Insurance Commissioner Dave Jones today announced lower rates for medical malpractice insurance offered by NORCAL Mutual Insurance, The Dentists Insurance Co., and the Medical Insurance Exchange of California’s Physicians and Surgeons program, saving doctors, dentists and other medical providers nearly $19 Million annually in premiums.
Last year, Commissioner Jones required the top six medical malpractice insurance companies in California to submit rate filings to the Department of Insurance to justify their current rates.
After review of those filings, Commissioner Jones called for rate reductions. As a result of the Commissioner’s rejection of excessive rates, three of the companies decreased their medical malpractice rates.
The three remaining companies’ rates are still under review by the Department of Insurance.
“These medical malpractice insurance rate reductions demonstrate once again that giving the Insurance Commissioner the authority to reject excessive rates can result in major savings for policyholders, in this case for doctors, dentists and other medical providers," said Commissioner Jones.
“It simply defies reason that the insurance commissioner has the authority to reject excessive medical malpractice rates for doctors and dentists, but does not have the authority to reject excessive health insurance rates for families, individuals and businesses,” Jones said. “I continue to urge the State Senate to pass Assembly Bill 52 to give the Insurance Commissioner the authority to reject excessive health insurance rates and that the voters be given a chance to reject excessive rate hikes by qualifying the Insurance Rate Public Justification and Accountability Act for the November ballot."
Jones said these medical malpractice rate reductions also demonstrate, once again, the important role that Proposition 103, which authorizes the insurance commissioner to reject excessive rate hikes for property and casualty insurance including medical malpractice insurance, has played in reining in medical malpractice rates since its passage in 1988.
Rates for NORCAL Mutual, the second largest medical malpractice writer in California, are being reduced by 7.07 percent. The reduction saves doctors and other medical providers $9.65 million.
The company also decided to retroactively apply the lower rate to Jan. 1, 2012, so its policyholders wouldn’t have to wait another year before it takes effect.
Rates for The Dentists Insurance Co. are being reduced by 13.42 percent, saving dentists nearly $4 million. And rates for the Medical Insurance Exchange of California’s Physicians and Surgeons program are being reduced by 19 percent, resulting in premium savings of $5.3 million.
The California Department of Insurance (CDI) announced Tuesday it served an order to show cause, a statement of charges/accusation and a notice of monetary penalty against the New Hampshire Insurance Co. and its authorized agent for claims processing, York Risk Services Group Inc. regarding their handling of claims related to the 2008 Sayre Fire in Sylmar, California.
New Hampshire Insurance Co. is a subsidiary of AIG.
“The department is committed to ensuring that insurers and administrators processing claims on consumers’ behalf adhere to the requirements of the California Insurance Code,” said Adam M. Cole, General Counsel at CDI. “We expect insurers and their agents to be thoroughly diligent in handling claims, especially at times of devastation such as the Sayre fire. The allegations in this case reflect a troubling lack of attention to consumer needs by New Hampshire Insurance Co.”
The Sayre Fire, which occurred on Nov. 14, 2008, led to the loss of 489 residences, including 480 mobile homes, and the destruction of more than 600 structures overall. During the course of the fire, more than 11,000 acres were burned.
In response, both the mayor of Los Angeles and the governor of California issued state of emergency declarations.
The 480 mobile homes destroyed in the fire were located in the Oakridge Mobile Home Park, which, before the fire, housed 600 mobile homes.
The New Hampshire Insurance Co. issued mobile homeowners policies to approximately 370 policyholders whose homes suffered total losses as a result of the firestorm.
In the ensuing months, CDI’s Claims Services Bureau received a number of complaints from New Hampshire Insurance Co. policyholders.
Consequently, CDI investigated the complaints and cited New Hampshire Insurance Co. and York Risk Services Group, Inc. for 125 violations of the California Insurance Code, with each violation representing an alleged unfair or deceptive act.
Under the California Insurance Code, any person who engages in any unfair or deceptive act is liable to the state for a civil penalty not to exceed $5,000 for each act, or, if the act or practice was willful, a civil penalty not to exceed $10,000 for each act.
The California Insurance Code permits New Hampshire Insurance Co. and York Risk Services Group, Inc. the opportunity to respond to the allegations in an administrative hearing.
In 2009, CDI acted on complaints from Sayre Fire survivors relating to disputes over how much extended replacement cost coverage was available under the New Hampshire Insurance Co. policy.
CDI was able to secure an additional 110 percent or 125 percent of fire insurance coverage for most policyholders. This action resulted in approximately $10.8 million in increased payments to the Sylmar fire victims.
SACRAMENTO – Dr. Ron Chapman, director of the California Department of Public Health (CDPH) and state public health officer, on Monday warned consumers not to eat three candies, after tests conducted by CDPH found that all three exceed state standards for lead.
The candies are Chef’s Pride Rewadi Candy imported from Pakistan, and Shah’s Deer Brand Revdi (sesame candy) and Shah’s Deer Brand Revdi (Gud) (sesame candy), both imported from India.
The companies are voluntarily recalling these products. Consumers in possession of these candies should discard them immediately.
