Many drivers may take for granted the fact that their car is equipped with a spare tire. But according a news release from AAA, that may not be true. In order to meet new government fuel efficiency standards, some car makers are taking out spare tires and instead equipping cars with emergency sealant or an inflator kit. They may also make the car with tires that can still operate even with damage.

In 2010 the Department of Transportation and the Environmental Protection Agency increased the limit for miles per gallon rates. For 2012 models, vehicles must have a combined 29.7 mpg. That will increase to 34.1 mpg in 2016. Those increases are forcing auto makers to change things that were once commonplace– like the inclusion of a spare tire. Spare tires and tools can weigh as much as 40 pounds. “Unfortunately many vehicle owners may be unaware that their vehicle has no spare tire until they experience a flat tire,” says John Nielsen, AAA National Director of Auto Buying, and Consumer Information. “Consumers should review their owner’s manual and emergency maintenance supplies they have in the vehicle and be informed about alternatives to a spare to prevent panic or a delay when encountering a flat tire.”

To ensure that you are protected against a flat find out if you have a spare tire. AAA says it’s important to come up with an alternative solution if one is not present. Keep in mind that if sealant is your option, it needs to be replaced every five years or after it’s used.

It’s not just what’s on the road that can cause teen drivers to crash– it’s also about who’s sitting next to them. The Children’s Hospital of Philadelphia and State Farm conducted a study to identify factors that can lead teen drivers with multiple peer passengers to get into an accident. “These studies help us understand the factors that may predispose teens to drive with multiple friends and how those passengers may contribute to crashes by distracting the driver and promoting risky driving behaviors, such as speeding, tailgating, or weaving,” said study author Allison Curry, PhD, director of epidemiology at the Center for Injury Research and Prevention in a news release. “Knowing this, we can develop programs that work in tandem with current Graduated Driver Licensing laws that limit the number of passengers for teens during their first year of driving.”

Nearly 200 teen drivers were surveyed and experts found that those who are most likely to drive with multiple passengers are those that consider themselves thrill-seekers, those whose parents don’t set rules or monitor their whereabouts, or those who don’t understand the risks of driving in general. “The good news is that that these teens make up the minority,” said Jessica Mirman, PhD, study author and a behavioral researcher in a news release. “Teens in this study generally reported strong perceptions of the risks of driving, low frequencies of driving with multiple passengers, and strong beliefs that their parents monitored their behavior and set rules.”

Another study looked at what was happening to distract the teen driver just before they crashed. Males with passengers are nearly six times more likely to break a road rule and twice as likely to drive aggressively before a crash. “Both male and female teen drivers with peer passengers were more likely to be distracted just before a crash as compared to teens who crashed while driving alone,” explained Dr. Curry. “Among the teens who said they were distracted by something inside the vehicle before they crashed, 71 percent of males and 47 percent of females said they were distracted directly by the actions of their passengers.”

The study found that parents play an important role in safe teen driving. Setting house rules of no non-sibling teen passengers for the first six months of driving can help limit accidents. “Most teens take driving seriously and act responsibly behind the wheel. However, some may not realize how passengers can directly affect their driving,” said Dr. Mirman. “Teen passengers can intentionally and unintentionally encourage unsafe driving. Because it can be difficult for new drivers to navigate the rules of the road and manage passengers, it’s best to keep the number of passengers to a minimum for the first year.”

While you may view this season as the perfect time of year for scoring deals, crooks see it as the perfect time of year for crime. Large crowds and rushed shoppers can make for easy targets. Distracted shoppers are at an increased risk for vehicle break-ins, carjacking and other auto-related crimes according to HEAT, Help Eliminate Auto Thefts.

Law enforcement agencies typically report a larger number of break-ins during the holiday season which can taint this typically cheerful season. “The holidays are a joyous time of year filled with family gatherings and gift giving,” said Terri Miller, director of H.E.A.T. in a news release. “But, with overflowing parking lots and vehicles filled to the brim with purchases, the holidays are also a dream for car thieves.”

Some tips that can keep you from calling the police and your insurance company include staying alert while walking to your car. Restrain from texting or digging for your keys because that could make you an easy target. Keep your car parked in well-lit areas and avoid parking near dumpsters, bushes or vans that may be good hiding spots for criminals. Use your trunk to hide purchases. Putting them in plain view makes it even easier for thieves to steal the gifts you worked so hard to find.

If you’re planning a marathon shopping trip you may also want to consider moving your car. A crook could be watching as you take a load to your car and then return to the mall for another round of purchases. Law enforcement officials also say it’s important to give up the car if you are threatened by a carjacker. Your life is more important and it will definitely give you another thing to be thankful for this season.

Millions of people will hit the road for Thanksgiving weekend. It’s one of the busiest travel times of the year. While you may be insured properly most drivers don’t like the thought of actually having to use that insurance– especially due to the fault of a distracted driver. Most of us probably feel like distracted drivers are all around us on the road. We’ve seen people texting and checking emails, chatting on the phone and even putting on makeup. But a new study reveals that those in the lane next to you are increasingly distracted.

If you’re driving in the Greater Portland area a new study found that one in three drivers are likely breaking the law by using a cell phone without a hands-free device. One in four are texting and emailing while driving. That’s according to a survey from PEMCO Insurance which also found that Portland-area drivers are upset about sharing the road with these potentially dangerous drivers. “Distracted-driving laws are becoming common across the U.S., and for good reason,” said PEMCO spokesperson Jon Osterberg in a news release. “Distracted driving is dangerous, and while our poll results show that most drivers agree, we need to raise awareness to help lower the number of drivers who are focused on their phones rather than on the road.”

Of those polled, 31 percent say they’ve used their cell phones without a hands-free device and 26 percent say they’ve  used their phones to text or email while driving. But 42 percent say that texting violations should warrant a $142 fine and another 55 percent believe that offense should go on a driver’s record. Probably not surprising, drivers under 35 years old are more likely to say the fine is too hefty.

Most people don’t like to think about death and dying. And that’s when life insurance comes into play. But it’s important to safeguard your loved ones in the event of your passing. Knowing which policy to buy is a big decision and one some experts say people don’t spend enough time researching.

Once you do decide on a policy, it’s important to put the paperwork in a place where your loved ones can access it easily. “Consumers need to be familiar with their life insurance policies so they don’t overlook important features that could be critical to their livelihoods,” says Jeff Koll, assistant vice president of product development for Colonial Life & Accident Insurance Company.  ”Make sure you have a copy of your policy, that you know where you keep it and that someone else in the family also knows where you keep it.  You can always request a copy of your policy from your insurance company if you need it.  In addition, evaluate your insurance coverage from time to time to make sure it’s appropriate for your stage in life.” To help you in your decision Colonial Life created this list of commonly overlooked aspects of life insurance.

1. Waiver of premium.  This feature pays the premium of a policy if you become seriously ill or disabled and can’t afford the payments.
2. Accelerated death benefit. This feature allows you to receive cash advances against the death benefit of your policy if you’re diagnosed with a terminal illness. This can be a great feature to help pay for medical treatment and other expenses when they have only a short time to live.
3. Guaranteed purchase option. With this feature, you can purchase coverage at designated future dates or life events without proving you’re in good health.
4. Long-term care riders.  Some life products include this option, which allows you to use the benefits of your policy to pay for long-term care. But using that option means you will not receive your full life benefit when you pass.
5. Spouse or child term riders.  Life policies with this feature allow you to purchase term life insurance for your spouse or dependent child, up to age 26.  If you can’t afford separate policies this can be more affordable.
6. Cash value plans. This type of policy pays out upon your death and also accumulates value during your lifetime. It adds an investment element to your life insurance.
7. Mortgage protection.  This feature, typically found on term life policies, will pay your mortgage if you die.
8. Cash withdrawals and loans.  Many universal and whole life policies allow you to withdraw or borrow money, using the cash value of the policy as collateral. Interest rates tend to be relatively low.  You can also use the cash value of your life policy to pay your premiums if you need or want to stop paying premiums for a period of time.  You must pay back the loan or your beneficiaries will receive a reduced death benefit.
9. Survivor support services. Some life policies offer services that provide objective financial and legal assistance to beneficiaries.
10. Employee assistance programs. This feature makes resources available to you for problems that can affect your personal and professional life.  Resources are usually free and help address issues such as substance abuse, stress, marital problems, legal concerns and major life events.

A new report issued by the Institute for Women’s Policy Research found that access to paid sick days could save $1 billion each year in medical costs. Right now more than 44 million American workers don’t receive paid sick days and even more than that are not allowed to use time off to take care of sick children or family members. “Taking time off work to see a primary care doctor is common sense, but over 40 million Americans cannot do so without losing pay or their job,” said Kevin Miller, Senior Research Associate with IWPR, and an author of the report. “Americans are paying over $1 billion each year in preventable emergency department costs because hard-working people without paid sick days are unable to get the preventative and early treatment they and their children need.”

