no longer have homeowners with them - they were canceling our insurance because of the two claims," Tina writes. "Really? They are weather-related! Wind and hail! Not neglected home!"

A claim is a claim

But in a numbers-oriented industry like insurance, a claim is a claim. Last month Texas opened an investigation into State Farm's cancellation of 11,000 homeowner policies.

The Impact Forecasting report says a severe weather outbreak in Texas, which comprised at least 21 tornadoes and widespread hail, damaged more than 1,100 homes alone in the greater Dallas-Fort Worth metro region. Various insurers received at least 105,000 claims with payouts in excess of $650 million.

"While not as substantial as the historic 2011 season to this point in terms of overall losses, the 2012 severe weather season has certainly caused significant damage across portions of central and southern sections of the United States," said Steve Jakubowski, President of Impact Forecasting.

While weather damage so far this year has been severe, it may just be beginning. Tornado frequency data dating to 1991 indicates that May is typically the most active tornado month of the year in the U.S., which Jakubowski says is a warning to all consumers to remain aware of potential storm threats.

Texas Attorney General Greg Abbott and State Farm, the state's largest home insurer, are locking horns.

It all started when State Farm notified the Texas Department of Insurance that it was dropping some 11,000 Texas policyholders, specifically those living in the Gulf Coast counties of Orange, Jefferson, Chambers, Brazoria and Galveston.

On April 16 the Attorney General’s Office sent civil investigative demands – a type of civil subpoena – to State Farm Lloyds of Texas seeking information about the company’s decision not to renew more than 11,000 Gulf Coast policies. Late last week, State Farm filed a lawsuit against the Attorney General’s Office in an effort to block the investigation.

No documents

To date, Abbott says State Farm Lloyds has not produced a single document in response to the subpoenas issued by the Attorney General’s Office.

“The largest issuer of homeowners insurance in Texas has filed a lawsuit in an attempt to prevent the Attorney General’s Office from investigating its non-renewal of thousands of residential property insurance policies along the Gulf Coast,” Abbott said. “Given the number of Texans that are affected, we want to ensure that State Farm complies with the law. If State Farm has not done anything wrong, it’s certainly curious that they would go to court just to avoid the State’s subpoenas.”

State Farm, which insures about one and a quarter million Texas homeowners, cancelled the policies effective May 1. Its suit against Abbott's office this week complains that the subpoena is too broad and amounts to "a fishing expedition."

Abbott says his office opened the investigation last month to determine if State Farm engaged in deceptive practices when it notified Texas policyholders of the cancellations.

Fewer consumers are shopping for auto insurance, but of those who do, 43 percent switched from one insurance company to another in the last 12 months, according to J.D. Power and Associates.

It's the largest number of consumers ditching one company for another since the survey began in 2008.

"Although fewer consumers are shopping for insurance, more current customers who do are willing to make a switch based on competitive quotes," said Jeremy Bowler, senior director of the global insurance practice at J.D. Power and Associates.

Bowler also notes that more consumers are switching insurance companies, even though savings achieved through switching had declined. Bowler says consumers saved on average $412 per year by switching in 2010 but only $359 in the last 12 months.

Money isn't everything

Sometimes, there are other reasons besides saving money for switching insurance companies. In a ConsumerAffairs post, Moranda, from Louisiana, says she's dropping Progressive.

“Disrespectful, inconsiderate, unprofessional, and hard to get in touch with,” she wrote.

Charity, of Pasadena, Tex., says she's dropping State Farm over a dispute about towing reimbursement, which she said was covered in her policy.

“I called State Farm and they sent a tow truck, and told me they would reimburse me,” Charity wrote in a ConsumerAffairs post. Inconvenient, but whatever. I called my agent to find out the proper protocol to get reimbursed for the wrecker. I was told they would only pay for up to $80 on towing.”

Targeting the competition

Bowler also notes that insurance companies have increased advertising spending in an effort to attract customers from the competition.

The study finds that 52 percent of auto insurance shoppers start their shopping process online, and 73 percent visit at least one insurer's Web site at some point during their shopping experience. More significantly, 32 percent of customers solely obtained quotes online, and today 34 percent of all recent shoppers state they would most prefer to purchase their new policy online.

The study, now in its sixth year, examines consumer shopping and purchasing behaviors and overall satisfaction among buyers who recently purchased insurance across three factors (in order of importance): distribution channel; policy offerings; and price.

Another recent J.D. Power survey found that overall consumer satisfaction with their insurance company declined sharply in the last three quarters.

When people reach a certain age, they begin to ponder the end of life and what they will pass on to their children. If they don't have many assets, they look to life insurance as a quick way to build an estate, or at least cover their funeral expenses.

But for people 70 and over, getting reasonably priced life insurance isn't always as simple as the TV commercials make it seem. Paul, of Yorktown, Ind., found that out when he learned the premiums on the life insurance policy he had been paying on for years were about to rise dramatically.

"I took what remaining cash value I had and as a AARP member applied to New York Life," Paul wrote in a ConsumerAffairs post. "I was honest and supplied my medical information with the application."

Paul says he has Type II diabetes which is controlled with medication but is otherwise an active, healthy 72-year-old. He was angry when New York Life turned him down for coverage.

