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DOI plan to raise fees likely to face industry opposition

The state Department of Insurance's proposal to raise fees it collects from insurers and other businesses it regulates won't win many fans among companies or consumers.

The state Department of Insurance's proposal to raise fees it collects from insurers and other businesses it regulates won't win many fans among companies or consumers.

In response to Gov. Bev Perdue's recent request for suggested budget cuts, agency officials instead recommended increasing various fees that it collects from insurers, agents, adjusters and others licensed to do business in North Carolina. Other state agencies also have resisted proposing cuts (Read the full N&O report here).

But insurers would oppose any effort to raise their costs. If the DOI wants to raise fees that are passed along to consumers, it would need to fully disclose that intention, said Jennifer Cohen, executive director of the Insurance Federation of North Carolina.

"We wouldn't want consumers to think insurance companies were simply jacking up their rates to make more profit," Cohen said. "People are struggling with job issues and debt issues. Consumers will be very much opposed to letting the state balance the budget on their backs."

Goodwin basks in spotlight at White House

Thanks to "providential" timing, N.C. Insurance Commissioner Wayne Goodwin was the center of attention at the White House today.

During a meeting of state insurance commissioners and Obama administration officials, the biggest buzz was Monday's news of Goodwin's agreement with Blue Cross and Blue Shield of North Carolina. The health insurer plans to refund customers $155.8 million and raise rates less than expected.

President Obama mentioned it several times as an example of the federal health overhaul spurring positive results for consumers. He also thanked Goodwin for his work with Blue Cross and told the group: "Well done, Wayne."

"I've met presidents before, but I've never been singled out by first name at the White House," Goodwin said by phone from the Washington airport.

Workers' comp rates poised to plunge

Workers' compensation insurance rates paid by employers are set to decline significantly this year -- an average of at least 9.6 percent.

The lower rate requested by the N.C. Rate Bureau, which represents companies that offer workers' comp policies in the state, would save businesses more than $119 million, according to the Insurance Department. The request is for rates that go into effect in April.

Final rates, which must be approved by state regulators, haven't yet been set. But the N.C. Rate Bureau, which represents companies that offer workers' comp policies in the state, requested the nearly 10 percent decrease in a filing today with the state Department of Insurance.

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