Medicaid is the worst health care program in the country—a dismal program that finances care for low-income Americans but condemns them to long waits in emergency rooms for even routine care. The program pays doctors so little and requires so much paperwork that few can afford to see more than a few Medicaid patients.

Instead of reforming Medicaid, which will cost the federal and state governments a total of $457 billion this year for its nearly 60 million enrollees, Obamacare doubled down and will dump as many as 25 million more people into this expensive, fraud-ridden program.

Giving States Flexibility

Several members of Congress, including House Republican Study Committee Chairman Rep. Jim Jordan of Ohio, have introduced the State Health Flexibility Act (H.R. 4160) to streamline federal funding for Medicaid and the Children’s Health Insurance Program into one block grant to the states. Todd Rokita (R-IN) is the lead sponsor of the bill.

The legislation would give the states maximum flexibility to tailor the program to meet their citizens’ unique health care needs without having to plead with Washington for every minor improvement they want to make.

The legislation meets the seven principles for Medicaid reform proposed by 29 governors in June 2011, and it requires accountability to taxpayers. Annual audits are required in each state to report to the U.S. Treasury, state legislatures, and the public to ensure the federal funding is spent properly. That would be a significant step in bringing accountability and efficiency to Medicaid, which wastes at least 10 percent of state Medicaid dollars.

Proving Federalism Works

We have an example of how it ought to work in Rhode Island, where Gary Alexander, who served as secretary of health and human services until 2009, implemented a Global Consumer Choice Waiver. The waiver exempted the state from many of Medicaid’s federal rules and mandates while accepting a five-year spending cap of $12.1 billion, including federal matching payments.

A December 2011 study by the Lewin Group, a consulting firm, found Rhode Island’s experiment allowed it to lower spending and improve the quality of care while maintaining the same enrollment levels. Patients had better access to doctors, reducing the need for expensive emergency room use. Costly long-term care patients were switched to home and community-based care. Rhode Island’s Medicaid spending, which had been projected to reach $3.8 billion, came in at $2.7 billion for the 18 months following the introduction of the waiver. Alexander calculates the nation’s taxpayers could save $200 billion over the next decade if every state followed Rhode Island’s lead.

Rhode Island and the Republican Study Committee are on the right track with block-granting Medicaid to the states. The model works, and it provides a strong platform for the Medicaid part of the “replace” strategy post-Obamacare.

This article was originally published by The Heartland Institute

“The people of Joplin, Missouri, endured a great tragedy on May 22, 2011, as the site of a tornado that resulted in the greatest single loss of life since such records began being kept in the United States,” said Dr. Robert Hartwig, president of the I.I.I. and an economist. “But the insurance industry is proud of the role it has played in helping Joplin’s survivors, and those residing and working in other tornado-stricken Missouri communities, recover financially from these life-altering events.”

Whether that “granddog” is a beagle mix from a local shelter or a $1,500, purebred Yorkie, experts say pet insurance is growing in popularity as a way to protect the family saving accounts from large veterinary bills in the event of an illness or accident. Also, it is a way to avoid having pets euthanized simply because the necessary veterinary care is too expensive.

Veterinarians can do more to treat sick pets from routine infections to cancer. But those treatments also come with a cost that some families cannot afford. Examples of bills that three pet owners in California received include $5,157 for a cat trapped in a car engine, $7,981 for cancer treatment for a dog and $13,137 for bacterial pneumonia treatment for a dog, according to the Ohio-based Embrace Pet Insurance.

For more about financial options for the treatment of canine cancer, contact the Canine Cancer Awareness website.

“Many pet parents are taken aback when they discover that surgery to correct their Labrador Retriever’s hip dysplasia will cost $5,000 or more,” says Embrace Pet Insurance President Alex Krooglik. “Pet insurance really helps in these situations.”

According to the American Society for the Prevention of Cruelty to Animals, dog owners should expect to spend $9,400 to $14,000 during an average 15-year life span for their pets.

Plans can average $20 to $40 a month in premiums.

Financial experts suggest that pet owners would be better off saving $30 a month to pay for their cat or dog’s medical care.

June Ann Schroeder, a financial consultant with the Elm Grove, Wis.-based Liberty Financial Group, says that at a minimum, a savings account for pet expenses is a necessity.

