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Monday
07/21/08 |
Your Insurance News "Strategic
Relationship"
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Read online at
www.insurancebroadcasting.com.
Read daily by
over 450,000 insurance industry
subscribers.
Walt Podgurski, CLU, CES, Publisher & Editor
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Daily Quote:
"In the struggle
for survival, the fittest win out at the expense of their rivals because
they succeed in adapting themselves best to their environment." - -
Charles Darwin |
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Late Breaking News
AIG sets pay, awards of up to $58.5 million for new CEO
INSURANCE
NEWSCAST HEADLINES
1) State Farm Seeks Huge Rate Increase On Homeowners
Insurance
2)
AIG Shares Fall On Investment Loss Concerns
3) Insurance.com Study: Auto Insurance Rates Continue
to Climb
4) Fitch Updates Its Views on Monoline Financial
Guaranty Industry
5) Analysts See Much Higher 2008 Loss For Merrill
6) Freddie Mac Mulling $10 Billion Share Offer: Report
7) Citigroup $2.5 Billion Loss Soothes Investors
8) IIABNY’s Agency Survey Finds Growing Level of
Member Satisfaction with Carriers
9) Access Plans USA, Inc. Announces Expansion of Sales
Resources and Market Release of Five New Products
10) An Integrated Approach to Delivering Benefits to
Your Customers By: Mark Keck, EVP, TriHealix, Inc.
11) NYC Financial Sector Job Losses Rise In June
12) Petersen International Underwriters Announces
On-Line International Major Medical Insurance
13) Bankers Life And Casualty Company Supports
Alzheimer's Association With More Than $300,000
14) Many Hospital Claims Denials by Recovery Audit
Contractors Are Overturned, as Process Itself Is Questioned
15) Zurich Buys Brazilian Insurers For Up To $241 Mln
16) Prudential and Long Term Care Resources Establish
Long-Term Care Discount Program for Teachers and Professional
Educators
17) Prudential Fixed Income Management Selected as
Servicer for 250 Million Euro CLO
18) U.S. Retirement Market to Grow Far Slower Than
Anticipated
19) Barry, Evans, Josephs & Snipes Reestablishes
Itself as an Independent Firm, Continues Membership in M
Financial
20)
INSURANCE
NEWSCAST "Pictures Of The Day"
Note: All Links Below Open A New Window:
21)
M Financial Group
Reintroduces Barry, Evans, Josephs & Snipes as its Newest Member
Firm
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M&A / ALLIANCES / EARNINGS
/ CAPITALIZATION |
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AIG sets pay,
awards of up to $58.5 million for new CEO
Fri Jul 18, 2008 4:27pm EDT
NEW YORK (Reuters) - American International Group Inc (AIG.N:
) on Friday granted new chief executive Robert Willumstad
compensation of up to $22 million in his first year in the job,
and additional one-time awards that could add another $36.5
million.
AIG named Willumstad as CEO on June 15. The former Citigroup
executive replaced Martin Sullivan, who left the post amid more
than $13 billion in losses over two consecutive quarters.
AIG, in a filing with the U.S. Securities and Exchange
Commission, said it will pay Willumstad a base salary of $1
million, and set annual bonus and incentive pay targets. He will
also be required to use a corporate jet for personal travel.
Earlier this month, AIG agreed to pay outgoing CEO Sullivan a
$47 million severance package.
AIG said Willumstad's target annual cash bonus was set at $8
million, and his target for annual long-term incentive pay was
put at $13 million.
For 2008, Willumstad's minimum annual cash bonus will be $4
million, deferred until he is no longer employed by AIG.
Willumstad also is to receive a one-time $24.5 million
restricted stock award, and a one-time $12 million options
award, both subject to vesting restrictions, among other
benefits.
(Reporting by Lilla Zuill and Jonathan Stempel, editing by
Gerald E. McCormick, Phil Berlowitz)
© Thomson Reuters 2008 All rights reserved
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1.
State Farm Seeks Huge
Rate Increase On Homeowners Insurance |
Jacksonville Business Journal - from the Orlando Business Journal
Thursday, July
17, 2008 - 10:46 AM EDT | Modified: Thursday, July 17, 2008 -
11:04 AM
State Farm
Florida Insurance Co. is seeking a 47.1 percent rate increase in
homeowners insurance policies in Florida.
Spokeswoman
Michal Connolly said the company has paid out $1.20 in claims
and expenses for every dollar collected since 2000, paying out a
total of $1.2 billion more than it was bringing in.
"We simply must
be able to charge the rates to cover our expected costs," she
said.
State Farm is
the largest home insurer in the Jacksonville metro area, with
108,763 policies as of the end of 2007. That represents 26.2
percent of the homeowners politices in Duval, Baker, Clay,
Nassau and St. Johns counties.
The Florida
Office of Insurance Regulation said the filing is being reviewed
and that a public hearing on the State Farm filing will be held
next month.
State Farm insures about 1 million Florida homes. Earlier this
year, the company said it wouldn't write any new policies in the
state because of catastrophe risk, and about this time last
year, it announced it would not renew 50,000 policies during
2008. |
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2.
AIG Shares Fall On
Investment Loss Concerns |
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Fri Jul 18, 2008 10:41am EDT
NEW YORK (Reuters) - Shares of American International Group (AIG.N:
) fell more than 3 percent on
Friday, after a Citigroup analyst said it expected the insurer to be hit
by losses on investments linked to subprime mortgages for the third
consecutive quarter.
