Insurance Quotes & Advice

On Thursday, House Democrats announced a new $894 billion healthcare reform bill designed to overhaul the $2.5 trillion healthcare industry.  The House version will contain the much debated public health option, which had been a major stumbling block and the main reason why legislation has taken so long.

The cost which will be factored in over ten years will mostly be funded by a 5.4% surtax on the wealthy and is expected to reduce the number of uninsured Americans substantially by 2013.  The health insurance industry has recently criticized the reform bill saying it would cause premiums to rise by about $4000 to individuals by 2019.

The bill which will begin debate sometime next week is expected to be universally opposed by Republicans.  Unlike the Senate, which also has a version that contains a public option, House Democrats hold an overwhelming majority and can afford a few defections at this stage.

The Senate which is hoped to finish up it’s bill sometime next month will likely contain a number of differences with the House version and it will be interesting to see what will happen when the committee forms to reconcile those differences.  President Obama made healthcare reform his major domestic policy initiative when he took office but it has taken quite some time for his goal to come into fruition.

Senate Democrats met this week to reconcile the two healthcare reform bills that were approved by the Health, Education, Labor and Pensions(HELP) Committee and Senate Finance Committee.  The version approved by the HELP Committee contained a provision for a government run public option, while the version approved last week by the Finance Committee did not.

Once the Senate reconciles their version it will still need to be reconciled with the House version which will in all likelihood also contain the public healthcare option.  Senate Democratic leader Harry Reid is supporting a measure that would contain a public option but would allow states to opt out of it, of they so choose.

It’s appearing much more difficult to pass a bill in the Senate with the public option with a number of more moderate Democrats concerned over the added expense.  The more liberal House appears certain to pass a bill with the public option at this point and while the administration favors the public option, they appear willing to give it up in order to pass the reform bill.

There are serious doubts as to whether a reform bill will pass before the year is out, although the Obama administration is hopeful that something can be worked out during the current Congressional session.  With millions of Americans without healthcare insurance and cost spiraling out of control, the Obama administration has made healthcare reform it’s primary domestic policy initiative.

The recent abnormally cold weather in the U.S. just a few weeks removed from summer has many forecasters looking ahead to winter.  Forecaster agree that El Nino will play a large part in the winter season but their forecast’s have been mixed.

The forecast for the Northeast, the world’s largest heating oil market, called for equal chances of above-, near-, or below-normal temperatures and precipitation. Long-term forecasts for the region are difficult because weather there is generally not influenced by El Nino but by other factors.

Weather researchers believe El Nino was a big reason for the relatively mild hurricane season thus far and for that many insurers are happy.  The severity of the upcoming winter season will have an large impact on many different insurance sectors, like auto, property and health.

If the South experiences below average temperatures and above average precipitation, the number of auto accidents could rise significantly with drivers not accustomed to snowy weather.  On the flip side a mild winter in the northeast could see auto and property claims fall below normal seasonal levels.

Needless to say most Americans would prefer a mild winter if given the choice, especially residents in the Northeast.  With the economy barely out of a recession, residents could use the savings on home heating costs this year.

Insurers would also prefer a milder winter to coincide with the mild hurricane season, their capital levels have yet to recover from the beating it took from the financial crisis.