Pet insurance policies have improved over the years, Schroeder says giving pet owners flexibility and variety in coverage options and pet owners may want to consider it. But she warns there are still some challenges to using pet insurance.

Those include whether the policy has a high deductible, which could still require a savings account. Breeds, ages and hereditary conditions also determine if a pet is insurable. And will the vet assist the pet owner in filling out the claims paperwork is also a challenge.

“There are a lot of vets that do not fill out the paperwork and that causes a delay in getting reimbursed from the insurance company,” Schroeder says.

Chris Middleton, vice president of marketing at Idaho-based Pets Best Insurance, points out that the first year veterinary costs for a puppy is more than $360. During an average 15-year life span a $30-a-month pet savings account will only cover about $5,400 in vet bills.

“Whether you chose pet insurance and what policy you use, depends on how much risk you want to take and what is your personal financial situation,” Middleton says. “But the whole idea of a pet savings account is not a viable option in covering a variety of illnesses.”

Including cancer,  Middleton adds.

“Depending on the study you read, one-in-three or one-in-four dogs will get cancer,” Middleton says. ” Rates in cats are similar with 33 percent of pet owners’ feline friends will likely contract cancer.”

“There are treatments out there that can have a great outcome but can be very expensive,” Middleton adds.

Like health protection for humans, pet insurance may rely on an animal’s history to determine premiums, which means the type of breed matters.

When it comes to picking an insurance company and a plan, Middleton and Krooglik agree that it pays to do your homework.

“Read the policies and check with a variety of insurers,” Middleton says. There is an estimated 10 insurance companies in the country that solely cover pets.

Some companies do not cover heredity problems such as hip dysplasia, while some do.  Age, breed and pre-existing medical conditions also factor into a pet’s insurability.

Many plans cover 80 percent of vet bills after a $250 or $500 deductible. Middleton adds there are some plans that cover routine check-ups and maintenance drugs such as heartworm.

Krooglik recommends pet parents use online review sites such as Yelp or PetInsuranceReview.com to help with their choice.

“Many pet parents look at pet insurance and decide not to purchase because they are unsure if it will pay off,” Krooglik says. “You should not buy any insurance if you’re looking for it to pay off. We don’t buy home insurance and pray that our houses will burn down. Pet insurance should be looked at in the same light.”

Schroeder, also a registered nurse, says regular pet care determines their health and quality of life.

“Are you brushing your pet regularly to limit the exposure of ticks and other bugs that can carry Lyme disease or worms? Are you brushing their teeth or giving them chewies to reduce plaque build-up? And what kind of food are you using?” asks Schroeder. “Just like humans and wellness programs, what you do day-to-day to care for your pet can limit health expenses in the long-run.”

Citing information from the National Canine Cancer Foundation, dog owners are encouraged to catch signs of cancer as early as possible. Detection in the beginning stages of the disease may help a dog survive.

Some of the symptoms included:
o lumps
o abnormal swelling
o weight loss
o persistent sores
o difficulty breathing

If your pet has any of these signs or any of the symptoms have been persistent, please contact your local vet for a check-up.

To see more data on pet cancer, look at the VetCancer Registry.

This article was originally published by Consumer Insurance Guide

Obamacare has been the main topic we’ve focused on here at Health Care News over the past three years. So here are ten different articles and items worth reading as we mark its second year, and wonder whether it will have a third anniversary next year.

1. The Wall Street Journal: Liberty and Obamacare

Confronted with these concerns, the Administration has echoed Nancy Pelosi when she was asked if the individual mandate was constitutional: “Are you serious?” The political class, the Administration says, would never abuse police powers to create the proverbial broccoli mandate or force people to buy a U.S.-made car.

But who could have predicted that the government would pass a health plan mandate that is opposed by two of three voters? The argument is self-refuting, and it shows why upholding the rule of law and defending the structural checks and balances of the separation of powers is more vital than ever.

2. The Washington Examiner: Obamacare on Trial

The mandate is a central aspect of the law, because it’s the mechanism for bringing healthy people (and their money) into the insurance pool. The mandate is meant to offset the distortion in the marketplace caused by another part of the law, which requires insurers to cover those with pre-existing conditions at the same price as others.

