USA Tax & Insurance Services, Inc. Announces Rollout of the 'EliteLife Group'
PALM HARBOR, Fla., March 25, 2009 /PRNewswire via COMTEX/ ----USA Tax & Insurance Services ("USA Tax") announces the nationwide rollout of the EliteLife Group(TM: 67.03, 1.37, 2.09%), a division that is focused on providing qualifying life insurance producers with proven successful processes for selling life insurance products to affluent markets. "This unique system teaches producers how to become the life insurance advisor for the most affluent individuals of their community. They can quickly become the top life insurance producer in their area and may never have to prospect again," stated Stephen R. Hand, CEO and President of USA Tax.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090325/FL89198)
The EliteLife Producer System(TM: 67.03, 1.37, 2.09%) can be used by life insurance producers that are experienced and those that are relatively new to the industry. The turnkey business model provides an easy to follow, complete roadmap for marketing and selling life insurance to affluent individuals. Joseph Karsner, a 30-year veteran producer, had this to say about the EliteLife Producer System(TM: 67.03, 1.37, 2.09%), "I wrote $100,000 in annual life premiums my first month using this program and made more than I did all of the previous year selling life insurance. It was so easy!"
USA Tax will bring qualified producers to their headquarters for a no cost, no obligation Producer Orientation, to learn more about the EliteLife Group(TM: 67.03, 1.37, 2.09%). Producers that qualify will be provided with an overnight, all-expense paid trip to Tampa, FL, to view the operation and meet the people behind the success. If you are a life insurance producer and are interested to see if you qualify, please contact the EliteLife Group(TM: 67.03, 1.37, 2.09%) at 866.623.7791.
About USA Tax & Insurance Services, Inc. (R: 29.8092, 2.5092, 9.19%)
USA Tax has had the greatest success story in the insurance industry, writing over $5.5 billion in annuity and other insurance product premium with less than 250 representatives nationwide. This organization of top producers utilizes our turnkey income tax, insurance and financial planning business model. Building on that success, we developed and test marketed an independent, turnkey life insurance and wealth preservation business model that has proven to be successful. With this model, accompanied by all of our value-added producer services, we are building the next greatest life insurance sales organization - The EliteLife Group(TM: 67.03, 1.37, 2.09%).
SOURCE USA Tax & Insurance Services, Inc.
http://www.foxbusiness.com/story/usa-tax--insurance-services-announces-rollout-elitelife-group/
Thursday, March 26, 2009
Insurance Websites Offer $250 to 'Survey Sweepstakes' Winners
Insurance Websites Offer $250 to 'Survey Sweepstakes' Winners
WILMINGTON, N.C., March 25, 2009 /PRNewswire via COMTEX/ ----HomeInsurance.com and AutoInsuranceQuotes.com, two leading online insurance websites, have launched contests where their website visitors can win up to $250 in prizes.
Visitors to each site can enter the contests simply by completing the online surveys. One visitor from each site will be picked at random to win the prize.
"We hope that we can increase our level of customer satisfaction by learning more about the needs and concerns of insurance customers," said Jana Bell, Director of Business Center Operations.
Visitors who fill out the survey on AutoInsuranceQuotes.com are automatically entered to win a $250 gas card. Visitors on HomeInsurance.com are eligible to win a $250 gift card to Lowe's Home Improvement.
"Any car or home insurance customer can enter - they don't have to be a customer of ours," said Bruce Berry, Director of Sales and Recruiting. "The form takes only about a minute to complete. One minute to qualify for $250? Sounds like a good deal to me."
The surveys ask respondents about their feelings and experiences with their home/auto insurance company are predicted to take only about 1 minute to complete. Respondent's answers are confidential and in no way used for quoting purposes.
A HomeInsurance.com and AutoInsuranceQuotes.com employee will pick the winners who will be announced on the homepage of each site on May 25th, 2009. Customers can enter the contest by following the contest link on the HomeInsurance.com and AutoInsuranceQuotes.com homepages.
