April 25, 2012-Minot Daily News
N.D. Insurance department fines companies
BISMARCK-The North Dakota Insurance Department has levied $10,000 fines against two mutual insurance companies for operating outside their authorized territories.
Insurance Commissioner Adam Hamm announced Tuesday that his office fined West McLean Farmers Mutual Insurance Co. of Minot, which operates in 19 counties. In 2010, West McLean insured property outside its territory and insured commercial properties inside the limits of an incorporated city.
Family Mutual Insurance Co. which serves 30 counties in central and eastern North Dakota from offices in Cando, LaMoure and Mandan, was fined for committing a similar violation in 2009 and 2010. According to North Dakota law, a county mutual cannot insure property outside its authorized territory nor may it insure commercial property located within the limits of any incorporated city.
Both companies agreed to resolve their matters without a hearing. Consumers with questions can contact the insurance department at 1-800-247-0560 or insurance@nd.gov.
April 24, 2012-The Jamestown Sun
N.D. enters into settlement with MetLife
North Dakota Insurance Commissioner Adam Hamm announced Monday that the North Dakota Insurance Department is one of six lead states that have entered into a multi-million dollar settlement with Metropolitan Life Insurance Company (MetLife) and several of its affiliates.
The lead states — North Dakota, California, Florida, Illinois, New Hampshire and Pennsylvania — conducted a multi-state examination of several companies in the MetLife family to investigate certain practices and procedures with respect to identifying and paying out proceeds to beneficiaries under life insurance policies, annuity contracts and retained asset accounts.
The exam found several areas of concern surrounding MetLife’s practices and procedures for identifying and paying out proceeds to beneficiaries and for reporting and remitting proceeds to state unclaimed property agencies when beneficiaries cannot be located, Hamm said. There have been questions recently about life insurance companies’ use of the death master file, a Social Security database that records deaths, and whether companies were using that information to confirm that policyholders had died and beneficiaries were due payments.
According to the terms of the settlement, MetLife must regularly check the death master file, or a similar source of information, to determine whether any of its life insurance policyholders, annuity owners or retained asset account owners has died. The company must then make efforts to pay those claims to beneficiaries or to the appropriate state entity if the beneficiaries cannot be located. The practices agreed to in the settlement are expected to result in MetLife making payments totaling more than $200 million.
In addition to these business reforms that will get millions of dollars into the hands of beneficiaries or states on behalf of beneficiaries, MetLife will also make a $40 million payment to be allocated to participating states based on premium volume. The agreement will become effective after it is signed by 20 states.
“MetLife has agreed to make several improvements in how it searches for, locates and pays life insurance beneficiaries,” Hamm said. “The bottom line is this is a very good day for consumers, and will result in more beneficiaries receiving money they are entitled to.”
Hamm said the company will be reporting every quarter for the next three years on the progress of these improvements, and that this multi-state settlement is an outstanding example of the strength, importance and collaborative nature of state-based insurance regulation.
Consumers with questions about the settlement are encouraged to call the department at 1-800-247-0560.
April 11, 2012-Bismarck Tribune
Committee explores health care options
BISMARCK, N.D. - Panelists and the state insurance commissioner testified on the implementation of federal health care legislation on Wednesday.
Insurance Commissioner Adam Hamm told the Health Care Review Reform Committee that there are still many unanswered questions.
“This is literally becoming more and more like a ‘Choose Your Own Adventure’ book,” Hamm said.
Hamm explained that the Affordable Care Act requires states to form essential health packages. These packages must contain a number of benefits covering people in and outside of state health care exchanges, Medicaid and other programs.
“Essential health benefits is defined by a benchmark plan that must be selected by each state by the third quarter of this year,” Hamm said.
He said the deadline is September. If a plan isn’t chosen, he said, federal Health and Human Services would use a default plan. Hamm said HHS would “use as a default the largest plan by enrollment in the largest product in the state’s small group market.”
Hamm was asked what course the committee should take. He recommended continuing work on a benchmark plan for submission to HHS, saying it would be better than being subject to a default plan due to inaction.
The issue of health care exchanges was discussed.
“In a technical sense, there are two exchange models, state-based and federally-facilitated,” Hamm said. “Exchanges, in actuality, will really operate in a continuum from entire state-operated to entirely federally-operated, with several variations of shared operations in between.”
Hamm added that it’s unclear what functions the federal government would allow states to control in a state-federal exchange model.
A panel discussion on the pending U.S. Supreme Court decision on the law also was held.
North Dakota is one of 26 states involved in a lawsuit against the law. Oral arguments were heard in late March, with a Supreme Court decision expected in late June.
Rod St. Aubyn with Blue Cross Blue Shield of North Dakota said the impact on providers depends on the court’s ruling.
“Because so many components are indeed intertwined with the individual mandate, the final court ruling will cause a scramble for federal and state lawmakers and insurers alike,” St. Aubyn said.