Around $47 billion are spent on emergency department services each year in the US. If some of that funding was shifted to preventing illnesses in the first place through less expensive doctor’s visits, access to paid sick days would save $1.1 billion each year. About $500 million in these preventable costs are covered by taxpayers with allocated funds going to veterans and low income families. “As high and rising health care expenditures continuing to be a top concern for policymakers and businesses alike, paid sick days is a cost saving solution that should receive serious attention,”  said Claudia Williams, Research Analyst with IWPR and an author of the report.

If an employee has paid sick days they are more likely to go to a doctor during regular business hours. They’re also less likely to put off needed care. Some states are considering legislation that would make sure workers have the ability to earn paid sick time. Some industries are less likely to have paid six days. For instance, two-fifths of private sector employees, including three in four food service workers, three in five personal health care workers and three in four child care workers, do not currently have access to paid sick days.

Wondering what the top trends in workplace benefits will be for 2012? Colonial Life and Accident Insurance Company released their top five predictions for the coming year in terms of workplace insurance:

1. Products: Critical illness insurance will continue to get attention

Major medical issues like cancer, heart attacks and strokes usually exceed many employees’ major medical coverage. Critical illness insurance can provide vital out-of-pocket protection in these cases. “One way to think of critical illness insurance is as ‘living life insurance,’” says Randy Finn, assistant vice president of supplemental health products at Colonial Life, where critical illness sales increased 24 percent from 2009 to 2010. “If you get a serious illness such as cancer and die, life insurance helps with that. But what if you survive? You’re likely to have years of financially crippling bills to pay.”

2. Sales: Voluntary insurance sales will improve significantly

Experts believe sales will increase as more workplaces feel the need to offer a variety of choices to employees. “There’s a big need for better education of workers about the need to protect their most valuable assets with life and disability coverage,” points out Jeff Koll, Colonial Life’s assistant vice president of life and disability products.

3. Services: Wellness programs will become more common as a cost-reduction strategy for employers

Employers have more motivation to keep their employees healthy as health care costs continue to rise. “Good communication about wellness programs is essential for them to be effective,” says Steve Bygott, Colonial Life’s assistant vice president of marketing analysis and programs. “Without a focused effort to ensure employees understand the program and its value to them, participation tends to be low.”

4. Technology: Employees will receive access to more online insurance tools

Employers are putting more decisions into their employees’ hands which means easily accessible tools are going to become even more important.

5. Economy: Government sector employers will need more money-saving options

Government employers are feeling the financial pinch and will need more affordable insurance solutions. “The good news is there’s a huge opportunity for government employers to control costs by changing their benefits plan design,” says Pat McCullough, Colonial Life’s public sector practice leader. “Government employers have been slower than other industry segments to shift away from the more comprehensive, paternalistic benefits models of the past, but there are solutions to help them offer strong packages and still save money.”

A man who risked his life to save others during the Joplin tornado has been facing a continual storm. Mark Lindquist, 51, was seriously hurt while trying to protect group home residents from the destruction. He placed mattresses on top of three middle-aged men with Down syndrome and climbed on top to further protect them. The three men died. Lindquist was injured and in a coma for three months.

Lindquist’s job didn’t provide medical insurance so according to the Washington Post he tried to qualify for workers’ compensation since he was injured on the job. But in June the claim was denied, leaving Lindquist with $2.5 million in bills, according to his sister. Lindquist Baldwin said last week.

Fortunately some good news finally arrived when the Accident Fund Insurance Company of America announced it had changed its mind. “Upon further review of the case, and receiving additional information on the facts involved in this situation, Accident Fund believes the appropriate decision is to honor Mr. Mark Lindquist’s claim for worker’s compensation benefits,” Mike Britt, president of the Lansing, Mich.-based insurance company, told the Washington Post. “We are committed to working with Mr. Lindquist to ensure he receives all the benefits to which he is entitled and helping him to recover from his injuries.” Lindquist told the newspaper that this may mean he won’t have to sell his home like he had previously thought.

According to analysis, the average cost of healthcare service covered by insurance and Medicare programs increased by nearly 6 percent over the last 12 months. It’s the fourth consecutive increase noted by the S&P Healthcare Composite Index. The survey also monitors healthcare costs not covered by insurance and found that those prices increased by nearly eight percent over the last year. Medicare claim costs hit a new low, raising at an annual rate of just over two percent.

Indexes monitoring hospital and professional services saw only small increases. “As the summer of 2011 ended, we continued to observe the recent trend of a deceleration in the annual growth rates of Medicare costs and a sustained acceleration in the annual rates of commercial healthcare costs,” David M. Blitzer, Chairman of the Index Committee at S&P Indices said in a news release. “The Composite Index posted an annual rate of +5.73%, the Commercial Index +7.89% and the Medicare Index +2.16%. With this month’s data, the Medicare index is almost one-fourth of its peak annual rate of +8.02% recorded in November 2009.  This is a very sharp deceleration.”

The S&P Healthcare Economic Indices determine annual growth rates by calculating a percentage change over a 12-month period, examining increases and decreases each month. “If you further separate commercial plans’ costs into their hospital and professional services components, you can see that the August 2011 commercial hospital index is above the rate it posted at the beginning of the year – specifically +9.05% in August versus +8.68% in January,” explains Blitzer. “In contrast, the commercial professional services index has decreased to +6.68% from its +7.25% January growth rate. The increasing growth rate for hospitals is primarily due to rising rates of employment and wages. Professional services wages have also seen increasing rates during 2011; however, employment trends have declined over the same period.”

State Farm Insurance is launching new educational tools for parents and teens so everyone can learn safer driving. The free tools are available for everyone, not just State Farm customers, through the website http://teendriving.statefarm.com/. Many parents dread the day that their child begins to learn how to drive. But according to experts, parents have the greatest influence on safe teen driving behavior.

However on a third of teens rate their parents as a “very good” driving instructor. Three in five parents admit to being nervous about teaching their child to drive. State Farm hopes the new online resource will help make it easier and more educational for everyone. “These online tools are the latest in State Farm’s $20 million commitment to reducing teen driving related crashes and deaths,” said Laurette Stiles, Vice President – Strategic Resources at State Farm. “It’s our privilege to make them accessible to everyone, at no charge, as part of our efforts to help teens drive more safely.”

On the website you can check out Road Trips. It’s an interactive, web-based tool so parents can build practice drives, log progress and communicate more effectively with their teen. Parents will receive tip sheets on important driving skills as well as three minute lessons on the best way to teach these skills. Another tool on the website is called Road Aware. Research shows that 43 percent of crashes caused by teens are due to the young driver’s inability to anticipate and adjust to hazards. This program will help them to locate the potential for danger or risk.

It’s currently benefits open enrollment season for millions of American employees. This is the season they’ll be faced with some big decisions about their 2012 health care coverage. Health care costs are expected to increase by seven percent in 2012 to $10,475 per employee, according to Aon Hewitt, a global consulting firm. Employees are projected to contribute roughly $2,300 to that expense in 2012. That’s an 11 percent increase compared to 2011. Aon Hewitt’s analysis shows that beyond that cost, employees will spend an average of $2,275 on out-of-pocket expenses while seeking care next year.

The Consumer Health Mindset survey, Aon Hewitt‘s recent survey of 3,000 health consumers, shows more than half of consumers participated in health risk assessments and/or screenings such as blood pressure and cholesterol screendings in the past year. Many employers are offering opportunities for employees to address health risks and conditions that will help them with things like managing their diabetes or quitting smoking. Choosing to take part in these assessments and screenings is a crucial part of the open enrollment process. “The most important advice we can provide to an employee is to be an active participant in the open enrollment process,” suggests Craig Rosenberg of Aon Hewitt. “Health care needs and benefit costs can vary from year to year, and when you combine that with the changing health care landscape, it’s critical for employees to educate themselves on their available coverage and reevaluate their choices.”

These are important steps in preventative health care, which is something that employees need to consider, according to experts. “When it comes to choosing and using their employers’ health care plans and programs, workers want their employers to do four things, according to our Consumer Health Mindset survey: make it easy to do, make it personal so I know how to get the best value, make it move me in the right direction, and make it meaningful, so I feel supported as I try to improve my health,” said Joann Hall Swenson, health engagement best practice leader with Aon Hewitt. “Employers who craft their health engagement strategies around these four insights will have a chance at reaching and engaging their employees, which in turn will lead to improved health and productivity, and reduced cost.”

