Pennsylvania Insurance

Three huge and Blue Cross Blue Shield health insurance to more than half the population of Pennsylvania have huge stocks of surplus cash in recent years, while the loading process higher d ‘ subscribers premium rates.

The companies, all non-profit organizations, maintain more than $ 3 billion in surplus - far exceeds the legal requirements. These surpluses could be a reduction of $ 2.2 billion during the last year, and was still fulfilled levels of reserves required by the Pennsylvania Insurance Department.

The company - Independence Blue Cross of Philadelphia, Mark sovereign Camp Hill and Pittsburgh, and Capital Blue Cross of Harrisburg - have been described in a series of class action of the violation of their non-profit in the construction of charters surpluses. The law contains no restriction on how the extent of surpluses can develop.

“They say in principle:” We will collect as much as we want, “said Gregg W. Mackuse, a lawyer complain Independence Blue Cross.

“How the floor to non-profit?

The Blues say their surpluses building is a good business practice.

As medical costs rise, companies say large surpluses subscribers ensure that their medical expenses are paid.

Capital Blue Cross and Blue Shield PA, no direct negative impact on its next Split. Almost all its customers have opted for another year of scope jointly by the two insurers.

“We have one of the best years we ever had,” said James Mead, President and Chief Executive Officer of Capital Blue Cross.

But on the market, causing the split headaches for some people, buying group health insurance. After decades of partnership and years to come talk about the merger, Capital Blue Cross and Blue Shield of Pennsylvania decided last fall at the end of the relationship.

It began marketing its own reports during the months of January and full-fledged competitors on 1 April. Purchasers of long-term coverage jointly by the companies are now separated places fielding individuals, but also competitors.

“It’s much more complicated than you already feel,” said Paul McMillen, Executive Vice President of the Automobile Association of Pennsylvania, politics to negotiate on hundreds of houses and motor vehicles businesses across of the State.

Debbi TINGLEY of Pennsylvania Builders Association, which buys on behalf of the coverage of more than 30000 individuals and families, said details on the different companies are not finalized.

PMA Capital (NASDAQ: PMACA) today announced a net loss of $ 96.4 million or $ 3.08 per share more for the third quarter of 2003, compared with net income of $ 9.4 million, or 30 cents per diluted share for the third quarter of 2002. For the nine months ended 30 September 2003, we have a net loss of $ 73.5 million or $ 2.35 per share, compared to a net loss of $ 37.6 million or $ 1.20 per share more for the same period last year.

The net loss for the third quarter includes an after-tax charge of $ 97.5 million, or $ 3.11 per share to increase PMA return loss reserves on 30 September 2003. During the third quarter, our internal actuaries, periodic verification of their vast reserves to which a broad review of reservations made in 1997-2000 for the disaster. An independent company to pay a thorough review of the PMA-back traditional damage and accident insurance and loss reserve came to the conclusion that such loss reserves are reasonable effort on 30 September 2003. These studies indicate that LDCs return higher than anticipated in insurance losses of reinsurance transactions, particularly from business accident accidents in 1997 and 2000, he took the reserve. We believe that this reserve does cost exposure relative to our future prejudicial to the loss of development of the LDCs. The result of this fee and LDCs backyard Ratings Down degrees, we decided to reinsurance.

In the third quarter, our internal actuaries “Review of provisions on PMA Insurance Group pointed out that no reserve adjustments were necessary. Accordance with the law, the capital of the PMA Insurance Group has been unaffected by the tax. Insurance Group The LDCs must remain excellent service in markets where it operates.

We also assessed the value of our income tax assets at 30 September 2003. Based on this analysis, we have an adjustment on tax assets of $ 24 million, the impact on the earnings of 77 cents per share. As indicated earlier this week, we decided to pay dividends in shares of the hour.

Standard & Poor’s Ratings Services has lowered its counterparty credit rating and debt priority in the PMA Capital Corp. (NASDAQ: PMACA) on “B” from “BB-”.

Standard & Poor’s also lowered its counterparty credit and financial rating on reinsurers PMA Capital Insurance Co. (PMACIC) to “BB” from “BBB-”.

