Cavalcade of Risk - Submissions Due

Next week's C of R is on Wednesday the 5th, hosted by Trader Knowledge. Be sure to get your entry (either your own post, or someone else's) in by Monday the 3rd.

This is a great way to showcase your risk-related work, and it's easy to submit:

■ Via email,

■ At the Blog Carnival, or

■ At Ferdy's

Latest Health Wonk Review

The HWR continues to grow, and this edition is packed with over a dozen interesting entries. Our host, Jack Mason at HealthNex (for whom I subbed a while back), has done a terrific job: grouping posts according to subject, and including helpful reviews of each one.

The folks at Workers Comp Insider have a timely post about a WC claim that made it all the way to the Supreme Court. I found it quite relevant, because the outcome of this case will impact the health insurance industry, as well.

More Buckeye Shenanigans

In recent weeks, we’ve reported on a number of cases of (apparent) agent malfeasance. Courtesy of a good friend (and colleague; Thanks, Pete!), we learn that the issues are far from resolved:

"If you’re paying an insurance broker to find the best group policy for your employees, should the broker be allowed to collect a commission from the company you select? If so, shouldn’t he at least have to tell you that he is working on commission?"

The answer, of course, is Yes. Interestingly, though, only the former is a matter of law. "Full disclosure" means something contra-common sense here in the home of the Reds and "The Tribe." One would think, after the very public disclosures of the two above-referenced cases, and the penalities levied against the carriers, that some legal reinforcements would be on the way.

One would be wrong:

"Nor has the department had any luck finding a lawmaker willing to sponsor a bill that would require insurance brokers to disclose to their customers such third-party payments."

It's obviously in the clients' best interests for such protection to be in place, but implementing such safeguards may not be as simple as it would appear. For one thing, such a bill would have to be broad enough in scope to cover all the various permutations of such arrangeements, but narrow enough that it doesn't hinder the agents' ability to make a living. Incentives can also help the client: currently, the two 800 pound gorilla's (UHC and Anthem) dominate the market. One way other carriers can begin leveling the playing field is by encouraging agents to more aggressively promote them.

Competition is healthy. Obfuscation is not.

UPDATE: Kathie Bracy has a related post, asking if the State Teachers' Retirement System is involved in this brouhaha. Ripples and eddy's.

And now for something completely different...

In looking through our logs, I saw that we've had a visitor from this site. It's fun, and interesting, and eye-opening.

Take a look.

Mazel Tov, Joe!

FoIB Joe Kristan has been named as a Best Blog by Tick Marks:

"Tax blogs are primarily written by attorneys, but there is a significant number of accountants who write tax blogs...My four blogs in this category that I read most frequently presently would be: Roth CPA Updates (Joe Kristan)"

Way to go, Joe!

Super Grand Rounds

Our host for Grand Rounds this week, Dr Stuart Henochowicz, has organized almost 40 entries, assigned each to a general topic, and provided interesting and helpful capsule summaries of each one. WoW!

Dr Rob Lamberts, posting over at Healthy Voices, has an interesting, provocative but ultimately informative article about dietary supplements. This is a $14 billion industry, which is largely unregulated. Recommended.

Just Swell...

In what may (or may not) be a harbinger of the times, installation of (and enrollment in) self-funded (S-F) plans seems to be on the rise:

According to Benefit News (an industry newsletter), there has been a dramatic rise in the popularity of such plans. Interestingly, this seems to be an "across the board" increase: affecting pretty much every permutation of product design, including (apparently for the first time) Consumer Driven Plans.

What does this mean?

Good question [ed: thanx!].

First, let's examine how S-F plans work. S-F plans are a way for employers to purchase health care insurance. Typically, an employer pays $x to an insurer, which administers the plan and pays the claims. The premium is fixed for a period of time (almost always a year), at which time the premiums are reevaluated (Latin for "jacked up"). At the end of the year, one of two things will have occurred: the claims will have greater than the premiums paid in, in which case the employer owes the insurer: zilch. Or, the claims will have been less than the premium, in which case the insurer will refund: zilch. Pretty simple.

With S-F plans, the employer agrees to pay for the first $x, and will turn to the insurer only if the actual claims exceed this previously agreed-to amount. The idea is that the premiums are lower, because the employer has, in effect, chosen a VERY high deductible. Again, two eventualities are possible: claims are less than expected, so the employer saved money. Or, claims are higher than expected, and the employer will owe the insurer some cash [ed: this is a highly abbreviated explanation of self-funding].

