I’ve been following the Healthcare Reform debate. Finally, President Obama and the Democratic congressional leadership are taking the gloves off in the fight to pass Healthcare Reform on behalf of the American people.
The Obama Administration and the Democratic congressional majority have taken a beating throughout the summer by attacks lead by the powerful insurance company cartel and their paid lobbyists and right wing media apologists. Now, the tide is turning.
As reported on 10/21/2009 by Christopher Stern of Bloomberg.com, the U.S. House of Representatives Judiciary Committee voted to end the health insurance company’s federal anti-trust exemption which has resulted in de-facto monopolies throughout the United States.
Together with a meaningful public option, the end of the insurance companies’ federal anti-trust exemption in the health insurance market will help ensure meaningful competition which will mean lower costs to American business and the American people.
Ending the insurance companies’ federal anti-trust exemption is but one step toward leveling the playing field to help restore the market.
The consolidation of power by a handful of insurance companies has helped stifle competition while driving costs through the roof. Similarly, the unregulated consolidation of power in a small group of mega-corporations — whether it’s the insurance companies like AIG, mega banks like Bank of America or Wall Street investment firms like Goldman Sachs– set the stage for the global economic disaster. In addition to ending the insurance companies’ federal anti-trust exemption, Congress should pass meaningful regulatory reform that will cover hedge funds, derivatives and include capitalization requirements.
A large part of the problem facing this country is a loss of confidence in our institutions. More and more, people feel that it’s a rigged game where the house always wins. To fix this, we need to break up unfair monopolies, enforce common sense regulation and insist on transparency and accountability.
Ending the insurance companies’ federal anti-trust exemption won’t solve the health care crisis by itself, but it’s a good start.
Copyright © 2009 John J. Sheehan
In order to hook you in as a prospective new client, auto insurers or agents in Massachusetts may try to quote you a rate for Massachusetts auto insurance with a PIP deductible claiming that they’re offering you a savings on your premium. Don’t do it!!
Insurers such as Progressive Insurance may have you fill out an insurance application online for Massachusetts auto insurance. There may be a question asking if you have health insurance. If you answer yes, the insurance application may even apply a PIP deductible by default.
What does that mean and why should you care?
In Massachusetts auto insurance, PIP (”Personal Injury Protection” Benefits) is the term used for No-Fault Benefits. These are insurance benefits that pay for accident related medical expenses and lost wages in the event you are injured in a car accident. PIP or No-Fault Benefits are paid by the insurance company for the car that you are driving or occupying at the time of a car accident even if you are the at fault driver. That’s why they’re called No-Fault Benefits.
In Massachusetts, PIP benefits are compulsory. The insurance company or PIP Carrier has to include them by law. However, you can claim a PIP deductible for yourself and your household members. Anybody else who is a passenger in your car or driving your car with your consent, will be covered by PIP in the event of a car accident resulting in injuries.
So what you ask? Here’s the so what. By claiming a PIP deductible you just let your auto insurer off the hook for up to $8,000.00 in the event that you are injured and disabled from work as a result of a car accident.
Who cares? You should. For a paltry savings of less than $50.00 (estimated cost), you waived your right to benefits that the insurance company has to sell you by law and which cover all non-household members who are injured in a car accident while occupying your car even if you claim a PIP deductible.
Taking a PIP deductible is a sucker’s move IMHO! Who really saves? Your insurance company — not you. For peanuts you’re giving your insurance company a gift to them that is potentially worth up to $8,000.
I seriously doubt that your insurance company or insurance agent explain the consequences of claiming a PIP deductible when you apply for insurance. Just like they don’t explain that you should have the maximum coverage if you own significant assets like a home. Just like they don’t explain that the optional coverage for BI, UM and UIM coverage should be the same amounts on your policy.
Complicated stuff? Consult a lawyer. Protect your legal rights.
Copyright © 2009 John J. Sheehan
Many people mistakenly think that they have full coverage with their Massachusetts automobile insurance policy. In my experience, this is frequently not the case for all optional coverages.
For example, someone may have $100,000/$300,000 for Optional Bodily Injury to Others on their policy, but only $20,000/$40,000 for Uninsured or Underinsured Motorist Benefits.
What difference does that make? Well, no difference until something goes wrong like an accident occurs resulting in serious injury. If you are injured in a car accident caused by another driver with only minimum insurance coverage or, worse, no coverage at all, you yourself may be limited to the Massachusetts minimum coverage of $20,000 unless you purchased additional insurance coverage such as $100,000/$300,000 for Uninsured or Underinsured Motorist Benefits or, better yet, the maximum coverage of $250,000/$500,000.
Why do I need extra coverage? Well, that’s a personal decision that everyone must make based on your comfort level managing risk. That’s what insurance is all about – managing risk.
What if you suffer a severe shoulder injury as a result of a car accident requiring surgery? You may have medical expenses in excess of $10,000 and may be disabled from work for a long time – possibly 6 months to a year. If the negligent driver who caused the accident only has minimum coverage, you and your family may suffer a severe economic loss with limited legal compensation. In this example, most of the money would go to pay the medical bills leaving little left over to support you and your family while you’re recuperating from surgery. However, if you purchased additional coverage for Underinsured Motorist Benefits in this example, you will have additional available insurance coverage through your insurance policy to compensate you for your injuries.
Do you have enough insurance? It’s really up to you. At the very least, the amount of coverage for Optional Bodily Injury to Others, Uninsured Motorist Benefits and Underinsured Motorist Benefits, in my opinion, should be the same and should be as much as you are comfortable purchasing – especially if you own your own home.
Copyright © 2009 John J. Sheehan