Coverage might not start right away

Alta, of Manassas, Va., says her parents signed up for AARP's New York Life policy, which had a two-year waiting period.

"My mother passed away five days before a two-year waiting period for her life insurance policy," Alta writes. "She and my dad took out a small policy each of $5000 to cover their funeral. They were told they were getting the guaranteed life that AARP and NY Life advertise in the mail, email and on TV. What NY Life gave them was a group life and because my mom signed the paper, they now will not pay her life insurance -- leaving my dad to pay the funeral cost that he cannot afford."

Currently, AARP offers four different life insurance products for seniors and they are very different. The lowest level, for example, is limited to a $50,000 death benefit but will be cancelled when the policyholder turns 80, or perhaps even sooner. It starts with low premiums that rise as the policyholder gets older.

Lifetime coverage, or maybe not

The two higher levels offer protection that can last a lifetime, in some cases. The benefit is limited to $50,000 in one case but only $15,000 in the other. The latter is the only policy that does not base acceptance on existing health issues.

All four of the products have no requirement for a physical exam, which is featured prominently in marketing materials. It might lead some seniors believe that life insurance at an advanced age is easy to get and affordable. It rarely is ... for obvious reasons.

Life insurance companies always play the odds. They are betting that you will live long enough to pay them enough to more than offset what benefits they have to pay out. If you don't look like a good bet, they will either pass or price the product they sell to you accordingly.

Many consumers who have reviewed the AARP policies advise others to read all the policy material carefully and talk to a trusted financial adviser before making a decision.

When you're in an accident, the insurance company has a lot of leeway in the repair process, even approving the body shop doing the repair work. But in West Virginia, insurance companies must meet one hard and fast rule – they aren't allowed to mandate used or refurbished parts for the repair.

West Virginia Attorney General Darrell McGraw has sued Liberty Mutual Insurance Company and a West Virginia repair shop - Greg Chandler’s Frame & Body, LLC - for repairing vehicles with junkyard parts in violation of state law.

The suit lists what it says were repeated violations of the West Virginia Consumer Credit and Protection Act by Liberty Mutual and Greg’s Body Shop. McGraw’s office alleges that Liberty Mutual required body shops to repair vehicles with reconditioned, re-manufactured, and used parts in violation of West Virginia law. In addition, he said Liberty Mutual failed to provide the proper notices and written statements to consumers.

In West Virginia, it is unlawful for an insurance company to require the use of salvaged, used, or reconditioned OEM crash parts when negotiating repairs of motor vehicles within three years of manufacture, without acquiring the motor vehicle owner’s consent.

Complaints about junkyard parts

The attorney general began investigating Liberty Mutual and Greg’s Body Shop after receiving evidence that new vehicles were being repaired with junkyard parts. The investigation by McGraw’s Consumer Protection Division confirmed that Liberty Mutual employed a policy that violated state law.

McGraw’s lawsuit asks the court to enjoin the defendants from engaging in this unlawful activity in the future, seeks restitution for consumers whose cars were illegally repaired with junkyard crash parts, and asks for civil penalties.

“My office will always work to insure that West Virginians receive safe, high quality, competent, and lawful repairs to their vehicles,” McGraw said. “Implementing policies that thwart state law in an effort to increase profits is unacceptable.”

Consumers who think they have been a victim of this policy should contact Attorney General Darrell McGraw’s consumer protection hotline at 1-800-368-8808.

For consumers in states other than West Virginia, it might be prudent to call your state insurance commissioner's office when your car is being repaired by an insurance company. Ask what the law states about the use of used, or after-market parts and make sure the insurance company is complying with the law.

Last spring's outbreak of tornadoes caused widespread destruction over a wide area of the south Midwest. Now, some people whose homes were damaged by tornadoes think they are being victimized again by their insurance companies.

“My home was hit with a tornado in April,” Tamara, of Granite City, Ill., told ConsumerAffairs.com. “I am still making repairs to the property. I am beginning to submit receipts. I am being told that I have already been overpaid on my claim! Seriously? I submitted copies of bids for the damage to my kitchen that they are now saying they will not pay for. And, I get a letter that my policy will NOT be renewed in November. I have had State Farm for my homeowners for 30 years and also various autos.”

Tamara believes her policy calls for restoring her home to pre-tornado condition. Obviously, her insurance company has another view. That's why it's important for homeowners to review their policies from time to time to make sure they have the coverage they think they do.

Oops

There are hazards, as well as convenience, when you allow a company to automatically debit your bank account. Mistakes can happen.

“Dish Network took a $91 payment twice for my service on the same day; now they tell me it will take 10-12 days for them to reimburse me,” said Denise, of Rancho Cordovo, Calif. “In this day of technology, this in unacceptable. It took only one day for them to make their mistake. No one is able to tell you why it takes them so long to reimburse even though it is showing on their system as a mistake.”

The simple answer is that businesses go through internal red tape any time they make a refund, even for a payment taken by mistake. Also, they don't mind holding onto your money as long as possible, That's one reason why it's much better to use your bank's online bill payment system to pay your bills and not allow businesses access to your bank account.

Seasonal

Troy, of Dallas, Tex., wonders why Turbo Tax's online tax filing system is taking a few months off.