As
a result, Citi cut its view for the insurer's second quarter and 2008
earnings.
AIG shares, which have fallen 64 percent over the last year, fell 3.6
percent to $24.02 on the New York Stock Exchange. U.S. stocks were
broadly lower, as investors fretted over the disappointing
second-quarter earnings issued by some companies in recent days.
AIG is not due to report earnings until early next month but investors
are nervous the company could spill more bad news, after two quarters of
record losses.
Citi analyst Joshua Shanker cut his estimate for AIG's second-quarter
net income to 50 cents a share from $2.18, and to $1.29 for the full
year from a previous estimate of $2.94 a share.
Analysts on average expect the world's largest insurer to earn about 94
cents a share in the second quarter, and $2.33 a share for the year,
according to Reuters Estimates.
AIG's last two quarters have been marred by the writedown of assets
linked to subprime mortgages. The insurer has since replaced its chief
executive and is seeking a new chief financial officer.
"AIG's management change in mid-June increases the likelihood of
accelerated recognition of ...losses by the company as part of a kitchen
sink quarter," said Shanker, in a research note.
Shanker estimated the AIG financial products unit that holds the thorny
investments could see a loss of $2.5 billion in the second quarter.
Analysts vary widely on how badly AIG could be stung in the second
quarter, with Wachovia earlier this week estimating the financial
products units could see as much as $7 billion in second-quarter losses.
(Reporting by Lilla Zuill; Editing by Derek Caney)
©
Thomson Reuters 2008 All rights reserved |
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3.
Insurance.com Study:
Auto Insurance Rates Continue to Climb |
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Low Mileage Discounts May Help as Consumers Scale Back Commutes
CLEVELAND--(BUSINESS WIRE)--Auto insurance rates continued to rise for
the second quarter this year, according to a study by Insurance.com, the
largest online auto insurance agency in the United States.
Insurance.com’s quarterly Car Insurance Rate Report found that the
lowest car insurance quotes, on average, increased 3.4% over the
previous quarter, rising from $1,831 per year to $1,893 per year. The
rate report is based on real-time auto insurance quotes given to
consumers from more than a dozen insurance companies during the second
quarter. It marks the second consecutive quarter of rate increases,
following last quarter’s 1% increase, reversing the trend of steady or
falling auto rates for the past several years.
“Our quarterly rate report is a leading indicator of where auto
insurance rates are heading,” said Dave Roush, CEO of Insurance.com.
“Car insurance companies are continuing to raise prices due to rising
medical costs and the rising cost of repairing vehicles. We believe
rates will continue to increase through 2009 as carriers adjust their
rates to compensate for these costs.”
Car insurance rates vary by state, and some states experienced rate
quote increases in the second quarter that were greater than the
average. Indiana and Texas, for example, saw rates jump 6.7% and 4.3%,
respectively.
Individual states, companies or industry groups might report annualized
increases that are still quite small, as their data reflects the past 12
months, when rates were falling or holding steady. The Insurance.com
data, however, is real-time, representing the real-world experience of
consumers who have gotten an online or phone quote for auto insurance in
the last three months.
“Now, more than ever, consumers should compare car insurance rates
before they renew their policies,” added Roush. “If they comparison shop
and follow some simple strategies, they may realize hundreds of dollars
in savings with a new company.”
Additional Findings
*
The most expensive auto insurance quotes were in Louisiana ($2,577), New
Jersey ($2,544) and Washington, DC ($2,466).
*
Among the top 10 states seeing the sharpest increase in car insurance
rates in the 2nd Quarter were Indiana (up 6.7%), Arkansas (up 6.1%),
Texas (up 4.3%), Nevada (up 4.1%) and Illinois (up 3.8%).
*
The least expensive states for auto quotes in the second quarter
included Ohio ($1,268), Wisconsin ($1,276) and Maine ($1,285).
See the entire report at
www.insurance.com. |
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4.
Fitch Updates Its Views
on Monoline Financial Guaranty Industry |
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NEW YORK & CHICAGO--(BUSINESS WIRE)--Fitch Ratings today is providing
its updated viewpoints on the monoline financial guaranty industry. In a
Special Report, Fitch explores recent developments, recent financial
performance and takes a fresh look at the industry from this point
forward. The report is now available on Fitch's web site.
In
'Financial Guarantors - Industry Outlook,' Fitch discusses the near and
intermediate term Rating Outlooks; an overview of potential future
changes in ratings methodology; views on how companies may need to
better manage their sensitivity to ratings; capital adequacy; liquidity
and relative ratings and competitive positioning of the various
financial guarantors. The report also includes appendices discussing
recent subprime analysis as well as a summary of key credit issues for
each of the financial guarantors that carried an 'AAA' rating at the
beginning of 2007.
The report is available now on
www.fitchratings.com under the following web site market headers:
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5.
Analysts See Much
Higher 2008 Loss For Merrill |
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By
Supantha Mukherjee
BANGALORE (Reuters) - Wall Street analysts widened their 2008 loss
estimates for Merrill Lynch & Co (MER.N: ) on Friday, a day after the
investment bank posted a quarterly loss much bigger than market
expectations and unveiled plans to sell assets to shore up capital.
Merrill, Wall Street's third-largest investment bank, posted a $4.9
billion loss on Thursday, racking up losses of $19 billion over the past
four quarters, effectively wiping out four years of profit leading up to
the year-long credit crisis.