In addition, Standard & Poor’s lowered its counterparty credit and financial capacity of primary education on the ratings writers PA manufacturer Assoc. Insurance Co., maker of Pennsylvania Indemnity Co., and manufacturers Alliance Insurance Co. (collectively referred to as PMAIG) “BBB-” from “BBB”.

CHICAGO - Fitch Ratings today announced its updates Quantitative Insurer Financial Strength (Q-IFS) 555 ratings for USA claims of insurance companies. Meanwhile, Fitch has the new Q-IFS-80 Ratings on the USA insurers.

Of the 555 updated ratings, there are 69 upgrades, 25 demotions and 381 claims. Fitch notes that the number of updates on Down degree reflects improvements in credit basis, with those companies evaluated during fiscal 2006.

Including 555-Q-IFS Ratings, Fitch currently maintains coverage of 958 U.S. property / Accident Insurance companies that share about 74% of total industry net premiums.

In addition, Fitch 23 revocation of the existing Q-IFS ratings, as these damage-insurance companies Fitch no longer meet the criteria entitled to a Q-IFS-Rating.

Q-IFS-Ratings are solely on a statistical model using the last five years, the financial information law. The model that “the logic of notation” that mirror many aspects of the quantitative analysis, which is used, assign ratings traditional IFS. In case of simultaneous recognition of borders within the strict framework of using a quantitative approach credit rating, Fitch is of the opinion that the notation IFS make adequate representation of the company stand-alone financial strength and costs of exploitation.

Harrisburg, Pennsylvania - Lillian star passes through most days Methodist Hospital of Philadelphia as a diagnostic radiologist specialty of mammography. Eight times over the last ten years, she found a defendant himself - wrongly, she says - to health care misconduct complaints.

“The lawyers complain, never touched all patients in a hospital, and that everyone in the hospital receives geröntgten, radiologists are almost always called,” Stern said.

Accordingly, Stern and his six colleagues are immediate Methodist in the insurance sector in the world the high-risk category, with few insurers willing to it. In 18 months, she has observed its annual holiday ball insurance rates of $ 4000 to $ 40000.

Robert L. Dawson followed an unusual path to the top job in Health Insurance and Health America, a large central health insurance in Pennsylvania.

He studied history at school, then took a stab musical glory.

The Dawson Boys, a musical group he founded with his brother, ED, tours and cut a single for Atlantic Records.

“It was the type of acoustic deterrent devices rock. It was the early 70. I played the guitar and keyboards,” said Dawson.

But the brothers soon Dawson sought conventional work. Ed was a journalist and editor of a newspaper, finally, WV.

Robert went to health care, they will as Sales Manager for a small increase in HMO and management positions in insurance and health care providers.

Dawson, 54, officially took over as chairman and CEO of Swatara Twp.-based Health Insurance and Health America yesterday.

Capital Blue Cross President and CEO James Mead, a statement of support for Pennsylvania Gov. Ed Rendell chose the proposed health insurance tax reserve to help relieve the health status of art to the responsibility of errors crisis.

“The medico-abuse crisis in Pennsylvania is true, and we welcome Dir-Ed Rendell chooses to act with determination, resolve” Mead. “We care deeply about health care for our patients and ourselves deeply on almost 7000 physicians and nearly 50 hospitals in our region of Pennsylvania, process. We know, as a problem threatening, is for health care providers. And we are ready to help. ”

Mead continued: “But we have serious problems and concerns of this proposal to pay a levy of a new, almost one quarter of a billion dollars of tax reserves clients of health insurance, including Such non-profit health insurance as Capital Blue Cross. We and our customers and members is not the cause of this crisis or contributions in this regard. indeed, we too, they are already paid by increasing the capacity of services, “defensive medicine” and recently in our network of physician contract. But this proposal requires our members to pay more, and he needs our sector contributes only the entire cost of this solution Provisional. This is not fair. And it is a bad law and order, for reasons I’ll explain.

“We are disappointed that the former have learned to this tax proposal of our members, after finding it had already announced, and without the slightest opportunity to comment on how it perhaps 800000 impact on our customers and our employees over 2000, “says Mead.