“I submitted an extension for my 2010 1040 return in April, got approved and wasted time and procrastinated and left life get in the way of me filing before the October 17 deadline,” Troy told ConsumerAffairs.com. Now that being said, I find it extremely disconcerting that the entire website, with the exception of the ability to download a PDF copy of prior year returns, is now unavailable until mid-December! I can understand shutting down E-FILE services, but no access whatsoever to the software for those of us that forgot about our returns?”

It appears to be true. There is a message on the website that reads “Turbo Tax online for tax year 2010 is no longer available.” Another message reads “in December 2011, come back and sign in to a new, more powerful Turbo Tax Online for your 2011 taxes.

Missing drugs

PlanetRX.com seems to be having a problem filling orders in a timely manner. At that's the report from some consumers we've heard from lately.

“I am in the same boat as are many many others,” said William, of Rochester Hills, Mich. “I submitted an order and on the same day they drew the money from my credit card account. It's almost been a month now and I have contacted them over and over to no avail.”

Another consumer said he cancelled his order after being told the medication was back ordered, but never received a refund.

We all know that health care costs are going up, but consumers who receive benefits through their employers might not realize how much.

The employee's portion of the cost is deducted from her paycheck, and might not be that noticeable on a regular basis. The employee may be oblivious to the employer's portion, but rest assured the employer is aware and considers it part of the employee's compensation package.

The Kaiser Family Foundation and the Health Research & Educational Trust (HRET) track the costs of employer-sponsored health plans and now put the average annual cost of family coverage at more than $15,000, the equivalent of a new Ford Fiesta. Employer-sponsored insurance covers about 150 million people in the U.S.

Key findings

The key findings from the 2011 survey, conducted from January through May 2011, include increases in the average single and family premiums, as well higher enrollment in high deductible health plans with savings options (HDHP/SOs).

The 2011 survey includes new questions on the percentage of firms with grandfathered health plans, changes in benefits for preventive care, enrollment of adult children due to the new health reform law, and the use of stop-loss coverage by firms with self-funded plans.

The average annual premiums for employer-sponsored health insurance in 2011 are $5,429 for single coverage and $15,073 for family coverage. Compared to 2010, premiums for single coverage are 8 percent higher and premiums for family coverage are nine percent higher. That nine percent rate compares to a three percent increase in 2010.

Up 113 percent since 2001

According to Kaiser, average premiums for family coverage have increased 113 percent since 2001. Betty, of Marina, Calif., has found her Aetna policy is rapidly going up in price.

“I received a notice a few months ago that my son's insurance premium was being increased $25,” Betty told ConsumerAffairs.com. “The increase started July 2011. I just received a letter on August. 20, 2011 that his insurance premium is being increased again $27, beginning in November 2011.”

With health policies continuing to rise, it becomes a problem for consumers, like Betty, who haven't had a raise in a while.

“Our wages have not increased for at least the last 3 years,” Betty said. “We are barely able to pinch pennies now.”

Remember Hurricane Irene? The storm that roared up the East Coast at the end of August may seem like a distant memory for some. But it's still very real if your life hasn't returned to normal. Tammy, of Clinton, Md., says falling trees damaged her home and three vehicles, while knocking down power lines. She says her insurance company, The Hartford, has been less than helpful.

“The adjuster did not inspect the property until September 7,” Tammy told ConsumerAffairs.com.  “My son and I were unable to remain in the home as there was no power and Pepco would not reconnect the lines until electrical work was complete.  Hartford stated I would have to pay for the tree-cutting and removal, the electrician, contractor, the loss-of-use expenses and and submit for reimbursement.  The total cost thus far is almost $8,000 and I have yet to receive one penny from Hartford after submitting receipts and paid invoices as instructed.

"My funds are down to $32 and I can no longer afford the hotel we were staying in.”

Tammy should call the office of Maryland's Insurance Administration to find out if this kind of delay is normal. Doesn't sound like it should be, even after a natural disaster.

Too Hot

For months, some U.S. consumers have reported problems with the Cuisinart coffeemakers. Here's a similar report from north of the border.

“My Cuisinart coffee maker is about one year old,” said Shelley, of Coldstream, British Columbia. “I was in my home office when I could hear a crackling sound coming from the kitchen. My coffee maker was smoking and the coffee in the pot, about a cup, was actually boiling! I could smell a terrible burning plastic smell. I unplugged the unit and smoke continued to come from the element and the back of the unit. I thought I was going to have to throw it outside! Thank goodness I was home.”

If you have one of these coffeemakers, it might be wise to unplug it when it's not in use.

Coming around

Owners of flat screen TVs are well aware of capacitor plague, when these small electronic components fail, rendering the expensive TVs useless.

“On Sept 18 my 46 inch Samsung TV started clicking when I tried to turn it on,”John, of Grand Junction, Conn., told ConsumerAffairs.com. “I got online and found that Samsung had bad capacitors in the TV`s that were made in 2008. I called them and was told they were no longer repairing the TVs free. The next day I brought it into a repair shop and had three bad capacitors replaced at a cost of $89.45. On Sept 22 I received a call from Samsung and was told they would make the repair. I told the lady that I just paid to get it repaired. She said for that reason she couldn't reimburse me.”

