Residential mental-health services now on par with medical coverage

Insurance Commissioner Mike Kreidler has clarified to insurance companies in Washington that mental-health services must now be offered in parity with medical services.

The commissioner updated rules on mental-health parity in 2014 and asked insurers to review previous mental-health claims that had been denied under a blanket exclusion. He asked insurers to rectify those denials.

The need for clarification arose after a consumer filed a complaint with our office after being denied for residential mental-health treatment. The individual said this violated federal laws regarding mental-health parity.

The federal Mental Health Parity and Addiction Equity Act of 2008 requires insurers in Washington to provide residential mental-health benefits to consumers on par with similar medical health benefits.

Most insurers were already providing the mental-health services on par with medical services. The consumer complaint prompted further clarification.

Better access to mental-health treatment continues as a top public policy priority in Washington. Consumers with concerns can contact the commissioner’s office at any time for information. Consumer advocates are also available to take calls toll-free at 1-800-562-6900.

Read more about mental-health parity. 

OIC hiring six temporary customer service specialists

The Office of the Insurance Commissioner (OIC) is hiring for six part-time, non-permanent Customer Service Specialist 1 positions. The positions are located in our Tumwater headquarters and are expected to work 20-30 hours per week. The expected duration of the appointments is four months, starting September 2015.

The positions provide customer service and technical assistance to the Statewide Health Insurance Benefits Advisors (SHIBA) staff and volunteers surrounding the annual Medicare open enrollment period. The positions also assist in answering phone calls and consumer questions regarding their Medicare Part D options.

Duties of the positions include, but are not limited to:

• Assisting consumers by telephone or email regarding technical questions or concerns regarding Medicare enrollment, coverage and options. 
• Explaining to consumers available outreach, workshop and public media events in their communities.
• Providing information about services available through the OIC, especially consumer advocacy. 
• Resolving consumer concerns and issues with a thorough analysis and research and provide unbiased impartial information. 

The deadline to apply is Aug. 19.

To apply, or for more information, visit careers.wa.gov

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.

Contract forges stronger bond with Washington’s Indian tribes for health care

Commissioner Mike Kreidler and representatives of the American Indian Health Commission signed a landmark contract July 21 that is designed to improve health care for Washington state Indian tribes.

From left: Vicki Lowe, John Hamje, Leslie Wosnig, Carolyn Smith,
Commissioner Kreidler, Todd Dixon

The contract will fund and support training for tribal staff and members regarding their Medicare insurance options.

The support comes through the Statewide Health Insurance Benefits Advisors program, better known as SHIBA. Kreidler’s office manages the program in Washington. Funding is split by the state and federal governments.

“I’m proud of the strong working relationship we have with the American Indian Health Commission and Washington tribes,” Kreidler said at the contract signing. “This will help us better understand and respect the rights and interests of tribal members.”

Signing the contract on behalf of the tribes was Leslie Wosnig of the Suquamish Tribe. She is also secretary of the American Indian Health Commission. Vicki Lowe, grant manager for the Jamestown S’Klallam Tribe, also attended the event.

SHIBA provides free and unbiased information about health care access and coverage in Washington. The contract with the American Indian Health Commission will support several activities, including helping tribal elders understand their Medicare options and get assistance with prescription drug plans.

The program serves more than 100,000 state residents annually through volunteer advisers.

“This is an unprecedented partnership. Now we’ll be working even more closely together to make quality health care more accessible to tribal members throughout the state,” Kreidler said. “Our goal is to reduce disparities in health care. Our mission is to help all who live in Washington.”

OIC hiring Deputy Commissioner for Company Supervision

The OIC is looking for a Deputy Insurance Commissioner for our Company Supervision Division. This rewarding position manages a wide variety of situations and influences the course of insurance affairs, at the state, national, and international levels through contacts with the regulatory community and through colleagues in the agency. This position works together with the other members of the Executive Management Team to set strategic direction of the agency; establish legislative goals; ensure fiscal responsibility; and, create an inclusive, performance based culture. This is a civil service exempt position.

The Deputy for the Company Supervision Division is an executive leader who manages a division of approximately 57 employees at two locations. This position is the highest authority within OIC with designated responsibility to direct the regulatory program and internal operations of the Company Supervision Division.

This position is responsible for the financial and market examination and supervision of all Washington organized insuring entities and all other insuring entities licensed to do business in this state. The position’s mission is to protect insurance consumers, the public generally, and the state’s economy by ensuring the safety and soundness of insuring entities, and to ensure that they comply with applicable law. This position has broad statutory discretion and specific statutory authority involving the registration/licensing, operation, supervision, receivership, liquidation, and merger of insuring entities.

Duties of this position include:

• Regulating and supervising all insuring entities organized in Washington to assure financial stability and compliance with consumer facing market activity regulations.
• Licensing, regulating, and supervising all insuring entities organized in other states or non-U.S. jurisdictions that do business in Washington to assure financial stability and compliance with consumer facing market activity regulations.
• Supervising programs designed to ensure protection of insurance consumers from the failure of insurers doing business in this state and from insurer deviation from legally required market practices. These programs include the management of financially troubled or insolvent insurers and the coordination with insurer guaranty associations.
• Exercising broad statutory discretion over laws and regulations regarding registration or licensing, operation, liquidation, merger or acquisition of insurers, and insurer activity in the Washington marketplace.

Find more information about this job and other openings at http://bit.ly/OICjobs

Did you know adjusters need an insurance license?

Many consumers are not aware that insurance adjusters are required to have a license.

First, what’s an adjuster? Most people who have had an auto accident or a homeowner’s claim have worked with an adjuster, the person who investigates or reports claims to the insurer. There are three primary types of adjusters:

• Crop adjusters work on claims under crop insurance.
• Independent adjusters represent the insurer and work for the insurer. They interact with consumers who file claims with the company.
• Public adjusters represent the insured. Consumers can hire a public adjuster to represent them to their insurance company. 

Adjusters can get a resident license, meaning that Washington is their state of residence, or they can have a nonresident license, meaning they reside in another state and conduct business in Washington.

Why is important that an adjuster have a license?
Just like an insurance agent or broker has, there are rules of conduct that adjusters must follow. If they don’t, our office can take action against them via a fine and/or taking action against their license. Before you work with an adjuster, regardless of the type of license he or she has, take a moment to look them up in the OIC’s licensing database. You can see the status of the license, agencies the adjuster may represent, and investigations into and disciplinary action taken against the adjuster.

If you have a bad experience with an adjuster, you can file a complaint through our website.

Use extreme caution this Fourth of July

This year's Fourth of July festivities in Washington are complicated by the statewide drought we are experiencing. As a result, many local and state government officials are asking Washington citizens to forego fireworks, even where they are legal. 

Many municipalities in Washington have banned the use of fireworks. Washington State Patrol has a list of fireworks laws in Washington cities. They also have a list of public fireworks displays in Washington. 

Insurance policies generally cover fires that are accidental in origin. We recommend you talk to your insurance agent or broker about your coverage in the event of a fire or injury on your property.

If guests are injured by a personal display of fireworks, the homeowner policy may include medical coverage and personal liability coverage. 

Find more information about your insurance on our website.