The November issue of Consumer Reports provides rankings of 830 private, Medicare, and Medicaid health insurance plans, an analysis that reveals wide variations in quality for some of the country’s largest insurers. This is a great time for the information to be released since many companies offer open enrollment in the fall.

The rankings are conducted by the nonprofit National Committee for Quality Assurance. “All the health plans in these rankings are exemplary,” said NCQA President Margaret E. O’Kane in a news release. “First, they measure their quality in painstaking ways that help them improve and that make comparing plans possible. Then they take the extra step of revealing their results for the world to see—a true public service.” This is the second year for the rankings, but the first time that Preferred Provider Organizations, also known as PPOs, are being included. PPOs are generally less restrictive than Health Maintenance Organizations. About one-third of the US population is enrolled in a PPO plan.

The rankings include insurance plans in all 50 states and involve an estimated 127 million Americans. “American consumers who assume that ‘bigger is better’ and that doctor choice equates with quality might be surprised when they see how insurance plans stack up in the rankings.  We were struck by the strong performance among HMOs in general, and by some of the smaller, community-based plans,” says Nancy Metcalf, senior program editor, Consumer Reports in a news release. Among the plans receiving the highest scores include 15% of HMOs, 6% of PPOs, 33% of plans not owned by one of the six biggest health insurers and 4% of plans owned by the six biggest health insurers.

He’s an auto insurance company’s dream customer. He’s driven millions of miles and had no preventable accidents. Most drivers could probably learn a thing or two from Rickey Oliver, a Brookhaven, Mississippi-based professional truck driver for Wal-Mart Transportation. Since Rickey has spent 27 years behind the wheel, traveling 3.5 million miles he was just named the American Trucking Associations’ 2011 National Truck Driver of the Year.

It’s considered the highest honor of professional truck drivers. “Rickey Oliver embodies the professional truck driver who delivers America’s goods safely and efficiently everyday,” said ATA President and CEO Bill Graves in a news release.  ”His passion for educating the public about safe driving and his commitment to his community are remarkable.  We are proud to have Rickey represent the industry as National Driver of the Year.”

Rickey isn’t just a truck driver, but he’s an advocate for safety. He has been an active Trucker Buddy, Career Day presenter and volunteers through Wal-Mart’s Foundation. Rickey is also an active member of the Honor Roll Driver Education Program which helps provide safe driving education throughout Louisiana and Mississippi. “Rickey is an incredible resource for the trucking industry,” said Mississippi Trucking Association President David Roberts. “We are glad to have him representing professional truck drivers here in Mississippi and around the nation. I congratulate Rickey for receiving this award and thank him for his tireless efforts on behalf of the trucking industry.”

Flooding has devastated many parts of the US over the past weeks and months. That’s why AAA is warning car buyers on the risks of purchasing a flood-damaged vehicle. According to AAA, following Hurricane Katrina in 2005, there were cars damaged by floods shipped throughout the US that were sold as both new and used cars.

Buying these cars can create risks. Many buyers unknowingly purchase a flood damaged car, according to AAA. “Depending on the vehicle make, model and age, the cost of a thorough cleaning and drying may exceed the car’s value,” said John Nielsen, director, AAA Auto Repair in a news release.  ”In many cases, insurance companies ‘total’ flood-damaged vehicles that are then sold to salvage companies. However, rather than being disassembled for parts, some of these vehicles end up being purchased by individuals who bring varying levels of expertise to the restoration process.”

If a car has been submerged in flood waters, more repairs may be needed than just a good cleaning. Some of the inner-workings of the car are very hard to dry out and can lead to a quicker deterioration. It may work properly after the flood, but it won’t hold up over time according to AAA experts. The electrical systems of a car can run into corrosion or oxidation that reveals itself months after the flood. According to AAA you can obtain a CARFAX Vehicle History Report which may reveal the car’s involvement in a flood. You can also use your sense of smell– detecting dampness is important. Look for signs of water stains or mud in odd places such as under the dashboard. Finally, you’ll want to have the car inspected thoroughly before purchase.

Life insurance coverage is at its lowest point in more than five decades, according to the 2011 Genworth LifeJacket Study. Almost half of Americans with incomes between $50,000 and $250,000 don’t have life insurance. Those who do have it may not have enough. They have an average amount to cover 3.6 years of income which means they’re leaving their families significantly under-insured.

The goal of this new study is to help close the insurance coverage gap. Many people want to do the right thing when it comes to life insurance, but some struggle with who to trust or where to get solid information. Around 40% of consumers don’t think they have enough life insurance to meet their family’s long-term needs. “While the industry has done an excellent job of offering products that meet the consumer needs, we now have the deep insight needed to bridge the coverage gap and bring consumers to the table – creating a more effective way of doing business,” said Anthony Vossenberg, senior vice president, Life and Annuities at Genworth in a news release. “This study provides advisors and agents with insights needed to educate consumers about their insurance needs and motivate them to secure their financial futures.”

Many times when a couple gets married or has a child they’ll take the time to evaluate their insurance coverage. But this study shows that the time between that major life event and the actual purchase of the insurance can vary drastically. Experts hope to reduce the time frame between those big life changes and matching up the insurance coverage to the new needs.

Whether you have insurance or not, you could get help from the Small Business Administration– and you don’t even have to be a business owner to receive it. If you live in declared disaster area and you are a victim you can receive a low-interest rate disaster loan from the SBA. Renters and homeowners can borrow up to $40,000 for repairs or replacements to items like clothing, furniture, cars or appliances that were damaged as result of the disaster. You can’t use the money to upgrade your home, but you can use it to make improvements that would make future property damage less likely.

For business owners impacted by recent disasters such as Hurricane Irene the SBA could help. You can apply for a low-interest loan to help you repair physical damage or a sustained economic injury. Loans for physical damage are available up to $2 million to replace or repair real estate, equipment, inventory or fixtures. If your damage was largely economic you can receive up to $2 million to help you meet necessary financial obligations. Repayment can be made up to 30 years and the interest rate is less than four percent.

You can apply electronically online at https://disasterloan.sba.gov. Once you apply the SBA will send an inspector to your location to estimate the cost of the damages you received from the disaster. You can’t delay, though because there are deadlines for various disasters. It’s important to review the current Disaster Declarations to see if your area is covered.

A new insurance survey found that Generation Y is looking for change when it comes to workplace benefits. Colonial Life & Accident Insurance Company released a new study to delve further into the preferences of Generation Y. “The ability to recruit and retain younger workers is quickly becoming essential for employers to ensure long-term business success, especially as Baby Boomers begin to retire in increasing numbers,” says Stephen Bygott, director of marketing programs and research at Colonial Life in a news release. “But Gen Y has different needs, expectations and preferences than previous generations, so companies need to take a different approach when it comes to designing and communicating their benefits packages. Those who don’t consider changes could risk losing their competitive edge and may be left behind.”

The insurance company is hoping that employers and human resource managers will take the findings into consideration. The survey shows that Gen Y is not as financially stable than other generations. Only 58% of them pay bills on time and 43% have high credit card debt. Almost three out of four aren’t saving up for emergencies. They also find that Gen Y is very mobile as the average 26-year-old has already had seven jobs. The study also finds that this generation values strong benefits packages provided by employers, but many are still underinsured. Sixty percent of Gen Y employees say benefits are the second most important aspect of job satisfaction. But other research shows they are the most likely to not take advantage of workplace insurance.

Another important piece of information to come out of this study is that Gen Y likes to receive information about benefits through personal communication. “Benefits communication emerged in the research as a clear opportunity for employers to more strongly engage Gen Y workers,” Bygott says. “These workers give employers low marks for the effectiveness of their benefits communication, and Gen Y women in particular are much more likely to say the communication they receive about their benefits is not at all informative, including cost, what’s covered and what they need.”

A new survey from Children’s Mercy Hospitals and Clinics in Kansas City found that three out of four parents think that insurance should cover obesity treatment. With more and more children falling into the obese category, the study wanted to investigate how obesity ranks among parents’ concerns. They found that about half of parents feel overweight children should undergo medical care while 81% feel the same about diabetes symptoms, 80% about asthma and 74% about a learning disability.

The study also asked parents if they would seek medical attention for a condition that would limit their child’s life expectancy and 94% said yes. The survey also found that 93% of parents would get their children medical attention if they had an issue that would impact their future health care costs. “Despite the attention on the obesity epidemic, the disconnect found among parents regarding the long-term outcomes associated with childhood obesity is concerning,” said Sarah Hampl, MD  medical director, Weight Management Services at Children’s Mercy. “Obese children have both immediate and future health problems, including hypertension, heart disease and diabetes. The survey illustrates that parents need help connecting the dots between having an overweight child and what their future health consequences may be.”