Employers who choose the S-F route do so because they believe that it will save them money. And apparently, a lot of employers must feel this way, because a lot more of them are choosing S-F. Whether or not they are correct, of course, only time will tell.

UPDATE: Please be sure to read the comments for additional factors that make S-F attractive.

Monday's Money

The Carnival of the Capitalists is up at Financial Methods blog. With 60 entries, that must be some kind of record! Divvied up into helpful categories, it's easy to "follow the money."

Bob has blogged before about the sometime hidden dangers inherent in regulating specific businesses. The Boring Made Dull (catchy, no?) has a related post, which guages the economic impact in real dollars.

And the Carnival of Personal Finance is also up, hosted this week by Mighty Bargain Hunter. It weighs in with 51 submissions, bulletpointed (?) and summarized.

Single Ma relates a funny, frustrating, enlightening and utterly fascinating experience in her quest for high-speed internet service. Way to go, SM!

Insurance Dispatch...

This week's column is up over at The Medical Blog Network. Using a real life example, we look at High Deductible vs Co-Pay plans.

Enjoy!

(Really) Cool Insurance News

Our friend Chris Parks, over at MedBill Advisor, has an interesting, and provocative, idea:

Med Bill Manager is a web-based tool that folks with HDHP's can use to help sort out what they really owe a provider. It's still in "beta," but you can get a rough idea of how it will work by clicking the link. Chris has been working with another FoIB, [Redacted], as he gets this new program up and running.

Perhaps the best part is the cost of this service: nada. Wow, a free tool to help save money. That surely has legs.

(Really) Strange Insurance News

I've always maintained that one can insure anything, so long as money (the premium) is no object.

Apparently, I have been wrong:

"Insurers have withdrawn the cover on their virginity taken out by three sisters in the event of the second coming of Christ"

Seems that the sisters purchased insurance against this unlikely event some 6 years ago. The policy, written for 1 million pounds (approximately $1.8 million), was "meant to pay for the cost of bringing up Christ if one of them has a virgin birth." The premiums for this unusual policy were about $180 per year, and was actually donated to charity by the underwriter.

As I have no horse in this race, I suppose that I should have no opinion either way. And, truth be told, I am ambivalent about it:

On the one hand, it seems to me that, if the policyholders were willing to pay the premium, where was the harm?

On the other hand, this seems (in my admittedly uninformed opinion) to be potentially offensive to my Christian friends.

Either way, this is one of the strangest insurance schemes I've ever seen.

What’cha gonna do?

For all the talk about Consumer Driven Health Care, the first step must be for the Consumer to want to take the wheel.

Unfortunately, it seems that many of us never got the memo:

“The [Great-West Healthcare] 2006 survey shows one in four consumers has set aside no money to pay for health care expenses, while only 39 percent have saved more than $1,000 and just 28 percent more than $2,000...Additionally, only 5 percent have used online cost or quality comparison tools, and just as few people associate the concept of responsibility with CDHPs [Consumer Driven Health Plans]."

In other words, of the 1,000 working adults (ages 18 to 64 – thus excluding Sir Paul), most have just not bought into the notion that there must be some personal responsibility for the cost of our care. Compared with a similar survey done last year, the researchers found that these folks are a little better at guesstimating the cost of health care, but are generally unaware of the real cost of it.

Apparently, less than 1 in 5 of this year’s participants claimed that they had learned the cost of medical treatment either before or at the time of treatment. This is disheartening, because it represents a 5% drop from last year, down from 22% in 2005.

Some of that, of course, rests with providers and insurers: if there is to be cost awareness, then consumers must have tools available to enlighten themselves. Thus, transparency rears its head. True, more carriers are buying into the idea, and at least going through the motions of providing access to this information. But until this is seamless and ubiquitous, I suspect that next year's survey will echo this one.

Also discouraging is the news that less than 2/3 of those surveyed believe that they can improve their own health, and thus mitigate costs, by adopting a healthier lifestyle. I’m not sure why that’s the case: we’re bombarded with that message 24/7: in print, on TV and radio, and of course here on the InterWeb.

Food for thought.

Fighting Back: An Update

As you may recall, one of my carriers has put in place a “freeze,” prohibiting agents from freely choosing with whom they do business (click here for details). When last we discussed this, I was awaiting an opportunity to discuss the situation with the Attorney General’s office.

