Miss Connecticut, Erin Brady of South Glastonbury, was chosen to be Miss USA on Sunday night in Las Vegas. She worked for about a year at the Prudential Retirement office in Hartford. She told her employer in advance that, if [...]]]> Prudential Retirement on Monday commended its 25-year-old employee who worked as an accountant in the Hartford office until being crowned Miss USA.

Miss Connecticut, Erin Brady of South Glastonbury, was chosen to be Miss USA on Sunday night in Las Vegas. She worked for about a year at the Prudential Retirement office in Hartford. She told her employer in advance that, if she won, she would leave her position to serve as the reigning Miss USA.

“We are proud of Erin and congratulate her on this accomplishment. We are glad to have had the opportunity to work with such a talented person and we wish her well as she embarks on this new and exciting chapter in her life,” Prudential Retirement’s vice president of Finance, Michael Brandt, said in a prepared statement.

For a complete story on Brady, click here.

Anthem Blue Cross and Blue Shield and St. Vincent’s Health Partners announced Friday a new reimbursement contract for chronic disease patients that is based on outcome and quality of care rather than traditional fee-for-service models.

The agreement — called an accountable-care organization — links St. Vincent’s insurance reimbursements [...]]]> By BRIAN DOWLING | The Hartford Courant

Anthem Blue Cross and Blue Shield and St. Vincent’s Health Partners announced Friday a new reimbursement contract for chronic disease patients that is based on outcome and quality of care rather than traditional fee-for-service models.

The agreement — called an accountable-care organization — links St. Vincent’s insurance reimbursements from Anthem to certain metrics related to hyper tension, diabetes, tobacco use and obesity.

Health insurers increasingly are using accountable-care organizations, which often include using electronic medical records and clinical coordinators to follow up on patients. In March, Aetna and ProHealth Physicians Inc., a doctors’ network, announced a similar agreement, the first of its kind in the state.

“Healthcare is being shifted from volume-based reimbursement to value-based reimbursement,” Dr. Thomas A. Raskaukas, chief executive of St. Vincent’s Health Care Partners, said in an interview.

To do this, Bridgeport-based St. Vincent’s will increase patient follow-ups, for instance, making sure they get their medication or receive preventative treatments. The healthcare group will also examine service trends to see where treatments, varying in method or price, produce similar outcomes. A major target is to avoid hospital readmissions and emergency room visits.

“The goal is to improve the fractionated care that goes on by having more coordinated care and by looking at outcomes and quality metrics,” Raskaukas said.

Anthem and St. Vincent’s will share in savings from the program, the groups said in a joint statement.

Dr. Peter Power, Anthem’s chief medical officer, said in a written statement: “As Connecticut’s largest commercial health insurer, we believe we have a unique opportunity to use our size, scope, and experience to bring about substantive improvements in health care delivery that will benefit people in Connecticut,” added Dr. Bowers.

Courant Staff Writer Matthew Sturdevant contributed to this report.

The Hartford health insurer was chosen to help the National Health Insurance Company of Qatar in developing a disease management program and to help generally in improving the country’s health insurance program.

“We are honored to be chosen to play a significant [...]]]> Aetna has a key role in Qatar’s new national health care system.

The Hartford health insurer was chosen to help the National Health Insurance Company of Qatar in developing a disease management program and to help generally in improving the country’s health insurance program.

“We are honored to be chosen to play a significant role in the creation of a modern, efficient and integrated health insurance system,” head of Aetna International, Sandip Patel, said in a prepared statement.

The national health care system will be built on a foundation of preventive and primary care, Patel said. Aetna will apply its clinical health management and technological capabilities to Qatar’s national health care system.

The Qatari government on Monday announced the new National Health Insurance Company to manage the nation’s health care system. An insurer in the country, Al Khaleej Takaful, will act as a third party administrator to manage administration of the insurance plan and Aetna is one of two subcontractors. The other subcontractor, GlobeMed, will manage enrollment, claims administration and call center functions.

Qatar’s universal health care coverage program will be fully operational for all citizens, expatriates and visitors in 2015. Launched in stages, it will first provide coverage to girls and women 12 and older for maternity, obstetrics, gynecology and other related health care concerns. Coverage for Qatari citizens for all medical treatment starts in early 2014.

Aetna declined to say the value of the contract. Work related to the contract will be done in the Middle East, primarily by Aetna workers in Doha and Dubai.

Among reasons they said they won’t be able to hire, 47 percent said the can’t afford to hire; 39 percent said their business isn’t growing and [...]]]> Two-thirds of small business have not hired anyone in the past 12 months, according to a survey commissioned by The Hartford of 1,000 small-business owners across the U.S.