Eight out of ten parents surveyed say they have the greatest potential to prevent obesity, but roughly six in ten think schools need to pitch in. The majority of parents are in favor of schools changing physical education requirements and restricting unhealthy foods during fundraising activities. “It is evident that parents recognize that there is an issue and that they can have an impact on combating obesity,” said John Lantos, MD, the hospital’s Director of Pediatric Bioethics. “They need to set a healthy example and work with both physicians and schools to encourage a healthy lifestyle that includes physical activity, healthy habits and nutritious food.”

Employers aren’t expecting to make too many changes to health care plans in 2012 according to a new survey by Towers Watson. However, employer health care costs will still increase by about 5.9%. Most employers agree they’ll have to do something to control costs. The study also shows that nearly half of employers have a lot of thinking to do when it comes to health care strategy and many aren’t sure how they’ll respond to state-based insurance Exchanges in 2014.

Roughly half of those surveyed say they’re expecting health care reform to move forward as planned, but their unsure about other areas. “With so much still unknown regarding both the short- and long-term impact of health care reform, most employers will not make wholesale changes to employer-sponsored health plans in 2012,” said Ron Fontanetta, senior health care consulting leader at Towers Watson in a news release. “However, a small group of employers is driving more fundamental change in 2012 by using account-based platform designs, aggressively positioning incentives and rethinking subsidization levels.”

The survey found that 71 percent of companies plan to continue health care benefits through 2014 for active employees. However, 29 percent aren’t sure if they’ll continue to offer benefits or instead provide salary increases to offset costs. The study found that over the next few years employers are considering increasing their offering of account-based health plans. Around half also plan to use value-based benefit designs or increase use of preferred networks.

A new report from the National Academy of Social Insurance found that the number of workers covered by workers’ compensation dropped by 4.4 percent in 2009. That’s the biggest decline in two decades. Employer costs for benefits fell by 7.6 percent to $73.9 billion, which is due to the overall decline in jobs.

The main reason for this drop is the decline in employment, according to officials. “As one might expect, when the Great Recession hit, employers paid less in workers’ compensation costs because there were fewer workers to cover,” said John F. Burton, Jr., chair of the panel that oversees the report. “Although the drop in employer costs represents the biggest decrease in the last two decades, benefits increased slightly by 0.4 percent to $58.3 billion, reflecting in part benefits provided in 2009 to workers injured in prior years.”

In 2009, the total benefits paid to injured workers increased in 23 states as well as in the District of Columbia. Benefits declined in the other 27 states compared to 2008. The study also shows that payments for medical care declined for the first time in a decade by just over 1 percent to $28.9 billion. Employers paid a total of $73.9 billion for workers’ comp which equals out to about $1.30 per $100 of payroll. That’s the lowest in more than three decades.

The dentist may not be a top priority for you, but skipping this routine maintenance can actually end up costing you far more than you save by not going. Skipping dental visits in an effort to cut costs actually creates much more expensive side effects. Unfortunately millions of Americans are forgoing routine dental care because they don’t have insurance or can’t afford it. However, the Institute of Medicine found that 33 million Americans live in areas that don’t provide sufficient dental services. The Institute of Medicine also reports that nearly five million children skilled dental checkups because their parents can’t afford it.

Many dentists say they see patients regularly who haven’t had their teeth checked in years in an effort to save money. However, skipping the dentist means minor issues can turn into serious medical problems which cost far more to treat than to prevent. “You do not save anything by ignoring your teeth,” Thomas P. Connelly, a cosmetic dentist practicing in New York City recently wrote. “In fact, it will end up costing you a lot — either in high dental bills, or lost teeth (which, trust me, you don’t want to happen).”

Eliminating regular dental care from your routine can lead to aching teeth and sensitive gums. Routine checkups can also help reduce the risk of diabetes, respiratory disease, cardiovascular disease and more. Even without insurance a cleaning can cost less than $100, which makes it a good investment against future procedures.

Hurricane season is here which means it’s a possibility that hurricanes and tropical storms could leave trails of destruction along coastlines. The Global Alert Network wants to help Gulf Coast residents with a tool that will provide them with real-time local weather, traffic and emergency updates that will help them prepare for these storms.

The free mobile app uses GPS to recognize the user’s location, sending breaking alerts to them instantly. The free app is already available in AppWorld and the Android Market. “Natural disasters, from hurricanes to tornadoes, have been particularly harsh throughout the country this year and the best way to mitigate the damage of these storms is to prepare. The free app gives users the peace of mind of knowing that if severe weather is headed toward them, they will automatically be alerted and can immediately take action,” said Scott Hughes, President of Global Alert Network. “Within minutes of downloading the GAN app, users have a free, potentially life saving tool at their fingertips. Especially during seasons with devastating weather and in the regions that often get hit, there is no reason why residents should not be downloading this application.”

Getting proper insurance is another way you can prepare for a natural disaster. But a recent Harris interactive poll found that only 56% of Americans say they’re prepared for a disaster. Two in five Americans say they’re not prepared for a long term power outage. Here are some regional concerns according to this recent poll:

• Easterners think that a snow and/or ice storm will be most likely to directly impact them (77%) and while Midwesterners are concerned about this as well (79%), an even greater number say they believe tornadoes will impact them (89%);
• Southerners are also concerned about tornadoes (66%) yet half say they are concerned about hurricanes (54%) or droughts (50%);
• Those in the West believe earthquakes will impact them (66%), which is a concern shared by very few in all other regions (between 7% and 16%);
• Although only 11% of Americans think a nuclear power plant disaster or meltdown will affect them directly, it is the only issue listed that most people say the federal government is worst equipped to handle (59%).  One third say the government is worst equipped to handle terrorism (34%), which is down from the 48% who said this in 2006; and,
• In 2006, shortly after Hurricane Katrina, half of Americans (50%) said that the federal government was worst equipped to handle hurricanes.  Five years later just 16% believe this.

A new study shows Americans are increasingly preferring to purchase their life insurance directly from the company either on the Internet, through the mail or over the phone. Two-thirds of Americans still prefer to buy life insurance from an insurance or financial professional, but a growing number like the idea of buying it directly.

Now more than one in four prefer this method. “‘Obviously, the Internet has fundamentally changed consumers’ buying practices over the past 15 years,” said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation in a news release. “Recognizing the growing consumer interest to use the Internet to conduct research and buy life insurance, life insurance companies and agents have developed and implemented innovative strategies to engage and serve consumers through their websites and social media platforms that are more convenient for the customer.”

The study found that younger consumers have the most interest in making life insurance purchases directly from the company. Roughly one in three in the 25-44 age bracket say they would prefer to buy direct, with most saying the Internet was their vehicle of choice. This information was recently released in a new LIFE Foundation/LIMRA study called “The 2011 Insurance Barometer Study.” But no matter how they purchase it, most people agree that life insurance is a necessity, with 86% saying that most people need it.

Residents in Kansas can now sign up for child-only health insurance. The legislation, signed into law in early June allows children  under the age of 19 to be included in insurance plans provided there is no similar, child-only coverage available at the county level. Many Kansas insurance providers stopped selling insurance to those under the age of 19 and this new law fills a void.

Any minor unable to purchase or obtain individual health insurance can now be included in the state’s high risk pool which is handled by the Kansas Health Insurance Association, or KHIA. “Now, those families that need a child-only policy can seek coverage through the KHIA plan if they meet the new eligibility requirements,” Sandy Praeger, Commissioner of Insurance, said in a news release. “It provides a starting point for a Kansas-based solution to a coverage problem. We appreciate the understanding of Gov. Brownback and the Kansas Legislature in supporting this change.”

In New York, parents with children under the age of 19 who need health insurance can not be denied health coverage due to pre-existing conditions thanks to a new law signed in late April. If a parent applies for insurance and is approved, then the child will also be approved.

If a parent is not applying for coverage, the application is known as a “child-only plan.” SB-11-128 mandates that child-only plans will be sold only during two open enrollment periods during the year — the month of August for this year. Starting in 2012, it will be the month of January and July. If a parent is not signing up, then the best time to sign up for “child-only” policies in New York is during August which is the open enrollment period. The situation is similar to Kansas and other states looking for a temporary solution until health care reform takes full effect. “The new law provides a temporary solution until 2014, when all health plans are required by law to provide coverage without consideration of health status,” Praeger said.

Some insurance providers are now offering bedbug insurance, according to the LA Times. Bedbugs are tiny, seven millimeter long insects that invade hotel rooms, apartment buildings and dorms causing expensive problems. They’re very hard to eliminate creating a costly issue. The newspaper reports that most infestations, whether it’s raccoons or rats, aren’t typically covered by insurance policies. But now there is coverage available for bedbugs.