John said he doesn't understand why Samsung won't reimburse him if they were willing to pay for the repair. Most certainly, there is probably a company policy that explains it. What we find most interesting is that Samsung is willing to pay for out-of-warranty repairs to TVs with bad capacitors. Samsung owners should remember this if, and when, their TVs fail.

'Not a spammer'

Candace, of Anaheim, Calif., is angry that Facebook has flagged her as a spammer. It happens, she says, when she sends friend requests that receive no response.

“I was logged out one day, and forced to log in again to an insulting prompt, which informed me that I must be a spammer, and such, I could not request friends or send messages for 7sevendays,” Candace said. “Then I was forced to agree not to send friend requests or messages to people I don't know - something I was NOT doing!”

Candice also expressed frustration that there is no way to contact someone as Facebook. She isn't the first person to express that frustration.

The Consumer Federation of America (CFA) is warning homeowners they may not find it easy to get their insurance companies to pay up for damage caused by Hurricane Irene.

Hurricane Irene could result in up to several hundred thousand claims for wind damage by homeowners but fewer than 100,000 federal flood insurance claims, CFA estimates.

Hurricane Katrina resulted in 1,200,000 wind claims and over 500,000 flood insurance claims. Payments for wind damage from Hurricane Irene will likely exceed $5 billion, while flood claims will not exceed $2 billion, in part because so few people purchase flood insurance in the area hit by Irene, compared to the region struck by Katrina.

In other words, Hurricane Irene is likely to result in wind insurance
losses of about one-sixth of those caused by Hurricane Katrina in 2005, but under 10 percent of the flood claims of Katrina.

"Families will have to dig deeper into their pockets because insurers have been steadily increasing hurricane wind coverage deductibles and imposing other policy limitations," said J. Robert Hunter, Director of Insurance for CFA and former Federal Insurance Administrator and Texas Insurance Commissioner. “This liability shift to consumers may take some by surprise, since disclosures are often buried in renewal paperwork that consumers may not understand or even read,” he said.

“Because so many consumers experienced claims problems in the wake of Hurricane Katrina, we urge homeowners dealing with losses caused by Hurricane Irene to be vigilant with their insurance companies to ensure that that they receive a full and fair settlement,” Hunter said. 

As consumers prepare to contact their insurance companies in the wake of the storm, the Consumer Federation of America offered the following tips.

1.) Report your claim as promptly as possible as insurance companies generally handle them first come, first served.

2.) Once your claim is reported, be sure to get your claim number and write it down. Insurance company claims departments can locate your file easiest by your claim number. 

3.) When the insurance company sends out an adjuster to survey your damage, ask if he/she is an employee of the insurance company or an independent adjuster (I.A.) hired by them. If an independent adjuster, try to secure the name of the actual company adjuster that the I.A. is sending your information to or are they authorized to make claim decisions and payments on behalf of your insurance company.

Keep good records

When you file a claim, you should immediately start a notebook documenting contacts with your insurance company. List the date, time and a brief description of the exchange. If you need to
complain later, this information will be vital.

If an adjuster says he or she will come and does not, write it down. If an adjuster is rude, write it down.

Get out your inventory of possessions or try, at once, to list your possessions. Take pictures of your possessions before the storm and keep them in a safe place. If you later realize you have no pictures when you file a claim, don't forget that your family likely has pictures of rooms in your house (for example, from Christmas or other celebrations) that can be helpful in recreating a list of your belongings.

Obtain a repair estimate from a trusted local contractor to use as a guide in talking with the adjuster. Keep receipts from emergency repairs and any costs you incur in temporary housing. This
may be reimbursable under the "Additional Living Expense" portion of your homeowners' policy.

You may be entitled to money up-front for living expenses, such as hotel costs, if your home becomes uninhabitable. Insurers are usually very good about these initial payments, while the media is focused on the hurricane aftermath. Most claims problems, if they arise, come later, when bigger payments are sought.

Deciding whether to file a claim

You have paid your premium and are entitled to coverage. If you have a legitimate claim, do not hesitate to file it. Insurers treated many people poorly who filed claims for damages caused by Hurricane Katrina.

For example, after Hurricane Katrina, insurers pulled back from offering coverage along the coasts, dumping people into higher-priced, state-run insurance pools. They also cut coverage and raised rates substantially. However, this should not deter you from seeking fair compensation for losses caused by Hurricane Irene.

Indeed, insurers should face greater scrutiny by regulators because of the serious claims problems that occurred after Hurricane Katrina. CFA is calling on state regulators not only to closely monitor insurers to prevent claims abuses but to stop insurers from moving unjustifiably after claims are paid to increase rates and cut back on the coverage they offer.

There is no reason, actuarially, for insurers to raise rates or cut back coverage due to Hurricane Irene, which is a storm well within the projections of insurers’ current rate schedules. Insurers have already raised prices and cut back coverage along the East Coast of
America and no further price or coverage action is called for.

Consumers must also act to protect themselves. To do this, consumers must stand together and agree not to buy auto insurance and other coverage from any insurance company that refuses to
renew policies with consumers who make claims related to Hurricane Irene.

Consumers stood together after Hurricane Andrew, persuading Florida to pass a moratorium on the non-renewal of policies and to look carefully at rate increase applications. Consumers should fight any attempt to use hurricane claims as an excuse not to renew homeowners' policies and should complain to state regulators to assure that insurers do not take such actions.