Jerry Jurena with the North Dakota Hospital Association noted the potential funding losses to hospitals if the law were overturned. He said the fate of the Frontier States Amendment is tied to the fate of the health care law. The amendment helps reimburse Medicaid payments to rural states, including North Dakota. He said the state could lose $68 million per year if the health care law were struck down.
“What does that do? It curtails health care dramatically,” Jurena said.
Sen. Judy Lee, R-West Fargo, said she hopes the hospital association is looking at the broad picture when it comes to the health care law.
“It’s not just the Frontier Amendment,” Lee said.
Courtney Koebele with the North Dakota Medical Association called the law challenging to enact.
“It probably won’t be completely overturned, but no one’s quite sure,” Koebele said.
Chairman Rep. George Keiser, R-Bismarck, asked the panelists about the initial parts of the legislation already enacted. He asked if health care providers would consider keeping popular mandates such as children staying on their parents’ insurance until age 26.
“Most people kind of like that,” Keiser said. “Have you had those discussions?”
St. Aubyn replied that Blue Cross Blue Shield has had some preliminary discussions on current mandates.
“It’s a wait and see,” St. Aubyn said.
He said it depends on customer demand and what the competition is doing.
April 11, 2012-KFYR TV
Healthcare Reform, Jessica Roose
Last month, the United States Supreme Court heard arguments over the President`s Patient Protection and Affordable Care Act. Only nine people know what will happen to the President`s healthcare reform law and they aren`t telling anyone their decision until June.
The state is trying to figure out how to comply with the law, should it be upheld. North Dakota Insurance Commissioner Adam Hamm, describes that process as a children`s choose-your-own-adventure book.
“Until we have everything in black and white, and until we know exactly what the decision is in the Supreme Court, that choose your own adventure book hasn`t officially been written yet. And all of us, all of the states once all those things are hashed out, are going to be under a very tight timetable to choose our own adventure.”
That`s because if the law is upheld, Hamm says the state will need to make decisions in several areas by the end of the year.
“We don`t have the luxury of waiting. You have to continue on track and plan for a variety of scenarios,” said Lisa Carlson with Sanford Health.
The Supreme Court justices could decide that the anti-injunction act applies, which would mean they can`t issue a ruling until someone is taxed under the law.
“They could say that the individual mandate is unconstitutional and Congress would not have passed this law without it,” said North Dakota Attorney General Wayne Stenehjem.
Or they could pick parts of the law that they believe Congress would have kept without the mandate requiring that all Americans purchase health insurance. But whatever they decide, North Dakota will have to figure out the best way to comply with the law.
Video of this story can be found at this link below:
http://www.kfyrtv.com/Video_News.asp?news=56407
March 31, 2012-Fargo Forum
Hamm endorsed for insurance commissioner
By: Teri Finneman, INFORUM
BISMARCK – If elected to another term, Insurance Commissioner Adam Hamm said he pledges to focus on consumer protection, common-sense insurance regulation and competitive insurance markets.
Hamm received the Republican endorsement for the office during the party’s state convention Saturday.
Hamm said he’s delivered on his previous pledges to add more competition to the insurance market, bring transparency to the department and aggressively go after insurance fraud.
North Dakota has the second-lowest auto insurance premiums in the country and is closing in to become the lowest, he said. The department’s health insurance counseling program for senior citizens consistently ranks as one of the top programs in the country, he said.
North Dakota needs to continue to create an environment that encourages insurance companies to want to come to North Dakota to do business and stay in the state so there are competitive markets for all types of insurance, Hamm said.
“The last thing we want to do to North Dakota’s insurance market is overregulate it,” he said.
Hamm criticized federal health care reform and said it will have “devastating consequences” on the health care system “and on our individual freedom and liberty.”
“What we need is for this law to be replaced by true health care reform,” Hamm said. “Reform that focuses on cost containment and the elimination of waste in the system.”
Hamm, a former Cass County prosecutor, is seeking his second elected term to the office. He has served in the post since 2007, when former Gov. John Hoeven appointed him to finish the term of incumbent Republican Jim Poolman, who resigned.
Hamm will face Democrat Tom Potter of Grand Forks in the November election.
The insurance commissioner’s salary is $90,360.
March 31, 2012-Jamestown Sun
Volunteers prepare for start of N.D. GOP convention
By Dale Wetzel, Associated Press - 03/31/2012
BISMARCK — In a scene reminiscent of a holiday shopping frenzy, campaign workers rushed the North Dakota Republican state convention hall Friday to claim prime space for their favored candidate’s signs as preparations for the weekend political soiree wrapped up.
Volunteers plastered signs on railings and walls in the convention hall, an outside foyer of the Bismarck Civic Center and even in the facility’s bathroom stalls. Some posters that were slapped up on an outside fence began flapping in the wind after a few hours, prompting efforts to fasten them more securely. “They opened the door and everyone comes running in, like they’re going to find the latest PS3,” said Insurance Commissioner Adam Hamm, referring to a popular video game system.