Lawmakers put pressure on insurance companies to offer coverage since some property owners were experiencing large losses in value because of the pesky bugs. Companies now offering the insurance include Aon Risk Solutions of Chicago, Willis North America, and NSM Insurance Group. “You’ve got legislators in the state of New York Assembly who are trying to make this mandatory that insurance companies do this,” said John Lafakis in the LA Times, senior vice president at Willis North America and program manager for the bed bug recovery insurance. “So we figured, ‘You know what, we’re going to beat everyone to the punch.’”

For some reason bedbug populations are exploding. A decade ago the issue wasn’t big enough to require insurance coverage. “Ten years ago it was considered a minor pest issue,” Greg Gatti, a director at Aon Risk Solutions, told the LA Times. The newspaper says killing off bugs in an infested room costs between $600-$800. But once word gets out that a hotel is infested, the financial impact could bite even deeper.

How does free car insurance sound? That’s what General Motors is offering up in a new marketing push to help sell new cars. If you live in the states of Washington and Oregon and you purchase a new GM car you may qualify for a year’s worth of free car insurance from MetLife Auto and Home. “We want to give residents of Oregon and Washington another reason to discover Chevrolet, Buick, GMC and Cadillac vehicles,” said Chris Perry, U.S. vice president of General Motors Marketing, according to The Car Connection.

The free insurance deal runs through September 6 and includes both liability and physical damage coverage. It exceeds minimum requirements set by Oregon and Washington. If you’re wondering why those two states were selected for the free insurance promotion, officials say it’s because those states are falling behind others in market share. But it may move to other states if it proves successful.

GM reports an 11% increase in sales so far this year compared to last. Retail sales are up 16%. Those numbers do not account for corporate fleets. Officials hope by offering free insurance, more people will feel comfortable buying a new car since the financial burden will be lower.

A new study found that insurance claims submitted for damaged HVAC units were overpaid by 65%. That includes claims submitted during the first half of 2011. The study found that many insurance companies were paying for entire units to be replaced when minor repairs would have done the job just fine. “Our research found that the average claim submitted to insurance companies was the result of a homeowner being told by an HVAC company that their unit was in need of a full replacement, when in actuality, a minor repair would bring the system back to pre-loss condition,” stated Damon Stafford of HVAC Investigators, the company responsible for the study in a news release. “It becomes a self-fulfilling prophecy … homeowners experience an issue, contact a local HVAC contractor, and in turn unknowingly file a fraudulent claim. That’s in essence how the game has worked for the past 30 years.”

Insurance fraud is the second most costly white-collar crime after tax evasion. That’s according to the Insurance Information Institute. Insurance fraud totals more than $29 billion a year. The National Insurance Crime Bureau says that fraud causes insurance premiums to increase by nearly $300 every year per household. For many insurance companies, it’s cheaper to pay the claim than to hire professionals to seek the truth.

HVAC Investigators assists with investigating heating and air conditioning claims. They diagnose the damage and make a recommendation of whether replacement or repair is needed. “We’re excited about the positive impact we’re having on the insurance industry,” Stafford remarked in a news releaes. “We realized several years ago that the HVAC property claims were on a dangerous trajectory, and fraud was taking its toll. When carriers understand that they can save, on average, somewhere between $3,000 and $4,000 per claim, they begin to grasp that this is something they should be paying attention to. It’s important, and everyone we come into contact with ‘gets it.’ It’s very rewarding work.”

Most bank robberies steal because they’re after the code hard cash. But for James Verone, the motivation was healthcare. According to WHP-tv, Verone, 59, took $1 from a bank because he wanted to go to prison as a way to access healthcare. Verone is from Gason County, North Carolina and thought that prison would be a welcomed change because it meant a solid roof and medical care.

Verone told authorities he has a growth on his chest and two ruptured disks. The medical issues need attention, but he’s out of work and has no insurance. WHP-tv says Verone walked into a Gastonia, North Carolina bank with a note saying, “This is a bank robbery. Please only give me one dollar.” Then he calmly waited to be arrested.

According to WCNC-tv in Charlotte, Verone is hoping to stay behind bars for three years. The TV station reported, “He is hoping for a three-year sentence. He would then be able to collect Social Security when he got out and said he would head for the beach. ‘I’ve already looked at a condominium. I’ve spoken to a realtor on Myrtle Beach,’ Verone said.” Authorities say they’ll charge him with larceny– not bank robbery. Which could foil Verone’s prison plan.

A radiologist, a neurologist and two other people are accused in a $17 million workers’ compensation insurance over-billing scheme, according to Insurance Journal. The Orange County, California District Attorney’s Office and the California Department of Insurance released details of the case this week.

According to officials Dr. Sim Carlisle Hoffman of Newport Beach, a radiologist and owner of several medical practices, is charged with 592 felony counts of insurance fraud for one of his businesses, and 291 felony counts of insurance fraud for another. That means if he’s convicted he could face a sentence ranging from two years to more than 892 years in state prison. He’s currently been released on bail. Insurance Journal reports that Beverly Jane Mitchell, who served as the administrator in charge of insurance billing at  Hoffman’s businesses, faces the same charges and sentence.

Another doctor, neurologist Thomas Michael Heric, worked with Hoffman and faces 296 counts of insurance fraud. He could face any where from two years to more than 315 years in state prison. Finally a fourth man, Louis Umberto Santillan, worked for Hoffman in his billing collections area and faces 141 felony counts of insurance fraud. All four will be arraigned on June 22.

Authorities say Hoffman billed certain tests as many as 20 times per patient, but he never completed the test. Insurance billings that should have cost about $2,000 were inflated to $10,000. Hoffman is accused of fraudulently billing seven different insurance companies for millions of dollars in fake claims.

A new study found that nearly one in five drivers can’t meet basic requirements to get a driver’s license. That means that 36.9 million American drivers would not pass the written test if they had to take it today. The study, called the GMAC Insurance National Drivers Test, found that Kansas drivers got the best scores and Washington DC drivers scored the worst. “The GMAC Insurance National Drivers Test has become the benchmark for America’s driving IQ,” said Scott Eckman, chief marketing officer, GMAC Insurance. “All drivers need a refresher course when it comes to rules of the road and it begins with education. We’re hoping this year’s GMAC Insurance National Drivers Test results will inspire drivers to arm themselves with the knowledge they need to stay safe.”

The average score did increase this year to 77.9 percent, up from 76.2 percent in 2010. But that’s still very low and shows that many people on the road don’t have basic knowledge of the rules. Amazingly, 85 percent of those surveyed could not identify the correct action to take when approaching a steady yellow traffic light. Only about a fourth could identify correct following distances.

The goal of the test is to remind drivers to stay informed about the rules of the road. It marked the seventh annual survey, polling drivers from 16-65 in all states and the District of Columbia. Here are some of the interesting highlights uncovered by the test:

• Males are better drivers? One in 4 women failed the test, which was about double the percentage of men. Overall, males out-performed females with an average score of 80.2 percent versus 74.1 percent for females.
• Northeast is worst driving region. You may think your city’s drivers are the worst, but with average scoring at 74.9 percent the Northeast came out the worst. Midwest is the best driving region with average scoring at 77.5 percent.
• The older the wiser. Despite popular belief, the oldest drivers tested, ages 60-65, continued to have the highest average test scores at 80.3 percent.
• Be careful in the Empire State and Beltway. One out of 3 (34 percent) of all drivers in New York and Washington, D.C. failed the test. Wyoming residents passed the test most with only one out of 20 failing.
• Biggest gains and losses: There were some shake ups in the test this year. After ranking 24th place in 2010, Colorado moves to third place with an 82 percent average score. Alaska plummeted 30 spots from tenth place in 2010 to 40th place this year. Their average test score decreased from a 79.8 percent average to a 76 percent average.

Insurance provider Allstate is hoping to bring more awareness to motorcyclists on the road. Twenty-five cities will get new traffic signs alerting drivers that riders may also be sharing the road with them. Intersections in 25 major metropolitan areas will get the new signs. The insurance company says an average of three motorcyclists are killed every day in US intersections. They are most likely to happen in intersections than anywhere else.

The cautionary signs are diamond-shaped, yellow and feature a motorcycle silhouette with the word “LOOK.” The signs are part of Allstate’s “Once is Never Enough” program created to increase awareness of motorcycle collisions. The idea is that looking once at an intersection is never enough. “In the time it takes to blink an eye, a life could be saved,” said Keith Rutman, vice president of Allstate’s consumer household unit in a news release. “Taking one extra second at an intersection to look left, right – and left again – for motorcyclists can help make our roads safer.”