In the absence of a mandate, healthy people would have an incentive to go without insurance, knowing that insurers couldn’t deny them coverage if they got sick. This would drive up the price of insurance, which would then cause more healthy people to leave the market, leading to even higher rates. Eventually, the so-called “death spiral” would ensue, and the private insurance market would fall apart.

If only the mandate is overturned, Republicans would push for legislative repeal of the rest of the law while Democrats would push for some way to “fix” Obamacare. If Americans elect a divided government in November, this will be a bruising battle that could make the debt ceiling debate look tame.

3. Politico: Four Hard Truths of Health Care Reform

Here are Politico’s ”four  hard truths”:

Some people won’t get to keep the coverage they like;

Costs aren’t going to go down;

It’s just a guess that the law is going to pay for itself;

“The more they know, the more they’ll like it” isn’t happening.

4. TPPF: Why the Individual Mandate is Inseparable from Obamacare

Any fair-minded look at the original congressional design shows that all of the health insurance market reforms depended on the individual mandate—not just “guaranteed issue” and the (related) prohibition on exclusions for preexisting conditions, but also “community rating”, the prohibition on annual benefit limits, comprehensive coverage requirements, limitations on co-pays and deductibles, preventive care coverage requirements, and even the reduction in subsidies to hospitals that care for the indigent. All of these provisions raise the cost of insurance; and in combination with guaranteed issue, they create relentless adverse selection pressure.

Transcripts of committee hearings, floor statements, and record votes as various proposals wound their way through the legislative process show, in abundant detail, that that proponents of health reform fully understood the mandate’s foundational importance to the whole scheme. It was for that reason that the law’s proponents rejected every effort to remove the mandate from the law in committee vote after committee vote.

5. Daily Caller: Obamacare’s Seven Tax Hikes on the Middle Class

The medicine cabinet tax prevents families from using their health savings accounts (HSAs) or workplace flex-savings accounts (FSAs) to purchase non-prescription, over-the-counter medicines on a pre-tax basis. There is no exemption for families making less than $250,000 per year.

The “special needs kids” or “braces” tax puts a cap of $2,500 for the first time on FSAs. Prior to Obamacare’s passage, families with very high medical bills could put an IRS-unlimited amount in their FSAs to pay for things like special needs tuition or braces on a pre-tax basis. Obamacare changed all that. There is no exemption for families making less than $250,000 per year.

Obamacare imposes a 20 percent “surtax” on non-medical, early withdrawals from HSAs. This results in a tax rate on these distributions which can easily exceed 60 percent. There is no exemption for families making less than $250,000 per year.

6. Investor’s Business Daily: Obamacare’s 5,931 Pages of Regulations

The number of pages of regulations being released due to ObamaCare is beginning to make the initial bill look like a pamphlet. By IBD’s count, the regulations are up to 5,931 pages.

That includes small, two-pagers that counsel employers to give sufficient break time for nursing mothers, to the recent 644-page behemoth on the health insurance exchanges.

7. FreedomWorks: IPAB’s Seven Deadliest Sins

Here’s how the panel—brainchild of progressive Sen. Jay Rockefeller, West Virginia Democrat—is supposed to work. Beginning next year, if Medicare’s growth rate is projected to exceed a “global budget” target defined in the 2010 law, then the 15 “experts” at IPAB must develop a proposal to get Medicare spending back in line. If the Secretary of Health and Human Services decides she doesn’t like the proposal, she can substitute her own. But either way, the decision, once published, goes into effect automatically—and basically can’t be reversed. This may not be a “death panel,” but it is a legal and moral monstrosity.

8. Forbes: How Obamacare Dramatically Increases the Cost of Insurance for Young Workers

The size of the mandate’s penalty is puny in comparison to the cost of health insurance. According to the government’s Medical Expenditure Panel Survey (MEPS), the average premium for an individual plan in 2010 was $4,940. If we assume that premiums increase by 6 percent a year—the historical rate—the maximum $695 mandate will account for only 10 percent of average premiums.