In October 2008, HomeInsurance.com ran a successful contest called Save to Win, where customers competed to see who could save the most money by switching to HomeInsurance.com. One customer called the contest a "win-win" situation because they not only saved over $1000/year on their insurance but also won a $250 gift card to Lowe's Home Improvement. The insurance professionals behind HomeInsurance.com and AutoInsuranceQuotes.com have been serving satisfied customers since 1992.
SOURCE HomeInsurance.com
http://homeinsurance.com
WILMINGTON, N.C., March 25, 2009 /PRNewswire via COMTEX/ ----HomeInsurance.com and AutoInsuranceQuotes.com, two leading online insurance websites, have launched contests where their website visitors can win up to $250 in prizes.
Visitors to each site can enter the contests simply by completing the online surveys. One visitor from each site will be picked at random to win the prize.
"We hope that we can increase our level of customer satisfaction by learning more about the needs and concerns of insurance customers," said Jana Bell, Director of Business Center Operations.
Visitors who fill out the survey on AutoInsuranceQuotes.com are automatically entered to win a $250 gas card. Visitors on HomeInsurance.com are eligible to win a $250 gift card to Lowe's Home Improvement.
"Any car or home insurance customer can enter - they don't have to be a customer of ours," said Bruce Berry, Director of Sales and Recruiting. "The form takes only about a minute to complete. One minute to qualify for $250? Sounds like a good deal to me."
The surveys ask respondents about their feelings and experiences with their home/auto insurance company are predicted to take only about 1 minute to complete. Respondent's answers are confidential and in no way used for quoting purposes.
A HomeInsurance.com and AutoInsuranceQuotes.com employee will pick the winners who will be announced on the homepage of each site on May 25th, 2009. Customers can enter the contest by following the contest link on the HomeInsurance.com and AutoInsuranceQuotes.com homepages.
In October 2008, HomeInsurance.com ran a successful contest called Save to Win, where customers competed to see who could save the most money by switching to HomeInsurance.com. One customer called the contest a "win-win" situation because they not only saved over $1000/year on their insurance but also won a $250 gift card to Lowe's Home Improvement. The insurance professionals behind HomeInsurance.com and AutoInsuranceQuotes.com have been serving satisfied customers since 1992.
SOURCE HomeInsurance.com
http://homeinsurance.com
Richard Grisolia to Head Marketing for Narragansett Bay Insurance
Richard Grisolia to Head Marketing for Narragansett Bay Insurance
PAWTUCKET, R.I., March 25, 2009 /PRNewswire via COMTEX/ ----Narragansett Bay Insurance Company announced that Richard "Rick" Grisolia has joined the company as Chief Marketing Officer, and will assume responsibility for the company's sales and marketing on April 6th. With over 25 years of marketing, sales, and underwriting experience in personal lines insurance, he brings expertise in producer management and in developing independent agency distribution networks.
Most recently, Mr. Grisolia served as Vice President for Arbella Insurance Group, a leading regional property and casualty company in New England, where he was responsible for all sales and marketing. Prior to this, he held similar corporate officer and key leadership positions with Atlantic Mutual Companies and the Chubb Corporation.
Mr. Grisolia's experience includes the establishment of a personal lines insurance independent agent distribution network in the southeastern and western United States for the Atlantic Mutual Companies. While serving in his leadership capacity at the Chubb Group of Insurance Companies, he was responsible for revenue growth, marketing, and underwriting in several mid-west states.
"I am excited about the opportunity to apply my experience in developing insurance distribution networks as Narragansett Bay continues to enter new markets along the East Coast," Grisolia said. "I have seen first hand this company's commitment to becoming the premier provider of homeowner's insurance, and I am excited to be a part of it."
Nick Steffey, Chief Executive Officer of Narragansett Bay Insurance, stated, "Among his peers in the property-casualty insurance community, Rick is regarded as one of the finest marketing executives in the industry. He is a successful strategic thinker who has never lost sight of the importance of achieving revenue goals. He is very committed to strengthening NBIC's penetration with leading independent agents in the Northeast."
