Wednesday, September 7, 2016

Hudgens didn’t act




Told firm might be flouting laws, Insurance chief Hudgens didn’t act




Phil Loy used to work in Woodstock and would drive past Jim Torchia’s office building nearly every day. It made Loy madder and madder.

Georgia Insurance Commissioner Ralph Hudgens did nothing to stop a Woodstock company accused of operating in the industry without a license, an investigation by the AJC found. SPECIAL
Loy works in the life settlements business, where investors buy rights to life insurance policies from the dying and the elderly, giving them fast cash, then raking in profits when the person dies.
Ralph Hudgens

Torchia works in that industry, too, but Loy said his company was acquiring policies without having any state licenses, which involve extensive background checks and can cost a company hundreds of thousands of dollars per year to maintain.

So he reported Torchia to a man he thought would do something about it – Georgia Insurance Commissioner Ralph Hudgens.

Loy had donated thousands of dollars to the commissioner’s campaign but that wouldn’t make any difference in spurring him to take action on a law he was elected to enforce.

Credit Nation CEO Jim Torchia has been accused by the federal Securities and Exchange Commission of running a multistate, multi-million dollar Ponzi scheme, an accusation he strongly
Jim Torchia
JOHNNY EDWARDS / JREDWARDS@AJC.COM
denies.
Soon after Hudgens took office in 2011, Loy said he reported to him that Torchia was operating without a license. Then he asked what he was doing about it, over and over again at campaign functions, barbeques and industry meetings.

“I used to ask him every time I’d see him,” Loy said. “I was like your rude neighbor or something.”

Hudgens would just say, “We’re looking into it,” Loy said.

“But I never got the sense that he actually was looking into it.”

Flash forward to 2016, and the federal Securities and Exchange Commission has filed suit against Torchia, alleging his Credit Nation empire of companies amounts to an elaborate Ponzi scheme, saying hundreds of investors throughout the country are at risk of losing their savings.

Phil Loy, a board member of the Life Insurance Settlement Association trade group, says he told state Insurance Commissioner Ralph Hudgens repeatedly that Jim Torchia was trading in life insurance
Phil Loy
JOHNNY EDWARDS / JREDWARDS@AJC.COM

policies without a license, “but I never got the impression that he was ever even looking into it.”
The government claims businesses under Credit Nation’s umbrella have debts exceeding assets by millions of dollars. Torchia, the feds allege, treated investors’ money like a “personal piggy bank,” transferring funds to himself, casinos, his Canton home, and making loans to his son’s auto dealership.

Torchia denies misappropriating investor funds and disputes that his companies are financially unsustainable. The SEC just doesn’t understand how to value policies or how the business works, Torchia said.

Loy’s tip wasn’t all the state Insurance office had on Credit Nation. Investigators had found other evidence, yet the department never acted, an investigation by The Atlanta Journal-Constitution revealed.

Read what the AJC found, who might have been placed at risk by the state’s lack of action, and how Hudgens played a role in passing the very laws he failed to enforce, in this in-depth story from Sunday’s newspaper.

Monday, December 14, 2015

Georgia tops nation for increase in auto insurance rates

From the Atlanta Journal Constitution

After years of stable premiums, Georgia’s biggest car insurance companies have been pummeling drivers with rate hikes over the past two years.
The increases are the largest in a decade for many of the companies, with some filing more than two rate hikes in a year. The result: Georgia led the nation in 2014 with the highest overall increase in personal auto insurance rates. The state ranked second overall in 2013.

and check out this portion of the article: But another powerful force — Georgia politics — may be just as important in the rising cost of auto coverage statewide. In 2008, lawmakers handed insurers the freedom to increase rates on some types of coverage without first getting state approval. Two years later, a state senator who backed that law was elected Georgia’s insurance commissioner after the reign of two commissioners who prided themselves on being stingy regulators when it came to auto insurance prices.

Thursday, July 23, 2015

Thanks Ralph Hudgens for Keeping Grady Hospital Down

From Reuters:

http://uk.reuters.com/article/2015/07/23/us-usa-hospital-medicaid-insight-idUKKCN0PX0CY20150723


A year and a half after the Affordable Care Act brought widespread reforms to the U.S. healthcare system, Chicago's Cook County Health & Hospitals System has made its first profit in 180 years.
Seven hundred miles south, the fortunes of Atlanta's primary public hospital, Grady Health System, haven't improved, and it remains as dependent as ever on philanthropy and county funding to stay afloat.
The disparity between the two "safety net" hospitals, both of which serve a disproportionate share of their communities' poorest patients, illustrates a growing divide nationwide.