Allstate advises drivers and riders to share the road safely by looking left, right and left again. They also say it’s important to be cautious through intersections since one-third of motorcycle accidents happen in these locations. Drivers should also create a larger following distance because motorcycles do not activate their break lights when slowing down.

The city of Des Moines is taking on a unique plan to save taxpayers about a million bucks and keep their city employees insured. The Des Moines Register reports that City Council members approved a plan to move to a self-insurance system. The city is looking for ways to reduce expenses significantly since property values have dropped and commercial property tax rates are dropping by 40 percent.

They’re not the only ones moving to a self-insured program. Nearby Ankeny and West Des Moines are using similar models. “I hope we stay self-insured,” City Councilwoman Christine Hensley said according to The Des Moines Register. “I think the time is right for us to go forward with that. I think there have been some changes made.” This isn’t the first time the city has used a plan like this. The system was in place  until 2003 when the city started buying private insurance from Wellmark.

Leaders expect to start seeing significant savings in 2013 because of this move. “Conservatively speaking, we anticipate it being more than $1 million,” one leader said. Alternatively, council members said they would have been paying millions more– rather than saving a million dollars. The new plan starts July 1.

Home and auto insurance company Allstate is buying Esurance as well as Answer Financial for about $1 billion. Allstate told USA TODAY that the purchase will give customers more options among insurance carriers. Esurance sells auto insurance online and through call centers while Answer Financial is an independent personal insurance agency, according to USA TODAY.

Esurance sells auto insurance directly to customers online and through call centers. Answer Financial is an independent personal insurance agency. “Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments,” Allstate President, Chairman and CEO Thomas J. Wilson said in a news release.

Esurance is the third-largest provider of online auto insurance quotes. It also has a 24/7 call center and is the third most recognized brand for online auto insurance sales. “Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product. Esurance will expand our ability to service customers that are more self-directed but still prefer a branded product,” says Wilson.

Wondering what the best minds in money are tweeting about? Every other Tuesday we’ll fill you in on the conversation with Tuesday Money Tweets. You’ll get the 140 characters (or less!) of the financial wisdom you crave from around the Twitterverse.

@FlatOutFrugal: “By sowing frugality we reap liberty, a golden harvest.” –Agesilaus

@MoneyMag_Penny: Investors flocking to 529 college savings plans, says Financial Research Corp. Net flows up 75% over past 2 years.

@LaMonicaBuzz: Forget about Barney. Looks like Yahoo is the most hated purple dinosaur. $YHOO down another 4% today. Below $16 for first time since March.

@CNNMoneyTech: Sprint is offering up to $175 to those who switch from any other carrier, not just T-Mobile

@Retireby40: A Wii is NOT an Investment!

@DebtChronicles: My son is looking for a way to finance his wish list this summer – how do your kids earn money?

@FinancialUproar: If no one wants to pay for music, why are investors still paying up for music companies?

@MoneySmartBook: You don’t have to be a #financialexpert or read lots of money books to know that you have to carefully choose how to spend your money.

@Money: Americans are spending a record $3,000 a year to fill up their cars.

@TaxResolution: According to a survey @ 30% of Americans are planning to spend their #IRS refund.What about you?Did you even get a refund?

@JonChevreau: Workers aged 50-plus expect to live longer on less but unprepared for inflation.

There’s at least a little bit of good news for the homeowners and residents facing flooding along the Mississippi River. According to Insurance Journal, a House committee approved legislation that would extend the federal flood insurance program for five years. It also includes a plan for financial reform. This legislation would mean the National Flood Insurance Program will be around until 2016 and includes a plan to increase premiums, improve flood maps and receive more public input.

The program is set to expire this fall and has been extended on a short term basis several times. It is currently in more than $17 billion in debt. “Flood waters across the South and Midwest are on the rise, and so is the debt owed by this program,” Rep. Judy Biggert, R-Ill, told Insurance Journal.  “We need to put the National Flood Insurance Program back on stable financial footing so that it can provide homeowners with reliable coverage without putting taxpayers on the line for billions in losses.  This legislation will give the program long-term stability, help draw better flood maps, and initiate actuarially sound pricing.”

While two new option coverage options were rejected, many people supported the move to extend the program. “A five year extension is of the utmost importance, as are reforms to put the program on sound financial footing,” Charles Symington, Big “I” senior vice president of government affairs, told Insurance Journal. “We are especially grateful that the Committee rejected an amendment that would have removed the inclusion of optional business interruption and additional living expenses coverage as these provisions will better safeguard consumers against flood loss.”

Now the program will move to the full House and Senate for a vote. Sponsors are hopeful that it will be passed before the end of September when the current program expires. “Given the current flooding taking place on the Mississippi river, it is especially critical to get a long-term extension of the program in place so that this debate can move beyond Congress and residents in flood-prone areas can have the stability in the program they so desperately need to insure their homes and businesses,” Leigh Ann Pusey, president and CEO of the American Insurance Association, told Insurance Journal.

The Federal Emergency Management Agency issued a warning to residents of Louisiana to prepare for flooding and keep flood insurance documents safe. FEMA is encouraging residents to follow the direction released by local officials in terms of evacuations.
“Last Friday, May 6, 2011, President Obama issued an emergency declaration specific to 22 parishes throughout Louisiana,” said Federal Coordinating Officer Gerry Stolar in a news release. “That equates to one-third of the communities throughout this state currently at risk for potential flooding. FEMA is asking Louisiana residents living in the declared parishes to take measures now to best protect their lives and properties, including knowing the facts about flooding and safeguarding important documents, such as insurance policies.”

No matter what goal you’re working towards– taking a trip to Europe, buying a home, helping your kids through college– you likely need money to make it happen. But a new survey from nonprofit LIFE Foundation found that only one in six working Americans consider their paychecks their most valuable assets. The organization says many people fail to consider what their back up plan is in the event that they become sick or injured and can no longer work.

If you become disabled, your finances will most likely be impacted. According to LIFE Foundation, a 25-year-old who earns $50,000 a year could lose $3.8 million in future earnings if they become permanently disabled. Despite that information, fewer than one in three workers carry long-term disability coverage according to the US Department of Labor. “Most people don’t realize that they have a three in 10 chance of suffering a disabling illness or injury that could keep them out of work for three months or more,” Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation said in a statement. “Disability insurance makes sure that financial hardship doesn’t follow the physical and emotional toll that comes along with disability. It’s insurance for your income. When you think about it, your most valuable asset isn’t your home, car or jewelry. It’s what allows you to pay for all these things – it is your paycheck.”

Wondering how to get disability insurance? For many it’s available through employers. Your employer may offer short and long term group policy coverage at little or no cost. You can also check with professional associations which can offer insurance options to members.

Uninsured families typically don’t have the means to pay their hospital bills. The average  uninsured family can only afford to pay about 12 percent of hospital stays according to a report by the US Department of Health and Human Services. Hospital visits by uninsured patients who can’t pay their bills in full account for 95 percent of all the hospital bills accumulated by the uninsured, according to Insurance Journal. That amount of care equals about $73 billion a year, much of which creates higher costs for Americans who do have insurance.

Each year, close to two million uninsured Americans end up in the hospital with more than half facing bills over $10,000. According to this recent study, the vast majority of the country’s 50 million uninsured people don’t have any savings. The report found that half of families with income at 400 percent of the federal poverty level (which is $89,400 for a family of four) have financial assets totally less than $4,100.

The report found that living without health insurance is actually a financially riskier move than going without car or homeowner’s insurance. People are 50 percent more likely to have a car accident than to be hospitalized in a given year, but the average bill for a trip to the hospital is two and a half times greater than the cost of the average car accident. “Health insurance is critical in helping protect families from unexpected hospital costs,” Sherry Glied, HHS assistant secretary for planning and evaluation, told Insurance Journal. “This report shows that even higher-income uninsured families are struggling to meet the high costs of health care. No family should bear the burden of being one illness or accident away from bankruptcy.”

In the past as soon as college graduates grabbed their degrees they had to worry about finding a job with benefits. Typically insurance plans stopped coverage once school was done for good. But new changes in health care reform mean that adult children can stay under their parents’ plans until they are 26.

The LA Times talked to 22-year-old Boston University graduate Rochelle O’Sullivan who says she’s relieved she can keep her mom’s coverage. O’Sullivan broker her hip during a fall and needs good health coverage while she heals. “I’m worried about getting a job, getting experience,”  the mass communications major told the newspaper. “And if that means taking a job without insurance, I’d do that.”

The new law even covers adult children who don’t live at home and who may be married. But if the twenty-something-year-olds do find a job with benefits, they can’t opt to stay on their parents’ plan. For some recent grads that means they’ll give up mom and dad’s good coverage for entry level benefits that may not be as good.