Among reasons they said they won’t be able to hire, 47 percent said the can’t afford to hire; 39 percent said their business isn’t growing and 39 percent said they are taking on additional responsibilities themselves.

The lack of hiring is part of a generally conservative tone among small business owners, according to results from a telephone survey of business owners conducted by Braun Research between April 19 and May 1. The Hartford Financial Services Group released its Small Business Pulse survey today.

Small business owners are less likely to take risks than a year before, according to The Hartford. In three different surveys, the percent who identify themselves as “conservative” in terms of taking risks increased from 49 percent to 73 percent to 80 percent in the spring 2012, fall 2012 and spring 2013 respectively.

“The decrease in the level of risk small business owners are taking is a significant concern,” The Hartford’s Chairman and CEO, Liam E. McGee, said in a prepared statement. “Entrepreneurs’ drive, determination and readiness to take risks are what fuels small business creation, innovation and success, and we need to instill an environment that encourages their growth and development.”

The survey found that 73 percent of small business owners “feel successful.”

There’s a decline in the percent of people who feel optimistic that the national economy will strengthen this year. When asked that question a year ago, 63 percent of survey respondents said they were optimistic about the economy improving. This spring, only 47 percent of respondents said they are optimistic.

When asked about major risks to their business, 52 percent of the survey respondents cited slow economic growth, 44 percent cited health care costs and 40 percent cited taxes.

Asked about whether federal spending cuts caused by the sequester would affect their business, 49 percent said it would and three-quarters of those said it would be a negatively affect their business.

The arrangement builds on an agreement that Catamaran had with Cigna’s subsidiary, HealthSpring. At stake is the pharmacy benefits program for [...]]]> Cigna Corp. announced late Monday it has a new 10-year agreement with Catamaran, a company that buys prescription drugs in bulk and provides technological advantages to manage drug inventories for the health insurer.

The arrangement builds on an agreement that Catamaran had with Cigna’s subsidiary, HealthSpring. At stake is the pharmacy benefits program for about 8 million Cigna customers who stand to benefit from savings as Catamaran negotiates behind the scenes with prescription drug companies.

The customers are Cigna members who get prescriptions through home delivery, or at retail stores that have negotiated arrangements with the insurer. Cigna will continue to manage the pharmacy programs for its 8 million customers and Catamaran will fulfill orders for prescriptions for Cigna’s home delivery programs and the insurer’s retail network, in addition to processing claims.

Cigna said the arrangement will save the insurer 50 cents per share starting in 2015, which analysts at Credit Suisse estimated to be about $213 million annually.

“This strategic [pharmacy benefits management] partnering agreement will complement Cigna’s strengths of partnering with physicians to engage customers in their overall health and wellness,” Cigna CEO and President David M. Cordani said in a prepared statement. “Connected to Catamaran’s industry-leading health care information technology and service solutions, we will deliver differentiated options for clients and more affordable customer solutions in a rapidly evolving market.”

Catamaran is planning to open an office in Hartford, though none of the details of the move are publicly available yet. The company has, as it takes on new clients, opened offices in other cities, such as a 13,000-square-foot office that opened in December in Indianapolis, Ind., to support the state’s Medicaid customers.

During its second quarter earnings this year, Cigna expects to record a one-time transaction cost of about $25 million for advisory fees related to the agreement.

The Auto Body Association of Connecticut, which comprises more than 1,000 auto body shops, filed [...]]]> A Superior Court judge awarded $20 million in punitive damages — in addition to nearly $15 million previously awarded by a jury in compensatory damages — to Connecticut auto repair shop owners in their 10-year legal battle against The Hartford.

The Auto Body Association of Connecticut, which comprises more than 1,000 auto body shops, filed a lawsuit in 2003 against Hartford Fire Insurance Co., which is part of The Hartford Financial Services Group.

The association alleged that The Hartford engaged in a pattern of unfair and deceptive acts and practices, violating state law, by steering customers who had been in a crash to certain preferred auto body shops. The lawsuit also alleged that The Hartford provided incentives to its appraisers to establish artificially low hourly rates for auto body repair work.

On Nov. 17, 2009, a jury hearing the case awarded $14.77 million to the auto body association, saying that the insurer engaged in a practice that resulted in a loss to the repair shops. Superior Court Judge Alfred J. Jennings Jr. added $20 million in punitive damages in a ruling on June 5.

The Hartford’s spokesman, Thomas Hambrick, said: “We are disappointed in the ruling and plan to appeal.”

