A Word About the Election from our
at Adams & Reese…
Welcome to the Jungle, Jungle Primary
The 2015 elections have brought in a new species in a big
way to the jungle that is Louisiana politics. SUPER PACs
involvement this year has turned out the most expensive
and whirlwind gubernatorial election reporting cycle in
Louisiana history. Combined fundraising and SUPER PAC funds
for just the Governor's race come to approximately $25
million. Louisiana elections this year also can carry the
jungle mentality far into the first term of our new Governor,
to be decided in a run-off November 21, 2015.
As you may have seen in our previous email of election results
this morning, Representative John Bel Edwards (D-Amite) and
U.S. Senator David Vitter (R-Metairie) are headed towards the
gubernatorial November 21 run-off. With 40% and 23% respectively
out of a 9 person race, Edwards and Vitter will go into a party
showdown focusing not only on the future of the state budget, but
also on common core, Medicaid expansion, higher education, and
healthcare. Here are the top four contender's numbers.
Scott A. Angelle (R)
"Jay" Dardenne (R)
John Bel Edwards (D)
David Vitter (R)
The other five contenders in the race averaged a 0-1% in
all totaling 31,850 votes.
Workers' Compensation Insurance
Rates Set to Decline
for Third Consecutive Year
Commissioner of Insurance Jim Donelon reports that Louisiana
businesses are expected to see a decrease in their workers'
compensation rates in 2016. The National Council on
Compensation Insurance (NCCI) recently proposed an overall
decrease of 2.7 percent for Louisiana employers from its
2015 workers' compensation loss costs. NCCI is a national
organization which analyzes workers' compensation data and
files loss costs or rates in 35 states.
Most workers' compensation carriers in Louisiana use the
NCCI annual loss cost filing to formulate their insurance
rates. This loss cost reduction would mark a cumulative
drop in workers compensation rates of 38 percent since 2006
and a 51 percent drop since 1996.
"The workers compensation market in Louisiana continues to
be competitive and our businesses are benefitting. In 2007,
there were 197 companies writing workers comp; by the end
of 2014 we had 235 companies writing here — an increase of
19 percent," said Commissioner Donelon. "That competition
is also bringing costs down, with companies today paying
nearly 40 percent less for the same coverage as they were
10 years ago."
Sen. Gillibrand Unveils
Flood Insurance Bill
new bill just unveiled by
Sen. Kirsten Gillibrand
(D-N.Y.) would significantly alter the way FEMA documents
insurance claims under the National Flood Insurance Program
(NFIP). Under the Flood Insurance Transparency and
Accountability Act, FEMA would make insurance claim documents
available to homeowners online, allowing them more involvement
in the process following flood-related damages. It would also
prevent FEMA from excluding certain types of damages from its
flood insurance program.
The proposed legislation comes after reports suggesting
contractors hired by insurance companies altered engineering
reports to eliminate flood as the cause of damage in the
months after Superstorm Sandy ravaged the East Coast. FEMA
announced earlier this year it would reopen about 144,000
claims, of which about 16,000 are still under review.
Average MLR Reaches 92 Percent
Insurers spent an average of 92 percent of individual health
plan premiums on patient care in 2014, exceeding thresholds
set by the Affordable Care Act's (ACA's) medical loss ratio
(MLR) requirements, according to a
new Urban Institute report.
Prior to the ACA's 2010 implementation, the average MLR for
all insurers in 29 states fell below the 80 percent
figure—but by 2014, every state had an average MLR at
or above 80 percent, the report says. The report used data
sent by insurers to the National Association of Insurance
Means to Agents: The ACA requirement that insurance
companies spend at least 80 or 85 percent on patient care was
used by some as an excuse to drastically cut agent commissions.
Now that the average MLR has reached 92 percent, it is no
longer necessary for the Department of Health and Human
Services (HHS) to classify agent compensation as an
"administrative expense" under the MLR.
has endorsed the Access to
Professional Health Insurance
Advisors Act of 2015 (H.R. 815), which was introduced by
Rep. Billy Long (R-Mo.) and Rep. Kurt Schrader (D-Ore.). The
legislation clarifies that producer compensation will not be
considered as part of medical loss ratio (MLR) calculations
under the Affordable Care Act (ACA). Congress needs to pass
H.R. 815 now.