The Supreme Court will hear arguments in March about the health care overhaul, setting up an election year showdown. The decision to hear arguments in the spring allows plenty of time for a decision in late June, just over four months before Election Day.

The health care case could be the high court’s most significant political undertaking since the 5-4 decision in Bush v. Gore nearly 11 years ago. That ruling effectively sealed George W. Bush’s 2000 presidential election victory.

The court has scheduled a remarkable five and one-half hours for oral arguments in the case, but has not set a specific date. The court will hear two hours’ worth of arguments about the so-called “individual mandate,” a linchpin of the law that requires individuals to have health insurance or face a penalty.

The court will also evaluate the provision’s constitutionality and whether the overall health care law can still stand even if that provision doesn’t.

Other portions of the oral arguments include the law’s new Medicaid requirements for states, and whether it is proper for courts to hear challenges to the law, considering its mandates do not take effect until 2014.

Source: NBC News, 12/19/11

Plummer Insurance is proud to announce the acquisition of Jack Nerud Insurance Agency of Oshkosh, Nebraska, effective January 1, 2012.

By Reuters September 20, 2011

President Barack Obama on Monday proposed to end a “direct payment” subsidy that gives $5 billion a year to farmers regardless of need, as part of his larger effort to reduce the federal budget deficit.

Direct payments, created in 1996 as a temporary measure, will be the largest farm subsidy this year and terminating them would be a dramatic re-shaping of the U.S. farm program.

Traditional price support programs, which are triggered by low grain prices, are idle this year because of record high crop prices.

Opponents of the direct payments say they help bankroll large operators who out-bid small and medium-size growers for land and equipment. Defenders say the payments are one leg of a federal tripod that stabilizes the farm sector

The White House said the subsidy is “unnecessary” as more than half of recipients have incomes above $100,000 a year. In a blog, White House rural advisor Doug McKalip said elimination of the subsidy was common-sense reform.

Elimination of direct payments would save $30 billion over a decade and crop insurance reforms would save $8.3 billion, said the White House. It also suggested cuts of $2 billion in stewardship programs and renewal of a disaster program that expires on Oct 1 for net savings of $33 billion.

Republican farm-state lawmakers said Obama should have looked at land stewardship and public nutrition programs rather than proposing hefty cuts to farm and crop insurance subsidies.

“For example, cutting $8 billion from crop insurance puts the entire program at risk,” said House Agriculture Committee chairman Frank Lucas of Oklahoma and Kansas Sen Pat Roberts, Republican leader on the Senate Agriculture Committee.

Discussion of farm reform usually is put off until a new farm law is being written. But the congressional drive for large savings could force earlier-than-usual debate.

Direct payments were tabbed months ago as a target for reduction or elimination. Some farm groups hope to shift money from the payments into programs that compensate farm losses.

“We think the program is politically vulnerable,” said analyst Mark McMinimy of MF Global. “But just how the program may be altered and how quickly changes will go into effect are still very much open questions.”

The National Corn Growers said it was concerned the cuts would undermine farmers’ ability to buy crop insurance to offset high and volatile market prices.

“While direct payments may be impacted, we are going to find a way to have a safety net in place,” said Agriculture Secretary Tom Vilsack to the National Restaurant Association.

The government pays roughly 60 percent of the premium for crop insurance. The White House would reduce the subsidy by two basis points on policies with a federal subsidy above 50 percent, for savings estimated at $2 billion.

More than 90 percent of policyholders opt for higher levels of coverage.

The White House also would lower the rate of return to insurers to 12 percent, from the current 14 percent, to save $2 billion. It would cap administrative expenses at $900 million a year, adjusted for inflation, to save $3.7 billion, and set the premium for catastrophic coverage more accurately, saving $600 million.

Senate Budget Committee chairman Kent Conrad said Obama asked “for larger agriculture cuts than are necessary or appropriate” and could impair drafting of the 2012 farm law.

Without the direct payment, the budget for farm supports would be half or less than current spending.

copyright Reuters 2011

(Reporting by Charles Abbott; Editing by Bob Burgdorfer)

Beginning today, July 1st, 2011, people can go on-line to EMC’s Website and click “Vote Now” to begin voting for their favorite charity. Voting will last 100 days and will end on October 8. Voters are allowed to vote once each day until voting closes. At the end of the 100 day voting period, the four non-profits with the highest combined scores from the public and the EMC Foundation will receive an additional $25,000. We encourage each of you to go on-line in July show your support for the Morrill County Community Hospital Foundation.

To learn more about the 100 Ways of Giving, visit The Official Press Release or log on to http://morrillcountyhospital.com/ or www.countonEMC.com.  Thank you!

The bad economy is worsening the already-shaky finances of Medicare and Social Security, draining the trust funds supporting them faster than expected and intensifying the need for Congress to shore up the benefit programs, the government said yesterday.

Both Medicare and Social Security are being hit by a double whammy: the long-anticipated wave of retiring baby boomers and weaker-than-expected tax receipts, according to the annual report by the trustees who oversee the programs.

The Medicare hospital insurance fund for seniors is now projected to run out of money in 2024, five years earlier than last year’s estimate. The Social Security trust funds are projected to be drained in 2036, one year earlier than the last estimate. Once the trust funds are exhausted, both programs can only collect enough money in payroll taxes to pay partial benefits, the report said.

