Insurance Goal for California Commissioner

Dave Jones, the Insurance Commissioner of the state of California made his top goal and target is to reform and make the fixes needed to the health care insurance system. He is pursuing to do what he can in order to stop the excessive increase in the rates of health insurance. In order to achieve that, he decided to support a ballot that would do just that. It is called the Insurance Rate Public Justification and Accountability Act.

He was asked about several things regarding this ballot and the health care system that was presented by Barack Obama’s administration. He first talked about the only way to aid the uninsured citizens of California, whose numbers are estimated to be six million uninsured resident. The solution for this is to simply carry out the Affordable Care Act that was presented by the federal govt. Besides that, insurance firms will have to cover everyone despite any existing conditions. This is because having everyone insured it will certainly help, because if this doesn’t occur, a lot of people who are uninsured will end up in the ER rooms, which is very costly.

He then started to talk about what will happen if the “Affordable Care Act” gets overturned by the Supreme Court of the United States. He said that it is very early to predict what will happen and what will be the ruling of the Supreme Court. Barack Obama and his administration stated that this is the only plan they have, no backup plan. So in California, he and his administration are doing their best in order for everything to work in the way it should. He then started to talk about the ballot that he is supporting and backing, he said that he has been battling for 7 years in order for a legislation, but he always failed because that HMOs have tremendous influence in the Senate of the state. So he decided to go another way and get the support of the voters, and this is the reason behind his support for this measure that is expected to go on the ballot of November. He then continued and said that there are many states who give their commissioner the ability to refuse and prevent the increasing rates, a sum of thirty four states.

He was then asked about the opinions that say that in order for such law to be carried out; it will cost the state a lot of expensive fees and costs. He answered and said that the numbers that are estimated are exaggerated, and either way, these fees will not cost the regular taxpayer any more payments. This is due to the fact that these costs are going to be paid by the fees implemented on the insurance firms.



Long Term Care Policies

On the first glance, the long term care policies that insurance firms provide seems perfect, as they help the individuals pay the expensive costs when they are in need of daily care of a nurse. This is due to the fact that when a person can’t take care of himself, and his daily needs can’t be met by his friends and relatives, bills will start to pile up. Another option is joining a nursing home center, which can become very costly and expensive, and there is no estimation on the amount of time that you will stay there, as it might be forever. This is why it seems that purchasing a long term care policy form insurance company seems to be the best way to satisfy your needs in the future when you are no longer able to satisfy your daily need.

On the other hand, analysts and experts in this field have stated that insurance companies use devious tactics and exploit the fear within the people to sell their policies. While in fact, these policies are not the magical solution for this kind of problem as people think. This is due to the fact that these kinds of insurance policies are in fact not vital and they cost the insurers way more than the things and benefits that they get in return. They add that people would get more and pay less if they self-insure or depend on the programs that is offered and funded by the govt.

Responding to such allegations, a professor at George Mason University, Mark Meiners begs to differ. He said that saying that is basically hoping for the best, which isn’t always going to happen. He said that people have to be ready and embrace the fact that there is a big possibility that they would in fact need long-term care when they grow older. It is something that has to be planned with care. He backed his allegations by saying that people who are older than 65 years don’t have good odds when it comes to health. According to studies, seventy percent of people who are older than 65 years end up needing long term care. Long term care usually costs about 200 to 250 dollars per day, so in a matter of months, the life savings will vanish.

The reason that a lot of people don’t consider purchasing long term insurance is that they have many misconceptions about Medicare. Some people think and believe that long term care is covered by Medicare, but the truth it, it isn’t covered. On the other hand, Medicaid covers for long term care, but it is a service for the poor. Plus, a lot of states are cutting back on it, so you are not guaranteed to get a good quality care service.

Mass. Governor Wants to Save Constituents Money

It has been stated, 5 years ago, by Deval L. Patrick the governor of the state of Massachusetts that he alongside his administration has one thing in mind, saving the money of the consumers and the residents of the state. He started doing that as he deregulated the infamous and stupidly costly Bay State insurance for cars business. He presented a new idea that was named “controlled competition”. At first, this new approach worked the premium rates of cars insurance decreased by almost 14% in two years, from the year it was implemented in 2007 to 2009. Then, things started to change, as according to the numbers provided by Martha Coakley, the Attorney General, the premium rates started to increase once again. It increased by 18% at Plymouth Rock and Liberty, increased by sixteen percent at Progressive and Commerce and an unbelievable increase of 30 % at Premier/Traveler.

Coakley is also known for representing a lot of clients in cases that are related with insurance. She stated that many of them are pissed because of the sudden increase of rates, and they demand transparency. As the consumers have the right to know the reason behind any increase in the rates. As was stated by an analyst in automotive insurance, Diedre Cummings, who is also the a Legislative Director in Massachusetts, he said that a lot of people voiced their concern when the administration of Deval L. Patrick carried out the deregulation that sooner or later, the rates will eventually increase. They were right, as this is exactly what we saw happen after 2009.

He added that this deregulation has only served the rich clients. This is because the big clients with many assets are always targeted form companies to provide them with insurance packages. These insurance packages include home, boat, car and other types of insurance. So, these rich customers are the ones benefiting for such deregulation.

On the other hand, these benefits are coming at the expense of the poor people who don’t have their own boat or home, and they suffer badly from the increase of such rates. Responding to the allegations of Diedre Cummings, the executives of the insurance business state that it was only normal for the costs and rates for insurance to drop in 2007 and 2008 and increase after 2009. This is due to the fact that that year was a recession year, and few people bought new cars, so, the rates for insurance decreased. After the economy stood back on its feet, the people started to purchase new cars once again, and it was only normal for the rates to increase.

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