That opportunity knocked yesterday. In a conference call arranged by my state rep’s able assistant, I had the pleasure of speaking, for about 45 or 50 minutes, with an attorney in the Anti-Trust office.

And it was a very interesting conversation.

First, she asked me to explain for her the nature and significance of the problem, which I did [ed: why didn’t you point her to the blog post, smart guy?]. She then asked a number of probing questions:

■ Is this switching very common? Is it an easy or difficult process? I told her that, as far as I am aware, it is not a very common practice; that is, I don’t know a lot of agents who switch around often. It does seem like a fairly easy process, though: just sign a form (much like an Agent of Record letter that a client might use).

■ Could an agent have more than one GA (General Agent)? Yes, but not for the same carrier. That is, perhaps GA #1 offers access to XYZ Mutual and ABC Life, while GA #2 offers Anon Life and ASAP Health. I could sign up with both of them, because each offers different carriers.

■ Are GA’s local, regional, or national? I’m not aware of national GA’s, at least in the types of insurance I generally sell.

■ Do I think that several GA’s got together and pressured the carrier to put the freeze in place? That was, as they say, the “money question.” I knew immediately that she was looking for evidence of conspiracy. The problem is that, really, I have no such evidence, merely speculation and logic. I explained to her that, much as I’d like to help on that issue, I really had no proof that this was the case. Of course, it’s the most logical explanation, but that’s not the same thing. Still, since it’s a possibility, perhaps she can use that.

I certainly hope so.

■ Do other carriers have such restrictions? Another great question, on a number of levels. Unfortunately, I didn’t know the answer, but promised to get it for her as quickly as I could.

By the way, here’s why I couldn’t answer that one: I cannot imagine a scenario where I would want to switch GA’s. I’ve had a terrific working relationship with my current GA for almost 10 years, and have no desire or reason to switch. BUT, it is appalling to me that a carrier could prohibit me from doing so.

Since I’ve had no (recent) experience in switching, I didn’t know whether or not other carriers also had a freeze on. The only reason I knew about this one was because a colleague had called to ask me about it, and I subsequently received a letter which confirmed it.

And so, I called my own GA, and asked them. Currently, none of their other carriers have such a freeze, although others have had, in the past. I’ll pass this information on to the Attorney General’s office, and await further developments. She did, however, ask me to send her a copy of the letter, which I promptly did.

Toward the end of my conversation with the AG, the subject of what outcome I’d like to see came up. That, too, is a good question. I thought for a moment, and answered that I really didn’t want “heads to roll;” rather, a simple cease-and-desist would be just fine. In other words, all I really want is for the AG to tell the carrier that this is wrong, and to stop it (and, of course, refrain from any future such freezes).

See, I’m not unreasonable. Just stubborn.

Cavalcade of Risk, #2

The second edition of the C of R is now up, presented by It's Just Money. As usual, it's an interesting and diverse group of posts, ranging from insurance to sunscreen. Best of all, each post is accompanied by LA Money Guy's summary.

Perhaps the most unusual is this post from Jeffrey at FoIB Personal Financial Advice. Having occasionally seen this show, I can see why he's hooked. I must confess, though, that I never made the connection between a game show and risk management. Very interesting.

You can learn more about the Cavalcade, including a schedule of upcoming hosts, at the C of R homepage.

Grand Rounds Today...

Hosted by Dr. Deborah Serani, a psychiatrist-cum-blogger. She posts at her eponymously named blog, and has done a terrific job organizing and highlighting 45 submissions. I also like the way she grouped them in a sort of movie storyboard motif, and appreciate that each "clip" has a note explaining its subject and significance.

Interested Participant contributed this compelling post about the British version of the AMA, which organization seems to condone, if not encourage, "non-voluntary" euthenasia. Talk about slippery slopes.

Sauce for the Goose...

Interesting post over at Marketplace, MD:

“In support of consumer-directed health care and an end to the mystery of medical prices, the American Medical Association (AMA) today called on the health insurance industry to end efforts to conceal their pricing systems for medical services.”

Bravo! Transparency, as we’ve noted many times here at IB, is necessary if folks are to become more proactive in their consumption of healthcare.

I’m having trouble, though, finding the corresponding AMA resolution requiring doc’s to prominently post their prices above the receptionist.

It must be there, somewhere.

Right?

More Healthful Food News...