None of the money has been paid to auto body repair shops yet. At the end of the legal process, there will be a fund of money that includes the $14.7 million in compensatory damages and the $20 million in punitive damages, said the auto body association’s attorney, David A. Slossberg of the firm Hurwitz, Sagarin, Slossberg & Knuff in Milford.

“In most class actions, when you have a common fund like that, you then allow each member of the class to apply and there will be a process that will be set up to distribute the money to members of the class,” Slossberg said.

Ultimately, payment will depend on whether The Hartford wins an appeal.

Travelers is buying The Dominion of Canada General Insurance Co. of Toronto from E-L Financial Corp in what will be the biggest acquisition since the [...]]]> The Travelers Cos. said Monday it will spend $1.125 billion to acquire a Canadian insurer, it’s biggest acquisition in almost a decade and a major move into international markets.

Travelers is buying The Dominion of Canada General Insurance Co. of Toronto from E-L Financial Corp in what will be the biggest acquisition since the April 2004 merger of Travelers Property Casualty Corp. and The St. Paul Cos. in Minnesota.

“This transaction is consistent with our strategy to make thoughtful investments in attractive markets outside the United States,” Travelers Chairman and CEO Jay Fishman said in a prepared statement. “The Dominion is a great franchise, and this is a very good opportunity for Travelers to significantly improve its market position and scale in a meaningful market.”

The acquisition propels Travelers from the 20^th largest property-casualty insurer to 10^th in Canada, by one set of metrics.

“The deal will make Travelers a top 10 player in the country, and we believe that it’s safe to assume that Dominion likely lacked the scale to adequately invest in the technology platforms that are necessary to compete in today’s personal lines marketplace,” Janney Montgomery Scott LLC analyst Larry Greenberg wrote in a note to investors.

“With Travelers quantitative approach to the business and technical capabilities, there would appear to be ample opportunity to improve financial results and leverage the Dominion platform to grow commercial lines in the areas where Travelers is most skilled (small to middle markets),” Greenberg wrote.

Commercial lines is insurance for businesses, as opposed to personal lines, like auto and home coverage.

The acquisition is expected to close in the fourth quarter of this year, provided it is approved by regulators and passes customary closing conditions.

Dominion was founded in 1887 and has regional offices in Vancouver, Edmonton, Calgary, London, Ottawa, Halifax and other cities.

The Dominion’s chief executive and president, BrigidÖ Murphy, will remain in her role as the head of the company. The CEO of Travelers Canada, George Petropoulos, will be vice chairman of The Dominion and will serve as executive vice president of the company’s Bond and Financial Products.

“The combination will substantially enhance Travelers’ product breadth in Canada by coupling The Dominion’s commercial and personal portfolios with Travelers Canada’s surety, management liability and commercial middle market products,” Petropoulos said in a prepared statement. “We plan to leverage the expertise of both companies, and we will work closely with The Dominion team to assure a smooth transition for employees, customers and brokers.”

E-L Financial is a multi-line insurer. In addition to The Dominion, it owns 80 percent of The Empire Life Insurance Company which underwrites life and health insurance policies. Empire also sells mutual funds, annuities and other products.

Barclays analyst Jay Gelb said in a note to investors that the transaction was expensive for Travelers at 1.3 times the stated book value in light of Dominion’s “low return on earnings.”

“We view Dominion as a turnaround story,” Gelb wrote in the note. “Our sense is TRV [Travelers] would have been better off repurchasing more of its own stock.”

E-L Financial CEO and President Duncan N.R. Jackman said in a prepared statement: “We are extremely proud of what The Dominion team has achieved over the years. We could not be happier that Travelers, a highly respected and well capitalized firm, will be the platform for future growth and success.”

This is the second international acquisition in recent years for Travelers, which is primarily a U.S. property-casualty insurer. In June 2011, Travelers acquired a 43 percent stake in Brazilian surety insurer J. Malucelli Participacoes em Seguros e Resseguros SA for about $410 million. J. Malucelli is the market leader in surety insurance in Brazil, with a market share greater than 30 percent. In December, Travelers increased its stake in the company from 43.4 percent to 49.5 percent.

In an ongoing effort by property-casualty insurers to dissuade people from texting while driving, The Travelers Cos. launched a YouTube series today on distracted driving.

The Centers for Disease Control and Prevention, which keeps statistics on distracted driving, characterizes a “distraction” as one of three categories: visual, manual and cognitive.

The number of text [...]]]>  

In an ongoing effort by property-casualty insurers to dissuade people from texting while driving, The Travelers Cos. launched a YouTube series today on distracted driving.