A group of Democrats held a protest outside the convention hall late Friday, offering doughnut holes to passers-by to illustrate what they said was GOP U.S. Rep. Rick Berg’s opposition to closing a Medicare prescription drug benefit loophole referred to as the “doughnut hole.” Berg is seeking the GOP endorsement to run for the U.S. Senate. Carol Jean Larsen, one of the protest’s organizers, said the group would be demonstrating again outside the Bismarck Civic Center Saturday morning.
More than 1,700 North Dakota Republican convention delegates were expected to attend the convention Saturday and Sunday. Delegates were to endorse their favored candidates for eight offices, four of which had multiple candidates. The delegates are choosing their favored candidates for U.S. Senate, governor, public service commissioner, insurance commissioner, auditor, treasurer and superintendent of public instruction on Saturday.
On Sunday, the convention is scheduled to end after delegates pick their preferred candidate for the U.S. House. Five people are competing for delegates’ favor — state Reps. Bette Grande of Fargo and Kim Koppelman of West Fargo, Public Service Commissioner Brian Kalk, former state Commerce Department director Shane Goettle and DuWayne Hendrickson of Minot. A sixth candidate, Public Service Commissioner Kevin Cramer, is skipping the endorsement fight and plans to run in the June Republican primary instead. Berg appeared to have the most prolific sign presence inside the convention hall Friday.
March 30, 2012-WDAY
Volunteers prepare for start of ND GOP convention
BISMARCK, N.D. (AP) — Volunteers are plastering the Bismarck Civic Center with campaign signs as they prepare for the start of the North Dakota Republican state convention.
More than 1,700 delegates are registered to attend the convention. They’ll be picking favored candidates for eight offices on Saturday and Sunday. There’s competition for four of the ticket spots.
The Civic Center opened Friday morning for candidates to start their convention preparations.
Insurance Commissioner Adam Hamm says it looked like a shopping mall on the day after Thanksgiving. People were racing around the convention hall trying to get good spots for their signs.
Hamm is up for re-election this fall. He doesn’t have any opponents for the Republican endorsement. He says enthusiasm among Republican activists for the fall campaign is as high as he’s seen it.
March 12, 2012-KFYR TV
Insurance Commissioner Warns of Health Insurance Scams
North Dakota Insurance Commissioner Adam Hamm is warning consumers to be aware when purchasing health insurance. He says that there are plans that appear to provide comprehensive coverage, but are actually limited benefit plans in disguise.
In a release, Hamm says that limited benefit plans are adverstised as cheap alternatives, but do not provide the same coverage as major medical insurance. These plans often cap the dollar amount for expenses and can leave consumers responisible for the rest of the cost.
“These limited benefit plans come in many varieties, so it`s very important to shop carefully,” Hamm said. “If you sign up for a limited benefit plan, a costly illness or injury could force you into a difficult financial situation.”
The release says to be aware of these warning signs:
- Requires association membership
- Annual limits on what the policy covers
- Medical or pharmacy discount cards sold as insurance
- Terms like “innovative” and “cost effective” in advertisements
- No pre-existing condition exclusions
- Premium offers only good for limited open enrollment period
- Unsolicited calls or emails
Hamm encourages consumers to ask the agent about the benefits the plan offers. Ask the agent:
- For the full name and address of the insurance company underwriting the coverage.
- For his/her full name, address and National Producer Number. Be sure the agent is licensed in North Dakota and appointed by the insurance company.
- For a written outline of coverage.
- To explain how much of the monthly cost is actual insurance premium vs. other fees and charges.
- To fully explain all insurance benefits, limits and exclusions.
People with any questions or concerns are encouraged to contact the Insurance Department at 1-800-247-0560.
March 10, 2012-Bismarck Tribune
Free Medicare seminar planned
The North Dakota Insurance Department’s State Health Insurance Counseling program is hosting a free workshop called “Turning 65” to help people who are new to Medicare understand the process and available options.
The event will be from 6:30 to 9 p.m. March 21 at the Doublewood Inn at 1400 E. Interchange Ave. in Bismarck.
The seminar will cover topics like Medicare Part D prescription drug coverage, Medicare Part C Medicare advantage plans and Medicare supplement plans.
“We receive calls every day from people new to Medicare (who) need help,” North Dakota Insurance Commissioner Adam Hamm said in a statement. “This seminar is a great way to learn more about the program.”
North Dakota had 109,000 Medicare beneficiaries in 2011.
Register by calling 888-575-6611 or by emailing ndshic@nd.gov.
March 4, 2012-Bismarck Tribune
N.D Insurance Department: $5.6M saved for residents
BISMARCK, N.D. (AP) — North Dakota Insurance Commissioner Adam Hamm says his agency recovered or saved $5.6 million for North Dakotans last year.
Hamm says the number represents money recovered though the Insurance Department’s investigations against insurance companies, agents, and health and prescription drug benefits.
Hamm says his department received 120 fraud referrals last year, totaling more than $1.4 million in suspicious claims.
Link to North Dakota Insurance Department’s press release: http://www.nd.gov/ndins/communications/pressreleases/detail.asp?newsID=287