Who says you can’t eat your cake and have it, too? In this case, of course, we must be referring to chocolate cake, perhaps made with Nestle’s brand chocolate:

“In a move that recognizes the modern world's twin obsessions — indulgence and guilt — chocolate maker Nestle said Monday it would purchase weight loss product maker Jenny Craig Inc. for $600 million.”

That’s right, the giant food conglomerate has us now, coming and going. We can indulge our sweet teeth, and then shed those unwanted pounds (and inches) when we’re sated.

If nothing else, one must applaud the company for its ingenious (if somewhat cynical) marketing synergy.

Just one more step toward the new food pyramid.

Quite Sunny Money Monday

It's days like this that makes me regret that I'm one of the six insurance agents in the known universe that doesn't play golf. Oh well...

The Anniversary Edition of the Carnival of Personal Finance is up, hosted by the folks at Consumerism Commentary (the carnival's founders). It's an especially interesting mix this week, because folks were asked to submit both a "regular" post and a favorite from the past year.

My favorite this week comes from the Holistic Economy blog, with this post about a new type of savings plan called an Individual Development Account. Very interesting.

And this week's Carnival of the Capitalists is hosted by Blog Business World, which collected, and organized, almost 50 posts!

A lot of folks in my industry back the estate tax. Joe Kristan at Roth & Co agrees that it's necessary, but suggests a better model.

Another First...

My debut column at The Medical Blog Network is now up. The plan is for one every Sunday, so wish me luck.

Happy Father’s Day!

Cavalcade of Risk: Nudge

The next Cavalcade of Risk is next Wednesday (the 21st) at It's Just Money. Submissions are due by Monday evening (June 19th):

■ Via email,

■ At the Blog Carnival, or

■ At Ferdy's

Check the C of R site for updates and schedules.

Our debut edition was great, please help out our hosts by submitting your great posts (or someone else's). Thanks!

A Wonktastic Review

FoIB Julie Ferguson, of Workers Comp Insider, hosts this week's Health Wonk Review. I've despaired of late at recent "carnival" hosts who simply post links. Julie has done an exemplary job of providing enough information to make each post a "gotta click," without giving away the store. Bravo!

There were a number of interesting posts, but I especially liked Joe Paduda's slap-down of both insurers and providers; seems that at least one carrier pays less for a procedure done in-patient as opposed to out, in an effort to micromanage care.

More onto the Plate...

Apparently, I just have too much free time.

So, in an effort to resolve that problem, I have agreed to take on another task:

Dmitriy Kruglyak has started the Medical Blog Network, the purpose of which is to spur the transformation of the healthcare industry. TMBN is a sort of super-aggregator of medical news, analysis and commentary, and has already created a sizeable "buzz" in the blogosphere.

In addition to the website, there is a weekly digest, available by (free) subscription.

So what does all this have to do with lil ol' me?

I have been invited to contribute weekly articles as a Featured Columnist. I'll be writing about insurance [ed: dunh!], focusing primarily on Consumer Driven Health Care.

My first column will be available on Sunday, and I'll post a link to it here.

Since this is a weekly "gig," I don't anticipate that it will impact IB (other than introducing new readers to us). On the other hand, I'll be tackling some new issues, so that it won't be a re-hash of my work here.

Wish me luck! [ed: he'll need it.]

Adventures in (Consumer Driven) Health Care

Three interesting stories illustrate that, whatever the ultimate outcome of CDHC turns out to be (boom or bust), the industry is at least giving it a shot.

As you may recall, we've discussed Aetna's transparency pilot program before. At the time, I expressed my hope that the program would be expanded to other venues.

Well, looks like they listened to me [ed: yeah, right!]:

"Aetna today announced that it is enhancing its industry-leading health transparency initiatives to help consumers make informed health care decisions based on the actual costs of care and the clinical quality and efficiency of physicians...Aetna will provide online access to physician-specific cost, clinical quality and efficiency information in select markets, including:

■ Connecticut

■ Washington, D.C.

■ Northern Virginia

■ Maryland

■ Cincinnati, Cleveland, Columbus, Dayton and Springfield, Ohio

■ Northern Kentucky

■ Southeast Indiana

■ South Florida

■ Kansas City, Kan. and Mo.

■ Las Vegas

■ Pittsburgh, Pa."

It's nice to see that program expanding. Of course, the true test will be if (and when) other carriers follow suit. Right now, it's a novelty, perhaps even a marketing gimmick. But as such information becomes more and more readily available, the pressure on other carriers to launch their own transparency initiatives should become quite powerful.