"This company's earnings power has been severely compromised," Ladenburg
Thalmann analyst Richard Bove said in a note to clients. "Even though it
now has exemplary management it could take years for the firm to
recover."
Morgan Stanley analyst Patrick Pinschmidt expects additional writedowns
of $3 billion and capital raise of about $4 billion at Merrill in the
second half.
"Despite the scale of writedowns and capital raise, the firm has still
not turned the corner on managing its risk overhang," Pinschmidt added.
Merrill recorded $9.4 billion of write-downs from exposure to CDOs,
residential mortgages, bond insurers and other investments for the
quarter. It has written down about $40 billion since the credit crisis
began a year ago, leading to net losses exceeding $19.2 billion.
It
has sold its 20 percent stake in Bloomberg LP back to the news and
financial data company for $4.43 billion and plans to sell its Financial
Data Services Inc unit for about $3.5 billion.
"The Bloomberg sale is unfortunate," Bernstein Research analyst Brad
Hintz said. "Nevertheless, Bloomberg was not strategically important. We
think the potential Financial Data Services Inc sale is fortuitous."
Goldman Sachs analyst William Tanona said, "Exposure to risky assets
remains Merrill's largest challenge." He expects this to remain a
problem for the next few quarters, barring a substantial improvement in
the economy.
"We would prefer to see Merrill rid itself of these assets and clean up
the balance sheet; however, this could bring about simultaneous capital
needs that could be very costly for Merrill," Tanona added.
But Citigroup's Prashant Bhatia sounded positive on the company, noting
the chances of a large dilutive common equity raise had declined due to
asset sales. He expects the company to be profitable in the next two
quarters.
Shares of Merrill, which have lost 43 percent of their value this year,
were down 23 cents at $30.50 in morning trade on the New York Stock
Exchange.
(Additional reporting by Varsha Tickoo; Editing by Anil D'Silva)
©
Thomson Reuters 2008 All rights reserved |
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6.
Freddie Mac Mulling $10
Billion Share Offer: Report |
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(Reuters) - Mortgage giant Freddie Mac is considering raising capital by
selling as much as $10 billion in new shares to investors, The Wall
Street Journal reported, citing people familiar with the matter.
The report comes after the U.S. Treasury and Federal Reserve announced a
plan on Sunday to shore up the balance sheets and borrowing capabilities
of Freddie Mac and sister company Fannie Mae.
Such a share sale, which has not yet been determined, could forestall a
full government rescue, the WSJ said.
Investors, sensing the need for these pillars of the U.S. housing market
to raise capital -- and thereby diluting existing shares -- sent their
stock prices down more than 60 percent this month alone.
The main buyers for any new-stock issues are likely to be existing
shareholders worldwide, the paper said, citing one person involved in
the discussion.
Any sale would have to offer a high rate of return to attract buyers,
given the near-14 percent yield on Freddie's preference shares, the
paper added.
At
that rate even a $5 billion preferred-stock offering would mean a
company payout of $690 million a year, reducing the money available to
common-stock shareholders, cutting the value of those holdings and
putting further pressure on the share price.
Shares in Asia extended losses to fall 1.1 percent on Friday after the
newspaper report, which added to worries about the stability of the U.S.
financial sector.
Shares of Freddie Mac and Fannie Mae have taken a beating this year as
the companies face mounting losses due to delinquent borrowers, rising
foreclosures and pressure to increase their exposure to the mortgage
market as a way of stabilizing housing.
Shares of Fannie and Freddie surged 18 percent and 22 percent,
respectively, on Thursday, after Freddie pulled off its second
successful debt sale following the announcement of the U.S. rescue plan.
The shares were also helped by an emergency rule issued on Tuesday by
U.S. securities regulators to limit certain types of short selling of
shares in major financial companies, including Fannie Mae and Freddie
Mac.
While the storm surrounding the companies appears to be easing, they
still face mounting losses due to delinquent borrowers, rising
foreclosures and pressure to increase their exposure to the mortgage
market as a way of stabilizing housing.
Together, the companies own or guarantee more than $5 trillion in U.S.
mortgages. They have lost more than $11 billion since June, and have
predicted more losses to come.
Even if Freddie and Fannie survive in their current form, it is not
clear if they will still be as willing to lend as much to the U.S.
housing market as home prices continue to slump. The two companies
finance about half of U.S. homes.
(Reporting by Pratish Narayanan in Bangalore; Editing by Tomasz Janowski
and Louise Heavens)
©
Thomson Reuters 2008 All rights reserved |
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7.
Citigroup $2.5 Billion
Loss Soothes Investors |
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By
Jonathan Stempel and Dan Wilchins
NEW YORK (Reuters) - Citigroup Inc posted a smaller-than-expected
quarterly loss, despite $11.7 billion of write-downs and credit losses
tied to deteriorating capital markets and a slumping economy.
Though the second-quarter loss totaled $2.5 billion, Citigroup's results
soothed investors, who pushed shares of the largest U.S. bank by assets
up $1.56, or 8.7 percent, to $19.53 in Friday morning trading on the New
York Stock Exchange.
Citigroup shares, part of the Dow Jones industrial average, had bottomed
Tuesday at $14.01, the lowest since the bank was created in a 1998
merger.
Investors have long sought signs the New York-based bank, one of the
hardest hit in the year-long global credit crisis, may finally be ready
to turn a corner.