Chef’s Pride Rewadi Candy was distributed by R&R Importers in Montclair, California. The two Shah’s Deer Brand candies were distributed by Shah Distributors, Inc., in Gardena, Calif.
Recent chemical analysis by CDPH showed Chef’s Pride Rewadi Candy, Shah’s Deer Brand Revdi (sesame candy) and Shah’s Deer Brand Revdi (Gud) (sesame candy) contained as much as 0.12, 0.40, and 0.35 parts per million of lead, respectively. California considers candies with lead levels in excess of 0.10 parts per million to be contaminated.
Chef’s Pride Rewadi Candy is packaged in a 7-ounce semi-round, clear plastic container with a red twist-off lid. The front label is light brown with a green border. “Chef’s Pride Rewadi Candy” appears in the center of the label. The oval-shaped candy is light brown and coated with sesame seeds.
Chef’s Pride Rewadi Candy is packaged in a 7-ounce semi-round, clear plastic container with a red twist-off lid. “Chef’s Pride Rewadi Candy” appears in the center of the label.
Shah’s Deer Brand Revdi (sesame candy) and Shah’s Deer Brand Revdi (Gud) (sesame candy) are packaged in 14 oz. clear plastic bags. Near the top of the package is an orange circle containing a white deer. “Shah’s Deer Brand” is written above the circle.
The specific candy name appears in a gold rectangle below the circle. Both candies are oval-shaped, light brown and coated with sesame seeds.
Pregnant women and parents of children who may have consumed these candies should consult their physician or health care provider to determine if medical testing is needed.
Anyone finding this candy for sale should call the CDPH Complaint Hotline at 800-495-3232.
More information is available on the CDPH Childhood Lead Poisoning Prevention page, http://www.cdph.ca.gov/healthinfo/discond/Pages/CLPPBChildrenAtRisk.aspx .
The Centers for Medicaid & Medicaid Services (CMS) announced today that it will partner with Text4Baby, a free national health texting service, to promote enrollment in both Medicaid and the Children’s Health Insurance Program (CHIP) and provide pregnant women and new mothers free text messages on important health care issues.
The announcement is part of activities marking the anniversaries of both the signing of the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA) and the launch of Text4Baby, whose partners include Healthy Mothers, Healthy Babies Coalition, Voxiva, which provides the mobile health platforms, and a host of wireless carriers.
“As a mother, I know how important health coverage and health information is for pregnant women and new moms,” said HHS Secretary Kathleen Sebelius. “Through CHIPRA, the health care law and this partnership, we are helping more and more women across the country have the insurance and information they need to have healthy babies and keep them healthy as they grow up.”
Organizations across the country are using the CHIPRA and Text4Baby anniversaries to highlight how access to both health coverage and health information is critical for families.
Activities are already taking place in locations in California, Florida, Illinois, Michigan, New Jersey, Oklahoma and others.
For example, applicants using an online application to apply for Medicaid and CHIP in San Diego will now be able to enroll with Text4Baby directly; the Florida Department of Health will place contact information for both Text4Baby and Florida Healthy Kids (the State’s children’s health insurance program) on the envelopes used to send birth certificates to families with newborns; and Oklahoma hospitals are being encouraged to connect new mothers to Text4Baby when they enroll newborns in Medicaid right after birth.
“The partnership announced today will help encourage eligible mothers and children to enroll in Medicaid and CHIP,” said Marilyn Tavenner, CMS Acting Administrator. “Text4Baby users will be alerted to the availability of health insurance options, and we are encouraging our partners and other organizations working to help get children enrolled in health coverage to make sure that new moms know how to sign up with Text4Baby for all kinds of health tips and reminders.”
“Text-messaging is a part of the culture in terms of how we communicate,” said U.S. Surgeon General, Regina Benjamin. “Using text-messaging to help conduct outreach to families about health coverage for their children is just one more way that the appropriate use of technology is enhancing how we make sure pregnant women and children get the health care they need.”
In 2011, Medicaid and the Children’s Health Insurance Program covered 43.5 million children. Under CHIPRA, CMS has awarded a total of $90 million in grants to states, tribes, nonprofit groups, schools, health care providers and others to conduct activities to ensure that eligible children are enrolled in health coverage and remain enrolled for as long as they qualify.
“On the third anniversary of this law being enacted, we are providing an important new tool that can help connect mothers and children to affordable coverage,” said Cindy Mann, CMS Deputy Administrator and Director of the Center for Medicaid and CHIP Services. “This new tool is an important vehicle for reaching young mothers.”
More than 184,000 current Text4Baby users are receiving a new message alerting them to the availability of free and low-cost health coverage through Medicaid and CHIP.
The message will provide a connection to the InsureKidsNow phone number and Web site for information about how to sign up. Additional messages will be periodically texted to provide Text4Baby users information about the importance of prenatal visits for women and the value of health coverage for keeping children healthy and getting the care they need when they’re sick.
A report issued on CHIPRA’s third anniversary details what Medicaid and CHIP have achieved in 2011. The report, “2011 CHIPRA Annual Report: Steady Growth, New Innovation” can be found at http://www.insurekidsnow.gov/chipraannualreport.pdf.