May 10, 2011

Written by: Insurance Journal

Few families without health insurance have the financial assets to pay potential hospital bills. On average, uninsured families can only afford to pay in full for approximately 12 percent of hospital stays they may experience – and even higher-income uninsured families are unable to pay for most potential hospital stays, according to a report by the U.S. Department of Health and Human Services (HHS).

Hospital stays for which the uninsured cannot pay in full account for 95 percent of the total amount hospitals bill the uninsured. Other studies have estimated that the bills for all types of health care that the uninsured cannot pay – the uncompensated cost of care – is up to $73 billion a year, a significant portion of which is shifted into higher costs for Americans with insurance and their employers, according to HHS.

The report found that most of the country’s 50 million uninsured people have virtually no savings. In fact, the median financial assets for all uninsured families are just $20. Even among higher-income families, assets are low. Half of families with income at 400 percent of the federal poverty level, or $89,400 a year for a family of four in 2011, have financial assets below $4,100.

Every year, nearly two million uninsured Americans are hospitalized. With 58 percent of these hospital stays resulting in bills of more than $10,000, most uninsured people are unable to afford potential hospital bills. The report found that even the top 10 percent of uninsured families with the most assets are estimated to be able to pay the full bill for only half of potential hospital stays. Uninsured families can, on average, afford to pay the full bills for only about 12 percent of the hospital stays they might experience, bills that account for just 5 percent of the total amount hospitals bill them.

“Health insurance is critical in helping protect families from unexpected hospital costs,” said Sherry Glied, HHS assistant secretary for planning and evaluation. “This report shows that even higher-income uninsured families are struggling to meet the high costs of health care. No family should bear the burden of being one illness or accident away from bankruptcy.”

According to the report, the high cost of hospitalization means that lacking health insurance poses a greater risk of financial catastrophe than lacking car insurance or homeowner’s insurance. Although people are 50 percent more likely to have a car accident than to be hospitalized in a given year, the average bill for a hospital visit is more than two and a half times higher than the average loss for a car accident. While the bill for a single hospitalization is about the same as the average loss from a house fire, a person is 10 times more likely to be hospitalized than to experience a house fire.

Mar. 11 2011 – 9:47 am

Buying your first car is a pleasurable rite of passage for most people, but the accompanying purchase of auto insurance is less fun. In fact, many new car owners find the cost of insurance frustratingly high and so do individuals who have had car insurance for decades.

While competing car insurance companies offer opportunities for discounts, individuals can also take steps before they buy a car to make sure they will pay the lowest possible premiums.

The Bottom Line
The important thing to recognize is that car insurance should be customized to meet your needs. Consulting with an insurance agent can be the best way to make sure you are taking advantage of every possible discount and that you and your car are still adequately covered. (Continue your insurance education; check out Unique Insurance Policies You Should Consider.)

Copyright – http://blogs.forbes.com/investopedia/2011/03/11/10-tips-for-getting-the-lowest-car-insurance/

Forbes – Investopedia       March 11, 2011

The National Flood Insurance Program remains structurally unsound and poor management practices are exacerbating its problems, according to a new report from the U.S. Government Accountability Office.

While the NFIP plays an important role in limiting the damage and financial impact of floods, it is in no position to repay $18.5 billion borrowed from the Treasury Department to cover claims from Hurricane Katrina or other 2005 hurricanes, much less future catastrophic losses, according to the GAO report. The NFIP is intended to be funded with premium dollars from policyholders, but as created by Congress and managed by the Federal Emergency Management Agency, it is “by design” not a sound operation, the GAO determined.

“Also, weakness in NFIP management and operations, including financial reporting processes and internal controls, and oversight of contractors place the program at risk,” according to the GAO.

The NFIP is badly in need of wholesale reforms at its core, said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies. Subsidization of rates encourages irresponsible development, Grande said, as does a policy that bars the program from denying insurance on the basis of frequent losses. The GAO report found that just 1% of policies account for 25-30% of claims. The NFIP is subject to other limitations private insurers are not: it cannot build a capital surplus, may not reject high-risk applicants and is subject to statutory limits on rate increases.

“Until we have rates that match the risk, you’re going to subsidize bad behavior,” he said.

While the NFIP made the GAO’s annual list of high-risk government operations, as it has since 2006, the picture is not entirely negative, the GAO found. FEMA has taken steps to strengthen the program, including increasing the number of policyholders and implementing a new process for overseeing contractors. FEMA has reduced its Treasury debt by $850,000 since August 2009.

“Unless these operational and management issues are addressed, FEMA risks ongoing challenges in effectively and efficiently managing NFIP, including its management and use of information, data, and technology,” according to the report.

The GAO is scheduled to issue a detailed report on management and operational challenges facing the NFIP in March.

While the NFIP’s troubles are not new, “This report is another important reminder that Congress needs to address the issue and pass a longer-term extension that focuses on the needed fundamental reforms,” American Insurance Association spokesman Blain Rethmeier said.

The NFIP is authorized only through Sept. 30, and insurers are hoping to avoid the rolling gaps and extensions that characterized 2010. With the electoral defeats of the top Democratic voices for including windstorm coverage in the program, some are optimistic of a long-term deal (BestWire, Dec. 30, 2010). President Barack Obama signed a one-year extension of the NFIP into law after Congress failed to pass comprehensive reauthorization legislation (BestWire, Oct. 1, 2010). Several expirations had caused brief lapses in the flood program.

(By Sean P. Carr, Washington Bureau Manager: sean.carr@ambest.com)