“First, it is important to understand what we are talking about. Our surplus funds for the protection of our customers. Assurances are required by state law surpluses, and with reason. That we can make sure that we pay our customers, says that given the events of catastrophic events, they are likely financial events, or another disaster. The law contains very few requests surplus, but stable insurance companies put in land fallow must be more than the minimum coverage. In fact, for us maintaining our national network and use the Blue Cross mark, we must exceed these amounts several times around. And this is a good thing we do. Over the past two years, Pennsylvania, at least two major insurance companies, businesses, which once had much above the minimum surpluses, but failed, and should be declared insolvent by the state, costs Pennsylvanians finally million. Ironically, is one of those companies was a large medical assistance found insurer.

“It is also important to remember that the capital of Blue Cross, and all” Blue “plans - are non-profit. Our reservations or undistributed surplus to shareholders. They are not required, such as profits or as dividends to investors on Wall Street. However, they are a savings account in reserve for our members. They are used primarily as a safety net to ensure that our members, good, bad weather or catastrophe, their health care systems must be paid and available.

“Secondly, these means of generating income from savings-efficiency, which will help us to limit the growth of our premiums, Mead.” Everyone knows, health care premiums have been way up, without our surpluses, they are even more. It is an indisputable fact. Capital Blue Cross, we do not have a dimethanonaphthalerne Premium revenue reserves of more than seven years. On the contrary, we take the savings income and the largest reserves of the end bonuses to limit growth.

“This proposal would reduce considerably our ability to these two important public policy objectives. In other words, there would be less security of our members and contribute to an increase in premiums. And this is not right for them. You have nothing to do, these crisis. ”

Mead said: “We are also concerned by the proposal on the use of this crisis, a graduate of a tax rate in Pennsylvania. PA has withstood the pride is a graduate of taxation, and with reason - and logic s applies also pointed. Capital companies such as Blue Cross have strong surpluses, because we have our conservative societies. We are proud of this fact. Ironically, in this proposal, we would be punished for the precautionary principle. We pay a higher tax rate than if we now have our reservations spending liberal. This is exactly the opposite of the good law and order. insurance companies to maintain their spending, and put money in the reserves of its members Must be supported, not to be punished.

“In addition, a health insurance fund regional, we are concerned about regional inequalities, which seem to exist in this proposal. We believe that the proven medical crisis is a federal state problem, for which a national solution - and we are ready, just do our share as Pennsylvanians. But this proposal seems not to be fair. We tried to run preliminary calculations to pay this tax, which the limited amount of information available to us in the press release. In other words, companies like ours Conservative pay most of the tax burden, both in terms of actual dollars and as a percentage of our reserves. A large proportion of this clearly disproportionate tax would come from our members in this region, but only a relatively small share of revenue from this tax would benefit doctors and hospitals, our members in this region. Blue Cross Capital is one of the smallest Blue plans in Pennsylvania, but our members to pay would be one of the largest shares of this new tax.

President Clinton plan to reorganize the health system would result in a large displacement of the financial burden among U.S. groups. Costs of health would be a relief for businesses, including most manufacturers offer now that the generosity of welfare benefits, and get off for those who do not, including not only small neighborhood stores, but also Corporate giants as Wal-Mart, Sears and Wendy’s.

As these charges would be reapportioned a glimpse of insurance costs and prospects four companies representing the diversity of experiences of companies: Ford Motor Company, a manufacturer of the elderly, Apple Computer, a young high - tech; Lehigh Valley Racquet and Fitness Center, PA a small store, which is part time teachers, and Manpower Inc., a provider of the nation’s largest temporary workers.

Once the president is the plan, “the differences in firms’ costs is much less,” said Paul Starr, a head of the White House adviser and an architect of the plan. Glances at reduced prices

For Ford, the plan Clinton believes that the great promise of slowing the steady increase in the company health care costs. Finally, Ford said it will not pay a disproportionate share of the vast nation’s medical bills, indeed, collection, processing of payments to financial resources and unversichert. What is really companies, but by a transfer to the government of its enormous burden on retirees’ health and the White House has not yet said how they ignore.

Apple, another major manufacturer, also provides positive on the Clinton plan, which would be a national standard for health insurance costs that the company is now less than pay for the same or better coverage.