Because the mandate is weakly enforced, small in size, and gradually put into place, whereas the pre-existing condition mandate takes effect immediately, Obamacare creates the recipe for an adverse selection death spiral. “We would anticipate significant adverse selection to occur in the existing market,” reports PwC, “increasing premiums for those who have coverage today. Higher premiums will result in more individuals being exempted from the coverage requirement…the penalties will be phased in, so that they will not reach full effectiveness for several years. This lack of coordination increases the likelihood of a premium spiral that ‘gets ahead’ of the coverage requirement which…may further reduce the incentive for those who are healthy to buy coverage. This may then cause an increase in premiums for those with coverage today.”

9. Galen Institute: Obamacare is Unconstitutional

The law also requires states to expand their Medicaid programs to cover families earning up to $30,000 a year. Lawyers for the 26 states that are challenging the law will tell the court during oral arguments this violates the Tenth Amendment’s protection of states’ rights.

Medicaid, a program designed to pay medical expenses for the poor, is the largest health program in the country. Its costs already are drying up spending on education, roads and public safety. Many states warn this huge Medicaid expansion could send them into bankruptcy. The Medicaid mandate should be struck by the court as a violation of the Tenth Amendment.

10. Wall Street Journal: Obamacare’s Costs are Soaring

The CBO’s initial estimate in March 2010 of ObamaCare’s budget impact showed it saving money, reducing the federal deficit by $143 billion in the first 10 years. But that positive estimate was largely the product of gimmicks inserted into the bill by Democratic leaders to hide the law’s true cost.

Sure enough, the administration last October announced it would not implement one of those gimmicks, a long-term care program called the Class Act, because it was financially unworkable. The loss of the premiums that would be collected to finance the Class Act wiped out $70 billion of the supposed deficit reduction projected by CBO. And last month the administration’s proposed fiscal 2013 budget included $111 billion in additional spending for the premium subsidies in the health law’s insurance exchanges—further eroding any confidence in the original ObamaCare projections.

This would not be the first time a government program exceeded its projected cost. When Medicare was passed in 1965, for example, the federal government estimated it would cost $12 billion in 1990. Medicare actually cost $110 billion in 1990.

This article was originally published by The Heartland Institute

State Farm reports that it paid more than $109 million as a result of the nearly 3,800 dog bite homeowners and renters insurance claims in 2011. The Insurance Information Institute estimates that in 2011, insurers across the country paid nearly $479 million in dog bite claims.

Top 10 states for State Farm Dog Bite Claims in 2011:

State Farm says it does not refuse insurance based on the breed of dog a customer owns because there are good dogs and bad dogs within every breed, just as there can be responsible and irresponsible owners of each breed. The company notes that a dog’s tendency to bite depends on such factors as heredity, obedience training, socialization, health and the victim’s behavior.

The I.I.I. reports that many states have passed laws with stiff penalties for owners of dogs that cause serious injuries or deaths. In about one-third of states, owners are “strictly liable” for their dogs’ behavior, while in the rest of the country they are liable only if they knew or should have known their dogs had a propensity to bite (known as the “one free bite” principle).

Children and seniors are frequent victims of dog bites. In fact, more than half of all dog bite victims are children.

“Among children, the rate of dog bite-related injuries is highest for those ages 5 to 9 years,” says Dr. Patricia Olson, chief research officer for American Humane Association. “It is important to note that children are often bitten by a dog in their own household. Thus, supervision by parents and teaching children how to avoid being bitten is crucial for protecting both the child and the dog. Prior to obtaining a dog, future owners should consult with a veterinarian or animal behaviorist to learn what type of dog might be the best match for their family.”

The AHA reports an estimated 4.7 million dog bites occur in the U.S. each year and nearly 800,000 of them require medical care. Approximately two-thirds of bites occurred on or near the victim’s property and most victims knew the dog.

Olson says dog owners brining a newborn baby home need to properly introduce the pet to the infant and the AHA offers a guide on this: When Pet Meets Baby. Olson points out that any dog could bite if provoked.

In addition to stressing responsible pet ownership, State Farm and the AHA are encouraging responsible behavior and caution around dogs, including family pets, for any dog could bite someone under the right circumstances.

The AHA offers some basic guidelines for keeping kids safe around dogs:

• · NEVER leave a baby or small child alone with a dog.