According to a news release, WellPoint, the country’s largest public health insurer says they’ve seen the addition of 280,000 new members who fall under this new dependent provision. Aetna added roughly 100,000 young adults, Kaiser Permanente about 90,000 and Highmark says they saw an additional 72,000 young people added on. US Health and Human Services estimates that up to 1.2 million young adults will likely sign up during 2011.

Wondering what the best minds in money are tweeting about? Every other Tuesday we’ll fill you in on the conversation with Tuesday Money Tweets. You’ll get the 140 characters (or less!) of the financial wisdom you crave from around the Twitterverse.

@Freemoneywisdom: Who else is suffering from these high gas prices? Can you say drill baby drill?

@DMWYMoney: Thoughts for Thursday: “About the time we can make the ends meet, somebody moves the ends.” – Herbert Hoover

@MoneyMag_Penny: Most Americans say Medicare, Social Security are in crisis or will be in 10 years.

@Timefinance: The upside of the bad GDP report: Lower inflation? Not today, but if the economy slows probably.

@Money: Expert’s estimate: 60% of short sale contracts fall through

@AmericanExpress: 24 hrs til the Royal Wedding-& more than 60% of US consumers would spend $600 on an invitation if they could buy one

@DebtChronicles: I don’t want to set any more goals. I’m setting expectations.

@Kevin_Is_Money: Sitting at a desk all day makes me so tired. I need a job that gets me out from in front of a computer

@Daveramsey: Work is doing it. Discipline is doing it steady, Diligence is excellence everyday with discipline. The DILIGENT prosper.

@RickWarren: “When justice is done, it brings joy to the righteous but terror to evildoers” Proverbs 21:15

A new study shows that insurance reform may not impact the increase in emergency room visits. More than 80 percent of emergency physicians say they’re increasing their emergency departments. Ninety-seven percent of emergency physicians also report helping Medicaid patients daily because they could not find a doctor to accept their health insurance.

Officials worry that new health care reform legislation may provide insurance coverage that reimburses doctors at Medicaid rates which will make this problem worse. “This poll confirms what we are witnessing in Massachusetts — that visits to emergency rooms are going to increase across the country, despite health care reform, and that health insurance coverage does not guarantee access to medical care,” said Dr. Sandra Schneider, president of the American College of Emergency Physicians in a news release.   “Emergency medicine provides lifesaving and critical care to millions of patients each year and yet only represents 2 percent of the nation’s health care expenditures.  Emergency physicians command the resources of a hospital to provide the best care for patients, but we must be prepared for increasing numbers of patients, not fewer, especially given our growing elderly population.”

The poll included responses from 1,768 emergency physicians. Seventy-nine percent of those responding say they’re using resources more efficiently, but nearly half worry that lawsuits will force them to cut costs in their departments. “Emergency departments need more resources, not fewer, and medical liability reform would help reduce overall costs by reducing the need for defensive medicine,” said Dr. Schneider. Roughly two-thirds of ER visits occur when doctor’s offices are closed and patients need urgent care. In 2008, ER visits reached nearly 124 million, an all-time high according to the Centers for Disease Control and Prevention.

Strong tornadoes lumbered through Missouri last week, doing millions in damage to Lambert-St. Louis International Airport and other structures. The airport received a $10 million insurance check to cover the costs of the damages from the storms. Airport officials say they’re still finalizing estimates for repairs, but $10 million is a good start. “They know it will be quite a bit when all is said and done,” Susan Kopinski, Lambert’s deputy director of finance and administration told the Post Dispatch.

The $10 million check shows just how extensive the storm was, but airport officials say they’re adequately insured for situations like this. The airport’s deductible is $100,000 and officials believed all of the damage would be covered, according to the newspaper. Flights were disrupted for a full day following the storm so the airport rushed to bring in contractors to make necessary repairs. Officials say the worst of the damage occurred in the C Concourse in Terminal 1. Several windows were blown out and a jet fuel tank farm was damaged.

The airport was just one of many buildings damaged. In fact Nationwide Mutual Insurance Co and Allied Insurance set up a temporary aid station to distribute humanitarian aid to victims. “Our hearts go out to victims of this terrible storm,” said Terrance Williams, regional vice president of Nationwide’s Central Plains Region. “We’re pleased to assist the community with humanitarian relief and would encourage anyone who needs emergency supplies to visit our mobile catastrophe unit. We’re also committed to providing timely service to Nationwide and Allied Insurance customers who may have experienced damage to their homes.”

Tornadoes in the Carolinas and fires in Texas are making for a busy time for insurance companies. In Texas, Nationwide Mutual Insurance Co and Allied Insurance have representatives and agents ready to assist customers with damage claims due to wildfires or hailstorms that have recently impacted the state.

According to the companies, the Nationwide claims hotline is 1.800.421.3535. That number will help policyholders reach their local agent. Allied Insurance customers are asked to call the Allied claims hotline at 1.800.282.1446. “Right now our claims numbers are moderate, but we expect them to increase as customers have an opportunity to assess the damage caused by the wildfires burning in the Dallas/Fort Worth area as well as the recent severe hailstorms,” said Terrance Williams, regional vice president of Nationwide’s Central Plains Region, in a news release. “We’ve taken steps to ensure a quick response to customers who report claims from these events.”

In the south where tornadoes ripped through last Saturday, adjusters have descended on the area to collect claims. As of Wednesday morning State Farm Mutual Automobile Insurance Co had received about 400 claims from Virginia homeowners and 2300 in North Carolina, according to The Virginia Pilot. A State Farm spokesman told the newspaper that most of the Virgina claims had come from Gloucester County where a storm stripped an 8 1/2 mile path of homes and businesses. “We do expect both of those numbers to increase as people get power and get themselves collected,” spokeswoman Amy Preddy told the newspaper. “Most of them are homeowners claims due to wind damage, falling trees. But we have seen some auto claims resulting from hail damage.”

Wondering what the best minds in money are tweeting about? Every other Tuesday we’ll fill you in on the conversation with Tuesday Money Tweets. You’ll get the 140 characters (or less!) of the financial wisdom you crave from around the Twitterverse.

@GailVazOxlade: According to research, 88% of all impulse purchases are made because the item is on sale.

@Moneyville: First-time home buyer? A condo might be a good idea.

@LAMFinance: Have you been tracking your budget lately? If not, be sure to replace that extra expense with income!

@MoneylineNY: Interest Rates are at an all time loan! Great time to refinance, and get some cash for Home Improvement!

@Money: You can have a 6-mo. extension to file your taxes (get Form 4868), but today is the last day to fund a 2010 IRA.

@MoneyMag_Penny: The President & First Lady earned $1.73 million in 2010 & paid taxes of $453,77

@JoyceMeyer: What do you do when disappointment comes? You can either let it press you down or you can use it as a stepping-stone to better things.

@ThomasJStanley: The median # of hours a millionaire works before reaching the 7-figure net worth threshold? 59,800!

@SoOverDebt: The iPad want is getting almost unbearable. Second job starts tomorrow – bring on the as yet unallocated extra cash!

@DebtChronicles: Why am I driving my car to the gym? Rising Gas Prices Will Not Get Me Down!

For those people looking for a way to reduce their car insurance, home insurance or other insurance premium costs, you may want to look at your credit report. Your credit report is not often thought of as having a link to your car insurance needs, but it is, in fact, one of the biggest and best tools for you to use to get a lower cost. The reason for this is your insurance provider’s need to know how risky it is to work with you. Some companies are using credit reports to determine risk factors related to car insurance.

What’s The Link?

What could be the link between credit scores and insurance premiums? Many car insurance providers, home insurance providers and even some other insurance companies use credit scores to determine how much of a risk you are to them. If you are a new customer with a company, for example, the company will likely pull a credit report on you to determine what type of a borrower you are. Here’s why.

• If you have a higher credit score, research and evidence points to you having, most likely, smaller car insurance plans.
• If you have a lower credit score, evidence shows that you are more prone to having more car insurance claims.

The two may not seem like they should be linked, but in fact they are. This information on the link between credit history and claim filing is one based on research from the various car insurance companies. They looked back at drivers over a period of time and found a link between these two factors. In short, those drivers who have good credit scores are also better drivers.

What You Can Do

How will your credit report affect your application with an insurance company? The fact is, that depends on what is on your credit report. If you have not done so yet, get a free copy of your credit report at AnnualCreditReport.com (the only, government-authorized site for accessing your free credit report from each of the three largest credit bureaus.) Then, ensure it is up to date and accurate.

It is also a good idea to be a good credit user. Make your payments on time. Ensure you pay down debt and live within your means. By doing these things, you not only boost your ability to manage your credit debt, but you also may end up with a lower car insurance premium or house insurance premium as a direct result. If your credit score goes up, do not expect your car insurance company to automatically reduce your premium, but you can call the insurer and ask for a better rate.