In states like Illinois that have opted to accept federal money to expand Medicaid, some large, public hospitals are finding themselves on solid financial footing for the first time in decades, and formerly uninsured patients are now getting regular care.
But in states that did not expand the government medical program for the poor, primarily ones with conservative electorates opposed to Obamacare, including Georgia, the impact of the Affordable Care Act on public hospitals has been negligible.
Hudgens keeps people from healthcare

While the public exchanges established by the federal government and 14 states have brought coverage to many previously uninsured people in all parts of the country, the effect on the poorest Americans varies drastically from state to state.
Nearly four million low-income, uninsured Americans living in states that didn't expand Medicaid would have qualified for coverage had their states chosen to expand it, according to the Kaiser Family Foundation. And public hospitals in those states, many of which rely on bond markets for funding, are likely to feel the pinch even more acutely over time, experts said.
"Providers in these states are going to be at a disadvantage," said Jim LeBuhn, senior director at Fitch Ratings. "It’s going to make it that much more challenging for these providers to maintain their financial profiles."
Since the Affordable Care Act's first open enrollment in 2013, the number of Americans covered under Medicaid has risen by 21 percent, to 71.1 million.
Nonprofit hospitals in the 30 states that expanded Medicaid reported on average 13 percent less bad debt from unpaid bills last year, according to Moody’s Investors Service. In contrast, according to Moody's, such "hospitals in non-expansion states saw bad debt increase through much of the year."
Hospitals in Medicaid expansion states, according to Kaiser, reported an average 32 percent decrease in uninsured patients and a 40 percent cut in unreimbursed costs of care for patients without the ability to pay, known in the industry as charity care costs. In non-expansion states, the number of uninsured patients declined by 4.4 percent and charity care costs dropped by 6.2 percent.
New recipients of Medicaid benefited, too. After one year, adults who gained the coverage were 55 percent more likely to have their own doctor than those who did not, Kaiser found. Medicaid also increased the likelihood of receiving preventive care, such as mammograms and cholesterol checks.
A TALE OF TWO HOSPITALS
Both Cook County and Grady are safety-net hospitals based in urban counties where the poverty level is slightly higher than the national average, and both have handled high numbers of uninsured clients in recent years: about half of the patients at Cook and nearly a third at Grady.
Since Obamacare took effect, the numbers at the Georgia hospital have remained about the same. But things have changed dramatically at the Illinois hospital, in large part due to the area's enrollment of about 170,000 of an estimated 330,000 eligible for the expanded Medicaid.
"This has been a sea change for us,” said Dr. John Jay Shannon, Cook County Health's chief executive.
Within two years, the percent of uninsured patients at the hospital had dropped from more than a half to about a third, almost entirely driven by increased Medicaid coverage, hospital data show. And for the first time in the hospital’s history, a majority of the patients it treated had coverage.
A third of the new Medicaid enrollees treated at Cook County were patients new to the system. And, hospital administrators say, those with chronic diseases such as diabetes, who used to be frequent emergency room visitors, now have personal physicians to help them manage their conditions.
In the fiscal year ending in November 2014, uncompensated charity care dropped to $342 million from $500 million the year before. Funding from Medicaid nearly doubled the health system's operating revenues, a major reason that, after ending 2013 with a net loss of $67.6 million, Cook County Health finished its most recent fiscal year in the black.
Now, the provider, like other safety-net hospitals, has a new challenge: holding onto old clients.
“For the first time in our history, we need to compete for our patients,” said Shannon. "A world of improved access is also a world of choice."
At Grady Health System in Atlanta, meanwhile, the number of patients covered by insurance increased by less than 2 percent last year. Bad debt from unpaid bills has continued to climb, to $396 million from $269 million in 2013. And the percentage of patients covered by Medicaid didn’t change.
“We’ve seen no difference from the Affordable Care Act,” said John Haupert, Grady's chief executive. Many patients "are still coming to us as a safety-net provider and falling under our charity care.”
Georgia is one of 20 states, disproportionately clustered in the South, that didn’t expand Medicaid. About 89 percent of those left out of the new Medicaid coverage, because their states chose not to expand the program, live in the South, Kaiser Family Foundation found.
Grady has a better financial outlook than many hospitals in states that didn't expand Medicaid, thanks to a philanthropic campaign that has raised $350 million since 2008 to fund new infrastructure and expand clinical services. But, unlike Cook County, which has reduced some dependence on local government support with the help of Medicaid expansion dollars, Grady remains reliant on $57 million in tax support from two local counties. Without the local funding, Grady would be running a deficit.
“From a global perspective, it seems like the ACA is working,” said Kevin Holloran, senior director at Standard & Poor’s. But in non-expansion states, like Georgia, “it’s really a neutral. It’s just the status quo.”
(Reporting By Robin Respaut; Editing by Peter Henderson and Sue Horton)


