Insurance Space

Adult patients without health insurance admitted to intensive care units in Pennsylvania hospitals had a 21% higher risk of death compared to other patients with private insurance, according to University of Pennsylvania researchers.

The differences in mortality risk were not explained by patient characteristics or differences in the hospitals they were admitted to, suggesting that uninsured patients might be receiving poorer quality care—for a variety of reasons. The findings are being presented this week at the American Thoracic Society 2010 International Conference in New Orleans.

Pitching President Barack Obama’s health care law to skeptical business owners, the IRS on Monday will announce ground rules for small firms wishing to claim a new federal tax credit for health insurance.

Created under the health overhaul law, the tax credit covers up to 35 percent of the premiums that certain small businesses pay on behalf of their workers. The IRS notice addresses unanswered questions about the benefit, which is available starting this year.

One of the oddities of California politics is the way different factions use the initiative process to try to sneak into law programs and policies that, given full attention and airing, would die an inglorious death. Add Proposition 17, the bizarrely named “Allows Auto Insurance Companies to Base Their Prices in Part on a Driver’s History of Insurance Coverage,” to the list of propositions-as-shell games.

The third biggest U. S. health insurance company Aetna Inc. today announced that, the profits rose to 29 per cent as the company lowered its cost and raised its premiums. In the first quarter, the net income rose up to $562.6 million, which is almost $1.28 per share. The revenue almost rose up to less than a percent to $8.62 billion.

Aetna spent almost 82.5% of premiums collected from medical care members, from last year’s 83%. The health care law will necessitate the spending of almost 80% of premiums gained from the health benefits in an alternative to profit of the administrative expenses.

Republican candidate for governor Charles D. Baker Jr. is targeting municipal retiree and employee health care plans to save “hundreds of millions” of dollars in government spending.

Mr. Baker yesterday said the funds could be saved with state approval of a bill that would allow cities and towns to increase the share of premiums paid by employees and retirees. It would also, without union agreements, swap current insurance plans for others that provide less medical coverage and higher co-payments.

The nation’s sweeping health care reform signed into law barely a month ago has yet to be implemented with most of its provisions delayed for another four years. Yet Senate Democrats aren’t letting any of that stop them from taking the federal government deeper into the health care business with a proposal to have Washington intervene to set insurance rates.

The bill by Sen. Dianne Feinstein of California would allow the secretary of Health and Human Services to review insurance premiums and stop any rate the secretary determines to be unreasonable in some states.

The timeline on the Financial Reform Bill remains in doubt. Democrats seem to be pushing for a vote to put pressure on the GOP to make compromises. Democrats believe it will be a difficult political move during an election year for those who oppose the bill to be seen as not taking action against Wall Street abuses and forcing banks to reimburse the government for taxpayer funded bailouts. Senate Majority Leader Harry Reid (D-NV) said that he may wait until the beginning of next week to bring the financial reform legislation to the Senate floor. That will allow for more time to try and reach a compromise.

A House bill to reauthorize the National Flood Insurance Program through September 2015 falls far short of reform the program needs for financial solvency, experts and politicians testified during a congressional subcommittee hearing Thursday.

NFIP’s instability was the main reason cited by those who oppose U.S. Rep. Gene Taylor’s proposal to offer optional wind coverage. Taylor, D-Miss, was joined by Rep. Steve Scalise, R-La., in advocating wind coverage through NFIP. Both talked about the inherent conflict in having private insurance companies adjust their own wind claims, along with NFIP claims, after hurricanes.

A Suffolk Superior Court judge yesterday ordered two of the state’s largest health insurers to submit April 2009 rates for insurance covering individuals and small businesses, the latest development in an ongoing dispute between the state and carriers over premium increases. Both companies said they would comply, even as they proceed with administrative appeals in an effort to charge higher rates.

Judge Stephen E. Neel said Harvard Pilgrim Health Care of Wellesley and Fallon Community Health Plan of Worcester must follow orders from the state’s Division of Insurance to submit premium increases formulated using last April’s base rates, instead of the higher figures the companies were seeking to use. The 2009 rates average 8 to 12 percent lower than what Harvard Pilgrim wanted, and 18 to 32 percent lower than Fallon’s 2010 premiums.

Thousands of college students scheduled to lose their parents’ health coverage when they graduate this spring got a reprieve Monday from several major insurance companies.
UnitedHealthcare, Humana, Kaiser Permanente and WellPoint said they will put into effect some provisions of the new health care law ahead of schedule to let adult children stay on parents’ plans until age 26.

The law’s provisions relating to young adults won’t take effect until Sept. 23, but the companies said they are changing rules now to prevent young adults from falling into a coverage gap. Many plans have required adult children stay in school to keep dependent coverage, and age cutoffs vary by state.