(Additional reporting by Dan Burns and Ellis Mnyandu in New York and
Sitaraman Shankar in London; Editing by Gerald E. McCormick, Derek
Caney, Dave Zimmerman)
©
Thomson Reuters 2008 All rights reserved |
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8. IIABNY’s
Agency Survey Finds Growing Level of Member Satisfaction with Carriers |
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The NY Centric Research Project Displays Higher Underwriting Scores
During This Soft Market
(DeWitt, New York, July 17, 2008) — Member agencies of the Independent
Insurance Agents & Brokers of New York, Inc. are feeling better about
their relationships with the insurers they represent, according to the
association’s latest study of carrier performance. The overall scores
for the 31 companies researched in IIABNY’s newly released Industry
Index show improvements in all categories versus the winter “report
card.”
The overall carrier index scores for insurers in personal and commercial
lines were six-tenths and 2.7 points higher, respectively, from the
combined overall score in the previous survey, made public in February.
The latest survey, conducted in May and June, groups national, super
regional and regional carriers. In each instance, regional companies
continue to rate higher scores than their super regional and national
counterparts.
IIABNY’s Website hosts the executive summary at
http://ny.iiaa.org/Surveys/sum08idx.pdfv
www.trustedchoice.com or
www.iiabny.org |
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9.
Access Plans USA, Inc.
Announces Expansion of Sales Resources and Market Release of Five New
Products |
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June 27, 2008 – Irving, Texas – Access Plans USA, Inc. (Nasdaq: AUSA), a
nationwide distributor of health insurance and non-insurance healthcare
programs that provide access to affordable healthcare for families and
individuals in the United States, including the growing number of
uninsured and/or underinsured, has announced expansion of its sales
resources and the release to market of five new products during the past
two months.
Expanded Sales Resources
William A. Freshwater recently joined the company as Regulatory Counsel
and Vice President of Sales, and Larry L. Sigle has been named Director
of Consumer Plan Sales. “Both Will and Larry have extensive experience
in sales development of both insurance and discount medical programs,”
said Ian R. Stuart, Interim President and Chief Executive Officer of
Access Plans USA. “Adding these two professionals to our management team
is an important step in our aggressive national marketing and product
development plans for insurance, consumer plan and discount medical
products.” Freshwater is focusing on new sales and marketing
opportunities, product development, and acts as the company’s liaison
with certain marketing partners. He has a strong background in
marketing/product development of products designed to meet specific
market niches, as well as regulatory compliance for both insurance and
discount medical products. He was previously General Counsel/Executive
Vice President at Group Dental Service of Maryland, Inc., in Rockville,
MD. Prior to that, he was Associate Director & Counsel, Reinsurance and
International Relations, at the American Council of Life Insurers;
Assistant Counsel, International Relations, at the National Association
of Insurance Commissioners; and he handled advertising review and
regulatory analysis at CIGNA Insurance Company.
Freshwater holds a J.D. from the University of Pittsburgh School of Law
and a B.A. in political science & philosophy from Boston College.
Sigle joined Access Plans to market consumer plans and specialty
products and to work with client companies to develop private label
products and/or embed Access Plans’ discount medical and supplemental
programs into existing insurance plans and other products. He has
significant experience in sales of insurance and other health-related
products through corporate clients and associations. Sigle was
previously National Sales Manager for Dental Solutions at DenteMax, a
dental network manager with more than 81,000 dental access points across
the nation. Prior to that he was an underwriter at Farmers Alliance
Insurance Company; Vice President of the Dental Division at Continental
General Insurance Company; and Marketing Director, Dental Division, at
American Medical Security. Sigle holds an M.B.A. and a B.S. from Kansas
State University and is a CLU (Chartered Life Underwriter) and ChCF
(Chartered Financial Consultant) through the American College.
Five New Products Released
During the past two months, Access Plans has released to market five new
products, spanning both insured and non-insured programs, as part of the
company’s drive to focus on individual products for consumers who do not
have employer-sponsored healthcare programs and consumers who wish to
supplement their current health plans. The newly introduced products
are:
•
AHCP Dental – An insured dental product that is designed to complement
major medical health insurance and health savings account (HSA)
qualified high deductible health plans.
•
HealthCard Now Signature 1000 – A limited insured benefit plan that is a
great solution for those who cannot medically qualify for health
insurance or who cannot afford a traditional health insurance or who
want to supplement their existing health insurance plan.
•
HealthCard Now Signature 300 – A more economical version of Signature
1000, with lower benefit levels for a lower monthly cost.
•
Med Plus – A quality discount medical plan that includes patient
advocacy service to help reduce medical expenses. This program is sold
through Access Plans’ national multi-level marketing entity, USA
Healthcare Savings.
•
My Health Assistant – A personal healthcare advocate package – for both
insured and uninsured individuals and families -- that includes patient
advocacy; 24-hour access via telephone and internet to physicians,
psychologists and nurses; and online and telephone health information
sources.
”The market we are targeting is huge and growing,” Stuart said. “In
2006, only 60% of the U.S. population participated in employer-sponsored
medical insurance plans. While it is estimated that 47 million Americans
were without health insurance coverage in 2006, a 5% increase over 2005,
a large percentage of this population includes potential customers for
Access Plans. The percentage of people working full-time without health
insurance increased to 18% in 2006 and among the uninsureds, almost 9%
have annual incomes over $75,000.”