• · Be on the lookout for potentially dangerous situations.

• · Start teaching young children — including toddlers — to be careful around pets.

• · Children must be taught NOT to approach strange dogs.

• · Always ask permission from a dog’s owner before petting any dog.

For more information about dog bite prevention, visit the State Farm Learning Center or the American Humane Association website.

This article was originally published by Consumer Insurance Guide

In 2006, Republican Gov. Mitt Romney signed into law a bill establishing sweeping health care reform in the Bay State. Although different in key respects, the ACA also has many similarities to this state health care reform bill. This bipartisan legislation included an individual mandate, a new agency to facilitate the purchasing of health insurance, subsidies for individuals to purchase insurance, and penalties on businesses that do not offer insurance to their employees.

According to a 2011 Boston Globe poll, 63 percent of Massachusetts residents support the health care reform law. But some opponents of the Massachusetts law see an opportunity to capitalize on a Supreme Court decision overturning ACA.

Opponents of Law See Opportunity

According to Carla Howell, current executive director of the national Libertarian Party and a former Libertarian candidate for U.S. Senator and governor in Massachusetts, many in the Bay State are strongly in favor of getting rid of the health care law, which some have dubbed “Romneycare.”

“Libertarians, Tea Partiers, and rank-and-file Republicans are very displeased and would like to see Romneycare repealed,” says Howell. “A number of them are working to unseat the GOP leadership in Massachusetts. If they succeed, or if a repeal measure gets on the ballot, Romneycare could go down.”

Josh Archambault, director of health care policy for the Pioneer Institute, notes any movement to repeal the law will have to come from the grassroots. Among the state’s GOP elected officials, he says, the “rhetoric has not been repeal.”

In fact, Archambault doesn’t see much chance of a voter-led revolt.

“I don’t anticipate any time in the near future the law being repealed by the voters. That doesn’t mean the legislature won’t tweak things,” he says.

Howell disagrees. “A group of strong candidates running for office coupled with activists who want to repeal Romneycare can get it on the ballot, campaign on it, and very possibly wipe it off the books before it bankrupts the people and small businesses of Massachusetts,” she said.

Costs Continue to Concern State

One weakness of the law that could prove its undoing is its cost, and Massachusetts’ continuing rise in premiums. In a chapter for a recently released book discussing the Massachusetts reform in great detail, The Great Experiment, Archambault and coauthor Amy Lischko note that “most individuals, employers, and the government did not experience any cost savings since the reform was implemented.”

A 2011 study by the Beacon Hill Institute concurs. According to the study, “Few of the increased costs identified in this study have been shifted to the Commonwealth primarily because the federal government, through its Medicaid waiver agreement, has absorbed a large portion of the cost increases.”

While noting the Massachusetts law predates Obama’s law and any Supreme Court ruling on its constitutionality will not affect it directly, Howell points out the cost to taxpayers remains a key weakness and could ultimately prove its undoing. Democratic Gov. Deval Patrick’s administration has already discussed dramatically expanding the power of the state government to control prices in response to these budget challenges.

“Romneycare could also become insolvent and severely defunded or repealed if federal politicians stop bailing it out, as they’ve been doing since its inception,” she said.

In any case, the fate of the Massachusetts law doesn’t hinge on what happens to ACA. As Archambault points out, repeal of ACA “doesn’t change things at a fundamental level.” The future of the Bay State law therefore remains up to the people and politicians in Massachusetts.

This article was originally published by The Heartland Institute

The Congressional Budget Office now projects President Obama’s health care law will cost $1.76 trillion over a decade, not the $940 billion the CBO estimated before it was signed into law. This number could climb even higher if the expectations of some analysts come to fruition.

According to Rea Hederman, a research fellow at the Heritage Foundation, fundamental flaws in the Patient Protection and Affordable Care Act (ACA) have emerged since it was signed into law two years ago.

“The more we’re finding out about this bill, the worse it is, because we’re finding out the costs are higher than expected, it’s covering few people, and we know that some of the big ‘pay fors’ of the bill will never take place,” Hederman said.