Mr. Grisolia received a B.S. in Business Administration from Baker University in Baldwin City, Kansas, and a M.A. in Management from Webster University of St. Louis, Missouri.
About Narragansett Bay Insurance
Narragansett Bay Insurance Company, headquartered in Pawtucket, Rhode Island, offers specialty insurance services and products to homeowners through a select network of independent agents. Narragansett Bay Insurance and its predecessors have been meeting its obligations to its agents, partners, and customers since 1848. To learn more about Narragansett Bay Insurance Company, visit www.nbic.com.
SOURCE Narragansett Bay Insurance Company
http://www.nbic.com
PAWTUCKET, R.I., March 25, 2009 /PRNewswire via COMTEX/ ----Narragansett Bay Insurance Company announced that Richard "Rick" Grisolia has joined the company as Chief Marketing Officer, and will assume responsibility for the company's sales and marketing on April 6th. With over 25 years of marketing, sales, and underwriting experience in personal lines insurance, he brings expertise in producer management and in developing independent agency distribution networks.
Most recently, Mr. Grisolia served as Vice President for Arbella Insurance Group, a leading regional property and casualty company in New England, where he was responsible for all sales and marketing. Prior to this, he held similar corporate officer and key leadership positions with Atlantic Mutual Companies and the Chubb Corporation.
Mr. Grisolia's experience includes the establishment of a personal lines insurance independent agent distribution network in the southeastern and western United States for the Atlantic Mutual Companies. While serving in his leadership capacity at the Chubb Group of Insurance Companies, he was responsible for revenue growth, marketing, and underwriting in several mid-west states.
"I am excited about the opportunity to apply my experience in developing insurance distribution networks as Narragansett Bay continues to enter new markets along the East Coast," Grisolia said. "I have seen first hand this company's commitment to becoming the premier provider of homeowner's insurance, and I am excited to be a part of it."
Nick Steffey, Chief Executive Officer of Narragansett Bay Insurance, stated, "Among his peers in the property-casualty insurance community, Rick is regarded as one of the finest marketing executives in the industry. He is a successful strategic thinker who has never lost sight of the importance of achieving revenue goals. He is very committed to strengthening NBIC's penetration with leading independent agents in the Northeast."
Mr. Grisolia received a B.S. in Business Administration from Baker University in Baldwin City, Kansas, and a M.A. in Management from Webster University of St. Louis, Missouri.
About Narragansett Bay Insurance
Narragansett Bay Insurance Company, headquartered in Pawtucket, Rhode Island, offers specialty insurance services and products to homeowners through a select network of independent agents. Narragansett Bay Insurance and its predecessors have been meeting its obligations to its agents, partners, and customers since 1848. To learn more about Narragansett Bay Insurance Company, visit www.nbic.com.
SOURCE Narragansett Bay Insurance Company
http://www.nbic.com
Kentucky Farm Bureau Insurance promotes Bradley Smith to CEO
Kentucky Farm Bureau Insurance promotes Bradley Smith to CEO
Kentucky Farm Bureau Insurance Cos. has named Bradley R. Smith as its new executive vice president and CEO.
Smith, who has been the company’s COO since 2003, succeeds Roger L. Simpson, who will retire Aug. 1. Simpson has served in the role since 1997.
Smith is a graduate of the University of Kentucky College of Law and has bachelor’s and master’s degrees in business administration.
He joined Kentucky Farm Bureau in 1987.
In a news release, Kentucky Farm Bureau president Mark Haney touted Simpson’s service, and expressed confidence in Smith’s ability to strengthen relationships with members and to expand the business.
“Brad has a vision and a great background for leading the company,” Simpson said in the release.
Kentucky Farm Bureau ranked No. 1 on Business First’s Oct. 17 list of property and casualty insurers, ranked by direct premiums written in Kentucky in 2007. The company wrote more than $710.4 million in premiums in 2007, up from $696.1 million in 2006.
http://www.bizjournals.com/louisville/stories/2009/03/23/daily35.html
Kentucky Farm Bureau Insurance Cos. has named Bradley R. Smith as its new executive vice president and CEO.
