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Florida sets property insurance rate reductions NEW YORK, March 1 (Reuters) - In an effort to reduce Florida's high insurance rates, the state's insurance commissioner, Kevin McCarty, on Thursday set property insurance discounts that carriers must pass along to policyholders. The reductions followed a decision by the state Legislature to raise the amount of the Florida catastrophe fund by $12 billion. Insurers will be able to use the fund rather than buying more expensive private reinsurance, but the savings must be passed to property owners and commercial businesses in lower rates. Insurance rates for some Floridians had more than doubled last year. "We could not rely on global reinsurers to protect us," said McCarty. He said the reinsurers had made "massive profits" in 2006, when there were no major storms. Reinsurance is backup coverage for insurers in case of a major hurricane. Eight hurricanes have pounded Florida in the last three years. Hurricane Wilma, the last to hit the state in October 2005, caused $10 billion in insured losses as it whipped through Miami. Under the new plan, homeowner discounts would range from 10.2 percent in the northern part of Florida, which is less subject to storms, to 52.8 percent in areas of Miami-Dade that are more vulnerable to hurricanes and also more built-up in coastal areas. McCarty pointed out, however, that these were average savings, and could vary even within those areas. Insurers will have until March 15 to file their new rates for policies that become effective on June 1 or thereafter. A follow-up filing by Sept. 30 will reflect their actual savings. The new rates were calculated by J. Robert Hunter, the director of the Consumer Federation of America. ((Reporting by Ed Leefeldt, editing by J.S. Benkoe; edward.leefeldt@reuters.com; Reuters Messaging: edward.leefeldt.reuters.com@reuters.net; +1 646 223 6315)) Keywords: FLORIDA INSURANCE/ (C) Reuters 2007. All rights reserved. 1. Insurers Paid More than $40 Billion in Hurricane Katrina-Related Claims; Majority Settled Without Dispute WASHINGTON, D.C., February 28, 2007 — Insurance companies have settled, without dispute, nearly all of the 1.7 million claims totaling $40.6 billion from Hurricane Katrina, the most expensive disaster in the history of insurance, said Dr. Robert Hartwig, president and chief economist of the Insurance Information Institute (I.I.I.), in testimony to be delivered today at a hearing of the U.S. House Financial Services Committee’s Subcommittee on Oversight and Investigations. With the frequency and severity of hurricanes expected to rise in the years ahead, insurance companies have strengthened their catastrophe response capabilities to more quickly reach their customers following mega-catastrophes, like Hurricane Katrina, whose devastation disrupts the infrastructure of an entire region. Insurers have invested in increased use of global positioning system (GPS) technologies to identify damaged properties, enhanced claims-processing procedures to reduce hard-copy paper exchanges and are working with public officials to cut the red tape that impedes quicker access to the most badly damaged areas by adjusters, Dr. Hartwig said. The insurance industry also is at the forefront of supporting strong building codes, prudent land use management and the development of mitigation technologies that will save lives and reduce property damage in the event of future disasters. About 15,000 insurance adjusters traveled throughoutAlabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee after Hurricane Katrina swept through a 1,400-mile swath of the southeastern United States, disbursing essential rebuilding funds to their policyholders on the spot. Dr. Hartwig reported that fewer than 2 percent of homeowners insurance claims in Louisiana and Mississippi were in mediation or litigation. “Insurance companies strive to settle claims without any disputes with their customers. And the record is clear that in the overwhelming number of cases, that is exactly what happens. They are routinely settled by adjusters with policyholders at the scene without the involvement of attorneys or engineers in a courtroom,” he stated. For 2005, insured losses for all hurricanes reached $57.1 billion arising from 3.3 million claims. It is remarkable that seven of the 10 most expensive hurricanes ever to strike the United States occurred in the 14-month interval from August 2004 through October 2005. Unfortunately, today, the modest pre-conditions that give rise to competitive insurance markets are being eroded in a number of states, forcing the price of insurance up and reducing choices for consumers, Dr. Hartwig said. “States such as Florida have abandoned the fundamental concept of risk-based pricing, while in Mississippi the tort system has been used to require insurers to pay potentially hundreds of millions of dollars in flood losses—a type of loss for which they have never received a penny in premium,” Dr. Hartwig noted. The requirements for a competitive insurance market center primarily on an insurer’s ability to price policies which reflect the actual risk(s) being covered, and a judicial system which upholds an insurance policy’s contractual language, I.I.I.’s president and chief economist