Tuesday, July 21, 2015

Georgia insurance commissioner has busy beach convention season

All I can say is wow!  

From Creative Loafing Article:

Insurance Commissioner Ralph Hudgens    Curtis Compton ccompton@ajc.com
Insurance Commissioner Ralph Hudgens
Georgia Insurance Commissioner Ralph Hudgens is enthusiastic about attending conventions put on by the industries he regulates. He’s attended the Independent Insurance Agents of Georgia beachfront get-together most every summer for the past decade, and talks about how important such events are.
Hudgens even told the Atlanta Journal-Constitution last month that he didn’t have time to review every rate increase proposed by auto insurers. Instead, an aide reviews most of them and makes the final decision. “If he had to bring every rate increase into my office, I wouldn’t be able to do what I am going to do today, and that is to go down to the ‘Big I’ (insurance agents) convention and then from there go straight to the industrial loan convention,” the commissioner said.


Curtis Compton ccompton@ajc.com
The latest lobbyist disclosures filed with the state ethics commission show Hudgens has been busy the past month and a half speaking to groups he helps regulate.
Hudgens regulates the industry that provides industrial loans – typically small, short-term loans. Lobbyist disclosures shows the Georgia Financial Services Association paid about $180 for meals for Hudgens and his wife at the group’s event in mid-May.
A few weeks later, it was off to the Georgia Oilmen’s Association convention at the Ritz Carlton on Amelia Island. Hudgens’ office permits the self-service dispensing of gas at stations. The Oilmen’s Association lobbyist spent about $800 for Hudgens and his spouse to attend the convention in early June.
He was home for a few days and then hit the “Big I,” insurance agents convention, also on Amelia Island. The group’s lobbyist reporting paying $100 for Hudgens and his wife to attend an association dinner, where he was a speaker. Then the schedule called for Hudgens to head to Atlantic Beach, Fla. for the Industrial Loan Association convention.
The Industrial Loan’s political action committee listed spending $6,645 on rooms for 10 legislators attending its convention, but didn’t report any spending on the commissioner.
Last year, when he was seeking re-election, Hudgens spent his own campaign money to attend at least one of the conventions.
Having lobbyists pay such expenses is legal in Georgia. State lawmakers specifically exempted convention spending from lobby spending limits when they passed a new ethics law in 2013. Associations frequently pay for lawmakers and politicians to attend such events. Last year, lobbying groups paid more than $100,000 for lawmakers to attend beach conventions over the summer.

Wednesday, September 3, 2014

Ralph Hudgens: Threat or Menace


Ralph Hudgens, Threat or Menace? You decide.

His posturing is comically surreal, his election to commissioner a train wreck years in the making. I'm sure at home he is a nice, somewhat smart dude.  You could have dinner with him but after a few minutes you would be watching the clock for a quick getaway.
So let's let him get back to that family dinner and away from being a focal point of opposition to something as important as health care for citizens of Georgia.

Ralph Hudgens, Insurance and Safety Fire Commissioner (GA), has staunchly opposed the Affordable Care Act.  He, along with Nathan Deal, have steadfastly resisted implementing the new health insurance law in Georgia.
He is the prototypical knee jerk Republican in his opposition to ACA and this blog intends to take him to task on this issue.

See his record here at Vote Smart

One of the issues in ACA is the basics of what the federal government should be doing. Is healthcare one of those things? I agree that it should. Private insurers aren't doing the job. Millions are uninsured because of cost or pre-existing conditions.
There are things the federal government has done extremely well, such as,  the interstate highway system which was started under a Republican administration.
I don't want to get too bogged down on this philosophy as it will detract me from my main premise which is to poke fun of and point out the foibles and misadventures of Ralph Hudgens.