(Washington, D.C. – Insurance News 360) – On Oct. 15, Health and Human Services (HHS) Director  Alex Azar issued  a statement regarding drug companies’ announcement that they would begin providing access to greater amounts of information about drug pricing.

This is Azar’s statement.

“Patient empowerment and transparency are at the core of the President’s drug-pricing blueprint that was released five months ago. Our vision for a new, more transparent drug-pricing system does not rely on voluntary action. The drug industry remains resistant to providing real transparency around their prices, including the sky-high list prices that many patients pay. So while the pharmaceutical industry’s action today is a small step in the right direction, we will go further and continue to implement the President’s blueprint to deliver new transparency and put American patients first. “

Source: U.S. Department of Health & Human Services.

(Arlington, VA – Insurance News 360) – On October 2, the Insurance Institute for Highway Safety announced that the 2019 Toyota Corolla hatchback model, equipped with optional curve-adaptive headlights, is qualified for the 2018 Top Safety Pick.

This model will replace the Corolla iM hatchback. The sedan has not been redesigned and these ratings do not apply to sedan models.

The Corolla has superior-rated front crash prevention, and the optional curve-adaptive headlights have an acceptable rating, although the base headlights are rated marginal. In order for the vehicle to qualify for 2018 Top Safety Pick, it must have good ratings in the driver-side small overlap front, moderate overlap, side, roof strength and head restraint tests. It also needs a front crash prevention system that earns an advanced or superior rating and available headlights that earn an acceptable or good rating.

It also earned a rating of “good” in the IIHS passenger-side small overlap front crash test, which is the newest test the organization conducts.

Source: Insurance Institute for Highway Safety.

(Milwaukee, WI – Insurance News 360) – To ensure that restaurants in Wisconsin comply with federal wage laws, the U.S. Department of Labor’s Wage and Hour Division (WHD) is running an education and enforcement initiative several areas. The project will offer compliance assistance tools and education to employers and industry stakeholders. Those efforts will be focused in these communities: the cities of Oshkosh, Neenah, Menasha, Appleton, Little Chute, and Kaukauna as well as Milwaukee’s East Side neighborhoods.

The WHD will work with organizations in the areas to determine the best way to provide tools and information to make it easier for businesses to maintain compliance with wage laws and the requirements of the Fair Labor Standards Act.

This initiative raises awareness among employers, employees, community organizations, and others regarding federal wage and hour laws,” said Wage and Hour District Director David King, in Minneapolis, Minnesota. “Our ultimate goal is to increase industry-wide compliance. With more than 200,000 people employed in food-service jobs in Wisconsin, the Wage and Hour Division wants to make sure everyone knows and follows the rules.”

Over the past three fiscal years investigations by WHD have found that common violations include employing servers to work only for tips; paying servers overtime at one-and-half times their direct cash wage rather than the full federal minimum wage; pooling tips illegally; misclassifying employees as independent contractors and then failing to pay them minimum wage and overtime; and failing to combine hours employees worked at multiple locations when determining when overtime is due.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates for hours worked beyond 40 per week. An employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages, provided that amount plus tips received equals at least the federal minimum wage of $7.25 per hour. If an employee’s tips – combined with the employer’s direct wages – do not equal the minimum wage, the employer must make up the difference. Employers also are required to provide employees notice of the FLSA tip credit provisions and to maintain accurate time and payroll records.

For more information about the FLSA and other federal labor laws, call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at https://www.dol.gov/whd.

Source: U.S. Department of Labor.

(Washington, DC – Insurance News 360) – On Oct. 11, the U.S. Department of Labor announced a two year, $1.9 million contract for pilot projects targeting apprenticeships for youths and adults with disabilities, created by the Department of Labor’s Office of Disability Employment Policy (DEP).

Social Policy Research Associates will use the two year contract to research, develop, test, and evaluate innovative strategies in apprenticeship programs that provide skills training to people with disabilities. Efforts will specifically focus on quality pre-apprenticeship and apprenticeship pilots in high-growth industries such as information technology, healthcare, and emerging sectors. SPRA will document and share best practices so that other apprenticeship efforts may replicate promising approaches.