added. “Remarkably, litigiousness in Mississippi may have accomplished what Katrina did not—delivery of a potentially lethal blow of uncertainty to the viability of a private homeowners insurance market in the state. Today, the only choice for an increasing number of Mississippi homeowners is the state-run insurer of last resort, which itself went broke in 2005, forcing it to make an initial rate hike request of nearly 400 percent,” Dr. Hartwig stated. In his testimony, Dr. Hartwig also touched on the importance of educating coastal homeowners in the U.S. about the National Flood Insurance Program (NFIP), which offers coverage in the event a home suffers water-related damage. Fewer than 20 percent of homeowners in coastal Mississippi purchased flood insurance prior to Hurricane Katrina, whereas upwards of 60 to 80 percent of homes in some Louisiana parishes had flood coverage, Dr. Hartwig noted. Elected officials who are charged with making land-use decisions must also adapt, he continued. “New homes in coastal communities must be built in ways that allow these structures to withstand hurricane-force winds, and excessive housing densities along coastlines pose risks, too.” “The insurance industry is committed to working in partnership with public policymakers, consumers and business in developing fact-based solutions to the formidable challenge posed by Hurricane Katrina and other disasters, and to continuing our tradition of helping families, businesses and communities wherever and whenever disaster strikes,” Dr. Hartwig concluded. Dr. Hartwig's full written testimony is available at http://www.iii.org/media/met/katrina/. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Unum Expands Buyers Study, Profiles Benefit Trends In Nine Industries CHATTANOOGA, Tenn. (Feb. 28, 2007) – Unum expands its analysis of the employee benefit landscape with the recent release of trends impacting nine industry sectors. A complement to its Buyers Study released in September, this supplement is a playbook of buying patterns and benefits decisions specific to these industries. For example the education market is expecting 17 percent growth between 2004 and 2014[i], which will require balancing the need to fill positions with the need to balance a budget. So what’s the answer? Look into employee-paid or shared-funding benefit plans that offer a broader benefit package at an affordable price. Providing a deeper level of detail for each industry, the supplement supports the message of the Buyers Study – that employers are looking for new options to offset healthcare costs, and supplemental insurance continues to fill that void at a rapid pace. “Benefits are important to employees – so much so that they are willing to negotiate for them or leave a job because of the lack of them,” said Mike Simonds, senior vice president of marketing and product development. “This supplement allows employers in these specific industries a source that they can reference. Now they can say, ‘This is where the industry is going, and here’s how we can differentiate ourselves from the pack.’ As we look forward to a looming labor shortage, these kinds of conversations will take place more and more for companies that want to succeed.” The supplement, available exclusively online at www.unumprovident.com/buyerstudysupplement, is designed to assist brokers, HR directors and business decision-makers in making informed choices about their employee benefits packages. “In the Buyers Study, we set the stage for the issues that all companies will face in the coming years and current sales trends.” said Simonds. “With the supplement, we’re giving employers our insights regarding where each industry is headed and recommendations to consider that are specific to each industry’s changing needs.” Industry Snapshots: What’s Inside Education
Engineering, Architecture and Related Services
Financial Services
Health Services and Research
Information Services
Legal Services
Management Consulting and Marketing
Manufacturing
Wholesale/Retail Trade
Unum (www.unum.com), formerly UnumProvident, is the largest provider of group and individual income protection insurance, and one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum insures more than 21 million people and provided $6 billion in total benefits to customers in 2006. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. General Electric to sell $2.9 bln Swiss Re stake Thu Mar 1, 2007 6:52AM EST ZURICH (Reuters) - Swiss Re (RUKN.VX: ) said General Electric (GE.N: ) would divest its stake worth around 3.5 billion Swiss francs ($2.9 billion), selling half to Swiss Re and placing the other half in the market. Swiss Re had waived a lock-up period on the shares, which General Electric had received as part of the payment for its reinsurance units, which it sold for $7.4 billion to the Swiss reinsurer last year. "If this transaction completes ... Swiss Re's stand-alone performance could be evaluated by the market, without any uncertainty about ... a large share placement," finance chief George Quinn told journalists in a conference call. A banking syndicate of Credit Suisse (CSGN.VX: ), Deutsche Bank (DBKGn.DE: ), Goldman Sachs (GS.N: ), Morgan Stanley (MS.N: ) and UBS (UBSN.VX: ) separately announced the accelerated bookbuilding for the placement to institutional investors. The bookbuilding was a precondition for Swiss Re's share re-purchase. Swiss Re's repurchase of the shares from GE was part of a wider share buyback program of up to 6 billion francs, the company said. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Swiss Re 2006 net profit doubles, launches buyback ZURICH, March 1 (Reuters) -Swiss Re (RUKN.VX: ) doubled net profit in 2006, helped by low claims and the acquisition of the reinsurance units of General Electric (GE.N: ), the company said on Thursday, as it launched a 6 billion Swiss franc ($4.92 billion) share buyback. Net profit was 4.6 billion Swiss francs ($3.77 billion), the world's largest reinsurer said, up from 2.3 billion francs in 2005 and above with the 3.7 billion average forecast in a Reuters poll of 19 analysts. The company, which insures other insurers, also increased its dividend to 3.40 francs per share, up 36 percent. Synergies from the $7.4 billion acquisition from GE would exceed its original target of 390 million francs and would now exceed 460 million francs by 2008, it said. The company also said its combined ratio of costs and claims over premium income improved to 90.4 percent, helped by low claims after U.S. hurricanes turned 2005 into the costliest year on record for the reinsurance industry. Analysts had been hoping for a fat pay-out from Swiss Re after primary insurers such as Zurich Financial (ZURN.VX: ) and Germany's Allianz (ALVG.DE: ) bumped up dividends. Swiss Re is one of the few major reinsurers showing solid growth because of a number of acquisitions. Its shares have traded roughly flat this year, in line with the Dow Jones Stoxx insurance index (.SXIP: ). ((Reporting by Douwe Miedema Editing by Erica Billingham Reuters Messaging: rm://douwe.miedema.reuters.com@reuters.net Email: zurich.newsroom@news.reuters.com Telephone: 41 1 631 7340)) Keywords: SWISSRE RESULTS (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Protective Announces the Sale of Matrix Direct BIRMINGHAM, Ala.--(BUSINESS WIRE)--Protective Life Corporation (NYSE:PL) announced today that it has sold Matrix Direct, Inc. to American General Life Insurance Company, a wholly owned subsidiary of American International Group, Inc. (AIG). Protective Life Corporation provides financial services through the production, distribution and administration of insurance and investment products throughout the United States. It has annual revenues of approximately $2.7 billion and as of December 31, 2006 had assets of $39.8 billion. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. AIG American General Acquires Matrix Direct, Inc., a Leading Direct Marketer of Life Insurance, from Protective Life Corporation HOUSTON--(BUSINESS WIRE)--American General Life Insurance Company, a wholly owned subsidiary of American International Group, Inc. (AIG), announced today that it acquired Matrix Direct, Inc., a leading direct marketer of term life insurance, from Protective Life Corporation. Matrix Direct will become part of the domestic life insurance operations of AIG, which operate under the marketing name “AIG American General.” Matrix Direct, headquartered in San Diego, California, was founded in 1995, acquired by Protective Life in 1999, and currently has 166 employees. Matrix Direct is licensed in 49 states and the District of Columbia, and has had a successful agency relationship with AIG American General since 2003. www.aigag.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. NAIC URGES SENATE TO MOVE QUICKLY ON INSURING TERRORISM RISK WASHINGTON, D.C. (March 1, 2007) – Speaking on behalf of the National Association of Insurance Commissioners (NAIC), Michael McRaith, Director of the Illinois Division of Insurance, testified before the Senate Committee on Banking, Housing, and Urban Affairs Wednesday on the need for a federal government/private market partnership to insure terrorism risk. “Acts of terrorism are a national risk that threaten our livelihood,” McRaith said. “Insuring that risk is an economic imperative that requires a national solution. The private market should be the first line of defense, but a federal program is necessary to provide market stability.” McRaith’s testimony emphasized the demand for terrorism insurance and the need for federal involvement to ensure that demand is met. It also highlighted the success of the previous federal programs, while suggesting some changes to better serve policyholders and consumers. Among the suggestions were increasing the duration of the program to provide sustained market stability, inclusion of group life insurance, coverage for domestic and foreign acts, and coverage for nuclear, biological, chemical, and radiological (NBCR) events. “Congress must act to ensure that a clear partnership between the federal government and the private market is in place long before the current program expires,” McRaith said. “The NAIC stands ready to assist Congress in developing and supporting such a partnership.” www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. NYSE defends new system despite glitch Thu Mar 1, 2007 9:37AM EST - By Jonathan Keehner - NEW YORK (Reuters) - Trading glitches on the New York Stock Exchange amid Tuesday's market rout caused the NYSE Group's (NYX.N: ) chief executive to defend the Big Board's hybrid system on Wednesday. NYSE