But Manpower and Lehigh Valley Racquet concern. Lehigh Valley Racquet pay nothing for its employees part-time coverage of Health, Manpower and pays very little for its temporary workers. Under the Clinton plan, each company would have a contribution of each person. Racquet Lehigh Valley, alongside other companies, is strongly opposed to any pressure health plan, the government has a more important role. No plans on the Job

The worker is not guaranteed in the Lehigh Valley Racquet Manpower and are among the nearly 48 million workers - nearly 40 percent of all American workers - to maintain jobs in companies which have no insurance, the worker Benefit Research Institute in Washington. While some of these workers are in small businesses, who say they can not give benefits to anyone, most are employed part-time and temporary workers in huge capital companies and Neighbourhood businesses.

A large majority of these workers are actually insured under a spouse or parents or a political staff. The Clinton plan would have all employers share the costs of insurance for their employees and their families, regardless of what other workers have an agreement.

Currently, Ford often pays health insurance for the family of a worker, even if the worker’s spouse may have a job at a Wal-Mart or Manpower. Under the Clinton plan, Ford commitment would be reduced, while the spouse of an employer would have had to pay to help the family reports. Ford, where retirees are the problem

To stop the rising costs, Ford is slowly drawn according to the plans of his workers cheaper than the traditional fee-for-service of the extent to which a worker is assigned to a doctor of his choice and Ford plan Health pays the bill, regardless it is. Less expensive plans known as preferred provider networks or health maintenance organizations, indeed, require workers to use groups of doctors and hospitals with whom the company has negotiated, taxes.

Even with the migration to networks, Ford pays more for health care - an average of $ 5000 for each active workers and retirees during the year 1992 - that the Clinton plan, for its standard collection, which is less Ford’s exhaustive.

What is more, while the Clinton plan would be an employer to pay at least 80 percent of insurance premiums for workers Ford now makes all of the bill, with the help of a standard form of negotiations with the States Auto Workers. The level of health insurance fully paid could be revised to newly hired workers, the opportunity to register in this week in negotiations with Ford, the European Union.

Maine’s governor signed a new budget yesterday, sending thousands of workers returning to their place of work for the first time in a week, but the budget impasse in Pennsylvania, where the state paychecks workers were detained and, California Illinois and North Carolina.

Dir John R. McKernan Jr. Maine signed a budget of $ 3.2 billion, but state employees, as there are uncertainties because the budget has been cancelled. The Republican governor made a deal with Democratic legislators, he would sign the legislation, but it would be invalid Wednesday, if the legislature failed to withdraw benefits under the Workers’ Compensation.

The budget includes nearly $ 300 million of taxes on income, sales and gasoline. However, for the increases, Mr. McKernan and his Republican allies want to halt Business cost of insurance. Specifically, the Governor of the State: the insurance system-on-the-job scale back injury of a third.

Democrats agree that the employer to reduce costs, but they are opposed to reduce benefits for injured workers. Blocking in Pennsylvania

In Harrisburg, Pennsylvania, negotiations, the heads of discussions on a new budget on Sunday. The PA is the struggle with a deficit of $ 467 million last year.

The budget impasse costs paychecks its 10000 employees last week, and left schools and social service agencies without money. Another 10000 of Pennsylvania’s state of 117000 people fail to pay on Friday, if the budget is not passed.

These expenditures for education, transportation, lottery and children and youth programs and sales records of State liquor stores to private owners.

In Illinois, the budget stalemate in the discussions Sunday night. Dir Jim Edgar threatened to arrest some utilities, if the problem is not solved, but it does not set a deadline. The State Comptroller warned that legislative guide for 10300 state employees paychecks will be delayed if a budget has not been approved by Thursday.

Gerangel California lawmakers about their $ 55 billion budget. Dir Pete Wilson, the legislature has until July 15 until the final solution to 2.5 billion dollars from the transaction. No negotiations were planned yesterday.

In North Carolina, participants at the conference deadlock last week on whether more teachers should be settled if the state is facing deep cuts in other areas. They hope to resolve differences over $ 7 billion budget and higher taxes this week, but no budget meetings was screened yesterday.