Gallup poll: Washington ranks 5th among states with drop in uninsured rate

According to a Gallup poll released today, Washington is one of five states to exceed a 10 percent drop in the number of uninsured people.

Seven of the 10 states with the biggest reductions have two things in common: they expanded Medicaid (called Apple Health in Washington) and established a state-based health exchange (ours is called Washington Healthplanfinder).

Washington state has seen record-low rate requests from health insurers in the past two years. Insurers proposed an average 5.4 percent increase for 2016. These plans are now under review and the average rate increase is likely to be lower.

For 2015 plans, insurers proposed an average rate increase of 8 percent. Insurance Commissioner Mike Kreidler eventually approved an average 1.5 percent rate increase.

"I'm pleased to see the health insurers show an increased interest in the individual market and to see rates continue to come in relatively low,” Kreidler said when the 2016 rates were submitted in May of this year.

Open enrollment for 2016 health plans begins on Nov. 1.

Consumer alert: Life insurance mail scam still alive in Washington

Some Washington residents are receiving mailers from National Processing Center advertising a “state-regulated life insurance program to pay Final Expenses for just pennies a day…  Return this card today and you will receive the latest information on how this Special Program will pay 100% of all funeral expenses not paid by government funds, up to $25,000 (TAX FREE), for each Washington citizen covered.”

This is a mail phishing scam and we are alerting consumers to not return the card or provide any personal information.

Here’s what the mailer looks like:

Here are some red flags we identified in this mailer that consumers should be aware of:

• The mailer doesn’t identify the name of the insurance company.
• The mailer doesn’t give an agent or broker to contact.
• The card gets returned to “National Processing Center,” which is not an insurance company.
• The mailer gives no information about the policy.

The Virginia Better Business Bureau issued a consumer alert about the mailings in 2013.

A handful of companies are authorized to sell final-expense life insurance policies in Washington, which typically are purchased to cover funeral expenses. Before you buy any insurance, you should make sure the person or company selling the policy is licensed to do business in this state. If you are interested in finding one of the companies that sells final-expense life insurance, you can contact our consumer advocates at 1-800-562-6900 for a list.

Read more about life insurance and what to consider before you buy it.

Think your driving habits are the basis for your insurance rates? Think again

Consumer Reports recently reported on auto insurance premiums and rates, and is doing a social media campaign to raise awareness of the issue. They found that auto insurers use factors like your credit score, shopping habits and a loyalty penalty –your tolerance for rate hikes--when setting your insurance rates. The publication is urging consumers to contact state insurance regulators like Commissioner Kreidler to voice their support for premiums that are based on driving behavior.

Kreidler has long advocated for abolishing credit scoring, which is the practice of using consumers’ credit scores to set rates. In 2002, it was his top legislative priority; the state Legislature did not support a complete ban on credit scoring but it did restrict the use of consumers’ credit history in personal insurance rates. However, the use of credit history by insurers is not illegal and was in fact authorized by the federal government in the 1970 Fair Credit Reporting Act.

More recently, Kreidler issued an advisory to insurance companies about price optimization, which he calls a loyalty penalty because it penalizes consumers who don’t shop around for lower rates. “This practice discriminates against people who don’t shop around, and discriminatory pricing is against state law,” said Kreidler. “It’s hard to root out loyalty penalty pricing, but our actuaries are actively watching for it.”

We’ve also seen reports that insurers are using consumers’ social media posts as a factor in setting rates. The practice is called social media risk scoring and it looks at things like if you post vacation plans, thereby leaving your home vacant and primed for burglary. But why stop there, who’s to say pictures of happy hour at the bar won’t result in higher premiums for your auto insurance? Or photos of you smoking while skydiving won’t result in increased life insurance premiums?

Our consumer experts have fielded more calls on this topic since the Consumer Reports information was posted, and we encourage people to keep contacting us. Our advice on this topic is to shop around. That’s really consumers’ best option until state and federal lawmakers take on credit scoring and other factors that are not directly related to consumers’ rates.

Do you have questions about this? Contact our insurance experts: http://bit.ly/consumerhelp

Don’t fall for Pay My Deductible offer for auto accidents

Insurance Commissioner Mike Kreidler is alerting Washington consumers to be wary of any solicitation from the Pay My Deductible Club, which offers to pay your auto insurance deductible if you are involved in an accident.

Several payment options, including a lifetime membership, are offered to join the club and become eligible for the deductible payments.

The company claims to be based in Beverly Hills, CA. However, the firm is not licensed in Washington and is not authorized to do business here.

Although the company claims its deductible benefit is not insurance, the commissioner sees otherwise. To offer this product in Washington, the firm would need to apply for and receive approval to operate as a property and casualty company.

Other states have also alerted consumers about Pay My Deductible.

Some tips to consider if you do receive a solicitation from Pay My Deductible or any other company seeking to sell you an insurance product or one that sounds like it could be insurance:

• Check the Washington Secretary of State’s website to see if the company is registered.
• Search our website to determine if the company is authorized to sell insurance in Washington.
• Check the company’s website. If you get an error message such as “under construction” or that the security certificate is registered to another entity, consider those red flags.
• Don’t give out any bank account information if you are suspicious about a company.

If you've received an offer for this product, please contact our office and we’ll investigate.

Medicare and Medicaid celebrate 50 years this week

July 30 is the 50th anniversary of Medicare and Medicaid, which serves 1 out of every 3 Americans. Insurance Commissioner Mike Kreidler will join the celebration by speaking at the Northwest regional event, held on July 30 from 10:30 a.m. to 12 p.m. at the Greenwood Senior Center in Seattle. The event is being hosted by the Centers for Medicare & Medicaid Services (CMS) Region X Office.

Commissioner Kreidler will join a panel of experts to discuss how Medicare and Medicaid have changed society and the ways in which we can work together to strengthen and improve health care for future generations in Washington state.

You’re invited to attend the celebration; register here.

CMS is observing the 50th anniversary by reflecting on the impact of these two programs and raising awareness about the services they provide to Americans.