Updated Timeline, More Costs

Sean Riley, a legislative analyst at the American Legislative Exchange Council, said part of the reason for the increased costs is the odd timeline used originally, which hid the costs of the law.

“The original cost estimate of $940 billion was based on a ten-year projection from 2010 to 2019, even though major provisions of the law for subsidies and Medicaid expansion don’t kick in until 2014,” Riley said. “If we use CBO’s latest numbers starting in 2014, the ten-year cost through 2023 is on pace to eclipse $2 trillion and would continue to increase moving forward.”

Jeffrey Anderson, a senior fellow at the Pacific Research Institute, echoed Riley.

“The originally publicized costs for the ACA were for 2010 to 2019, even though the ACA wouldn’t really go into effect until 2014. So six years’ worth of costs were passed off as ten years’ worth of costs,” Anderson said.

“Predictably,” said Anderson, “the real 10-year costs would be much higher. Now that the CBO is looking at 2013 to 2022, the figure being publicized is $1.76 trillion. But even that’s only really counting nine years’ worth of the ACA, not ten. The ACA’s costs for its real first decade [2014 to 2023], as the CBO makes clear, would be more than $2.0 trillion—$1.753 trillion from 2014 to 2022, plus more than $265 billion in 2023—a truly colossal sum.”

Still an Underestimate?

Anderson says even the updated number is likely to be an underestimate.

“Even that $2.0 trillion and change,” said Anderson, “would cover only the costs of the ACA’s ‘coverage provisions,’ which mostly consist of its taxpayer-subsidized ‘exchanges’ and its massive and underreported expansion of Medicaid. As the CBO notes, the other parts of the ACA would add about another 30 percent to the ACA’s real first-decade costs.”

“So, all in all, if the ACA isn’t repealed or struck down, we’re looking at real first-decade costs in the neighborhood of $2.6 trillion according to the CBO. And as the CBO notes, the ACA would get more expensive from there,” Anderson added.

Merrill Matthews, a health policy analyst at the Institute for Policy Innovation, agrees the new number is probably an underestimate.

“Every honest economist and health policy expert knew it, and it is likely to be a very low estimate. That’s because the ACA imposes cuts on Medicare and other places that Congress is very likely to override when the time comes. In order to get the bill under a trillion dollars, the Democrats had to make assumptions that the CBO had to include in its calculations, whether anyone believed the numbers or not.”

States Have Fiscal Options

Although the Supreme Court may strike down all or part of the law, legislators who want to avoid fiscal irresponsibility still have options to help avoid unnecessary costs, says Riley.

“Policymakers in the states opposed to the law can refuse to voluntarily establish the law’s health exchanges—new bureaucracies designed to facilitate a federal takeover of health insurance regulation and distribute subsidies,” Riley said. “Because a technical error in the law only authorizes subsidies in state—not federal—exchanges, states have tremendous power and can effectively block much of the law’s spending by refusing to create an exchange.”

This article was originally published by The Heartland Institute

A safety recall occurs when an automotive manufacturer files a public report describing a particular safety-related defect in one or more of their vehicles. While the manufacturers initiate many recalls, they can be authorized to do so by the National Highway Traffic Safety Administration (NHTSA), especially if they find there is a serious and potentially hazardous defect that could put drivers in harm’s way.

The case that may well have kicked off the national media frenzy over Toyota’s product recall has been settled for an undisclosed fee, ending a long and troubled chapter in the Japanese car manufacturers previously untroubled safety history.

The publicized audio tape of a 911 call documented a Lexus SUV speeding out of control after its gas pedal became stuck, reaching 120 miles per hour before striking another car, killing the driver and all four passengers.

After the case broke in late 2009, a host of other safety violations were documented at Toyota, which was forced to issue multiple large-scale recalls, covering millions of cars. The automaker was fined $16.4 million in April 2010 by the government for failing to act quickly enough to recall faulty vehicles.

Toyota Motors recalled 680,000 vehicles in two new rounds of recalls in March 2012. The manufacturer recalled 500,000 Toyota Tacoma trucks that were sold from 2005 to 2009 because of a faulty steering wheel mechanism rubbing against the cable assembly, which could deactivate the airbag. The second recall, involves 70,500 Toyota Camry sedans and 116,000 Toyota Venza crossover SUVs that were produced between 2009 and 2011 due to silicon grease on the car’s brake lamp switches, which interferes with the electrical system that controls the car’s “shift interlock” safety device.  The “shift interlock” device safeguards the car from accidental acceleration when the car is started and shifted into drive or reverse without the brake pedal being depressed.