Claim disputes

If the claim is denied or you feel the offer is too low, demand that the company identify the language in your homeowners' policy that served as the basis for denying your claim or offering so 
little. This approach has a number of benefits:

• The company may be right and you may not know it. Once they pinpoint the appropriate language in the policy, you should be able to make this determination. For example, you may have $400 in damage, but the company could well point out that you have agreed to a
$500 deductible.

• The company may have slipped new limitations into the policy and not adequately informed you. If you feel that you have been misled in this regard, it might be a good idea to consult an attorney. The introduction of percentage deductibles (up to 10 percent of the value of a home) will greatly shift the cost of Hurricane Irene from insurance companies to insurance consumers, as compared to earlier storms. The practice of shifting the cost of previously insured events back to consumers is acceptable, as long as consumers are clearly given the option to select the level of coverage they want with fully informed consent. 

• Another restriction new to many policies is a limit on replacement cost payments, which might come into play in the event that a home is totally destroyed. A typical cap is 20 percent above the face value of the policy. If costs surge because of the spike in demand in
materials or labor from a major storm like Hurricane Irene (or if the state does not monitor price gouging sufficiently) this limit might apply. For example, if a home would cost $200,000 to replace and that amount was the limit on the policy, the insurance company
would pay no more than 20 percent more, or $240,000. If the surge in construction costs due to extreme demand caused the price of replacing the home to jump to $300,000, the homeowner would be short $60,000.

• Once the insurance company tells you the reasons for its action, it cannot produce new reasons for denying payment or making a low offer at a later time. You have locked them in—a major advantage for the consumer.

• If you review the policy and find that, under a reasonable reading, you think you are entitled to the full amount of your claim as you read the language they relied upon, you will likely win if you go to court. Courts consistently rule that if an insurance policy is ambiguous, the
reasonable expectation of the insured party will prevail since the consumer played no part in writing the language of the insurance policy,

How to complain

If you feel that the offer is too low or the claim denial is wrong, the best process for getting your complaint resolved is as follows:

• Complain to more senior staff in the insurance company. Use the records you have kept since the claim process began. The more serious the insurance company sees that you are in documenting how you were treated, the more likely they will make a more reasonable offer.

• Complain to your state insurance department. All states will at least seek a response to your complaint from your company. A few states may actually intervene on your behalf with the insurance company in clear cases of bad claims handling. It is important to dispassionately
present your side of the story, using the notes you have been taking.

• See a lawyer. Now the notes you took are vital. In addition to an award covering your claim, if your treatment was particularly bad, the courts in many states will allow additional compensation when the insurance company acted in “bad faith.” Since insurance companies
take your money in exchange for their promise to make you whole when disaster strikes, they must act in utmost good faith in performing that obligation.

What isn't covered

Homeowners' policies do not cover flood, earthquake, tree removal (except when the tree damages the house) or food spoilage from power failures. Some insurers use an “anti-concurrent causation” clause in their policies that, insurers allege, removes coverage for wind damage if a flood happens at about the same time. CFA believes that these clauses are ambiguous, so if an insurer uses such a clause to deny your claim, read the provision carefully to see if you think it is
ambiguous and, if so, see an attorney right away.

What about flood claims?

The federal government underwrites flood insurance coverage, although insurance companies often service claims. Follow the same procedures as above, except direct complaints to the Federal Emergency Management Agency (FEMA), the government agency responsible for running the federal flood insurance program (1-800-427-4219, TDD# 1-800-427-5593).

The FEMA flood insurance program tips on handling claims are available online.  

Since the National Flood Insurance Program (NFIP) is paid for by taxpayers, and often the same insurance company will handle the claim for both the wind and the flood damage, it is very
important that consumers verify that insurers do not attribute an unjustifiably large portion of the losses they experience to flood damage.

Consumers must be the first line of defense against
insurers shifting costs for wind losses to the NFIP. If you see such potential abuse by insurers, contact your U.S. Representative and Senators so that they can make sure that taxpayers are
protected.

"Not all insurance companies handle claims badly, so go into the claims process with an open mind," said Hunter. "Be vigilant though, or you run the real risk of being shortchanged," he concluded.

If you work for a small business and have health insurance through your company, chances are both you and your employers are overpaying for health coverage.

That's the conclusions of a researchers James Rebitzer of Boston University School of Management, and Mark Votruba and Randall Cebul, both at Case Western Reserve University’s Weatherhead School of Management, and Lowell Taylor of Carnegie Mellon University.

In a paper published in American Economic Review, they highlight the difficulties small employers have in searching for health insurance. Those difficulties, they contend, increase average health insurance premiums paid by small businesses by 29 percent. Naturally, where employees pay a portion of their health benefits, their premiums are also higher.

High plan turnover

When the four researchers began taking insurance markets’ vital signs a few years ago, one fact particularly captured their attention: small employer groups changed plans very frequently. This turnover was something of a puzzle.

“If markets are competitive, plans of similar value should be offered at similar prices,” said Votruba. “It’s costly to switch plans, so if employers are switching plans all the time, it suggests that something is impeding competition.”

The problem, they concluded, stemmed from an inability to easily comparison shop the different plans, a phenomenon economists refer to as “search frictions.”