“Access Plans is working hard to capture a piece of this large, evolving
market,” Stuart added. “We are adding sales resources; leveraging our
excellent Consumer Plan Division back office platform; maintaining a
differentiated value-added program for independent agents, who are our
Insurance Marketing Division’s primary customers; developing cross-over
and convergence of our Consumer Plan and Insurance Marketing divisions;
and emphasizing top-notch regulatory and compliance management.”
Access Plans USA Inc.
About Access Plans USA
Access Plans USA provides access to affordable healthcare to individuals
and families. Our health insurance products and our non-insurance
healthcare discount programs are designed as affordable solutions, with
special focus on providing answers for the growing number of uninsured
and underinsured seeking a way to address rising healthcare costs. We
also offer third party claims administration, provider network
management, and utilization management services to employers and groups
that choose to utilize partially self funded strategies to finance their
benefit programs. We are committed to assuring that our clients have
access to the healthcare that they need at prices they can afford. For
more information on Access Plans USA, Inc. please visit
www.accessplansusa.com.
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10.
An Integrated Approach
to Delivering Benefits to Your Customers By: Mark Keck, EVP, TriHealix,
Inc.
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Both you and your employer customers continuously look for ways to
deliver an attractive benefits package to employees in an efficient,
coordinated, cost-effective manner. The more benefits that are included,
the more complex administration becomes for all of the key
stakeholders. Employees often fail to maximize their benefits during
the plan year due to confusion. Employee satisfaction could be
increased by streamlining interaction with their healthcare provider at
the point of care, eliminating any additional steps required for
employees to access benefits, while at the same time minimizing
administrative costs for their employer and the payor.
Enhancing the Experience for Limited Benefit and Mini Med Plan Members
Working in conjunction with some of the leading Limited Benefit, Mini
Med and Discount Card companies TriHealix, Inc. has developed an
eligibility and payment portal to streamline communications between
employees and their healthcare providers and accelerate payment. The
comprehensive web based application allows providers to determine their
patients' financial liability at the point of care. Further, providers
may elect to receive payment directly via Electronic Funds Transfer (EFT)
as an additional incentive to utilize the portal. Clearly, most
providers are eager to receive payment in a timelier manner and payors
would prefer a lower cost alternative to paper checks.
Applying this technology to the Limited Benefit or Mini Med market
allows payors to better meet the needs of the provider community by
allowing them to access benefit information to determine the amount the
patient owes while the patient is still in their office. The cost as
well as the complexity of patient billing and collections is burdensome
with success rates of collecting the post insurance balance often low.
According to a recent McKinsey study¹, physicians and hospitals
typically collect only about 50 percent of the post insurance balance –
and only 10 to 20 percent for self-pay patients. The ability to verify
eligibility and benefit information at the point of service not only
improves operational efficiency, but also reduces administrative costs
as well as reduces the need for balance billing to create a better
experience for the provider. Employees also win – benefits are maximized
at the point of care reducing out of pocket expenses for services
covered by the plan and the question of "what is this going to cost me?"
is answered.
So how can technology help an employee maximize their benefits and
reduce out of pocket expenses? TriHealix has developed a platform that
coordinates benefits and payments from multiple types of insurance,
personal credit or checking accounts and wellness programs. On receipt
of the claim, the TriHealix Multi-Authorization Processing (MAP)
technology looks for all available sources of insurance and financial
accounts for an individual to deliver a single payment to the provider
that submitted the claim. Now, when the employee goes to the doctor,
hospital or pharmacy, both primary insurance and supplemental insurance
benefits are applied, followed by funds from available financial
accounts to cover the employees out of pocket costs. The TriHealix MAP
technology significantly reduces the complexity of administering
multiple benefits, enabling brokers and agents marketing workplace
benefit packages to offer a simplified experience for both the employer
and their employees.
A hurdle to implementing these programs is the need for an immediate
response from the claims adjudication engine. Some payors have legacy
systems that are not able to generate the adjudication response in
real-time (seconds – not minutes, hours or days). Through a partnership
with
Hammerman & Gainer, Inc. (H&G), TriHealix and H&G have developed an
end-to-end solution for workplace benefits distribution that creates
improved operating efficiencies and streamlines benefits
administration. "Partnering with TriHealix increases satisfaction for
all the participants in the program while reducing operating expenses
for our payor clients," said
Jimmy Hersman, Vice President of Consumer HealthCare Services with
Hammerman & Gainer. H&G spent the past year developing a claims
adjudication engine designed specifically for the Limited Benefit Plan
market.
The H &G engine features a user definable rules engine that drives all
adjudication, workflow and CRM functions providing real-time
substantiation of healthcare claims. Providers access the system
through a custom portal that allows for the submission of claims. The
provider may still submit batch electronic or paper claims for their
patients. The paper claims will be converted into electronic
transactions through the portal and payment will be made back to the
provider either via Electronic Funds Transfer (or a paper check if
necessary).
Discount Card Program Applications
As consumers become more savvy shoppers, utilizing the Internet as a
tool to determine the value of the discount compared to the monthly or
annual costs, there continues to be downward pricing pressure on the
market. Additionally, the provider community continues to be challenged
with identifying the discounts associated with these programs and
collecting the patient payment after the appropriate discount has been
applied.
TriHealix, working with some of the largest providers of medical,
pharmacy, dental and vision services discounts, has developed a
revolutionary business model that allows individuals to enroll in
discount programs at no charge. Rather, the discount plan members pay
an access fee (a small percentage of the savings) when they utilize the
discount network.
