Jun 09
adminArticles Affordable Care, Balance Of Power, Care Act, Eggs Is Eggs, Friendly Company, Healthcare Reform, Independent Auditors, Individual Health Insurance, Insurance Industry, Insurance Market, Insurance Premium, Kathleen Sebelius, Mathematical Explanations, Maximum Rate, Number Of States, Obama, Rate Increases, State Insurance Commissioners, Union President, Wellpoint
There are times when you get an overview and then it hits you, “Somethings just don’t add up.” Well, you remember Wellpoint, don’t you? This is the friendly company that, around January or February, announced it was going to increase premium rates by up to 39% in a number of states around the Union. President Obama got himself all worked up, citing them as the real reason why all the Democrats in Washington should band together and take a stand against the insurance industry. Then, sure as eggs is eggs, there was a stampede to get the healthcare reform bill to the President for him to sign it into law. Those Democrats sure did have fun beating on Wellpoint. So the big question is what happened next? Here’s one of the largest corporations in the insurance market demanding premium increases. Did it get its way?
The answer starts off in California where the maximum rate of 39% was due to take effect. The state referred the proposed increase to independent auditors for an opinion. The answer came back negative. It seemed Wellpoint couldn’t add up. Well, that’s oversimplifying things a little. But the reality is that the numbers Wellpoint offered to support their premium increases were based on some very shaky mathematical assumptions. When news of the report became public, Wellpoint withdrew the proposed increase. Acting on this, Kathleen Sebelius who is Secretary of the Department of Health and Human Services sent out a letter to all state insurance commissioners encouraging them to review every proposed premium increase. This is the first sign that the balance of power is shifting against the insurance industry and in favor of the consumer. For too long, insurance companies have hidden behind complicated mathematical explanations and gamed the system. With the Affordable Care Act now law, Sebelius is encouraging every state to give itself the power to approve rate increases. The first sign of continuing good news for consumers comes out of Connecticut where Attorney General Blumental forced an audit of Blue Shield and Anthem Blue Cross, both Wellpoint subsidiaries. Connecticut’s Insurance Commissioner Sullivan rejected these companies requests for increases last year. It seems likely the same thing will happen this year.
By moving so quickly to encourage states to review all proposed rate increases, Secretary Sebelius is demonstrating one of the key advantages now available to the Federal Government under the new laws. That the interests of the consumer will be put before the interests of the health insurance industry. This means every state should be going through a routine of analysis every time premium rate increases are proposed. The assumptions, evidence, claims histories and trends asserted should all be rigorously tested. If there are any problems, the increases should be denied. The aim should always be to ensure affordable individual health insurance plans are available to the majority of people living in the US. For too long, the insurers have been allowed to bamboozle regulators with math and complicated explanations. With independent audits now coming into play, the kind of success enjoyed by the citizens of California should be felt around the US.
May 25
adminAuto Loan Annual Credit Report, Automatic Bill Payment, Bad Credit, Buying A New Car, Car Loan, Car Repairs, Credit Card Payments, Credit Cards, Credit History, Credit Rating, Credit Score, Debit Credit Card, Discrepancy, Dream Car, High Interest Rate, Late Payments, Maximum Rate, Prime Lending Rate, Shopping Spree, Spite
Building a good credit history is easier than most people think. If you plan to purchase major items like a house or a new car, or start a small business, it is vital for you to have a good credit history.
Here are some tips to maintain a good credit score and have a good history:
1. Make a list of the in’s and out’s of your expenses. This is especially true when going on a major shopping spree. After making a big dent on your credit card, take a look at your annual credit report and check for any discrepancy.
2. Pay all your monthly bills promptly. It is a good thing to apply for an automatic bill payment for the bills that you really need to pay, as well as your monthly credit card payments.
3. Do not overcharge your credit cards. You credit score might lower if you go over the limit on your account.
When buying a car or if you car needs an overhaul or a major repair, it would help a lot if you have a good credit history.