Search frictions arise whenever consumers are unable to easily compare all the options available to them in the marketplace. This, Votruba, Cebul, Rebitzer and Taylor argue, is exactly the case for purchasers of individual and small group health plans.

Confusing options

"Consumers have hundreds, sometimes thousands, of different options, and each plan has its own unique set of benefit details,” Votruba said. “In this complex environment, it’s hard for consumers to find the plan that offers them the best value. What our paper shows is that this 'shopping problem' has important implications for how market competition plays out. If consumers have a hard time evaluating value, competition becomes less about value, and more about marketing."

Part of the problem stems from the fact there are very few sources of objective information and analysis of various health plans. Most experts who can provide this information are usually trying to sell their own plan.

No need for competition

How this works against consumers, the researchers say, is that all the companies selling health insurance can be less competitive and charge higher rates. Instead of competition forcing all insurers to offer similar plans at a similar low price, frictions enable many insurers to profitably pursue high margin/low volume strategies.

The net effect is that consumers end up paying more for their health insurance – 29 percent more on average in the small group market – and insurers spend more on marketing.

Because it's hard to find objective information about plans, employers are never quite sure they are getting the best deal. That can lead to frequent changes, as businesses drop one plan and go with another.

"High turnover rates undermine the quality of health plans by reducing insurers’ incentive to finance care that makes their policyholders healthier in the future," Cebul said. "Why spend money on wellness or disease management programs – programs which yield a return on investment only after several years – for a policyholder who probably isn’t going to stick around long?"

Judith, of Kissimmee, Fla., is one of thousands of consumers who purchased an extended auto warranty from US Fidelis, which has declared bankruptcy and has ceased operations. It has left Judith, and others like her, high and dry.

“I purchased an extended warranty with US Fidelis and now that company has been shut down by the Attorney General in Missouri,” Judith told ConsumerAffairs.com. “I paid over $2400.00 and the last payment was made a couple of months ago. The lady took my payment over the phone even though I just found out they have been shut down and the two owners have been indicted. What can I do? I lost my job and struggled to get these payments made which I paid off and now I have no warranty. How can I get my money back?”

A year ago, Missouri Attorney General Chris Koster asked the federal bankruptcy court to order the appointment of an independent trustee over the US Fidelis bankruptcy proceedings, with the goal of protecting assets for the company’s customers.

Koster also urged the need for a top-to-bottom, scrupulous financial examination of the company, citing concerns regarding explicit business practices intended to defraud consumers. At the time, Koster made clear that the filing of the US Fidelis bankruptcy does not end the state’s interest in protecting policyholders of the company. Judith should contact Koster's office to learn the status of those efforts.

Illegal pitch

Beware of companies that call you on the phone and promise they can lower the interest on your credit cards. In nearly every case, it's an empty promise.

“I was told they could lower my interest rates on all my cards to as low as 1.24 – 6.9 percent fixed rate for the life of the cards,” said Lucy of Weirsdale, Fla. “They couldn't guarantee an exact percentage but it would fall in that range.”

Lucy said the telemarketer told her a new law that had just passed that allowed companies like Consumer Credit Group to help Americans get out of debt faster. She was also told it was a one-time deal and they would go to the next consumer if she didn't take the deal the same day.

That, of course, is untrue. There is no such law and the pressure tactic of saying she had to act immediately should have told her it was not on the up and up, but she said she was caught off guard and agreed to pay an advance fee of $795.

“Boy do I feel like a big dummy,” Lucy said. “I'm a single mother struggling to make ends meet but am veru proud of paying all my creditors on a timely manner, and then to get taken for a ride like this.”

While the “law” Lucy said the telemarketer mentioned does not exist, there is a law that bans telemarketers from collecting an advance fee to help consumers with credit and debt problems before actually providing the service. Lucy might have a chance of getting her money back if she complains to Florida Attorney General Pam Bondi's office.

Not covered

Computer problems are aggravating, especially if you think they are covered by a warranty and they aren't.

About two weeks ago, when shutting down my computer, it said there were updates to install. It took forever for them to install and when I turned it on in the morning, it stayed on the blue Microsoft page” Cleo, of Clearlake, Calif., told ConsumerAffairs.com. “Since under warranty I took it to the Best Buy in Sacramento, where they said the system needed to be restored. “I said to go ahead and restore it as it was still under warranty. When I went to pick it up I was told there was a $200 charge. I asked why, since it was still under warranty? He said that only is for hard drives etc. “I was not informed of a charge or told the warranty does not cover restoring.”

Cleo may be annoyed, but it is really up to the consumer to know what the warranty does, and does not cover. A manufacturers warranty typically covers parts and labor. It would have been nice, however, if Best Buy had informed Cleo ahead of time what the charge would be for restoring her system.

Thanks to the new health care law passed last year, millions of people now without health insurance will be required to get it. But some health researchers say that doesn't necessarily mean more people will get better health care.

Since 2005, U.S. doctors have been accepting fewer and fewer patients with health insurance, according to the research team, which reports its findings in the June 27th issue of Archives of Internal Medicine.

As a result, says Dr. Tara Bishop, assistant professor of public health at Weill Cornell Medical College, and lead author of the study, insured patients could face new obstacles to receiving the medical attention they need, and overall access to health care could actually contract.