Payment of the access fee at the point of service is facilitated either
by a line of credit or other personal financial account as provided by
the member during enrollment in the program. Providers participating in
the discount program submit claims through the portal which are
discounted in real-time enabling the provider to determine the amount
the patient owes at the point of service. Using the TriHealix MAP
technology, TriHealix initiates the financial authorization request for
funds against the account(s) on file for the member. Patient funds are
sent to the provider via EFT in the following 2-3 days.
So how does this program benefit brokers and agents delivering workplace
benefits? The TriHealix Discount Access Fee Model allows the broker or
agent to expand the offering of these programs and provides an incentive
payment each time the member accesses the program. Unlike other
programs, where the agent may be penalized due to utilization or
perceived overutilization of the program, this fee for service model
rewards the agent that properly educates members and drives utilization.
TriHealix Background
TriHealix was founded to solve for the growing consumer liability,
either at point of care or through interfaces with payors. The TriHealix
integrated healthcare and financial transaction platform, designed to
administer today's complex health insurance products, streamlines the
settlement process between payors, providers and consumers. The
TriHealix Platform enables simultaneous, electronic communication and
data sharing by all parties to the healthcare transaction – from point
of care, to consumers' insurance companies, to their financial
institutions, and back. TriHealix provides easy to use tools and point
of sale systems to connect healthcare providers to its platform,
enabling single, consolidated payments from both payor and consumer. Not
only will providers have access to multiple sources of funds for
payment, they will also receive an integrated statement for quick and
easy reconciliation. Payors partnering with TriHealix to connect
providers to the platform can derive new revenue streams and ultimately
reduce claims adjudication costs. By issuing a TriHealix integrated
health ID and payment card, payors can improve the consumer's experience
at the point of care, helping them to maximize benefits and reduce out
of pocket expenses. Consumers receive a single, understandable statement
of activity for all health related transactions.
For more information about TriHealix visit
www.trihealix.com. You can also hear Mark Keck speak on the subject
of Integrated Solution Platforms that Coordinate Benefits and Payments
at the Workplace Benefits Mania 2008 taking place July 28-30 at Caesars
Palace, Las Vegas, Nevada.
¹Overhauling the US Health Care Payment System, Nick A. LeCuyer and
Shubham Singhal, The McKinsey Quarterly, Web exclusive, June 2007.
Mark Keck - Executive Vice President TriHealix
Mark Keck has been engaged in a range of healthcare product development
endeavors as well as frequent public speaking and writing. His 16-year
career within the healthcare and finance industries includes experience
in sales and business development, strategic planning and product
development. Prior to joining TriHealix, Mark was Vice President of
Healthcare Solutions for American Express where he developed healthcare
strategy and positioning for the company. Mark designed and led the
implementation of market leading Consumer Directed Healthcare solutions
through partnerships with four of the top five national health plans.
Prior to American Express, Mark served as Executive Vice President of
the New York and Tampa markets for Motivano, a human capital management
company providing nontraditional benefits through customized web portals
and healthcare debit cards. While at Motivano, Mark led the strategy and
development of their SmartAwards™ and SmartFlex™ products. Before
Motivano, Mark spent several years at Oxford Health Plans as Regional
Manager in New York, where he managed sales, marketing and product
development for several regions. He has also held management and sales
positions for Prudential Insurance Company and U.S. Healthcare. Mark
holds a bachelor's degree in Policy Management Studies from Dickinson
College. |
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11.
NYC Financial Sector
Job Losses Rise In June |
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By
Joan Gralla
NEW YORK, July 17 (Reuters) - New York City's financial sector lost
2,000 jobs in June compared with the year-ago, the first such drop in
what could be a severe downturn as banks and brokerages see their
profits shrink, a state labor department market analyst said on
Thursday.
Until last month, only the city's manufacturing sector had lost jobs
compared with the prior year, the analyst, James Brown, told Reuters.
The financial sector is the bedrock of the city's economy, but many
companies have been hurt by the credit crisis and have seen their
profits decline, prompting waves of job cuts.
Economists have been waiting for the first signs of how the Wall Street
downturn is affecting employment. "We knew it was going to do this and
it finally did," said Brown.
New York City's financial sector includes banks and brokerages, as well
as real estate and insurance companies. These companies employed 469,800
in June 2008, including 179,000 in the securities industry.
Wall Street has already shed 7,600 workers this year, Brown said. Banks
and brokerages saw their first year-over-year losses in April, posting a
400-job decline.
"They're in the middle of a cyclical downturn, they've been through them
before. The job losses obviously will be substantial," Brown said,
noting that securities companies have cut their staffs by 20 percent to
25 percent in past downturns. (Editing by Leslie Adler)
©
Thomson Reuters 2008 All rights reserved |
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12.
Petersen International Underwriters Announces On-Line International
Major Medical Insurance |
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“An On-Line International Major Medical Insurance program has been added
to the product line available through Petersen International
Underwriters,” announces Jimmy Petersen, PIU’s on-line specialist.
Insurance agents and producers can contact PIU by email or phone to
request their own unique link which automatically recognizes their
business and pays them full commissions. This process also includes a
printable ID card and a proof of insurance letter, which is required by
most consulates to obtain a travel visa. “Now a producer can sell
international medical insurance 24/7, 365 days a year. By directing
their clients to their unique link, within less than 5 minutes the
consumer can be bound with coverage,” states Petersen, adding “Most
importantly, the process has easy to follow, step-by-step instructions;
and people with only basic computer skills can accomplish this online
process.”