Transparency, though, is but one facet of CDHC. Plan design and popularity are more accurate indicators of market penetration. United HealthCare has seen the ranks of its CDHC plan membership swell recently. According to UHC, "consumer-driven health plan members surpassed 1.75 million people recently. The company has a little more than 710,000 people enrolled in health savings accounts and another one million and change in health reimbursement accounts." [ed: link not yet available] That represents an increase in HSA/HRA participation of some 75%. And that's without a transparency program like Aetna's.

But the “acid test” is whether, after all of the hype (or maybe because of it), do HDHP’s (High Deductible Health Plans) really save money?

According to a report offered by eHealthInsurance, health savings accounts seem to be accomplishing two worthy goals: lower premiums and a fewer uninsured folks. Last year, apparently, consumers paid (on average) about 17% less for individual plans than the year before. And eHealthInsurance says that almost half of the folks who bought their HDHP’s had been previously uninsured. Kudos!

If there’s any real downside, it’s that agents and brokers still aren’t sold on the idea. How can they be, when almost half of us "can't make a cogent argument for or against them.”

Interesting developments.

La Plus Ca Change...

A very good friend shared this with me. It's a newspaper clipping warning of the dangers we face every day.

I won't tell you when it was published (yet).

You guess (click here to enlarge):

UPDATE: Okay, I think it's fixed. When you "click to enlarge," you'll see a little "gizmo" that lets you move or enlarge the picture. Thanx, Bob!

Time for Grand Rounds

Our host this week is (Navy) Lieutenant Niels Olson. Neils is a med student at Tulane University, and blogs at The Haversian Canal. With over 40 entries, it's quite a list.

My favorite came from David Williams at the Health Business Blog. In it, David explores some problems with cancer treatment protocols.

Money Monday

The Carnival of Personal Finance is up and running at Financial Fruition. Our host has posted over 40 links. In keeping, I suppose, with the "new trend," there is no context: it's simply a collection of links (they are alphabetized, however). Looks like I'll have to get used to that.

I especially liked this post at It's Just Money (the next host of the Cavalcade of Risk), exploring some of the benefits of recycling.

This week's Carnival of the Capitalists, on the other hand, is a treat! Our host, Mike, is a (very mature) 15 year old investor, who has aggregated 42 posts, complete with summaries. All the more remarkable, because he stepped in for this week's scheduled host.

Because I tend to keep things bottled up, this post at Entrepreneur's Journey was most welcome. Yaro, from Down Under, has some great perspectives and tips on managing stress.

Good news, bad news...

In our on-going (albeit sporadic) efforts to highlight advances in nutrition and health, we try to bring you the very latest and most important such discoveries. So I was pleased to read that:

"A main ingredient in beer may help prevent prostate cancer and enlargement, according to a new study."

Of course, the temptation is to stop right there, but alas, there's bad news, as well:

"(R)esearchers say don't rush out to stock the refrigerator because the ingredient is present in such small amounts that a person would have to drink more than 17 beers to benefit."

[ed: I thought you said there was bad news]

According to researchers, the hops in beer contains something called "xanthohumol," which affects a particular protein in the prostate. This protein is believed to be a "trigger" for prostate cancer, which (according to the CDC) is the most common form of cancer among men in the US. It's also one of the leading causes of death among men, as well.

The researchers are hopeful that big pharma will now look into synthesizing or reproducing the compound, providing an alternative treatment regimen.

I do have one question, however: how do I sign up to help with this research (the beer drinking part)?

UPDATE: And for what is beer the natural accompaniment?

"Researchers claim eating pizza regularly reduced the risk of developing oesophageal cancer by 59%. The risk of developing colon cancer also fell by 26% and mouth cancer by 34%"

Apparently, tomatoes contain a naturally occuring antioxidant called "lycopene." The idea is that, in addition to giving the 'maters their beautiful red color, it may provide protection against certain cancers.

Of course, the jury's still out on all this, but I'm picturing the new food pyramid.

A Different Kind of Bottle “Cap”

Last week, Bob discussed “caps” (limitations) on outpatient medications. In a related development, researchers report that even though capping drug benefits did lower drug consumption, it also resulted in more negative clinical outcomes and higher medical costs. The study, of some 200,000 Medicare+Choice beneficiaries, was conducted by folks from Kaiser Permanente and two universities (UC and Harvard). Their findings, recently published in the New England Journal of Medicine, included some startling statistics:

“(S)ubjects whose benefits were capped [at $1,000] had pharmacy costs for drugs applicable to the cap that were lower by 31 percent than subjects whose benefits were not capped…but had total medical costs that were only 1 percent lower. Subjects whose benefits were capped had higher relative rates of visits to the emergency department, nonelective hospitalizations, and death.”