Smith, who has been the company’s COO since 2003, succeeds Roger L. Simpson, who will retire Aug. 1. Simpson has served in the role since 1997.
Smith is a graduate of the University of Kentucky College of Law and has bachelor’s and master’s degrees in business administration.
He joined Kentucky Farm Bureau in 1987.
In a news release, Kentucky Farm Bureau president Mark Haney touted Simpson’s service, and expressed confidence in Smith’s ability to strengthen relationships with members and to expand the business.
“Brad has a vision and a great background for leading the company,” Simpson said in the release.
Kentucky Farm Bureau ranked No. 1 on Business First’s Oct. 17 list of property and casualty insurers, ranked by direct premiums written in Kentucky in 2007. The company wrote more than $710.4 million in premiums in 2007, up from $696.1 million in 2006.
http://www.bizjournals.com/louisville/stories/2009/03/23/daily35.html
FDIC Urges Hispanic Community to Learn about Federal Deposit Insurance
FDIC Urges Hispanic Community to Learn about Federal Deposit Insurance
The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects deposits in FDIC-insured institutions. The basic insurance limit is $250,000 although consumers may qualify for more than the basic coverage at one insured bank.
With banks in the news lately, consumers are thinking more about the safety of their money. The FDIC has launched a nationwide public service announcement campaign to inform the Hispanic community about the safety of their money in insured institutions and how to find out if their money is fully protected.
For 75 years, the FDIC has protected the money consumers have deposit in accounts at insured financial institutions. In those 75 years, no one has lost a penny of FDIC-insured deposits. Consumers can rest assured that they do not have to worry about the safety of their money in insured accounts.
One theme of the Hispanic outreach campaign is that "your money will never be as safe under your mattress as in an FDIC-insured bank." Consumers who may consider withdrawing their money from banks should weigh the risk of loss, theft or destruction of their money. Once money is withdrawn from insured institutions, consumers no longer have deposit insurance protection.
The FDIC encourages consumers to go to its interactive calculator, EDIE, to learn about deposit insurance and make sure their deposits are fully
http://www.extranews.net/news.php?nid=4746
The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects deposits in FDIC-insured institutions. The basic insurance limit is $250,000 although consumers may qualify for more than the basic coverage at one insured bank.
With banks in the news lately, consumers are thinking more about the safety of their money. The FDIC has launched a nationwide public service announcement campaign to inform the Hispanic community about the safety of their money in insured institutions and how to find out if their money is fully protected.
For 75 years, the FDIC has protected the money consumers have deposit in accounts at insured financial institutions. In those 75 years, no one has lost a penny of FDIC-insured deposits. Consumers can rest assured that they do not have to worry about the safety of their money in insured accounts.
One theme of the Hispanic outreach campaign is that "your money will never be as safe under your mattress as in an FDIC-insured bank." Consumers who may consider withdrawing their money from banks should weigh the risk of loss, theft or destruction of their money. Once money is withdrawn from insured institutions, consumers no longer have deposit insurance protection.
The FDIC encourages consumers to go to its interactive calculator, EDIE, to learn about deposit insurance and make sure their deposits are fully
http://www.extranews.net/news.php?nid=4746
Life’s Value Falls as Seniors Sell Insurance Policies
March 26 (Bloomberg) -- Retirees seeking extra cash last year could sell a $5 million life insurance policy to investors for $1 million. Today, the price is as low as $600,000.
Sales of so-called life settlements declined 20 percent in the second half of 2008 as the credit crunch slowed demand, according to a report from Life Policy Dynamics LLC, a Washington-based consultant. U.S. life insurance policies worth approximately $12 billion were sold in 2008.
“You’ve now got more people who would be willing to consider selling than you have buyers,” according to life settlement experts such as Scott Hawkins, an analyst at the Hartford-based asset management firm Conning & Co.
Retirees whose investment portfolios were pummeled by the 38 percent decline in the Standard & Poor’s 500 Index last year are increasingly trying to sell their policies, said Brian Pardo, chairman and chief executive officer of Life Partners Holdings Inc., a life settlement broker. About 360 more people each month are approaching the Waco, Texas-based company about a policy sale, Pardo said.
