Risk & Business

Image via Wikipedia The U.S. Senate approved a temporary reauthorization of the of the federal flood insurance program until September 30 th of this year. The reauthorization is retroactive until June 1st, the date the program was cut off. After President Obama signs the measure all those that have been going without need to quickly move forward with their applications. This has been one of many political footballs being kicked around this year and it shouldn't be taken for granted that the program will indeed stay in force until it's stated expiration date of September 30. Remember, it's hurricane season and those living within reach of the coast need to make sure they have taken advantage of this valuable program while they still can.

Image via Wikipedia Due to Congress adjourning April 12 th without extending the National Flood Insurance Program , NFIP , the flood insurance program's authority to write new policies expired after midnight on March 28 th . It seems the agreement to continue the program was attached to legislation pertaining to unemployment benefits , which was blocked in the Senate from being voted on. As of right now, if you are pending the closing of a mortgage related to the purchase of real estate requiring flood coverage you are out of luck. This same situation occurred at the end of February and the program was closed until renewed by Congress on 3/2. Hopefully Congress will act on this quickly and reinstate the program retroactively to the current expiration date.

Based on a study by NCCI , medical cost containment strategies for workmans comp are not working as predicted. The reason is that doctors are shifting billings from their private practices to billings through hospitals or other facilities that fall outside the fee schedules. This is diluting the effectiveness of work comp cost containment in which rates are predicted. In Delaware the recent mandated rate reductions were instituted because of the prediction that Senate Bill 1 medical cost containment strategies would start to work. However the results to date have not been stellar. I can only hope for small business owners in Delaware that the anticpated work comp cost containment measures start to show positive signs. If not the low rates business owners are enjoying now could rise dramatically the other direction. In addition insurance companies that write work comp may start to question writing policies in the State due to the cost containment climate being w...

The Senate is scheduled to vote on health reform as early as next week. The buzz around the insurance industry is that health insurance companies are going to be taxed to pay for it. Right now there is talk in Washington about hitting insurance companies with a "windfall" tax from the profits they are expected to make with 50 million more customers in the system. This again is scaring me a little for my small business owner clients. Usually increase in big corporate taxes and or expenses always seem to trickle down to the business owner's pockets. That is what would happen if the insurance companies are taxed to pay for the health reforms. You can count in it. Until next time, be careful out there and know your risks.  K