Chief Executive John Thain backed the new system, which is supposed to bring together the best of automated and human trading, in a television interview a day after the Big Board experienced major delays in response to massive trading volume. "It had nothing at all to do with hybrid," Thain told CNBC. "If anything yesterday proved that we still need people here and that really is what hybrid is all about." But others said that, despite the fine points of what went wrong, the Big Board's reputation took a blow, just a week before sweeping new U.S. securities regulations come into effect. "Clearly there would appear to be implications for the hybrid system and questions of reliability," wrote Prudential Equity Group analyst Rob Rutschow in a note, adding that, although the exchange claimed hybrid was not the issue, "NYSE may suffer damage to its reputation." The trading glitches came amid turnover on the NYSE of about 2.41 billion shares -- well above last year's estimated daily average of 1.84 billion. The delays resulted from record traffic on the NYSE's electronic routing system, called SuperDot, Thain said, and were not related to the hybrid system, which integrates the automated trade execution with the Big Board's storied exchange floor. ABLE TO DEAL With hundreds of specialist trading positions recently eliminated, there were also questions on Wednesday of whether more feet on the ground at the Big Board could have averted the logjam. "Some will argue that, with more floor traders, this could have been averted," said Jamie Selway of New York-based White Cap Trading. "I would go the other way and say, with better technology, it would have been alleviated. But that's precisely the debate that will arise from yesterday." The Nasdaq Stock Market (NDAQ.O: ), the largest electronic U.S. stock exchange, said it did not suspend trading during the market rout. "You certainly need people, but you need technology to support those people," Nasdaq chief executive Robert Greifeld told CNBC following Thain's comments on Wednesday. "Yesterday was really not unexpected. There will be others." © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. AARP Offers Congress Steps to Improve Medicare AARP Recommends Medicare Docs Paid Based on Quality, not Quantity WASHINGTON, March 1 /PRNewswire-USNewswire/ -- In testimony before the Senate Finance Committee today, AARP advocated for a new system to reimburse Medicare doctors based on doctors' performance, and not volume. "People on Medicare need a system that ensures they have access to quality doctors; however the incentives for doctors should be placed on providing quality care, not quantity care," said physician and member of AARP's Board of Directors Dr. Byron Thames, who testified before the committee. "It is possible to give doctors the fair pay they earn while also giving patients the top quality care they deserve." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Credit Card and Insurance Acquisition Direct Mail Sectors Show Strong Growth in 2006 Mintel Comperemedia Reports 6 Percent Growth in Credit Cards and 13 Percent Growth in Insurance Mail Volumes CHICAGO--(BUSINESS WIRE)--Both credit card and insurance acquisition mail volumes have shown substantial growth over 2005 numbers, according to Mintel Comperemedia. The competitive intelligence service analyzes direct mail, e-mail marketing, and print media, and these areas have made clear gains during the past year due to an increase in campaign launch activity. In the credit card sector, more than 9.2 billion acquisition direct mail pieces were distributed to American consumers in 2006 to solicit new and continued business. Chase was the top mailer for the year, sending out more than 1.7 billion acquisition direct mail pieces. This is a 4 percent decline from 2005, where Chase still held the top spot. Rounding out the top five for 2006 were Capital One Bank, American Express, Citibank, and Bank of America. Capital One posted at 13 percent gain over 2005 in their direct mail activity, demonstrating the biggest gain of the top five. Just barely missing the top five, both HSBC and Discover are credit card direct marketers of note, increasing their direct mail acquisition activity between 2005 and 2006 by 25 percent and 29 percent, respectively. www.mintel.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Arch Capital Group Ltd. Announces $1 Billion Share Repurchase Program HAMILTON, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. [NASDAQ: ACGL] today announced that its Board of Directors authorized the Company to invest up to $1 billion in the Company’s common shares through a share repurchase program. Repurchases under the program may be effected from time to time in open market or privately negotiated transactions through February 2009. The timing and amount of the repurchase transactions under this program will depend on a variety of factors, including market conditions and corporate and regulatory considerations. Arch Capital Group Ltd., a Bermuda-based company with approximately $3.9 billion in capital at December 31, 2006, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. MetLife Announces New $1 Billion Stock Repurchase Program NEW YORK--(BUSINESS WIRE)--MetLife, Inc. (NYSE: MET) today announced that its board of directors has authorized