Last week, the Department of Health and Human Services (HHS) announced that consumers will begin receiving information on how their premiums are being spent this year. The Affordable Care Act requires insurance companies to spend no less than 80% of the money they collect from premiums on improving medical care. The federal law also requires insurers to inform consumers on how this money is being spent and how much has been spent thus far. HHS Secretary Kathleen Sebelius believes that this is a major step toward keeping insurance companies accountable…
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New York regulators to investigate insurer’s rate proposals for accuracy
As complaints regarding insurance rate hikes begin to weigh on regulators in New York, the state’s Financial Services Superintendent, Benjamin Lawsky, has announced a new investigation into the matter. Regulators will be investigating the data submitted by insurance companies to justify their premium increases. The goal is to determine the accuracy of the data that these insurers use. These investigations will work alongside the regular rate review process and insurers will not know when they will be investigated. Lawsky notes that any errors made by insurers in their requests for…
Read MoreMissouri lawmakers investigate state’s employee insurance program over surplus funds
The Missouri Legislature continues to investigate Missouri Employers Mutual Insurance Co., a state-backed insurance company providing coverage to public employees. The Legislature has recovered more than $163 million in surplus money from the insurance company, which was seized after regulators found that the company was, supposedly, withholding benefits. The investigation stems from events that unfolded earlier in the year, in which state regulators found that two of the company’s five board members were committed theft and fraud. Now the insurance company faces the scrutiny of state legislators, who are investigating…
Read MoreMissouri officials report recovery of $5 million from shady insurers, money to be returned to policyholders
The Insurance Department of Missouri has released their latest quarterly report regarding several issues with the state’s insurance industry. The state has been wracked with an onslaught of consumer complaints for the past three months, after devastating tornadoes tuck their toll in the towns of Joplin and St. Louis. These complaints spurred the Insurance Department to investigate several claims that were filed as well as the operations of some of the insurance companies operating in the state. While the report highlights a number of issues within the insurance industry, it…
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