Sunday, November 27, 2011

Insurance companies still have their secrets; big effect on Obamacare debate?


MSN has an interesting article this weekend, “Insurers’ 10 dirty little secrets”, by Ed Leefeldt of “insurance.com”,  link here

One of these secrets is another score for car insurance companies, the ISO, which consumers never see.  Worse, there is a supplementary FICO risk score which consumers don’t see.  Could it be affected by “online reputation”?   (Ask Michael Fertik.)

Insurance companies pay attention to the reputation of your attorney (the Mike Slocum Law Firm (link) ads). 

The issue of percentage deductibles (for earthquake and flood policies) is well known, I thought. 

But the dirtiest trick seems to be that of some Blue Cross and Blue Shield plans of making smaller insurers pay providers more.  I’ve worked for the Blues twice in my career (including a stint in Texas), and never heard that mentioned.  That sounds like a violation of anti-trust law to me.  Big competitors, like United Health Care, aren’t affected, of course.

I’ve been approached  at least twice in recent years to become an insurance agent, and I can’t see making a life out of manipulating customers and hiding things from them, or stilting the truth.



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