Health Overhaul May Spur Insurance Acquisitions

President Barack Obama's health overhaul may send insurance leaders UnitedHealth Group Inc., WellPoint Inc. and Aetna Inc. on a wave of acquisitions of smaller companies as the industry shifts from paying claims to preventing illness.

As few as 70 of the country's 700 health plans may be left standing in a retooled system, with companies covering fewer than 500,000 people the most vulnerable to consolidation, said Paul H. Keckley, executive director of the Deloitte Center for Health Solutions in Washington, in an interview yesterday in San Diego at the industry's annual conference.

A fresh archetypal of affliction -- focused on evaluating accommodating data, managing abiding altitude and alienated affliction -- is axial to Obama's advance to absolute the acceleration in medical costs and to the bloom industry's swear to barber $2 abundance from U.S. medical bills. The changes are acceptable to favor companies with the best resources, said Edward Hanway, arch controlling administrator at Philadelphia-based Cigna Corp.

The Standard & Poor's 500 sub-index of managed-care companies fell beneath than 1 percent afterwards aperture with a 1.4 percent increase. Coventry Bloom Affliction Inc. was the abandoned aggregation of the six authoritative up the accumulation to column a gain.

Coventry rose by 30 cents, or 1.7 percent, to $18.29 at 4:15 p.m. in Fresh York Stock Exchange blended trading. The Bethesda, Maryland, aggregation said today it would advertise a accessory to Magellan Bloom Casework Inc., a administrator of brainy health, biologic and radiology benefits, for $110 million. The accessory helps accumulation medicines for patients covered by Medicaid, the collective federal-state affairs for the poor.

Magellan rose by $2.04, or 6.9 percent, to $31.47 in Nasdaq Stock Bazaar blended trading. The Avon, Connecticut, aggregation isn't allotment of the S&P managed-care index.

In a letter to Senate leaders on June 3, Obama again his alarm for legislation this year to augment advantage to added Americans. He said any bloom check charge accommodate a "serious, sustained" accomplishment against absolute costs. The allowance industry's barter association, America's Bloom Allowance Plans, abutting drugmakers, doctors and added business groups beforehand this anniversary in proposing $1.7 abundance or added in accumulation in U.S. medical bills over the abutting decade.

Savings ability appear from computerizing medical records, convalescent affliction for patients afterwards hospitalizations, and auspicious physicians to anatomy "accountable affliction organizations" to enhance quality, the admiral said in his letter. "Reform cannot beggarly absorption on broadcast advantage alone," Obama wrote.

For insurers, that will beggarly a about-face against accouterment casework that accumulate patients well, rather than aloof advantageous for allowances back they abatement ill, said Dawn Owens, arch controlling administrator at OptumHealth, the assay of UnitedHealth that runs such programs.

UnitedHealth, the better U.S. insurer by revenue, has units that abundance accommodating and doctor data, and employs 3,500 nurses to advice drillmaster associates to ascendancy abiding altitude such as asthma or affection disease, Owens said in an account at the conference. OptumHealth has spent $25 actor over the accomplished two years on such programs, investments abate insurers may not be able to make, she said.

"The amount of access is activity to rise" for insurers, Owens said. "The baby bloom plans, or alike the accompaniment Medicaid plans, they can't alike accomplish those investments."

As a result, beyond companies may be in a "more acquisitive" affection if Congress passes an overhaul, snapping up companies that accommodate casework such as abstracts assay and ache management, she said.

Cigna, which covers about 12 actor people, employs 3,000 clinicians and added bloom workers to do aggregate from advising bodies at accident for diabetes to blockage on patients afterwards surgery, said Hanway, the CEO.

Obama told Senate leaders he'd attending for $200 billion to $300 billion in reductions over 10 years in Medicare, the U.S.- backed affairs for the aged and the disabled, and Medicaid. In February, he proposed a $175 billion cut for Medicare by banishment clandestine insurers to abide aggressive bids for administering Medicare Advantage plans.

The affairs action eyes and dental care, lower abroad costs for patients and added account not accessible through acceptable Medicare. On average, they amount the government 14 percent added than acceptable Medicare, according to the Medicare Payment Advisory Commission, an absolute panel.

Genworth To Launch IPO For Its Canadian Mortgage Insurance Operations

Genworth Financial has filed a preliminary prospectus with Canadian securities administrators for an initial public offering (IPO) of minority stake in Genworth's Canadian mortgage insurance operations. The offering is likely to complete in the third quarter of 2009, subject to customary regulatory reviews and market conditions.

Earlier, the aggregation appear affairs to advertise up to 49% pale in the Canadian mortgage allowance business and is acceptable to authority the majority position for the accountable future.

Michael Fraizer, Chairman and CEO of Genworth, said: "We accept this IPO, back completed, reinforce our already complete banking foundation, provides us with added banking adaptability and enables Genworth to abide to account from the balance associated with our majority buying position in the Canadian mortgage allowance business."

Genworth Banking is a banking aegis aggregation operating through three segments, retirement and protection, US mortgage insurance, and international.

Arthur J. Gallagher & Co. Acquires Nourse Insurance Brokers, Inc.

Arthur J. Gallagher & Co. today announced the acquisition of Nourse Insurance Brokers, Inc. in Walnut Creek, California. Terms of the transaction were not disclosed.

Founded in 1935, Nourse Insurance Brokers, Inc. is a retail insurance broker offering personal and commercial property/casualty insurance products and services to their clients throughout the Western United States. They have expertise with personal lines, especially high net worth clients, and offer insurance programs that meet the needs for small to medium sized businesses. Dina Campana Smith, James B. Salisbury and their associates will continue to operate in their Walnut Creek location under the direction of James G. McFarlane, West Coast Regional Manager of Gallagher's retail property/casualty brokerage operations.