Senior citizens “are really seriously in financial trouble” with no real way to raise cash besides selling assets that they may not want to part with “at garage-sale prices,” Pardo said. “We don’t have enough investment capital to buy all of that.”
Pardo’s company, Life Partners, was the best performer in the 53-stock Nasdaq Insurance Index in 2008. This year, Life Partners has declined 54 percent.
Policy Sold
In a life settlement, the policy is sold to an investor who pays the premiums until the seller’s death. The investor then collects the proceeds. Companies that broker life settlements include Credit Suisse Group AG, based in Zurich, Frankfurt-based Deutsche Bank AG, and San Francisco-based Wells Fargo & Co.
A year ago, a policy worth $10 million or more held by a 65-year-old with a life expectancy of as much as 200 months could easily be sold, said Robert Stark, president of the New York-based life-settlement broker Melville Capital. Investors now are seeking policies with a face value of $2 million or less from someone 70 or older with a life expectancy below 120 months. Fees generally are 15 percent of the selling price, said Doug Head, executive director of the Life Insurance Settlement Association in Orlando, Florida.
Shorter policies from older individuals mean higher returns for investors, said Head. A year ago investors sought returns of about 11 percent. “Today I think people are looking for five points above that and are getting it,” according to Head.
Insurance Funds
Some policies are pooled into life settlement funds, such as the Life Settlement Strategy Fund at Centurion Fund Managers. The fund offers annual returns between 6.5 percent and 10 percent, according to the London-based company. Another, the Omega Life Settlement Fund from Rancho Santa Fe, California- based BCAJ Investments West, Inc. has an annual return between 12 percent and 15 percent, according to BCAJ.
Life-settlement returns are based on life expectancy tables, which were adjusted between 20 percent and 30 percent higher within the past year by several underwriters, including Minneapolis-based 21st Services LLC, Scottsdale, Arizona-based Examination Management Services Inc., and Kennesaw, Georgia- based AVS Underwriting LLC.
The new tables can dramatically change the value of a policy, said James Slazas, president of Global Life Underwriting LLC in Torrance, California. “You’re going to have additional premium payments that are ongoing over a longer time period so your return on your investment is going to be lower,” Slazas said.
Surrender Value
Those unable to sell a whole life policy in the secondary market may be able to surrender it for cash to the life insurance company. The surrender value can be as much as 80 percent less than a life settlement, according to Head. Term life policies generally cannot be surrendered.
There is “probably not a whole lot of difference” between what can be made in a life settlement versus the cash surrender value, said J. Bruce Ferguson, senior vice president for state relations at the American Council of Life Insurers in Washington, who cautioned against either course.
“We think in the long run people are better off keeping their policies or finding ways to keep their policies so that their beneficiaries, or their estates, can get the maximum value of the coverage that they purchased,” Ferguson said.
Selling a policy may have drawbacks. Policy sales are taxable as ordinary income when the amount of the policy’s cash value exceeds any premiums that have been paid. The Internal Revenue Service has yet to rule on whether any settlement money received in excess of the cash value is a capital gain, so experts suggest advising with a tax professional.
Insurers Wary
Some insurers may be wary of selling in the future to anyone who has participated in a life settlement, Ferguson said.
In 2007 television host Larry King filed a federal lawsuit alleging he sold two insurance policies totaling $15 million for $1.4 million. King said he was steered into selling, which ultimately hurt his “future uninsurability.” The case was settled out of court.
Slazas calls this the biggest “downside risk” to a life settlement. Still, many seniors laugh at him when he warns them, he said.
“They’re like, don’t worry, I don’t think I’ll be buying more life insurance when I’m 86.”
Sales of so-called life settlements declined 20 percent in the second half of 2008 as the credit crunch slowed demand, according to a report from Life Policy Dynamics LLC, a Washington-based consultant. U.S. life insurance policies worth approximately $12 billion were sold in 2008.