First, the better your credit score is, the lower interest rates you can get when buying a new vehicle.
Second, for major car repairs, some shop owners require you to have a non-debit credit card, and of course, a good credit rating.
However, there are cases wherein you need to accept a less-than-ideal deal when buying a card if your credit score is low, or if your credit history is a mess.
‘Buying your Dream Car’
Here’s how you can get a car loan in spite of bad credit:
One of the major disadvantages of making late payments on a credit card is that your credit score will decrease.
This will be reflected on your credit history, and once there is a late payment reflected on your record, you will be offered a higher interest rate when buying a new car.
Once you are offered a high interest rate, do not sign anything yet. There is such a thing as a ‘prime lending rate’.
This is the ideal maximum rate that you should be offered when making a loan or credit, or making major purchases using your credit card.
Tell the car salesman about the interest rate that you would like to have based on the prime rate.
But still, if your credit rating is a lot lower than what they require, you will be offered a higher rate.
If you cannot get a good deal from one car salesman, do not be afraid to look for another.
You wouldn’t want to get anything less than your money’s worth, so the hunt will be worth it.
There are a lot of options available when buying a car. You can either get a new car or a previously owned vehicle.
For a new car, check if the final offer is anywhere nead the suggested retail price for the car you are getting. For a used car, decide first on the make and model of the car that you will get and check out the ongoing rates online.
With these tips in mind, you can be on your way to driving that dream car home in spite of a bad credit history.
Feb 09
adminStudent Loan Co Signer, Consolidation Loan, Consolidation Loans, Federal Education Loans, Federal Loans, Instances, Interest Rates, Libor, Loan Lenders, Loans Student, Loophole, Maximum Rate, Mortgage Lenders, Mortgage Loan, Origination Fees, Parents Education, Prime Rate, Private Education Loans, Private Lenders, Student Loan Consolidation
Lowering interest rates have made student loan consolidation interest rates an option being considered by many people. Nearly 80% of students have some type of student loan by the time they graduate and the average loan for a student is $10,000. For many students and parents, education loans have come from several sources, have varying interest rates, and have higher payments that one is comfortable with.
Education loans fall into two categories, Federal education and Private education loans. When a student is considering consolidation it is important to keep these categories separated. The method for calculating consolidation interest rates for federal education loans are strictly regulated by the government. The education loans provided by private lenders do fall under the same restrictions and requirements and can vary greatly depending of the lender gave the loan.
aStudent loan consolidation interest rates for federal loans are calculated by taking the average rate of all of the loans and rounding up to the nearest 1/8%. The loan, then will fall somewhere between the highest interest and the lowest interest. The maximum rate is 8.25%.
There are some instances when an individual with a PLUS student loan will be able to receive a lower rate by consolidating. The cap on a PLUS student loan is 8.5%. However, when the PLUS is consolidated, the cap is 8.25%. By consolidating the PLUS loan a student can save 0.25%. This is called the PLUS Loan Loophole.
When private education loans are consolidated an individual will want to compare the interest rates and fees of different lenders. These are calculated just like a mortgage loan would be. Lenders calculate these loans on either the prime rate plus margin for the borrower and co-signer or the LIBOR. They usually charge between 1% and 5% origination fees depending on the credit of the borrower. This fee is included in the loan.
Deferred interest will also affect the total of a consolidation loan. Lenders usually capitalize the deferred interest of the original loan and include that in the consolidation. There also be discounts and benefits that must be paid back to the original lender when the loan is consolidated.
The benefits of consolidation is that all of a person’s loans are in one location and the same interest rate is being paid. In addition, the repayment period is often longer than the original repayment period so the monthly payment will be lower. However, it is important to consider what the final cost of getting a consolidation will be compared to maintaining the original loan. It is also important to talk to a professional who can talk about the options that are available to help an individual find the best interest rates that are available.
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