Experts say that consumers should keep up to date on the latest news about their vehicle’s safety records, as a missed recall notice could have potentially deadly consequences. In addition, overlooking this type of risk factor could cause hikes in auto insurance rates.

The NHTSA provides information for vehicle safety and recent vehicle safety recalls.

This article was originally published by Consumer Insurance Guide

Consumers can contact their insurance agent or company representative to make sure they are getting the right type of auto insurance at the best possible rate. As a consumer, it is important to educate yourself about all of your coverage options by asking questions and making sure you are getting any available discounts.

Your insurance premium rate is based on a variety of factors including your driving record; how much you use your car; where it is parked and where you live; the type of car you drive; your age and gender; your credit score; and the type and amount of coverage. To help consumers get the best auto insurance policy at the best price, the I.I.I. offers the following suggestions.

1. Comparison Shop.  Prices and coverage levels vary from company to company, so it pays to shop around. Get at least three quotes. You can call insurance agents or companies directly, as well as get information on the Internet. But, do not shop by price alone—look for an insurance company that has a reputation for good customer service. Ask friends and relatives for recommendations and check consumer guides as well as your state insurance department’s website. And, lastly remember to review the insurance company’s financial strength rating.

2. Check Insurance Costs Before Buying a Car. Auto insurance premiums are based in part on the price of the car, the cost to repair it, its overall safety record and the likelihood of theft, so it is worth taking these factors into consideration before making a decision about which car to buy.

3. Increase Your Deductible. A deductible is the amount you pay before your insurance policy kicks in. By requesting a higher deductible on comprehensive or collision coverage, you can lower your premium costs substantially. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce Coverage on Older Cars Consider dropping the optional comprehensive or collision on older cars.  If the market value of your car is less than 10 times the auto insurance premium you are paying, purchasing collision coverage may not be cost-effective.

5. Ask About All Available Insurance Discounts.   Insurance companies offer a wide variety of discounts—here are some you can ask about:

• Antitheft devices
• Multiple policies with the same company
• College students living away from home
• Defensive driving courses
• Drivers ed courses
• Good credit record
• Higher deductibles
• Low annual mileage
• Long-time customer
• More than one car
• No accidents in three years
• No moving violations in three years
• Student drivers with good grades

This article was originally published by Insurance Information Institute

“Sewer backups or the inability of sump pumps to handle runoff water from major downpours are not covered under a typical homeowners insurance policy, nor are they covered by flood insurance,” said Loretta Worters, vice president of the I.I.I. “Those types of coverage must be purchased either as a separate product or as an endorsement to a homeowners policy.”

Worters noted that sewer backup coverage is available from most insurers for a nominal cost—usually an additional annual premium of $40-$50.

For homes that have been severely damaged and are uninhabitable, homeowners policies may provide Loss of Use coverage, which provides reimbursement for lodging, food and other living expenses you may incur as a result of having to live outside of your home. Loss of Use coverage also reimburses you for the lost rental income if you rent out part of the house.

Causes of Sewer Backup

Aging Sewer Systems: The Civil Engineering Research Foundation reports that the number of backed up sewers is increasing at an alarming rate of about 3 percent annually. In addition, a recent report from the American Society of Civil Engineers indicates that the nation’s 500,000-plus miles of sewer lines are on average over thirty years old. The increase in the number of homes connected to already aging sewage systems has also contributed to rapid increases in sanitary sewer backups, flooded basements and overflows.

Combined Pipelines: Problems also arise in systems that combine storm water and raw sewage into the same pipeline. During many rain storms, the systems are exposed to more volume than they can handle, and the result is a sewage backup situation that allows sewage to spew out into basements and other low lying drains.