“You’ve now got more people who would be willing to consider selling than you have buyers,” according to life settlement experts such as Scott Hawkins, an analyst at the Hartford-based asset management firm Conning & Co.
Retirees whose investment portfolios were pummeled by the 38 percent decline in the Standard & Poor’s 500 Index last year are increasingly trying to sell their policies, said Brian Pardo, chairman and chief executive officer of Life Partners Holdings Inc., a life settlement broker. About 360 more people each month are approaching the Waco, Texas-based company about a policy sale, Pardo said.
Senior citizens “are really seriously in financial trouble” with no real way to raise cash besides selling assets that they may not want to part with “at garage-sale prices,” Pardo said. “We don’t have enough investment capital to buy all of that.”
Pardo’s company, Life Partners, was the best performer in the 53-stock Nasdaq Insurance Index in 2008. This year, Life Partners has declined 54 percent.
Policy Sold
In a life settlement, the policy is sold to an investor who pays the premiums until the seller’s death. The investor then collects the proceeds. Companies that broker life settlements include Credit Suisse Group AG, based in Zurich, Frankfurt-based Deutsche Bank AG, and San Francisco-based Wells Fargo & Co.
A year ago, a policy worth $10 million or more held by a 65-year-old with a life expectancy of as much as 200 months could easily be sold, said Robert Stark, president of the New York-based life-settlement broker Melville Capital. Investors now are seeking policies with a face value of $2 million or less from someone 70 or older with a life expectancy below 120 months. Fees generally are 15 percent of the selling price, said Doug Head, executive director of the Life Insurance Settlement Association in Orlando, Florida.
Shorter policies from older individuals mean higher returns for investors, said Head. A year ago investors sought returns of about 11 percent. “Today I think people are looking for five points above that and are getting it,” according to Head.
Insurance Funds
Some policies are pooled into life settlement funds, such as the Life Settlement Strategy Fund at Centurion Fund Managers. The fund offers annual returns between 6.5 percent and 10 percent, according to the London-based company. Another, the Omega Life Settlement Fund from Rancho Santa Fe, California- based BCAJ Investments West, Inc. has an annual return between 12 percent and 15 percent, according to BCAJ.
Life-settlement returns are based on life expectancy tables, which were adjusted between 20 percent and 30 percent higher within the past year by several underwriters, including Minneapolis-based 21st Services LLC, Scottsdale, Arizona-based Examination Management Services Inc., and Kennesaw, Georgia- based AVS Underwriting LLC.
The new tables can dramatically change the value of a policy, said James Slazas, president of Global Life Underwriting LLC in Torrance, California. “You’re going to have additional premium payments that are ongoing over a longer time period so your return on your investment is going to be lower,” Slazas said.
Surrender Value
Those unable to sell a whole life policy in the secondary market may be able to surrender it for cash to the life insurance company. The surrender value can be as much as 80 percent less than a life settlement, according to Head. Term life policies generally cannot be surrendered.
There is “probably not a whole lot of difference” between what can be made in a life settlement versus the cash surrender value, said J. Bruce Ferguson, senior vice president for state relations at the American Council of Life Insurers in Washington, who cautioned against either course.
“We think in the long run people are better off keeping their policies or finding ways to keep their policies so that their beneficiaries, or their estates, can get the maximum value of the coverage that they purchased,” Ferguson said.
Selling a policy may have drawbacks. Policy sales are taxable as ordinary income when the amount of the policy’s cash value exceeds any premiums that have been paid. The Internal Revenue Service has yet to rule on whether any settlement money received in excess of the cash value is a capital gain, so experts suggest advising with a tax professional.
Insurers Wary
Some insurers may be wary of selling in the future to anyone who has participated in a life settlement, Ferguson said.
In 2007 television host Larry King filed a federal lawsuit alleging he sold two insurance policies totaling $15 million for $1.4 million. King said he was steered into selling, which ultimately hurt his “future uninsurability.” The case was settled out of court.
Slazas calls this the biggest “downside risk” to a life settlement. Still, many seniors laugh at him when he warns them, he said.