“Apprenticeships are a proven strategy for connecting job creators with motivated, highly skilled workers, yet people with disabilities are disproportionately underrepresented in apprenticeship programs and in the workforce at large,” said Deputy Assistant Secretary of Labor for Disability Employment Policy Jennifer Sheehy. “This project will help us determine ways to ensure people with disabilities acquire the skills and credentials needed to obtain an in-demand position in a high-growth business or industry, where jobs pay family sustaining wages.”

ODEP works to increase the number and quality of employment opportunities for people with disabilities by developing and influencing policies and practices. For more information on ODEP and this contract award, visit https://www.dol.gov/odep/.

Source: U.S. Department of Labor.

(Washington, WA – Insurance News 360) – On Oct. 10, National Association of Realtors President Elizabeth Mendenhall released a statement on the passage of S. 3021, America’s Water Infrastructure Act of 2018.

“America’s Water Infrastructure Act of 2018 ensures the U.S. Army Corps of Engineers can continue providing vital economic and environmental services to property owners across this country. Overall, this legislation supports U.S. economic development and the real estate industry by investing in natural disaster and flood control protections; by securing clean, sustainable drinkable water for everyone in America; and by maintaining waterways and ports that help us transport goods across the country.”

“The bill is particularly beneficial to Realtors in Florida who are working to address the state’s critical infrastructure needs, specifically by funding research to combat harmful algal blooms that surfaced in the state earlier this year. NAR applauds the Senate and House for moving this legislation swiftly, and we look forward to seeing it signed into law in the coming days.”

Source: National Association of Realtors®

(Helena, MT – Insurance News 360) – Montana’s 2019 individual and small group insurance market rates are now available to the general public.

Insurance Commissioner Matt Rosendale made proposed rates available to the public on June 28.

There’s no change expected for 18,500 Montana residents covered by Blue Cross and Blue Shield of Montana plans in the individual market. The company proposes a decrease of 4.9 percent for about  25,000 Montanans covered by their small group plans.

PacificSource  proposes an average increase of 6.2 percent on approximately 12,700 Montanans covered by their individual market plans, and a 1.8 percent average increase on their small group plans. About 19,200 Montanans are covered by PacificSource in the small group market.

The Montana Health CO-OP is proposing average rate increases of 10.6 percent in the individual market, and 4.6 percent in the small group market. The CO-OP insures about 23,300 Montanans in the individual market and about 240 in the small group market.

Among those three companies, 64 different plans will be available for Montanans in both the individual and small group markets. Additionally, 30 more small group plans will be offered by UnitedHealthcare and WMI off exchange only.

Under Montana law, the insurance commissioner’s office will now review the proposed rate changes for accuracy and justification; the office cannot reject rates unless they are discriminatory.. Rates will be finalized in August. The proposed rates do not affect residents who are covered through a large employer or a government program like Medicare or Medicaid.

 “Obamacare has been a disaster for many Montana families. We need to repeal it and create our own Montana health care solution instead of relying on an unaffordable, one-size-fits-all program from Washington, D.C.,” Rosendale said. “I will keep fighting to give Montanans more options to get health care based on their own personal needs, budgets, and decisions so that every Montanan can access affordable health care.”

As insurance commissioner, Rosendale has worked to give Montanans more options for accessing lower cost, quality health care. Rosendale has authorized direct primary care agreements and health care sharing ministries as alternative health care options for Montanans. Following Rosendale’s actions, new direct primary care clinics are in Missoula and Polson, and the Medi-Share ministry is operating in Montana.

Public comment is only required on rate increases over 15 percent, but the insurance commissioner’s office will accept all public comment related to proposed 2019 rate changes. Public comments can be emailed to CSIPublicComment@mt.gov through July 27, 2018. The commissioner’s office will then compile the comments and forward them to the relevant insurance companies to consider before rates are finalized in August.