The Centers for Disease Control and Prevention, which keeps statistics on distracted driving, characterizes a “distraction” as one of three categories: visual, manual and cognitive.

The number of text messages sent or received in the U.S. was about 196 billion in 2011, up 50 percent from 2009, according to the CDC.

In 2011, there were 3,331 people killed in crashes that involved a distracted driver compared with 3,267 in 2010, according to the National Highway Traffic Safety Administration.

Cigna surveyed 250 self-employed small business owners in February and released the results in a report this week. The Bloomfield health insurer said 60 percent of the uninsured [...]]]> One in four self-employed small business owners surveyed by Cigna Corp. do not have health insurance, and most said it’s because health insurance is too expensive.

Cigna surveyed 250 self-employed small business owners in February and released the results in a report this week. The Bloomfield health insurer said 60 percent of the uninsured proprietors consider business priorities more important than personal health and overall wellness.

The majority — 82 percent — said they didn’t have health insurance because it is too expensive, but 80 percent overestimated the price of health insurance, according to Cigna.

Among the uninsured respondents in the survey, 60 percent either seek medical attention only if they feel something is wrong with their health, or very rarely seek medical attention even if they are sick.

“Clearly the stakes are high for this population to stay healthy in order to stay successful in business,” Lisa Lough, vice president of Cigna Individual and Family Plans, said in a prepared statement. “However, a majority of this group readily admit that their personal health takes a back seat to the demands of their business.”

Malloy supports the bill, as does the Insurance Department, which regulates the property-casualty industry.

“The [...]]]> A bill awaiting Gov. Dannel P. Malloy’s signature would make it illegal for home insurers to decline or cancel coverage — or refuse to renew a policy — based solely on losses from a tropical storm or other catastrophe.

Malloy supports the bill, as does the Insurance Department, which regulates the property-casualty industry.

“The legislation addresses important consumer protections for homeowners who incurred damage from catastrophic storms — something Gov. Malloy also strongly supports,” Malloy spokeswoman Juliet Manalan said in an email. “As he does with all legislation, the governor will carefully review it when it gets to his desk.”

If the governor signs the legislation, already approved in both the House and the Senate, it will take effect Oct. 1, 2013. The law would not apply to policyholders dropped before that date.

The legislation applies to damage from any storm causing a catastrophic loss as categorized by Property Claims Services, an industry source that reports disasters and determines the extent of damage. That could include tropical storms, but also snowstorms and other meteorological events.

A trade group for property-casualty insurers, the Insurance Association of Connecticut, was the only group to submit testimony opposing the bill. The association argued in its testimony that the history of losses an insurer pays to a homeowner, no matter the size or source, “is a strong indicator of the likelihood of future losses.”

The association was unavailable Monday, and two national property-casualty trade groups declined to comment.

State Rep. Betty Boukus, D-Plainville, introduced the bill along with seven other legislators. Boukus said she and other legislators heard of constituents who had coverage problems after a string of damaging weather: ice and snow in late 2010 and early 2011, Tropical Storm Irene, the snowstorm of October 2011, and Storm Sandy.

Boukus said, “we’ve had so many events in the last few years that people are now looking to their insurance companies for assistance, and you can’t blame them. I mean, the storms did some traumatic damage to homes.”

Boukus said she believes the insurance companies did a great job responding to the storms of recent years.

The bill also prohibits an insurer from canceling or not renewing a homeowner’s policy — or increasing a premium — solely because a policyholder made inquiries about the policy. The same applies if the insurer made a payment of less than $500.

State Rep. Robert Megna, D-New Haven, who is House chairman of the Insurance and Real Estate Committee, said Monday that legislators have heard “a lot” of complaints from homeowners near the coast about getting pushed into surplus lines, an insurance market for homeowners who are denied coverage by standard home insurers.

Surplus lines, he said, are intended for homeowners with an extensive claim history, or whose house is poorly maintained.

“You try to make it so that the carriers, through underwriting, can’t get away from this,” Megna said. “Surplus lines is really a terrible place for a homeowner. You lose all the protections … hurricane deductible, the standard fire policy. The policy could say whatever they want to sell you. So, it could be very, very limited coverage. It’s always less coverage.”

The state Insurance Department’s director of property-casualty, George Bradner, said an insurer can still cancel coverage or decline to renew a policyholder for other reasons. For example, he said, an insurer could decline coverage if a home has damage that isn’t fixed, or if the insurer discovers that the electric wiring is out of date.

“I believe that we’ve had a few complaints,” Bradner said, adding that some policies affected by Storm Sandy last year might be coming up for renewal this summer.