Good guys win! Allstate to Reimburse Policyholders for Medical Claims

Allstate Insurance Co. has agreed to reimburse thousands of Washington state drivers involved in a class action lawsuit against the company.

Allstate uses its medical bill review practices to arbitrarily limit payments for legitimate medical expenses incurred by policyholders.

The settlement covers an estimated 30,000 to 40,000 drivers who filed claims under personal-injury protection or Medpay coverage.

Phuong Cat Le, Seattle Post-Intelligencer 10/15/2007 Read Article: Seattle Post-Intelligencer

Drug Maker to Block Sale of Low Cost Cancer Drug

The good and bad of money…money…. money!

Pharmaceutical giant Genetech makes Avastin, a cancer drug that is also used to treat macular degeneration, which causes blindness in the elderly. Genetech also makes Lucentis, a drug used to treat macular degeneration. And, that’s good!

But, here’s the problem: Retinal specialists prefer to use Avastin because of its cheaper, about $50 a dose, while Lucentis costs about $2000 a dose. And, that’s good!

If it keeps making Avastin, Genetech will lose $1950 per dose. So, Genetech has told retinal specialists that it not going to produce Avastin, because Lucentis is “really-really-no-joke-pinky-swear” better than Avastin. And, that’s bad!

Elderly folks can’t afford a drug that cost $2000 a dose to prevent blindness, so they’ll go blind. And, that’s bad!

Andrew Pollack, The New York Times 10/12/2007 Read Article: The New York Times

National Arbitration Forum. Rent-A-Judge! How Arbitration Is Undermining Justice for Consumers

Troy Cornock is a regular guy, not unlike you and me. Like most us, Troy had never heard of the National Arbitration Forum (NAF). One day, Troy received a letter from NAF saying he owed money on a credit card.

Here's the problem: Troy never signed a credit card agreement, and Troy's ex-wife had made all of the charges. Ex-spouses are known to do that. Yet, the NAF ordered Troy to pay more than $9,000 anyway.

Troy’s story is just a small example of how “mandatory arbitration clauses” have pervaded the consumer landscape and prevented customers from getting their day in court. Rent-A-Judge and get the decision you want!

Gary Weiss, Forbes 10/11/2007 Read Article: Forbes

Tough-love? I'll say! Report Cites Abuse, Neglect at Youth Boot Camps

Remember tough-love? You bet it's tough, more like brutal, if it's ever rational to use tough and love in the same sentence.

A recent Government Accountability Office (GAO) report found rampant abuse and neglect at many of the nation’s privately run boot camps and residential treatment facilities for troubled youths.

The GAO report showed that the management and employees of such facilities were rarely sent to prison, even when teenagers died in their care.

Responding to the report, House leaders said they plan to introduce legislation to bring the industry under federal control.

Diana Jean Schemo, The New York Times 10/11/2007 Read Article: The New York Times

SUVs Receive Marginal Ratings for Side Impacts

Tests by the insurance industry revealed that some sport utility vehicles don't provide the side-impact protection that many consumers expect.

According to reports released Thursday by the Insurance Institute for Highway Safety, the 2008 --

Chevrolet TrailBlazer,

Jeep Grand Cherokee,

Nissan Pathfinder, and

Nissan Xterra.

All of these vehicles received marginal ratings in the institute’s 31 mph side-impact testing. Vehicles evaluated by the institute are rated good, acceptable, marginal or poor based on the results of testing.

Ken Thomas, The Washington Post 10/11/2007 Read Article: The Washington Post

Child Cough Medicines Recalled

Johnson & Johnson has ordered a voluntary recall of certain cough and cold products for infants amid reports that misuse could lead to overdoses.

A Johnson & Johnson spokesman says the recall affects infants under two years of age who are particularly at risk for overdose if the products were not administered properly.

The products being recalled include: infants' Tylenol Drops Plus Cold; Concentrated Infants' Tylenol Drops Plus Cold & Cough; Pediacare Infant Drops Decongestant; Pediacare Infant Drops Decongestant & Cough; Pediacare Infant Dropper Decongestant; Pediacare Infant Dropper Long-Acting Cough; and Pediacare Infant Dropper Decongestant & Cough (PE) products.

The Food and Drug Administration issued a public health advisory earlier this year warning parents not give cough and cold medicines to infants and toddlers without a doctor’s direction.

AP, The Washington Post 10/11/2007 Read Article: The Washington Post

State Farm's Database Insufficient to Set Med Costs

The Colorado Court of Appeal unanimously rejected State Farm Mutual Automobile Insurance's "exclusive computer database" to calculate medical costs.

State Farm used Sloans Lake Auto Injury Management, a medical database that compares physician charges against same or like services in a geographic region. The court conculded that the technique was arbitrary and unreeasonable.

The case is Pauline Reyher and Dr. Wallace Brucker v. State Farm Mutual Automobile Insurance Co. Insurance Journal, Insurance Journal 09/25/2007 Read Article: Insurance Journal

Jury Awards Punitive Damages Against Pharmaceutical Mfg. Wyeth

Have you used Prempro or Premarin?

A Nevada jury ordered Wyeth, formally known as American Home Products, a prescription drug maker, to pay $99 million in punitive damages to three women, because the company’s menopause drugs caused cancer. Jurors had originally awarded the women $135 million in compensatory damages but the amount was later reduced to $35 million. Three other juries have found that the hormone replacement therapies, Prempro and Premarin, contributed to breast cancer.

Wyeth also manufactures over-the-counter (OTC) drugs like Robitussin and the analgesic Advil (ibuprofen).

Jef Feeley, Bloomberg 10/16/2007 Read Article: Bloomberg

Class Action Against Microsoft, Best Buy to Proceed

They got caught! They got caught!

The Supreme Court, conservative bent notwithstanding, upheld a ruling Monday that will allow a class action lawsuit against Microsoft Corp. and Best Buy Co. to go forward.

The federal class action lawsuit involves thousands of consumers, just like you and me, that were cheated when Microsoft Corp. and Best Buy Co. surreptitiously charged them for services they did not want.

Microsoft Corp. and Best Buy Co. had asked the Supremes to dismiss the lawsuit which alleges violation of racketeering laws.

AP, LA Times 10/16/2007 Read Article: LA Times

Allstate to Reimburse Policyholders for Medical Claims

Allstate Insurance Co. has tentatively agreed to reimburse thousands of Washington drivers involved in a class action lawsuit against the company. According to the lawsuit Allstate’s medical bill review practices arbitrarily limited payments for legitimate medical expenses incurred by policyholders. The settlement covers an estimated 30,000 to 40,000 drivers who filed claims under personal-injury protection or Medpay coverage.

Phuong Cat Le, Seattle Post-Intelligencer 10/15/2007 Read Article: Seattle Post-Intelligencer