The On-Line International Major Medical program has significantly
improved and simplified the application process for the agent and
his/her clients. This program allows the agent to sell International
Major Medical insurance without completing a paper application. The
personalized producer link can be posted on the producer’s website and
kept handy to email to clients so that they can use it to enroll for the
coverage on line. For more information contact Jimmy Petersen at
Jimmy@piu.org or 800-345-8816 or
visit the website at www.piu.org.
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13.
Bankers Life And Casualty Company Supports Alzheimer's Association With
More Than $300,000 |
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CHICAGO (July 17, 2008) - Through its annual street corner fundraiser
and a separate corporate donation, Bankers Life and Casualty Company is
supporting the Alzheimer's Association with over $300,000.
Bankers' annual Forget Me Not Days® event raised nearly $203,000 for the
Alzheimer's Association. In addition, Bankers - a national life and
health insurer focusing on the retirement market - recognized the
Association on a national level with a $100,000 donation to aid in the
support of the Association's mission.
www.alz.org
http://www.bankers.com/ |
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14.
Many Hospital Claims
Denials by Recovery Audit Contractors Are Overturned, as Process Itself
Is Questioned |
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Washington, DC, July 17, 2008 — Hospitals may be able to fend off
recovery audit contractor (RAC) claims denials for medically unnecessary
admissions or services because some of them have been overturned,
experts tell AIS's Report on Medicare Compliance (RMC). If RACs are too
quick to reject admissions because they don't meet screening criteria
(e.g., InterQual) without looking at the entire medical record,
hospitals may be able to reverse them. The best approach, however, is to
have an effective up-front process that provides ample documentation of
the decision making behind an inpatient admission as described in the
Medicare Benefit Policy Manual. Read the full story at
http://www.aishealth.com/PressReleases/PR2008_0717_hbd.html.
www.AISHealth.com |
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15.
Zurich Buys Brazilian
Insurers For Up To $241 Mln |
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ZURICH, July 17 (Reuters) - Swiss insurer Zurich Financial Services (ZURN.VX:
) said it would buy two Brazilian companies, paying up to $241 million
and adding to a string of recent smaller acquisitions.
Zurich said on Thursday it would buy 87.35 percent of Companhia de
Seguros Minas Brasil (CSMB3.SA: ) and 100 percent of Minas Brasil
Seguradora Vida e Previdencia from Banco Mercantil do Brasil (BMEB4.SA:
).
Zurich -- which last week pulled out of the auction for Royal Bank of
Scotland's (RBS.L: ) insurance business -- will pay about $179 million
for the two acquisitions, plus $31 million for the bancassurance
agreement and an extra $31 million that is linked to future performance.
The Swiss company had already strengthened its position in bancassurance,
where an insurer uses a bank's branch network to sell policies, with a
$1.4 billion offer for Banco Sabadell's (SABE.MC: ) insurance business
last week.
Zurich's Brazil unit will also have a long-term exclusive
bancassurance agreement with Banco Mercantil for the distribution of
life and general insurance products of Zurich Brasil and the acquired
companies.
The deal is expected to close by the fourth quarter of 2008. (Reporting by Sam Cage;
Editing by Louise Ireland)
©
Thomson Reuters 2008 All rights reserved |
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16.
Prudential and Long
Term Care Resources Establish Long-Term Care Discount Program for
Teachers and Professional Educators |
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NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial, Inc.’s (NYSE:PRU)
Group Insurance business, in partnership with Long Term Care Resources (LTCR),
established a new affinity marketing program offering discounts on
long-term care insurance for teachers and professional educators. The
Educators Long Term Care (LTC) Discount Program is a comprehensive
long-term care insurance initiative available to more than 63
professional teacher/educator associations beginning this month, and has
the potential of reaching over 1 million teachers. |
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17.
Prudential Fixed Income
Management Selected as Servicer for 250 Million Euro CLO |
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NEWARK, N.J.--(BUSINESS WIRE)--Prudential Fixed Income Management has
been chosen to act as collateral servicer for a €250 million
collateralized loan obligation (CLO) recently issued. Prudential Fixed
Income Management is a fixed income asset management business of
Prudential Financial, Inc. (NYSE: PRU).
The underlying CLO portfolio includes primarily senior secured leveraged
loans, the majority of which were originally selected by third party
managers and held on a major bank’s balance sheet. Prudential’s European
Bank Loan team in London is servicing the securities within the
portfolio.
http://www.prudential.com |
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18.
U.S. Retirement Market
to Grow Far Slower Than Anticipated |
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New research report by The Coyne Partnership provides first-ever
detailed estimates of future size and growth rate of U.S. retirement
market
ATLANTA--(BUSINESS WIRE)--For years, pundits have been telling Americans
that aging baby boomers will soon create a “retirement tsunami.” As it
turns out, however, there will be far fewer retirees than the
much-touted “78 million baby boomers poised for retirement.” In fact,
the growth rate of the retirement market will be less than three to four
percent each year for the next 25 years – and could even be zero.
A
newly-released research report by The Coyne Partnership (www.thecoynepartnership.com)
shows the number of true retirees – excluding those who never worked to
begin with – will reach only 46 million by 2017 (10 years out), and
that’s only if the trend toward working longer stops shifting today. A
more probable scenario, in which even more Americans choose to work
longer, produces only 36 million true retirees in 2017– essentially no
growth versus today.