an additional $1 billion common stock repurchase program. This program will begin after the completion of an earlier $1 billion repurchase program that was announced on October 26, 2004, of which $208 million currently remains. MetLife resumed its share repurchase program in the fourth quarter of 2006 and, during the quarter, repurchased 8.6 million shares of common stock at an aggregate cost of $500 million. www.metlife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Ping An Staged a Success in Returning to A-Share Market HONG KONG--(BUSINESS WIRE)--Ping An Insurance (Group) Company of China Ltd (Ping An; HKSE:2318; SSE:601318) has started trading it’s A-Shares on the Shanghai Stock Exchange today (March 1). This event concludes Ping An’s successful return to the A-Share market three years after it sought an overseas listing. The A-Shares are traded under the Shanghai Stock Exchange stock code “601318”. “Ping An has become more matured after it gained exposure to international capital market practices. The Company’s return to the A-Share markets will mark an important milestone not only for its own corporate history, but also for the history and development of China’s insurance industry. This move helps China further develop the structure of its capital market,” Feng Guoqin said. “Ping An has been well-known for its innovation in products and services, strong mission to provide sustainable return for shareholders, clear corporate strategy, fully-integrated financial platform, international management team, sophisticated management structure and strong back-office capabilities,” Chen Yingchun said, “Ping An is now a role model for financial institutions in China and will continue to contribute to the country’s development.” Ping An has issued a total of 1.15 billion A-Shares at RMB33.8 per share in this exercise, which is the world’s largest equity listing by an insurance company and the second largest in the history of China’s A-Share markets. Ping An’s A-Shares finished the first day of trading at RMB46.79, up 38.43% from the IPO offer price after opening at RMB50.00 and hitting an intraday high at RMB50.97, on a volume of 198 million shares valued at RMB9.5 billion yuan. www.pingan.com.cn Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. FTSE Xinhua Index Promptly Adds Ping An of China to A Share Index Series BEIJING, March 1 /Xinhua-PRNewswire/ -- FTSE Xinhua Index (FXI), the independent China index company, announced today that it would add Ping An Insurance (Group) Company of China, Ltd. (Ping An of China) (A Share, 601318) to its index series, following the company's listing at the Shanghai Stock Exchange. The company will join a number of indexes, including FTSE/Xinhua China A50, FTSE Xinhua 200 and FTSE Xinhua Insurance Investment Index when China markets open on Thursday 8 March 2007. Headquartered in Shenzhen, Ping An of China is China's second largest insurer and 19.9 percent owned by HSBC Holdings Plc. The stock is added as a fast entry to the index (i.e., it does not need to wait until the regular quarterly review) as FXI Ground Rules allow for sufficiently large stocks to be added 5 trading days after listing. This rule is in place to ensure that the index remains an up to date and accurate reflection of the market it measures, and allows investors to use the index as a tracking and analysis tool with confidence and precision. Ping An of China (A) will join the following indices with total shares in issue of 4,786,409,636 and an investability weighting of 20%: More information about the FTSE Xinhua Index Series is available at http://www.ftsexinhua.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. SHPS Introduces Suite of Integrated Care Management Solutions Exclusively for Third Party Administrators LOUISVILLE, Ky.--(BUSINESS WIRE)--SHPS, a leading provider of health advocacy and health benefit solutions, announced today its new suite of integrated care management solutions designed exclusively for third party administrator (TPA) clients. The solution, which consists of utilization management, disease management and case management services united within a single delivery platform, offers TPAs an effective tool for managing their clients’ healthcare cost trends. By incorporating an integrated care management solution into their product portfolio, TPAs can provide value far exceeding transaction processing and take a leadership position in the bourgeoning healthcare consumerism marketplace. SHPS’ integrated care management suite improves the efficiency and effectiveness of healthcare delivery through a holistic clinical system that manages the member across the entire care continuum. Members can move between programs fluidly and seamlessly, which is essential to lowering costs and achieving desired clinical outcomes. www.shps.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. New York State Assembly Moves to Create Rx Discount Card AARP Backed Bill Passes out of Health Cmte. Will Allow State to Negotiate Better Rx Prices by Buying in Bulk & Use Savings to Help People in Need ALBANY, New York, Feb. 28 /PRNewswire-USNewswire/ -- It's a lot easier to negotiate a better price on something when you buy in volume -- that's the approach the State Assembly is hoping the state will take when buying its prescription drugs. Today, the Assembly Health Committee passed key legislation moving New York State closer to a new law allowing the state to negotiate lower drug prices by buying in bulk and using some of the savings to create an Rx discount card for people in need. www.aarp.