“They’re like, don’t worry, I don’t think I’ll be buying more life insurance when I’m 86.”
Curing Small-Business Health Insurance Woes
Curing Small-Business Health Insurance Woes
By Kelly Spors
Small_Business_Health_Insurance_WoesSmall businesses’ health-insurance woes have been getting some attention the past couple weeks, and raising hopes that the Obama administration will soon do something about them.
A new Government Accountability Office report finds that the small group health-insurance market – generally defined as covering businesses with up to 50 employees – has become much more concentrated among fewer insurers.
The GAO report analyzed 39 states’ health-insurance markets and found that in 34 of the markets, the top 5 insurance carriers accounted for more than 75% of the small-group market, compared with 26 states among 34 analyzed in 2005 and 19 among 34 states in 2002. What’s more, the median market share of the largest small-group insurer in each market increased to 47% in 2008, up from 43% in 2005 and 33% in 2002.
The worry, of course, is that more concentration leads to less competition and will only exacerbate price increases for small companies, which have experienced double-digit increases annually in recent years. Many small employers have dropped health insurance altogether, with now only about half offering it, according to recent studies.
Earlier this week, the National Small Business Association launched a new Web site – www.HealthReformToday.org – highlighting the health-insurance problems small businesses face. The site compiles news and studies with health-insurance information and statistics pertaining to small companies. It also includes testimonials from business owners who’ve struggled to afford coverage, or dropped it, and links to current health-insurance-related legislation.
Last week, at a House Small Business Committee hearing, members discussed health-care reform and plans to tackle it in President Obama’s budget. Nydia Velazquez said they were confident the issue would be addressed soon, but says it’s vital the government consider the unique needs and challenges of small businesses. “The needs of small firms and small medical practices are different from those of big companies, and it is critical that we not push forward with one-size-fits-all reform,” Rep. Velázquez said in a statement. “If it is properly crafted, health-care reform will be a relief to small providers and to small firms, bringing greater efficiency to the system and reducing costs for all Americans.”
http://blogs.wsj.com/independentstreet/2009/03/26/curing-small-business-health-insurance-woes/
By Kelly Spors
Small_Business_Health_Insurance_WoesSmall businesses’ health-insurance woes have been getting some attention the past couple weeks, and raising hopes that the Obama administration will soon do something about them.
A new Government Accountability Office report finds that the small group health-insurance market – generally defined as covering businesses with up to 50 employees – has become much more concentrated among fewer insurers.
The GAO report analyzed 39 states’ health-insurance markets and found that in 34 of the markets, the top 5 insurance carriers accounted for more than 75% of the small-group market, compared with 26 states among 34 analyzed in 2005 and 19 among 34 states in 2002. What’s more, the median market share of the largest small-group insurer in each market increased to 47% in 2008, up from 43% in 2005 and 33% in 2002.
The worry, of course, is that more concentration leads to less competition and will only exacerbate price increases for small companies, which have experienced double-digit increases annually in recent years. Many small employers have dropped health insurance altogether, with now only about half offering it, according to recent studies.
Earlier this week, the National Small Business Association launched a new Web site – www.HealthReformToday.org – highlighting the health-insurance problems small businesses face. The site compiles news and studies with health-insurance information and statistics pertaining to small companies. It also includes testimonials from business owners who’ve struggled to afford coverage, or dropped it, and links to current health-insurance-related legislation.
Last week, at a House Small Business Committee hearing, members discussed health-care reform and plans to tackle it in President Obama’s budget. Nydia Velazquez said they were confident the issue would be addressed soon, but says it’s vital the government consider the unique needs and challenges of small businesses. “The needs of small firms and small medical practices are different from those of big companies, and it is critical that we not push forward with one-size-fits-all reform,” Rep. Velázquez said in a statement. “If it is properly crafted, health-care reform will be a relief to small providers and to small firms, bringing greater efficiency to the system and reducing costs for all Americans.”
http://blogs.wsj.com/independentstreet/2009/03/26/curing-small-business-health-insurance-woes/
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