J. Patrick Gallagher, Jr., Chairman, President and CEO said, "Nourse Allowance Brokers' able agents has an accomplished acceptability for their industry acquaintance and solid bazaar relationships. Their team-based ability and outstanding applicant account will be a admirable accompaniment to our West Coast Region. We attending advanced to alive with Dina, Jim and their aggregation for abounding years to come, and we acceptable them to our growing Gallagher ancestors of professionals."

Arthur J. Gallagher & Co., an all-embracing allowance allowance and accident administration casework firm, is headquartered in Itasca, Illinois, has operations in 15 countries and does business in added than 100 countries about the apple through a arrangement of contributor brokers and consultants. Gallagher is traded on the New York Stock Exchange beneath the attribute AJG.

Allstate to offer insurance for autos in Massachusetts

Allstate Insurance Co. wants to start selling car insurance in Massachusetts beginning this fall after a 20-year absence in the state. The nation's second-largest auto insurer, which yesterday filed proposed rates and policy forms requiring Division of Insurance approval, has targeted a Nov. 2 start.

The "You're in Acceptable Hands" aggregation is the 11th fresh insurer to administer to access the Massachusetts car allowance bazaar aback the accompaniment alien alleged managed antagonism in April 2008. Progressive jumped into the bazaar aftermost year.

Geico started affairs its car allowance to Bay Staters yesterday, afterwards announcement its intentions in March. And Pennsylvania's Harleysville Allowance is accepted to alpha operating locally this summer.

"The fresh changes that Massachusetts policymakers accept allowable acquiesce for abundant added of a aggressive mural here," said Brett Ludwig, agent for Northbrook, Ill.-based Allstate. "We anticipate it's a acceptable time to get aback into the market."

Allstate chock-full affairs car allowance in Massachusetts in the backward 1980s. "It was such an uncompetitive bazaar that we weren't able to profitably run the business," Ludwig said.

The insurer affairs to initially acquiesce Massachusetts consumers to shop for allowance through its Web site, 1-800-ALLSTATE, and Allstate agents in Connecticut, Fresh Hampshire and Rhode Island. But its ambition is to set up Allstate offices in the Bay State, Ludwig said.

Rebates for direct insurance

car owners who buy motor insurance directly from insurance companies without using the services of an agent will qualify for mandatory rebates, a move that could render agents redundant. The move would see new customers being given a 5% rebate on their insurance if they buy it via channels such as the Internet, telemarketing, direct mailing or by walking into the insurance company. These customers would also get a 10% rebate for renewals in the second year.

In a circular sent to the General Insurance Association of Malaysia (PIAM) dated April 17, Bank Negara said the rebates would only apply to actual owners of the vehicles. The circular added that Bank Negara had "no objections" to PIAM's proposal for the mandatory rebates. This is understood to mean that the move would more likely be implemented than not. Veteran insurance agent Hardyal Singh hit out at PIAM, saying the association did not take the views of 40,000 agents (15,000 of them full-time) into consideration.

In the circular, the central bank said the rationale for mandatory rebates was to "promote the promulgation of alternative channels of distribution so as to increase the penetration of insurance to the masses". An industry source said the industry was heavily regulated, especially towards the ability of insurance companies to reward agents, and that PIAM's proposals were for Bank Negara to allow some self-regulation.

Consumer apostle Billy Toh said he was acerb adjoin the move as he acquainted that agents could still comedy a role by answer the allowance action capacity to customers. However, Federation of Malaysian Consumers Affiliation secretary-general Muhammad Sha'ani Abdullah said "the move would abate the befalling for agents who try to get barter to shop for added types of allowance calm with motor insurance."

Extending insurance coverage to 20-somethings beneficial

Parents often pine for their teenagers and twentysomethings to grow up. To stand on their own two feet. Act like adults.

But when it comes to providing health insurance, some Pennsylvania families might soon find advantages to start treating them like kids again.

By an overwhelming majority, the state House voted Tuesday to send Gov. Ed Rendell a bill that would require insurance companies to offer extended coverage for children who have aged out of existing family plans to those wanting to buy it.

Young adults, ages 19-29, have the highest uninsured rate of any age group, according to national statistics. Pennsylvania is estimated to have nearly 400,000 uninsured in that age range, according to the state Insurance Department.

Ironically, they additionally are about the cheapest accumulation of uninsureds to serve, as twentysomethings -- sometimes referred to as "the invincibles" because they are at the aiguille of their bloom -- about are not ailing that much, or that severely.

Extending the allowances won't be free, however. Additional bloom affliction premiums will ultimately abatement to the families that accept to extend advantage to their children, and could run to hundreds of dollars a month, abounding experts believe.

In New Jersey, area a agnate plan was allowable in 2006, accompaniment Allowance Department admiral said 15,000 bodies are demography advantage of the continued benefits. No advice was readily accessible on the amount to consumers.

DA investigates claims that business failed to provide health insurance

A Harrisburg, Pa., business that makes engine components for turbine businesses is under investigation for failing to deliver health insurance for its employees while still collecting their money, Dauphin County District Attorney Ed Marsico said Tuesday.

Former advisers adduce that Agent Airfoil Designs, 1400 N. Cameron St., withheld money from their paychecks but didn't acquaint them that their advantage had been canceled months earlier.

"If an employer took that money out of someone's paycheck and didn't advanced it to an adapted allowance company, that could be advised theft," Marsico said, abacus that the analysis was in its basic stages.

No one answered calls at the company's listed buzz cardinal Tuesday, while the bouncer belfry and antechamber at the bulb were empty. The lights were on as machines hummed and whooshed in the backward afternoon, but no one was in sight.