Ouch.

Their conclusion:

"A cap on drug benefits was associated with lower drug consumption and unfavorable clinical outcomes. In patients with -- chronic disease – [emphasis added], the cap was associated with poorer adherence to drug therapy and poorer control of blood pressure, lipid levels, and glucose levels. The savings in drug costs from the cap were offset by increases in the costs of hospitalization and emergency department care.”

In other words: cheaper isn’t always better. Now, in fairness, they studied a select group of people, in a population that does seem to use a lot of med’s. And they carefully avoided extrapolating their findings to the population at large.

Still, it does give one pause, especially when one considers (click to enlarge):

Kinda scary, no?

Tangled Web, Redux

Why am I not surprised by this:

“Ohio’s sixth-largest school district says it was a victim of fraud resulting from secret commissions that its health-insurance company paid to a broker in return for delivering the district’s business.”

As Yogi Berra once observed, “it’s déjà vu all over again.” Two weeks ago, it was United HealthCare and a Columbus area broker named Grady.

Today, it’s UHC and a Columbus area broker named Fritz Neuhart; once again, a rather ordinary web-site and a nondescript agency name. Nothing to indicate that Mr Neuhart had (allegedly) pocketed a cool $1 million in fees and commissions. Kinda makes a piker out of poor Mr Grady.

For now, the Department of Insurance is mum on this, although they’re "aware of the situation."

So far, that’s two school districts caught up in similar webs. I wonder how many other superintendents are even now rifling through their insurance files, trying to determine if they, too, have been stung.

A Slick Operation...

What if your employer paid you to have that knee surgery in India? How about that carpal tunnel correction in Thailand? Or your hip replacement in Singapore?

Sound far-fetched? It’s not:

“With US medical costs out of control, companies like Blue Ridge Paper Products of Canton, N.C., see outsourcing as an employee benefit. The carrot? The patient would get to take a family member and then pocket some of the firm's substantial savings.”

“Medical Tourism” has become big business. The idea is that folks can travel to a foreign country, receive medical care equal to (or potentially better than) services available here, and still save money (even factoring in travel expenses). Companies like Blue Ridge Paper have determined that, by encouraging their employees to go this route, the company and the employee save money.

I’m not so sure:

For one thing, such expenses are not going to be eligible for reimbursement under a qualified plan (HSA, HRA, FSA, etc). For another, what about accountability? For all the grief we hear about malpractice insurance rates here in the good ol’ U S of A, at least (most of) our providers have it. Will the same be true of Dr Singh in Bombay? Don’t know. And what about complications?

“A Rhode Island woman died in India after traveling there for cosmetic surgery that she believed was too costly and difficult to obtain at home.”

The single mother of three apparently died of a blood clot (a not uncommon complication). She did, however, save almost $16,000 by undergoing the surgery overseas. Where’s the gecko when you need him?

According to Time magazine, this business is booming:

“Trehan [a renowned robotic cardiac surgeon] plans to launch next year, in partnership with GE, the first installment of a vast, $250 million specialty Escorts hospital complex near New Delhi that will feature luxury suites, a hotel and swank restaurants for patients and their families. "We will be the Mayo Clinic of the East," he says. Max Healthcare is also planning a specialty complex in New Delhi.”

Whether these types of facilities will begin seriously impacting US providers remains, of course, to be seen. And we also know that there is currently a large supply (foreign facilities and providers) with little demand (it’s still somewhat of a novelty). But if and or when that changes, and demand begins to mount, it will be interesting to see if those low, low prices will stick.

So far, I haven’t had any of my groups (or prospects) ask me about this; be interesting to see if that changes.

Cavalcade of Risk (Debut Edition)

Welcome to the very first Cavalcade of Risk. In keeping with its mission statement, the following entries run the gamut from insurance to finance, taxes, and even murder. Several are from blogs that are new to me, but to whom I gladly say: Glad to meet ya!

And now, on with the show:

■ It's Just Money

LA Money Guy tells us about two (not so) Golden Gals who weren't relying on Social Security alone. He also raises some pointed questions for insurers.