Officially titled, “Smaller Than You Thought: Estimates of the Future
Size & Growth Rate of the Retirement Market in the United States,” the
report is the first to provide detailed estimates – by year, by age – of
the size and growth rate of the U.S. retirement market over the next 25
years. This feat was accomplished by collecting, reconciling and
analyzing data from a variety of government sources.
“Previous statements suggesting huge growth in the retirement market
failed to consider several important factors,” said Kevin Coyne,
long-time McKinsey & Company senior partner and a current senior
teaching professor at the Goizueta Business School of Emory University.
“Those statements didn’t acknowledge that there are already 35 million
retirees today, including millions of pre-baby boomers and
early-retiring baby boomers; that many older baby boomers will die
before the younger ones retire; and that older Americans started
delaying their retirements over a decade ago – a trend that will likely
accelerate in the years ahead.”
The consequences of the new findings, both positive and negative, will
undoubtedly be significant for organizations and individuals from all
sectors. Negatively impacted sectors will include financial institutions
– such as banks, brokerage firms and insurance companies, many of which
have already invested billions in the retirement financial services
market – as well as real estate developers, leisure services providers
and manufacturers of such products as golf clubs. On the upside, the
findings could well portend good news for society overall, including a
slower-than-anticipated draw-down of the Social Security trust fund and
reduced expenses for Medicare.
For more information, or to order the full 144-page report, visit
http://thecoynepartnership.com/coynereport.html.
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19.
Barry, Evans, Josephs &
Snipes Reestablishes Itself as an Independent Firm, Continues Membership
in M Financial |
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CHARLOTTE, N.C.--(BUSINESS WIRE)--Barry, Evans, Josephs & Snipes, a
financial services firm serving the insurance and financial services
needs of high net worth individuals and successful corporations, said
today it has reestablished itself as an independent firm following the
purchase of the company name, certain accounts and other assets from
Wachovia Corp.
Founded in 1982, Barry, Evans, Josephs & Snipes, Inc. had been operating
as a Wachovia subsidiary since 1999. This subsidiary entity will
continue to operate under a new name.
John Barry, CEO of Barry, Evans, Josephs & Snipes, also announced that
he will maintain his membership in M Financial Group, one of the
nation’s premier life insurance design and distribution companies with
more than 115 member firms. The M Financial Group is headquartered in
Portland, Ore., and provides Barry, Evans, Josephs & Snipes with added
resources, intellectual capital and competitive advantages such as
proprietary products, dedicated services and volume-based pricing that
directly benefit member firm clients. www.mfin.com |
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20.
INSURANCE NEWSCAST "Pictures Of The Day"
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Alaskans suffer nation's highest gasoline prices.
A man fills up his truck with gas at a gas station in this May 28, 2008
file photo. REUTERS/Lucy Nicholson/Files
Read Entire Story!!!
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Hong Kong Chief Executive Donald Tsang (R) talks
with Taiwan's Straits Exchange Foundation Chiang Pin-kung in Hong Kong
July 18, 2008. Hong Kong and Taiwan's top officials agreed on the need
to strengthen economic ties between both sides, marking a further step
in the warming up of cross-strait relations. REUTERS/Laurent Fievet/Pool
(CHINA)
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House Ways and Means Committee Chairman and U.S.
Rep. Charles Rangel listens during a news conference about ethical
questions surrounding his fund raising methods on Capitol Hill in
Washington, July 17, 2008. Rangel has written letters on Congressional
stationary soliciting contributions for the Charles B. Rangel Center for
Public Service at the City College of New York. REUTERS/Jim Young
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Police use water cannons on protesters
demonstrating near the presidential Blue House and the Japanese embassy
in Seoul July 17, 2008. Thousands of protesters, who oppose President
Lee Myung-bak's policy on U.S. beef import deal as well as his policy
toward Japan's sovereignty claim over a group of islets Seoul and
Pyongyang call Dokdo, clashed with police on Thursday. REUTERS/Lee Jae
Won
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Thai Buddhists carrying candles encircle a large
Buddha image on Asanha Puja Day, the eve of the Buddhist lent, on the
outskirts of Bangkok July 17, 2008. REUTERS/Adrees Latif
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Splinters of ice peel off from one of the sides
of the Perito Moreno glacier in a process of an unexpected rupture
during the southern hemisphere's winter months, near the city of El
Calafate in the Patagonian province of Santa Cruz, southern Argentina,
July 7, 2008. REUTERS/Andres Forza
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A butterfly sits on a flower in a public park in
Skopje July 18,2008. REUTERS/Ognen Teofilovski (MACEDONIA)
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Yachts in the Blue Ribbon Regatta race in the
160-km course around Lake Balaton near Balatonfured July 18, 2008.
REUTERS/Laszlo Balogh (HUNGARY)
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Corporal Hans Hoogsteen (L) and Private Siert
Rosker, divers of the Royal Netherlands Navy, surface after practicing
underwater insertion and de-mining exercises using sonar off the coast
of Oahu during the multi-national military training exercise known as
RIMPAC, in Honolulu, Hawaii July 17, 2008. Military branches from ten
nations are participating in the biennial event. REUTERS/Hugh Gentry
(UNITED STATES)
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An Asiatic black bear named "Yozhik" drinks water
in the Royev Ruchey zoo in the Siberian city of Krasnoyarsk, July 18,
2008. Air temperatures in Central Siberia exceeded 30 degrees Celsius
(86F). REUTERS/Ilya Naymushin (RUSSIA)
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