Source: Montana Department of Insurance.

(Saint Paul, MN – Insurance News 360) – Changes in federal law mean that many Minnesota seniors may need to find new Medicare Coverage if they are enrolled in a Cost Plan, in order to keep coverage for 2019.

Due to a change in federal law, many Minnesota seniors with a specific type of Medicare plan, known as a “Cost Plan,” may need to enroll in new Medicare coverage for 2019.

Medicare Cost Plans are offered by Blue Cross and Blue Shield of Minnesota, Health Partners, and Medica. These plans have a variety of names.

How do I tell if I have a Cost Plan?

The Minnesota Commerce Department notes that of the one million Minnesota seniors who have Medicare, only 370,000 have Cost Plans. To confirm whether or not you have this type of plan, call the number on the back of an insurance card.

For now, seniors don’t have to take action, but will receive information about how to obtain new Medicare coverage for 2019.

THe Minnesota Departmet of Commerce is working to provide a smooth transition in coverage for seniors, coordinating with the Centers for Medicare and Medicaid Services (CMS), state agencies, insurance companies, and other organizations to serve seniors in the best way.

How will Minnesota seniors with Medicare Cost Plans be affected for 2019?

Not all seniors with Cost Plans will be affected in the same way. Some will be able to keep their plans, and CMS will provide the list of counties where seniors can keep their plans in 2019.

Many will be moved to a Medicare Advantage Plan with their same company, but will be able to opt out and select a different plan or supplement policy.

The  Department estimates that 200,000 residents will need to take action to replace their cost plans

Get more information from Medicare by calling 1-800-MEDICARE (1-800-633-4227) or visiting www.Medicare.gov

Minnesota Senior LinkAgeLine also provides information. Call 1-800-333-2433 statewide.

The Minnesota Commerce Department ca also provide information. It is the state regulator for insurance companies, brokers and agents. Call 651-539-1600 or 1-800-657-3602 (Greater Minnesota), or visit consumer.protection@state.mn.us to learn more and to find out the brand names for these plans.

Source: Minnesota Department of Commerce.

(Sacramento, CA – Insurance News 360) – On June 28, the California Department of Insurance announced that four bills sponsored by Insurance Commissioner Dave Jones had passed the state’s Senate Insurance Committee.

AB 1875 clarifies issues regarding extended replacement coverage (ERC) for wildfire survivors. ERC is offered by most insurance companies; it allows property owners to purchase coverage above replacement cost policy limits, typically based upon the insurance company’s estimated cost of replacement. ERC limits can vary dramatically, from 20 percent to 50, 75, even 100 percent. AB 1875 would require an insurer who does not provide at least 50 percent ERC to help direct the consumer to an insurer that does. This will give consumers reasonable options against underinsurance.

AB 2594 gives a consumer the right to sue their insurer after a declared disaster for up to  24 months, given that it now takes longer to rebuild after California’s significant fires in 2015 and 2017. Current law provides a policy holder at least two years to rebuild their property and reecieve replacement cost coverage they paid for, after losing a home or business due to fire. However, two years  is often insufficient time for families to rebuild the insured property. Some insurers have refused consumer claims, citing the lack of a lawsuit within the 12-month timeframe.

AB 2634 requires insurers to disclose upcoming increases to the cost of administrative expenses charges or cost of insurance charges in a flexible premium life insurance policy. The notification is meant to allow the consumer to make an informed decision about whether they should pay the increase or not.  Some increases from insurance companies have been as high as 67 percent of the previous amount the consumer had been paying. This bill improves the quantity and quality of information about how premium increases will affect premium increases on their life insurance policies. This bill would require an insurer to inform the policy owner of a flexible premium life insurance policy 90 days before the policy is subject to an increase in the cost of insurance charge or administrative expense charge and require the notice to include specified information about the increase.

