Statement on U.S. House vote re: delaying the individual mandate

Note: The U.S. House of Representatives is scheduled to vote today on a bill that would delay for a year the individual mandate requiring most Americans to have health coverage starting in 2014. The penalty for not having coverage next year would be $95 or 1 percent of income, whichever is greater.

Statement from Washington Insurance Commissioner Mike Kreidler:

“Delaying the mandate would be unwise. This is an issue of personal responsibility. It’s unfair for people who can afford coverage to not have it, and to expect the rest of us to cover the cost of their care if they become seriously sick or injured. ”
“A critical part of the Affordable Care Act was the provision requiring that insurers take all applicants. No more screening out people because they have pre-existing medical conditions. But to make that work, you have to have as many people as possible in the insurance pool.
“Without an individual mandate to have coverage, people would likely just buy insurance when they knew they needed it. That’s like letting people get homeowners insurance only when their house catches fire.”

More states asking insurers if they're ready for climate change

From a press release we just sent out:

Insurance companies are facing growing scrutiny over their preparedness for climate change, an issue that could potentially affect insurance affordability and availability.

“I’m very pleased to see more states joining this effort,” said Washington Gov. Jay Inslee. “Being prepared is clearly in the best interests of both insurers and the families and businesses they insure.”

Last year, insurance regulators in Washington, California and New York surveyed major insurers about what steps they’re taking to address risks to their underwriting and investment portfolios.

This year, regulators in Connecticut and Minnesota have also joined the survey.

“Climate change is a potential game-changer for insurers,” said Washington Insurance Commissioner Mike Kreidler. “We want to make sure that this issue is on their radar.”

Climate change poses a double challenge to insurers. Extreme weather events and droughts, for example, can sharply increase claims. Climate-related issues could also have a significant effect on insurers’ investments, potentially affecting their long-term ability to pay claims.

“Unprepared insurers are much more likely to simply pull out of markets, leaving homeowners and businesses struggling to find alternative coverage,” said Kreidler, who chairs the National Association of Insurance Commissioners’ working group on climate change. “And when insurers abandon a market, government tends to end up as the insurer of last resort.”

Kreidler’s office has been surveying insurers on this issue since 2008.

“I wish some companies were further along,” said Kreidler, “but I’m encouraged to see that a growing number of companies are taking steps to incorporate climate change into their risk modeling and investment considerations.”

For a look at past surveys and responses for Washington, California and New York, please see California’s Climate Risk Disclosure Survey web page.

"I have two health insurance plans. Why do I still have to pay for some things?"

Q: "Why do I have to pay anything out of pocket? I have two health insurance plans. Between them, shouldn't they cover all the costs?"

A: Unfortunately, most insurers changed the rules under which they coordinate benefits within the past 10-15 years. Under the new rules, there's less economic advantage to have two (or more) health insurance plans.

As a general rule, if you have two health plans and you receive both of them on your own (i.e. you don't get either of the plans through your spouse), then generally the plan that you've had for the longest period of time should be the primary policy.

However, there are a lot of variables that can change the result. For example, if one of your plans is Medicare and you get the other plan through your employer, then having a Medicare plan can change the order of benefits, depending on the size of your employer.

Confusing? Yup. If you're having problems with an insurance issue and you live in Washington state, feel free to give us a call. We may be able to help. Our insurance consumer hotline is open from 8 a.m. to 5 p.m., Monday through Friday. The phone number if 1-800-562-6900. You can also reach us at AskMike@oic.wa.gov.

Insurance tips: Are my antiques and collectibles covered?

Q: "I have a number of rare antiques and collectible items of special value. Are they covered by my homeowners policy?"

A: Household goods usually are covered, but only to a limited value. If you have rare, valuable items, it's a good idea to talk to your agent or insurer about that, because you may need to insure them separately. This will likely cost more, but maybe not a lot more. And you'll know you're covered, rather than finding out after a fire, burglary, etc. that your policy was inadequate.

Also, you may need to get professional appraisals to establish the current, accurate value of the items.

For more tips, including inventorying your possessions, resolving claims, etc., please see our "insurance tips for homeowners" page.

Flood insurance changes run into resistance

From AP:

Just a year after Congress imposed significant changes in the government's oft-criticized flood insurance program, howls of protest from homeowners facing higher premiums have coastal lawmakers pressing for delays that would preserve below-cost rates for hundreds of thousands of people in flood-risk areas.

 Here's the full story, in case you missed it. Curious to see if  your community is scheduled for a rate update? Enter your zip code here.

What you need to know about boating and insurance

Summer is finally here! And it arrive before the Fourth of July - a rarity in the Northwest. Many of us like to go boating, especially with crab season now open. If you own a boat or rent a boat, you should consider boat insurance. Here's why:

Boating liability insurance in Washington state is not mandatory, but it's a good idea if you want to protect yourself and your passengers.  You can purchase boat insurance for a fairly reasonable price.  Coverage protects your boat from physical damage as well as your passengers if they're injured.  It also protects your boating equipment.

Check with the insurance company that covers your home and auto to see if it'll cover your boat, too. You could get a discount for having multiple policies with them.  If you're not sure what type of coverage you need, just ask your agent.  He or she can help make sure you're properly insured. Some small boats, like rowboats or dinghies may be covered under your homeowner policy - check your policy to be sure.

Here's more information about boating regulations in Washington state.

 

Our Insurance 5000 Bldg is closed today due to a malfunctioning cooling system

Effective immediately, our Insurance 5000 Bldg. in Tumwater is closed today due to a malfunctioning cooling system. All online services are still available and our other offices in Seattle, Olympia and Spokane are open. We expect the building to be back open tomorrow.