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. MARCH CPCU eJOURNAL MAKES RECOMMENDATION FOR LOUISIANA INSURANCE RATING COMMISSION MALVERN, PA, MARCH 1, 2007—The CPCU Society’s March CPCU eJournal, “Abolishing the Louisiana Insurance Rating Commission: Is This Part of the Solution to Louisiana’s Homeowners’ Insurance Woes?” studies the Louisiana Insurance Rating Commission, specifically whether the Rating Commission is “a mechanism for engendering public confidence or part of an inherently flawed system.” “In 2005, just when things appeared to be improving in Louisiana, in the span of four months the state was hit with the infamous Hurricanes Katrina and Rita, the most costly and seventh most costly storms ever recorded in the United States. Homeowners’ insurance rates in the southern portion of the state doubled and tripled in 2006. Many insurers instituted state-wide five percent hurricane or wind deductibles,” writes Berry in the issue’s abstract. Then, in January, explains Berry, Louisiana Insurance Commissioner James Donelon called for the abolishment of the state’s one-of-a-kind Insurance Rating Commission. Berry’s conclusion is that while the Louisiana Insurance Rating Commission appears to have been effective after the 2005 hurricane season, the system is inherently flawed and should be abolished. www.cpcusociety.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Recommendations for Reauthorization of the State Children's Health Insurance Program: Cover Kids First By Grace-Marie Turner February 28, 2007 The upcoming debate over funding the State Children's Health Insurance Program provides opportunities for Congress to use ten years of experience with the program to correct flaws and reshape it to be more responsive to the emerging 21st century health sector. SCHIP was created in 1997 as a component of the Balanced Budget Act. It was designed to provide federal matching funds to states so they could provide health coverage to uninsured children whose families make too much to qualify for Medicaid but not enough to afford private coverage. Congress structured the SCHIP program in a new way. Rather than making it an open-ended entitlement to benefits for recipients, as Medicare and Medicaid are, Congress created block grants or allotments to the states and gave them flexibility over how to structure the program and whom to cover. It capped expenditures at $40 billion over 10 years. States had the option of enrolling targeted children in Medicaid, creating separate new state programs, or a combination. Seventeen states expanded Medicaid to the new category of children, 18 created separate SCHIP programs, and 21 use a combination of both.1 The programs covered about 6.1 million enrollees in 2005, the most recent year for which data are available.2 Because SCHIP is a block-grant program, it must be reauthorized this year or it will expire. But rather than simply reauthorizing the program, the congressional leadership wants to further expand SCHIP to cover millions of children who are eligible but not enrolled in the program. However, the estimated price tag of $60 billion over the next five years presents a challenge.3 With the new pay-as-you-go rules in Congress, that means finding $60 billion in savings from other programs or new taxes to fund the expansion. In addition, 14 states have over-spent their allotments and face shortfalls of a total of $745 million this year. Senate Finance Committee Chairman Max Baucus has said the supplementary money will be appropriated, likely attached to another bill this spring. Efforts to expand the program while a number of states are facing spending over-runs signal trouble ahead for SCHIP unless corrective actions are taken. Congress should be guided by six principles, grounded in 10 years of experience with the program, as it moves forward with reauthorization:
With these six principles in mind, Congress can begin to bring some needed discipline to the SCHIP program and bring it back to its core purpose of covering kids first. Grace-Marie Turner is president of the Galen Institute, a non-profit research organization that advances ideas for market-based health reform. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Statement to the Court Of Richard F. Scruggs GULFPORT, Miss., Feb. 28 /PRNewswire-USNewswire/ -- May it please the Court: If I might begin with a point of personal privilege: Our team and I owe the families of the Gulf Coast. They have supported me -- in particular -- in my professional success and have helped raise my family here. I am beyond being in their debt and this is an opportunity for me to serve them. The Coast has granted our team the highest privilege -- in overwhelming numbers -- in trusting us with their lives and futures after Katrina. We have delivered tens of millions of dollars to over 640 of them in the past two weeks alone and hope you will let us continue. (To read complete text, see link below. For more information go to the website at http://www.scruggskatrinagroup.com.) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. Author of “The Complete Idiot’s Guide to Finance for Small Business” Reveals Three Pieces of Foolproof Financial Advice The Principal Women in Business Teleclass Offers Insider Financial Secrets to Women Business Owners DES MOINES, Iowa--(BUSINESS WIRE)--The Principal Financial Group® has enlisted financial guru and author Ken Little to reveal practical, yet often overlooked tips for improving growing businesses’ finances during the March 27 teleclass, “Boost Your Business Cents: Three Foolproof Ways to Master Your Company's Finances.” The program is part of the award-winning Principal Women in Business Teleclass Series, designed to give tangible business advice that women business owners can implement immediately. Held on “Teleclass Tuesdays,” the sessions are exclusively designed to respect the busy schedules of a growing business owner, while allowing the audience unique interaction in a casual format with nationally-recognized business leaders and thinkers, many of whom are women entrepreneurs themselves. www.principal.com/women Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Nationwide Insurance® Welcomes Rent2Buy AmericaTM into National Affinity Program CHARLOTTE, N.C.--(BUSINESS WIRE)--Rent2BuyAmericaTM announced today that it has joined the Nationwide® Affinity Solutions Program and is positioning Nationwide as its exclusive insurance partner for auto, tenant, homeowners, and identity theft insurance packages. Through Rent2Buy America’s membership-based program, residential property managers and their tenants may be eligible for discounted auto insurance. As their needs grow, they can work with Nationwide to bundle other types of policies with additional savings. Nationwide has the opportunity to provide education and offers products to a broad base of business professionals, business owners and renters across the country as part of Rent2Buy America’s partnering program. www.nationwide.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Florida Combined Life Introduces Two New Dental PPO Plans for Individuals JACKSONVILLE, Fla., March 1 /PRNewswire/ -- For many individuals seeking dental insurance, obtaining coverage that offers benefits comparable to those available through group dental plans isn't easy. Florida Combined Life Insurance Company, Inc. (FCL) is pleased to provide individuals with additional coverage choices by introducing two new fully insured PPO plans, BlueDental Choice Copayment and BlueDental Choice Plus. http://www.bcbsfl.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Seniors in Medicare Part D on Cost Rollercoaster; Over Quarter of Sampled Plans Hike Drug Costs 5% or More Consumers Union also finds nearly every sampled Medicare plan increased drug costs from January to February after seniors 'locked-in' WASHINGTON, Feb. 28 /PRNewswire-USNewswire/ -- A new report from Consumers Union finds that it may be difficult -- if not impossible -- for Medicare beneficiaries to have confidence that their private Part D insurance plan will not change or increase prescription drug costs for the year they are locked into the plan. Consumers Union found that 28 percent of the private insurance plans it tracked in five zip codes across the country increased their costs for a group of selected drugs by 5 percent or more in 2006. Some cost increases were dramatic -- one Florida plan increased its costs for the selected drugs by nearly one-third, or $795, for the year.For a copy of the full report, go to http://www.consumersunion.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. The Latest INQUIRY Journal Focuses on Health Insurance - Topics Include Households' Selection of Employer-Based Plans, Proposals for Universal Coverage, Insurance for Low-Income Children, and Access to Health Insurance for Disabled Adults ROCHESTER, N.Y., Feb. 28 /PRNewswire-FirstCall/ -- Summaries of the articles in the journal INQUIRY's recently-released winter issue:
INQUIRY is a peer-reviewed scholarly publication. Now in its 44th year, it is published quarterly by Excellus Health Plan, Inc. Press releases and article abstracts are available at http://www.inquiryjournal.org/. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. DriveCam Inc. Secures $28 Million Series C Financing SAN DIEGO--(BUSINESS WIRE)--DriveCam Inc., a global Driver Risk Management company, today announced that it has secured $28 million in Series C financing. Insight Venture Partners, a New York private equity and venture capital firm, and Integral Capital Partners, a Menlo Park family of partnerships that invests in expansion-stage private and growth-stage companies, joined original investors Menlo Ventures and JMI Equity in this latest round of funding. DriveCam will use the funds to launch a new consumer division, improve and expand its predictive data analytics and increase its global presence. www.drivecam.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Travel Guard Helps Lighten the Load for Travelers Tackling Delayed Flights and Baggage With Flight Delays and Diversions at All-Time Highs, Good Travel Insurance is Essential For Smooth Travel STEVENS POINT, Wis., Feb. 28 /PRNewswire/ -- Air travel is becoming more challenging than ever, according to new statistics from the U.S. Department of Transportation. In 2006, flight delays climbed past 22 percent -- a record- high -- while the number of diverted flights also registered an all-time high. Additionally, about one in every 150 U.S. Passengers had a mishandled bag last year, with the total number of bags reported lost, stolen or mishandled in 2006 reaching nearly four million, according to the U.S. Department of Transportation.