Finally, AB 2802 strengthens consumer protections and addresses critical issues like

wildfire recovery, life insurance and child support. It creates the Insurance Payment Intercept Program to require insurance companies to participate in a program matching individuals behind on child support payments with their insurance claims to verify any insurance payments are used to pay past-due child support. It is expected to lead to payments in the tens of millions of dollars to parents across the state. In California alone, the total amount of unpaid child support is nearly $18 billion and over $116 billion in unpaid child support is due to families across the country.

“As Insurance Commissioner, my main priority is protecting California consumers while ensuring a healthy and vibrant insurance market,” said Commissioner Jones. “These bills strengthen laws to protect wildfire survivors and resolve other critical issues throughout the state. I thank Assemblymembers Wood, Friedman and Chau for authoring these consumer protection bills that will improve the lives of many Californians.”

Source: California Department of Insurance.

(Sacramento, CA – Insurance News 360) – On June 19, the Appellate Court of Illinois issued a decision that denied Lumbermens’ Mutual Casualty Company the ability to use California workers compensation funds to reimburse overhead and administrative expenses connected to the company’s liquidation. Insurance Commissioner Dave Jones and the California Insurance Guarantee Association (CIGA) had a stated position that the company could not use workers’ compensation deposits for this purpose.

“As regulator of largest insurance market in the country, I am committed to making sure California workers are protected and insurance companies keep their promises to policyholders,” said Insurance Commissioner Dave Jones. “The court’s ruling upholds my position that Lumbermens Mutual Casualty Company must use funds reserved for workers’ compensation claims on actual claims-and not other expenses. This ruling preserves financial protections for California’s workers and businesses that rely on workers’ compensation insurance.”

According to the insurance department, the California Insurance Code plainly states special deposit proceeds must be used solely for the payment of compensable workers’ compensation claims.General administrative expenses are not related to the payment of specific workers’ compensation claims, so it is improper for Lumbermens to require CIGA to pay general administrative expenses such as rent, postage, telephone, lighting, cleaning, heating and electricity with funds held in a special deposit.

The court agreed and determined the special California workers’ compensation deposit is security for the payment of workers’ compensation claims in California and must be used exclusively to protect policyholders from insolvent insurers by providing an asset from which to pay compensable workers’ compensation claims.

Source: California Department of Insurance.

(Salem, OR – Insurance News 360) – Oregon residents can look at the state’s  preliminary rate decisions for 2019 individual and small employer health insurance plans; official decisions on rates will come July 20.

The preliminary rate decisions affect small businesses and individuals who buy their own coverage rather than getting it through an employer.

Preliminary decisions have come for seven companies in the individual market; the  market, average rate changes range from a 9.6 percent decrease to a 10.6 percent increase. Under the preliminary decisions, Silver Standard Plan premiums for a 40-year-old in Portland would range from $414 to $486 a month.

“Although rates are still rising for many consumers, the Oregon Reinsurance Program is continuing to provide some stability and relief,” Insurance Commissioner Andrew Stolfi said. “Without this program, Oregonians who buy their own insurance would see much larger rate increases. Actions taken at the federal level have injected instability into the market and resulted in rate increases, and we are committed to protecting Oregonians’ access to affordable, comprehensive coverage.”

In the small group market, the division has reviewed each of company’s rate request and plans to approve the rates as filed. The average rate increases range from 4 percent decrease to a 9.4 percent increase. Under the preliminary decisions, Silver Standard Plan premiums for a 40-year-old in Portland would range from $295 to $387 a month.

See the chart at https://dfr.oregon.gov/healthrates/Documents/2019-pre-prop-rates.pdf for the full list of preliminary decisions.

These preliminary decisions will undergo continued review and discussion through public hearings being held in Salem and streamed online July 9-11. The public comment period also will remain open through Wednesday, July 11. There will be a dedicated public comment period during each public rate hearing. For a schedule of hearings and to submit comments online, visit www.oregonhealthrates.org .

Final decisions are expected to be announced Friday, July 20.

Source: Oregon Division of Financial Regulation.