Blockages Due to Tree Roots: Shrubs and trees seeking moisture will make their way into sewer line cracks. These roots can cause extensive damage. They may start out small, getting into a small crack in the pipe; but as the tree or shrub continues to grow, so does the root. Tree roots can enter the service pipe at joints and cause blockages. Tree roots can travel a long way, and roots from different types of trees act differently. If city trees are suspected, your plumber can contact the city, and samples of the roots will be used to help identify the trees and who is responsible for cleanup. Sometimes the blockage is a result of a combination of city and private trees. In this case costs are split between the city and the property owner.

Sanitary Main: A blockage can occur in a city sanitary main. If the blockage is not detected in time, sewage from the main can back up into homes and businesses through floor drains. Usually this happens slowly, giving the owner time to call a licensed plumber to assess the damage. If water is entering into your basement at a rapid rate, call the city public works office and report the problem immediately.

Water in Basement: Most basement flooding is not related to the sanitary sewer system. In many cases, soil settles adjacent to the building and, if not corrected, leads to rainwater flowing towards the building and down the outside of the foundation wall. This is particularly true in older buildings, where cracks may have developed in the foundation or floor slab that allow water to enter the basement. The cement floor and basement walls of these structures may have deteriorated to the point that they are no longer waterproof. In these cases, water can show up in a basement that has never had a water problem. This will usually happen after a number of rain storms, when the ground is saturated. Drainage can be improved by making sure that water drains away from the building. Owners may also be able to prevent flooding by water sealing the basement.

Most homeowners may not realize that they are responsible for the maintenance and repair of their house or sewer lateral—the pipeline between the city sanitary sewer main, usually located in the street—and the building. The sewer lateral is owned and maintained by the property owner including any part that extends into the street or public right of way. A cracked or deteriorated lateral or one filled with tree roots can allow groundwater to seep into the system, contributing to the problem.

How to File a Claim

For insurance purposes, take before and after photos of the affected areas and itemize any property losses. Save all receipts related to repair, cleaning or damages and contact your insurance agent or company representative as soon as possible.

How to Prevent Backups In Your Lateral and in the City Main

Dispose of Grease Properly: Cooking oil should be poured into a heat-resistant container and disposed of properly, after it cools off, not in the drain. Washing grease down the drain with hot water is unsatisfactory. As the grease cools off, it will solidify either in the drain, the property owner’s line, or in the main sewer causing the line to constrict and eventually clog.

Dispose of Paper Products Properly: Paper towels, disposable (and cloth) diapers and feminine products can cause a great deal of trouble in the property owner’s lateral as well as in the city main. These products do not deteriorate quickly, as bathroom tissue does, so do not put them down the drain or toilet.

Replace Your Line with New Plastic Pipe: One way to prevent tree roots from entering your line is to replace your line and tap with new plastic pipe. If you have continuing problems with tree roots in your lateral, you may have to have the roots cut periodically.

Correct Illegal Plumbing Connections: Do not connect French drains, sump pumps and other flood control systems to your sanitary sewer. It is illegal, and debris and silt will clog your line. Consult a plumber to correct any pre-existing illegal connections. French drains are common drainage systems, primarily used to prevent ground and surface water from penetrating or damaging building foundations.

Install a Backwater Prevention Valve: A backwater valve is a fixture installed into a sewer line, and sometimes into a drain line, in the basement of your home or business to prevent sewer backflows. A properly installed and maintained backwater valve allows sewage to go out, but not to come back in. Property owners are responsible for the installation and maintenance of backwater valves. The cost to install one depends on the type of plumbing in the building and the difficulty of installation. Check with a qualified plumber.

What to Do If You Experience a Sewer Backup

A sewer backup can lead to disease, destruction of your valuables, damage to your house or business, and can even result in electrical malfunctions. Prompt cleanup of affected property can help minimize the inconvenience and prevent mold or further damage. If you experience a sewer backup situation, immediately arrange for the cleanup of your property. This should include:

• Wet-vacuuming or removal of spillage
• Mopping floors and wiping walls with soap and disinfectant
• Flushing out and disinfecting plumbing fixtures
• Steam cleaning or removing wet carpets or drapes
• Repairing or removing damaged wallboard or wall covering
• Cleanup of ductwork

“Don’t let a sewer backup be a drain on your home or finances; make sure to have the proper coverage,” Worters advised.

This article was originally published by Insurance Information Institute