Bishop, who is also a practicing physician at New York-Presbyterian Hospital/Weill Cornell Medical Center, and her fellow investigators looked at survey data from a national survey run by the CDC's National Center for Health Statistics and found an overall decline in physician acceptance of several types of insurance.

First, they noted a modest drop in acceptance of Medicare patients, from 95.5 percent in 2005 to 92.9 percent in 2008. Doctors also turned more and more Medicaid patients away over the four-year period -- a phenomenon the authors attribute to Medicaid's historically low reimbursement rates.

Privately-insured patients fall from favor

But the most surprising decline of all was seen in doctors' acceptance of new patients with private insurance.

"Given the medical profession's widely reported dissatisfaction with Medicare, we expected to find hard evidence that Medicare patients were being turned away," Bishop said. "Instead, we saw only a modest decline in doctors' acceptance of patients on Medicare. The survey data showed a more significant decline in their acceptance of patients with private insurance."

Physician acceptance of patients with traditional fee-for-service private insurance declined from 93.3 percent in 2005 to 87.8 percent in 2008.

What's behind the change?

This change could be traceable to two major factors, she explains: inadequate reimbursement levels that have not kept pace with medical practice expenditures; and the tangle of administrative issues that go hand in hand with private health insurance.

"At a moment when the country is poised to achieve near-universal coverage, patients' access to care could be a casualty of the collision between the medical profession and the insurance industry," said Bishop.

The researchers say they hope their study will alert policymakers to potential problems in health care access, exacerbated by current shortages in primary care, an aging population, the growing prevalence of serious chronic diseases, and the imminent expansion of health insurance coverage as mandated under health care reform.

"Consumers and health advocacy groups, too, should be aware of these early warning signs so that they can work to ensure access to quality medical care," Bishop said.

When consumers borrow money for almost any purpose, they are often offered the option of purchasing credit insurance.

That's a policy that insured repayment of the loan, even if the borrower dies, becomes disabled, or loses their income. Maryland Attorney General Douglas Gansler says it's notorious for being one of the most overpriced insurance products and consumers should go into any purchase with their eyes wide open.

“Consumers need to know what they are buying and how much it will cost before they commit to paying for credit insurance,” Gansler said. “Before you sign any contract, understand all the terms and costs.”

Rarely required

Gansler said credit insurance may be sold under the pretense of being mandatory, but rarely is. In Maryland, for example, lenders cannot require the purchase of most types of credit insurance. Lenders can require credit property insurance on loans secured by a piece of property, or a destructible possession, but a consumer is allowed to choose the insurance company.

There are three types of credit insurance:

1. Credit Life Insurance, which pays off an outstanding loan if a consumer dies;
2. Credit Disability Insurance, which makes payments on a loan if a consumer is disabled; and
3. Credit Involuntary Unemployment Benefit Insurance, which makes payments on a loan if a consumer is involuntarily unemployed.

Credit insurance really only benefits the lender. While it protects the consumer from default, any benefit is paid directly to the lender.

Consider the alternatives

If consumers wish to purchase insurance, they should consider a few alternatives, Gansler says, including checking to see if their current homeowners or life insurance policy provides adequate coverage.

As with other forms of insurance, it is important for the consumer to check the policy closely before agreeing to its terms. Some good questions to ask include the length of any waiting period, limitations, cancellation terms, coverage length, financing and comparability to other similar policies.

Mortgage insurance is a type of credit insurance that is often required on some home loans, to protect the lender in the case of default. Mortgage insurance is usually required on loans where the consumer is borrowing more than 80 percent of the purchase price.

So, your insurance company canceled your policy? You're not alone. Even a former insurance agent says his policy was pulled. Michael, of Spanish Fork, Utah says he was once an agent with Nationwide Insurance and has just learned the company canceled his policy. And he's not happy with the way it was handled.

“This happened more that seven months ago without any notification,” Michael told ConsumerAffairs.com. “Normally if a policy is non-renewed the agent would call and inform the client so that other insurance could be put into place in a timely manner. Not only did I not receive any calls regarding the termination but did not receive any termination notice from the company despite their claims that they sent one to me.”

Michael says he is still at a loss as to why he was canceled. He says he's had the same policy in effect for the last four years. We have received other reports of canceled policies, especially in the wake of weather disasters.

Dangerous scam

Over the last week ConsumerAffairs.com has seen an increase in reports from consumers reporting contact by the scammer who claims to represent Fast Cash USA. The the sound of it, it's the same operation, they just keep changing the name of the payday lender they supposedly represent.

“I received a phone call from a financial Fraud Claims stating they were calling on behalf of USA Fast Cash,” said Kim, of Newport News, Va. “He stated that they were taking charges out against due to a payday loan I took out, canceled and they could not get back.”

Kim didn't recognize this for the scam that it is, but fortunately she didn't fall for it either. The name, who threatened to have her arrested, demand that she fax a copy of her drivers license and financial information. She refused, but is worried.

What she should be worried about is this character has her personal information. Where he got it is the million dollar question. The fact that most of the targets of this scam did, at one time, apply for a payday loan might be an indicator that the information was stolen from, or sold by, a payday loan company. This seems ripe for a Federal Trade Commission investigation.