A new report from the National Insurance Crime Bureau, NICB, shows a big jump in questionable claims in New York. With 145 questionable claims, the city of Buffalo came in second behind New York City which had 4,016 questionable claims. New York City held57% of the statewide total of questionable claims. In all, 7,026 questionable claims were filed across the state of New York in 2010. That’s up from 6,378 in 2008.

So how does an insurance claim become “questionable?” Authorities say there are seven reasons, but most are because they were “faked/exaggerated injury”. Other reasons include “excessive treatment” and “staged/caused accident.” According to reports, most of the questionable claims come from automobile insurance policies. In fact 83% of questionable claims in 201 involved auto insurance.

Allstate responded to the report. Krista Conte, New York spokesperson for Allstate said, “We commend the NICB on their efforts to fight fraud and raise awareness about this issue, which is extremely important to all New Yorkers. Not only is no-fault fraud, or auto accident fraud, costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk. Those who would commit this type of crime are taking advantage of the broken no-fault system and are organized, calculating and part of a big business. They are gaming the auto insurance system and the victims are honest, hard working New Yorkers.”

North Carolina has the honor of having some of the lowest auto insurance rates in the country. But that could change if industry-backed legislation passes. According to Bloomberg Businessweek, North Carolina’s top insurance regulator says the move would increase rates by up to 15 percent a year and cause problems with the state regulatory system.  “The bottom line here is this: insurance companies want more of your money. These proposals would no doubt lead to higher car insurance rates,” Insurance Commissioner Wayne Goodwin said at a news conference according to Bloomberg Businessweek.

The report sites Insure.com’s findings that a 40-year-old single male driver who commutes 12 miles to work in North Carolina would pay $1,154 a year, compared to $1,561 as a national average. That makes North Carolina the seventh lowest in the country for auto insurance. So why are the state’s rates so low? Officials say it’s because the state’s insurance commissioner can currently limit auto insurance rates. “Really the best regulator of price is competition,” said David Stoller, a lobbyist for State Farm Mutual Automobile Insurance Co, according to Bloomberg Businessweek. “That’s why companies advertise, they want to compete on rates.”

The 175 auto insurance companies with customers in North Carolina are required to propose a common increase or decrease to rates which is reviewed by staff in the insurance department. Under new proposed legislation, auto insurance companies could raise their rates by up to 15 percent without approval from the insurance department. Companies would also be able to consider a customer’s credit score when setting their rate.

If you are tired of paying a high car insurance premium, as if anyone isn’t, it may be time to choose a different type of plan, a pay as you drive car insurance plan. This type of plan can be helpful because it focuses specifically on charging you less, if you drive less.

How it Works

The pay as you drive car insurance plan is different from one provider to the next. However, these plans can be outstanding in terms of what they can offer, if you fit the profile of a driver. Here’s how they work. You install a device in your vehicle. This device does not interfere with your driving ability, but it helps to monitor your driving. It watches how much you drive for example. In addition, it monitors how you drive, specifically in the areas of how you accelerate and how you brake.

How You Benefit

If you are one of the people that will benefit from this plan, you will end up paying less overall. To get that lower cost, you need to know what the plan is looking for. In this type of car insurance plan, the fewer miles you drive, the lower your premium will be. The safer you drive (in terms of braking and accelerating for example) the lower your premium is. Of course, this also helps you to save on gas (since accelerating slower and braking slowly help your vehicle to use less gas.)

Where You Can Get Them

Not all car insurance companies actually offer this type of plan, but those that do are becoming more popular. More people are looking for ways to save on car insurance and this is helping to make pay as you drive plans more in demand by drivers. Some of the larger insurance companies are not offering these plans. However, note that this type of plan is not available in all states just yet. To find out if your state has insurance providers offering pay as you drive car insurance plans, contact your state’s insurance regulators to ask. You can also get quotes for this type of plan online.

Why should you bother with pay as you drive car insurance plans? The answer is simple. These plans can save you up to 30 percent off your current premium costs if you drive under 15,000 miles per year and drive safely. That is a huge savings when it comes to car insurance. Virtually anyone will benefit from it, but not everyone will benefit from this type of plan. Therefore, talk to your insurance provider to find out if you qualify.

A massive assessment of high-deductible health plans shows that while they cut health spending they also prompt patients to reduce preventative health care. The study, completed by RAND Corporation, looked at more than 800,000 families across the US and found that when people shift to a high deductible insurance plan of at least $1,000 per person, their health spending declined by 14% on average.

Spending was also lower in high deductible households where health savings accounts were sponsored by employers. Some of the cut backs families experienced were reduced immunizations, cancer screenings and routine tests for diabetes. “We discovered that costs go down dramatically during the first year people are enrolled in high-deductible health plans, as long as the deductible is at least $1,000 per person,” said Amelia M. Haviland , a study co-author and a statistician at RAND, a nonprofit research organization in a news release. “But we also found concerning reductions in use of preventative care. This suggests people are cutting both necessary and unnecessary care.”

High-deductible plans have been gaining interest because they are more affordable than other plans. By 2009, 20% of Americans with employer-sponsored plans had high-deductible coverage. A 2010 study found that more than half of large employers offered at least one high deductible plan to their employees. Officials believe that health care reform will push even more people into high-deductible plans.

So what’s the real cost savings of having a high deductible plan? The study shows that the deductibles had to be at least $1000 in order for the savings to be significant. With high-deductible plans spending was lower both on inpatient care, outpatient care, and prescription drugs.  Rates of mammography, cervical cancer screening, colorectal cancer screening and blood tests were among preventative care that dropped with high deductible plans. “We saw that patients reduced preventive care, and if this persists, it is likely to have health consequences in the future,” Haviland said in a news release. “These cutbacks could cause a spike in health care costs down the road if people end up sicker and need more-intensive treatment.”

Mississippi governor Haley Barbour vetoed a bill that would have set up a state-run verification system to identify and ticket uninsured motorists. According to 2009 research from the Insurance Research Council, Mississippi’s uninsured-driver rates are among the highest in the nation. The IRC estimated that in 2007 28 percent of Mississippi’s drivers didn’t have coverage.

According to a news release, Gov. Barbour says he’s open to an amended version of the legislation because he does not oppose the concept of a verification. “Once the language in the bill is cleaned up, these agencies will be able to develop a workable system to verify motor vehicle liability insurance coverage of the vehicles on the highway. Toward that end, I am amenable to including this in the next special session,” Barbour told Insurance Journal.

The verification system would be a statewide database that contains insurance policy information from insurers. It would be matched up with registration information so that law enforcement officers could get the information quickly in the field. Gov. Barbour told reporters that he needs more information about the cost of the system and the new requirements by the Department of Public Safety.

Teen drivers are becoming fewer and farther between and while that may be helping many parents to breathe a sigh of relief, it does not mean that insurance companies are okay with the move. The drop in teen drivers comes from various sources.

• Many parents are restricting teens from driving due to safety concerns.
• Some states are enacting stricter laws that are just going into place that are requiring teens to be older before they can drive.
• Teens just have not had the financial ability to pay for driving abilities, whether insurance is the factor or buying a car.

Regardless of why this is happening, it is clear that fewer teen drivers are behind the wheel. In fact, one survey conducted by Nationwide Mutual Insurance notes that one of the biggest reasons is that parents do not want to spend the extra money to put another driver behind the wheel. A third of parents are concerned over these added costs. One in seven of them are not allowing their child to get a license as a result.

How Expensive Is It Really?

Adding a teenage driver can be very expensive. In some states, that costs are as much as $3100 a year in addition to premium costs for the adult drivers. This includes the extra expense of rising gas prices. However, according to some trade groups, the cost of adding a teenage child to a car insurance policy can raise premium costs by as much as 100 percent. That is a scary number for many parents and it often ends up resulting in eating out less, spending less on entertainment overall or making other significant cutbacks in cost of living.

Industry Costs

Insurance companies are feeling the pinch and it is because of this that many of them are turning to more aggressive marketing tactics. For example, Berkshire Hathaway’s Geico is reporting a drop in auto premium revenue again, for the fifth year in a row. The costs are hurting insurance companies, but these reduced premiums may result in fewer payouts for the company, too, since teen drivers account for a sizable number of accidents across the country.

What You Need To Know

Is your teen a driver or will you hold him or her back? Costs are a big factor. Some parents are encouraging teens to enter into the job market to find an opportunity to raise the funds to pay for insurance costs. There is no doubt teen drivers cost more because of the increased risk, but for some, it may not be as much as others. Ask for discounts and be a good student to qualify for lower rates.