* Delays, missed connections and lost luggage can throw the shortest of trips or long-planned vacations into chaos but, while flying has become more challenging, getting relief is easier than ever with comprehensive travel insurance plans through AIG Travel Guard. www.travelguard.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Markel American Insurance Company Launches www.markelinsuresfun.com for Motorcycle, Boat and ATV Insurance WAUKESHA, Wis., Feb. 28 /PRNewswire-FirstCall/ -- It is with great excitement that Markel American Insurance Company announces the launch of its new website http://www.markelinsuresfun.com. This site will provide a single access point to people seeking to insure their recreation. The site allows customers and potential customers to quote and purchase insurance for their motorcycle, boat, personal watercraft and ATV all in one place. In addition, the site will be regularly updated with industry news, stories and trends to provide visitors with the information they are looking for to stay up to date on their favorite activities. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. ClaimSchool Publishes Zalma's Insurance Fraud Letter Culver City CA -- March 1, 2007 - Insurance fraud is the most expensive "white collar" crime next to tax fraud. It costs every person who buys insurance by stealing from the public more than $100 billion every year. Since the crime is committed with a pen rather than a gun it receives little or no attention from main stream media. For more than ten years ClaimSchool has published Zalma's Insurance Fraud Letter (ZIFL) free at www.zalma.com to reduce the ability of insurance criminals to succeed in their crime and to help the Insurance Fraud Professional do what is necessary to defeat the crime with, or without, the assistance of criminal prosecution agencies. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. DR. ROBERT MUIR-WOOD OF RMS SPEAKS AT OECD CONFERENCE ON FINANCIAL MANAGEMENT OF LARGE CATASTROPHES Newark, Calif. - February 28, 2007 - Risk Management Solutions (RMS), the world's leading provider of products and services for the management of catastrophe risk, today announced that chief research officer Dr. Robert Muir-Wood served as a speaker at this week's Organisation for Economic Co-operation and Development (OECD)'s First Conference on the Financial Management of Large-Scale Catastrophes. Organized by the OECD International Network on the Financial Management of Large-Scale Catastrophes, of which Dr. Muir-Wood is a member, the conference was held in Hyderabad, India on February 26-27, 2007. It was hosted by the government of India with the sponsorship of the government of Japan and the General Insurance Corporation of India. www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. CVS/pharmacy and the National Council on Aging Announce “Prescription for Better Health” Campaign Campaign is part of broader alliance to help seniors take better care of their health through education, prevention and access to benefits WOONSOCKET, R.I. (February 27, 2007) – CVS/pharmacy and the National Council on Aging (NCOA) announced today a joint effort to improve the health and well-being of older Americans. The “Prescription for Better Health” campaign will provide health education, information on prevention, and access to benefits in nearly 6,200 CVS/pharmacy stores nationwide as well as in the community through NCOA’s nationwide network of community based organizations. With an aging U.S. population, and the first of more than 70 million baby boomers turning 60, there is a growing need for healthcare resources for older adults. The alliance between CVS/pharmacy and NCOA will make free health information available on important topics including medication management and healthy aging. www.cvs.com www.NCOA.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. China Human Resources Conference Offers Insider Insights into Doing Business in China Walnut Creek, Calif., February 28, 2007—China is the world’s fastest-growing economy, offering significant opportunities for U.S. businesses, but also a unique set of HR challenges. Quick employee turnover, widely varying employment laws between provinces, recruiting the right talent, benefits desired by Chinese workers – are all issues for companies entering China and organizations already there. “Making China Your ‘Gold Mountain,” a new conference and exposition in South San Francisco on May 23-25, explores the unique human resource difficulties that can significantly affect business success in China. The conference is hosted by XMei International, a business consulting and development organization with expertise in Chinese business practices and their cultural impact. To learn more about the conference, or to register to attend or exhibit, visit http://www.xmei-int.com/US-China-HR-conference.html Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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