If you get one of these calls, hang up immediately. Then, contact all three credit reporting agencies and place a fraud alert on your account.

Not my plan

Jane, of New York, feels like she has been a victim of bait and switch at the hands of Vonage.

“I signed up with Vonage for a $17.99 for 500 minutes of VoIP service,” Jane told ConsumerAffairs.com. “They have informed me that they are now charging me $19.99 for more minutes, which is not what I want. They are refusing to offer me the initial baited offer but have now switched me to higher rate.”

Communications companies routinely have wording in their terms of service that say they are allowed to substitute your plan with another, if they discontinue the plan you are on. It does seem unfair, especially since they require you to commit to a two-year contract.

Long-term care insurance is expensive. It's expensive for the policyholder who has to make monthly payments. It's also expensive for the insurance company when it has to pay off.

Robin, of Gilroy, Calif., says her mother purchased a comprehensive individual long term Care insurance policy in 2002. She paid her premiums in full on time annually. But after her mother suffered a massive stroke last summer, Robin said she has had trouble getting John Hancock to pay for the 24-hour care her mother requires.

“The first check we received was issued February 16, 2011 in the amount of 2520.00,” Robin told ConsumerAffairs.com. “I have made numerous phone calls with wait times in the range of 45 minutes. I have left over 15 voice mails. I have sent several emails to management who responds that some one will call me. That has still not happened. I have re-submit billing. I made up my own excel spreadsheet to send and help explain why they owe us much more money. I have sent the spreadsheet and re-submitted billing twice. They have not responded once. No calls, no correspondence. Nothing.”

As of this date Robin estimates the insurance company owes $22,860.00 and wants to know what she should do.

Because she has not gotten satisfaction from John Hancock, or an explanation for non-payment, Robin should probably have an attorney fluent in insurance matters review her policy. If she has misunderstood the terms of the policy, it can be explained to her. If she is correct in her estimate of what is owed, an attorney can advise a proper course of action.

Calendar issues

Daisy, of New York, N.Y., thinks Federal Express is having trouble keeping up with the days of the week.

“Our office is located in midtown Manhattan. We have been using Fedex sending packages for years,” Daisy told ConsumerAffairs.com. “But, lately, Fedex keep billing me $15 Saturday Pickup, but packages were pickup on Friday.”

From January 21 to April 8, Daisy says FedEx wrongly billed 16 packages.

“I had to dispute this $15 every time I received invoice,” she said. “Even though I got my $15 back it still bothers me that I have to do it again and again, every week.”

It sounds like Daisy has a standing pick-up order with FedEx for Friday. Somehow, perhaps, that got entered into FedEx computers as a standing Saturday pickup. Maybe if she canceled her standing order, then re-established it, they would get it right.

Count your blessings

Ruth, of Starke, Fla., hopes to buy a home and needs a mortgage. She said she found on online lender called closeyourownloan.com that advertised loans even if you have bad credit and can't verify your income. Ordinarily, that's when alarm bells should start to go off.

“Close your own loan denied my application because they said I didn't have credit history that's not the case,” Ruth said.

Ruth is miffed that she was denied credit, but honestly, she may have dodged a bullet. It's likely Ruth, who says her credit scores are in the mid 600 range, would do better by going to a community bank in her area. She could also join a credit union and perhaps get a loan there.

We've seen this movie before.

The case of the Hollywood Video late fees might make a good mystery movie. We continue to get complaints from former members of the now-defunct movie rental chain.

“Like so many others, I too received a letter from National Credit Solutions saying I owed $103.50 for one late movie over a year and a half ago,” Kathy, of Ankeny, Iowa, said. “Our local Hollywood Video had long since been closed. I called NCS confused what the charge could be for and spoke with an extremely rude representative who in the end hung up on me. She did however offer to close my case for a reduced payment of $40.00. I refused to pay for anything since I knew of nothing I ever owed to Hollywood Video, I never once received a bill or phone call from them.”

Kathy said she resolved the issue by writing a letter to NCS requesting any and all information that pertained to the amount owed including all charges, payments and write-offs to her account. She's heard nothing from them since.

We find it interesting that nearly every consumer who reports this experience seems to owe an amount more than $100, and that the NCS rep always seems very willing to bargain the amount down to something less.

Much of the opposition to “Obamacare” has centered around its supposedly unprecedented requirement that everyone must have a health insurance policy in place. But as a group of retired federal employees will tell you, this is hardly the only federal health program that lacks an opt-out provision. (Consumer complaints about Social Security).

A federal judge has ruled that retirees cannot opt out of Medicare Part A, the part that covers hospital stays, unless they are willing to forfeit their Social Security checks and repay all of the benefits they have already received.

Though sounding sympathetic, Judge Rosemary M. Collyer of the U.S. District Court for the District of Columbia declared her hands were tied.

“Medicare costs are skyrocketing and may bankrupt us all; nonetheless, participation in Medicare Part A (for hospital insurance) is statutorily mandated for retirees who are 65 years old or older and are receiving Social Security Retirement (so-called ‘old age’) benefits. Whether Congress intended this result in 1965 or whether it is good fiscal and public policy in 2011 cannot gainsay the language of the statute and the regulations,” Judge Collyer wrote.