■ Trader Knowledge

Knowledgeable Trader Dominic takes a look at momentum trading and how, if properly applied, it can lead to a high probability of financial gain (with low risk).

■ Jon Swift

Jon asks: "Why should I pay for diseases I'll never get?" A much better system would be to have insurance companies sell insurance for different diseases individually. He avers that a la carte insurance could be applied across the entire industry.

■ Workers Comp Insider

As if worrying about host liquor liability isn't enough, WCI's John Coppelman takes a look at hidden risks in company-sponsored summer outings. Employers beware the $200,000 "umbrella torpedo!"

■ Wenchypoo's Warehouse

Blogress Wenchypoo (no kidding!) explores the phenomenon of "luxury-creep:" material things once the province of the well-to-do (stainless steel kitchens, SUV's, even polo shirts) are now just everyday items to us peons. But when is enough, enough?

■ Med Bill Advisor

Why are accurate and current medical records so important? Host Chris Parks explains why they're crucial for our financial health.

■ Roth & Co

When disaster strikes, our first thoughts aren't necessarily about our tax records. But Joe Kristan has some great tips, and warnings, about the need to safeguard our financial info.

■ Health business blog

What do tuna fish and tea have in common? David Williams tells us about the potentialy dangerous amounts of mercury in some herbal concoctions.

■ California Medicine Man

One of my favorite bloggers, Dr John Ford (who posts, IMHO, all too infrequently), has an online debate with the founder of a new diet craze. Interestingly, he's not as concerned about the diet itself, but how it's being "pushed."

■ Cato Blog

Dr Ford's not the only debater in this edition: Cato Institute blogger Michael Cannon dukes it out with Matthew Holt on the merits - and potential downsides - of HSA's (Health Savings Accounts).

■ InsureBlog

Our own Bob Vineyard tells us of his recent epiphany regarding specific-disease policies. Sometimes, even the best health insurance doesn't cover all the potential risks.

The next edition is June 21st, hosted at It's Just Money. Be sure to check the C of R home page, for upcoming hosts.

A Truly Grand Rounds...

Grand Rounds is up over at Health Voices. Our host, Dmitriy, has used his new submission gizmo to organize over 40 posts, including insights and info on each one. Bravo!

Since Bob and I have both recently posted on medical records, I found Carol Kirshner's post on electronic medical records timely and informative (and I share her frustration).

A Ticket for HIPAA

[Editor’s note: Great minds really do think alike. As I was writing the following, Bob was posting his take on the same issue. Wow]

While I'm no fan of HIPAA (IMO, it created more problems than it solved), it is the law of the land. So I am puzzled, bordering on angry, that

“(i)n the three years since Americans gained federal protection for their private medical information, the Bush administration has received thousands of complaints alleging violations but has not imposed a single civil fine and has prosecuted just two criminal cases.”

According to the WaPo, the complaints reported most often fall into these categories:

■ personal medical details were wrongly revealed
■ information was poorly protected
■ more details were disclosed than necessary
■ proper authorization was not obtained
■ patients were frustrated getting their own records

I can sort of see that last: most physicians' offices charge a fee for those records. Contrary to popular belief, they are not "your own," any more than the service records your mechanic keeps on your car are. Still, it's not supposed to be a frustrating experience.

In this day of identity theft, there really is no excuse for personal information to be "poorly protected," either.

Turns out, three quarters of the cases were deemed to be non-violations, which seems about right: just because you’re ticked with a given provider doesn’t mean they’ve done something illegal. I’m not as sanguine about that other 25%, though:

“(H)ealth plans, hospitals, doctors' offices or other entities [were allowed] simply to promise to fix whatever they had done wrong, escaping any penalty.”

Certainly there needs to be some flexibility in the system, but that’s an awful lot of it. HHS counters that they’re striving for “voluntary compliance,” which they think is working. Of course, the providers are all in favor of the voluntary model (preferring carrots to sticks), but privacy advocates are nonplussed:

“The law was put in place to give people some confidence that when they talk to their doctor or file a claim with their insurance company, that information isn't going to be used against them," said Janlori Goldman, a health-care privacy expert at Columbia University.”

As the clock is ticking toward across-the-board implementation of EMR (Electronic Medical Records), the stakes are getting higher. Part of HIPAA requires that medical record safe-keeping adhere to a set of stringent federal guidelines, instead of on a state-by-state basis, but that raises its own set of problems, namely: security of the records. As we saw recently with the VA, this is far from a slam-dunk.

