Wednesday, May 16, 2012

LogistiCare Solutions: Investigation Into Transport Safety

"The company made a decision to
forgo compliance," Williamson said.


ATLANTA, GA (KCTV5) -
Missouri taxpayers spend $30 million annually on a Medicaid program that transports the sick and poor to medical appointments.

KCTV5 has uncovered patient concerns about the safety of the vehicles in which they ride and the drivers who are behind the wheel.

This latest investigation follows two prior ones.

In February, KCTV5 began a series of reports revealing troubles inside the transport program, run by Atlanta-based LogistiCare Solutions, LLC. KCTV5 first exposed patient complaints about the hundreds of late or missed rides that led to medical complications for more than one client. In April, KCTV5 followed up on that report.

The list of complaints filed with the state of Missouri include reports of one transportation provider driving drunk and another reeking of alcohol. The patient accounts to the state include incidents of a driver getting in a wreck while texting along with drivers who speed, run red lights and use unsafe vehicles.

None of those accounts surprised Jackie McGlothen. She and her husband own Mill-Jacks, a LogistiCare-approved transportation provider out of Belton, MO. McGlothen said she's heard similar stories about other transport companies from her own clients.

"I know I've heard some horror stories," McGlothen said. "One lady told me that the driver had to use a screwdriver."

"A screwdriver to start the car?" asked KCTV5 investigative reporter Stacey Cameron.

"No. To get her out," McGlothen replied.

The state's Medicaid office, MO HealthNet, refused to respond to KCTV5's numerous inquiries about the safety complaints. A representative told Cameron it would be "inappropriate" for the state to comment about its contract company, LogistiCare.

No one from the Atlanta-based company would agree to address the issues on camera.


And when it came to compliance, Missouri
gave LogistiCare a "grace period."
LogistiCare stated that safety inspections are now ongoing.

Friday, May 11, 2012

Commercial Property/Casualty Pricing Toughened in Q1 2012

The time has come to Manage Risk and
Position One's Business for a
Changing Insurance Environment.
Underwriters re-learned the "No" Word


The Council of Insurance Agents & Brokers

WASHINGTON, D.C. – May 8, 2012 – Prices hardened and underwriting toughened in the commercial property/casualty market in the first quarter of the year, according to The Council of Insurance Agents & Brokers’ quarterly Commercial P/C Market Index Survey. On average, small, medium and large account pricing rose 4.4 percent compared with 2.7 percent last quarter. Large account pricing realized the biggest increase quarter-to-quarter. Prices also rose across most lines surveyed.

“We’ve been cautious up to now about declaring a market turn, but I think it’s reasonable to say that the market has made a hard turn after two quarters of price increases and tighter underwriting,” said Ken A. Crerar, president/CEO of The Council. “It’s difficult to predict length and severity, but the market has turned.”


A broker from the Midwest summed up the past quarter market environment: “Insurers sought rate [price] increases of five percent-plus across the board. For those accounts with losses, higher rate [price] increases were sought. For those risks, other markets were more selective in considering than in prior years.” A broker from the Northwest said, “Most carriers were asking for a five-to-eight percent increase depending on the line of business. DIC, earthquake and flood all increased about 25 percent or coverage is hard to find.”

The rising cost of natural disasters clearly had an impact on insurer pricing, particularly for coastal properties, as insurers embraced new modeling programs such as RMS11.

“We manage coastal property and pricing increased due to RMS 11, substantially on some accounts,” a broker form the Southeast said. Brokers in the Northeast experienced much the same. “RMS 11 treaty reinsurance price increased and the general market for companies with CAT-prone properties made carriers dictate structure, terms and premium increases.”

Workers’ compensation toughened as carriers raised prices or rejected the business. Sixty-eight percent of brokers responding said workers’ compensation prices increased 1 percent to 10 percent in the first quarter of the year. A broker in the Southeast commented, “Workers’ compensation was up with any kind of losses or up just a little even with no losses. Certain classes were not being accepted like they were.” A broker in the Northwest said, “Workers’ compensation increased in pricing or many carriers are non-renewing accounts.”

In an indication that the economy may be improving, 59 percent of respondents said demand for insurance was up in the first quarter, compared to 53 percent who said demand did not improve in the previous quarter. Survey Results and Charts