I’ll let a “neighbor” have the last word:

"It's like when you're driving a car," said consultant Gary Christoph of Teradata Government Systems of Dayton, Ohio. "If you are speeding down the highway and no one is watching, you're much more likely to speed. The problem with voluntary compliance is, it doesn't seem to be motivating people to comply. "

Cavalcade of Risk -- Reminder (Bumped)

Look for the Debut edition of the C of R on Wednesday.

The debut edition of the C of R is later this week (Wednesday, to be precise), and the deadline for submissions is today.

The Cavalcade's purpose is to help folks understand what risk is, and how to manage it. It's about business and finance, of course, but it's also about risks in our everyday lives and personal relationships.

Sunny Money Monday

Mapgirl hosts this week's Carnival of Personal Finance. Despite being at the hospital with family, our hostess managed to organize 47 submissions...that's a lot!
Christine Kane has a helpful post telling us why cheaper isn't always less expensive.

The Carnival of the Capitalists is up, hosted by the folks at Rethink. They've dusted off the spreadsheet template, which makes sorting through the 60 posts much easier. Plus, the included insights help to make each post's subject crystal clear. Super job!

While you're there, check out this post at MarketPlace MD. It's about Consumer Driven Finance, sort of the flip side of CDHC.

And Losing at SOLItaire...

Several weeks ago, we examined Stranger Owned Life Insurance (SOLI), a potentially useful cash flow tool. Seems, though, that there are more nefarious uses for such:

"A pair of Los Angeles women may have insured the lives of homeless men, then arranged fatal hit-and-run “accidents” so that they could collect the death benefits, officials say."

That's just sick.

Apparently, the perps would befriend a homeless person, offering him room and board (and perks?), thus building trust. They would then have the victims sign off on life insurance applications, with themselves as beneficiaries.

I have my doubts about the veracity of this story:

■ If there was no insurable interest, how was the policy underwritten and issued?
■ If the victims were, indeed, homeless, what underwriting dim bulb approved the application?
■ One of the victims apparently had 16 policies; what, exactly, did the agent *think* was going on?

Of course, it's possible (likely?) that these were all purchased on-line, and that no agent was involved. Still, there should have been *some* red flags: insurable interest, moral hazard, possible medical issues. And, each of these policies could have been small enough to fall "under the radar:" no exam, no inspection, no real underwriting.

I'm not sure that really works, though: the sum involved (over $2 million) seems to indicate that at least some of these policies should have triggered at least a cursory examination.

Yikes.

Wonks Rule!

The 8th edition of the Health Wonk Review is now up at Healthvoices (part of the Medical Blog Network). With over 30 entries, this is quite a step up for the fledgling "carnival." Host Dmitriy has done an outstanding job, implementing a brand new submission system, organizing the posts, and making sure that each entry makes sense.

Dr Roy, posting at Health Care Renewal, offers a post on Pay For Performance, cutting through much of the hype, and offering a critical anaylsis. We've posted on this issue before, and have come to some of the same conclusions. Recommended.

S Corp's, Insurance, and the Tax-Man

In this timely (and helpful) post, our friend Joe Kristan has news for S corp owners who deduct their health insurance premiums.

Sorry to say, it's not good news.

Stupid, Stupid, Stupid

I rarely read the sports page of our local paper. So when a client called me yesterday to ask if I’d seen the sports section, I told her no, and asked her why.

Her answer surprised me:

The Department of Insurance published the names of those agents who have “failed to meet the [State’s] continuing education requirements.” And there followed a list of all the agents, complete with addresses and dates of birth.

Can anyone say “Identity Theft?”

Now, I hold no brief for those who blow off CE, but this is beyond the pale. Should an agent lose his license for failing to keep up with a pretty easy requirement? Sure. Should he be fined? Probably. Should his finances be potentially at risk? Absolutely not.

Since our local paper listed, well, local agents, I presume that the Enquirer, the Dispatch, the Plain Dealer and the Blade all contained comparable listings. This is unconscionable.

So, what to do?

As a member of the PIA (Professional Insurance Agents – a professional association for independent agents), I called to report this problem. They were as appalled as I am, and are looking into it. Pat, the young lady with whom I spoke, indicated that names and addresses are pretty much a matter of public record. But dates of birth certainly are not, so she’ll be talking with the DOI.

Sheesh!

RELATED: Bob posted about Medical Identity Theft a few weeks ago, and Dr Rob Lamberts has info on federal legislation in this area.