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Politics

Insurance coverage corporations heed Biden name to assist victims cowl extra prices

Insurance companies heed Biden call to help victims cover more costs

U.S. President Joe Biden arrives on Jan.

Carlos Barria | Reuters

WASHINGTON – Two of the best-known US insurance companies have responded to President Joe Biden’s request to cover additional living expenses for Louisiana policyholders who evacuated their homes prior to Hurricane Ida but were not under certain mandatory evacuation orders.

Allstate and USAA have agreed to pay additional living expenses for policyholders in the state who have evacuated their homes, a White House official told CNBC.

More companies are expected to follow suit, said the official, who requested anonymity to discuss the ongoing effort.

Typically, insurance only covers the additional cost of living for policyholders evacuating their homes before major storms, not those who leave their homes voluntarily.

Biden first addressed the issue on Thursday in a White House speech about the storm.

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“Right now we are hearing reports that some insurance companies may refuse to cover additional living expenses unless the homeowner has been on a mandatory evacuation,” Biden said.

Homeowners in the path of the storm, he said, “left their homes because they felt they were fleeing or risking death. Nothing about that is voluntary.”

Biden then appealed to home insurers: “Do the right thing. Pay your policyholders what you owe them and cover the cost of temporary housing amid the disaster. Help the needy. “

On Friday, Biden visited Louisiana, where he said his government was “putting as much pressure as possible” on insurance companies.

State Insurance Commissioner James Donelon issued a bulletin Friday to all insurers in the state saying they should “refrain from using the language in their insurance policies that requires mandatory evacuation to trigger civil coverage”.

Donelon also directed insurers to let his office know whether or not they would comply, and increased the stakes on companies if they choose to refuse coverage.

After the story was published, a USAA spokesman told CNBC, “Some USAA homeowner policies offer limited coverage for evacuation costs when damage is covered. Members can provide receipts for reimbursement. “

The episode is a rare example of a US president effectively shaming large corporations for changing a fundamental piece of the way they do business – how insurance companies assess eligibility for coverage.

The origins of political change can be traced back to Cedric Richmond, a former Louisiana congressman who is a senior official in the Biden White House.

In the days following the storm, Richmond learned from homeowners that their insurance policies would not cover temporary housing costs unless their homes were subject to mandatory evacuation orders.

Ida hit land in most of southeast Louisiana last Sunday as a Category 4 hurricane. However, the evacuation orders were very different from community to community.

Some coastal communities, such as Grand Isle, made mandatory evacuations for all residents. Others, however, issued evacuation orders that were only compulsory for people in low-lying areas and voluntary in areas that are better isolated from floods.

In New Orleans, Mayor LaToya Cantrell issued a mandatory evacuation order for people living outside the city’s levee system, but a voluntary one for those protected by the levees.

“We are not asking for a mandatory evacuation because time is just not on our side,” Cantrell said on the Friday before the storm. “We don’t want people on the street and therefore in greater danger due to lack of time.”

During his visit, Biden encouraged anyone affected by Ida to contact the Federal Emergency Management Agency and see what kind of help they might be eligible for, and promised to keep the federal resources there until they settle have fully recovered.

“We will be there for you,” he said.

The home insurance industry’s leading trading group said its members are aware of Ida’s suffering and would like to help.

“Ida has devastated communities along the Gulf Coast and along the east coast. Insurers recognize the tragedy and fear faced by many American families, individuals and businesses as wildfires and storms rage amid uncertainty over the pandemic, “said David Sampson, president and CEO of the American Property Casualty Insurance Association, said in one Statement to CNBC.

“Insured who have suffered a claim should call their insurer as soon as possible to initiate the claim process. Call your insurer if you have been evacuated voluntarily or compulsorily to discuss your coverage. Policies can vary by company and state, ”he said.

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Health

Delta variant sparks renewed curiosity in faculty tuition insurance coverage

Delta variant sparks renewed interest in college tuition insurance

A year ago, rising coronavirus cases ended the fall semester at many universities abruptly when classes began.

This year, too, the Delta variant threatens school closings again. And the possibility of further campus closures has sparked renewed interest in college refund policies and tuition insurance.

According to a survey by the National Association for College Admission Counseling, about 78% of colleges and universities plan to resume all classroom courses for the fall, and only 19% plan a mix of classroom and online courses.

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However, some colleges and universities have already announced that they will start remotely due to rising cases of Covid, including the University of Texas at San Antonio and Stanislaus State in California.

“Due to the Delta variant of Covid-19 and the need to reduce potential exposures on campus, we are temporarily postponing the start of face-to-face teaching and resettlement plans until October 1,” said Stanislaus President Ellen Junn in a letter the community.

For most students, distance learning is a poor substitute for face-to-face teaching. And almost everyone says it’s not worth the same high cost.

“Paying full price for a fraction of the college experience is going to piss off a lot of people,” said Jill Gonzalez, an analyst at WalletHub.

Almost half of the students believe universities haven’t done enough to support them during the pandemic, a recent report from WalletHub found.

In the future, some families will become more proactive about protecting their investments.

Laura Hoder, 52, recently purchased a tuition refund policy for her daughter who will be a junior at Dean College in Franklin, Massachusetts. “It is unknown what will happen to Covid,” she said.

Hoder, who works as a nurse in Fairfield, Connecticut, said she wanted the extra coverage also because of her job and the increased risk posed by her family. “There’s an added level of fear just because of what I’ve seen and know,” she said.

Laura Hoder with her daughter at Dean College.

Source: Laura Hoder

While a number of colleges and universities have announced that they will reimburse fees and room and board if campus closes again, reimbursement policies vary from school to school – and almost all have drawn the line on tuition.

Depending on when a student de-signs out during a semester, a school’s refund policy can reimburse a significant amount (especially if it is done within the first month or so of the semester, although this varies by school).

However, refunds are usually staggered and most schools don’t give any money back after the fifth week of classes.

Zoom In Icon Arrows pointing outwards

Typical refund policy for schools

Source: GradGuard

Many schools now also offer protection from outside lessons or can be purchased directly from a provider such as GradGuard or AWG Dewar up to the first day of class.

Tuition insurance, also known as Tuition Reimbursement Insurance, generally covers families for medical or psychological reasons, with some obvious exclusions, such as:

GradGuard tuition insurance starts at $ 39.95 for $ 2,500 per semester coverage. Most families, however, buy $ 10,000 per term insurance coverage starting at $ 106 to cover their expenses, excluding loans and grants. This covers tuition fees as well as financial losses from room and board and tuition fees.

Since the beginning of Covid, we have seen dramatic interest from schools, students and families.

Natalie Tarangioli

Marketing manager at GradGuard

“Since the beginning of Covid, we’ve seen dramatic interest from schools, students and families,” said Natalie Tarangioli, Marketing Director of GradGuard. The company now works with more than 400 universities.

Before the pandemic, health conditions such as mononucleosis and pneumonia were among the top diseases that stood in the way of timely or even conclusion.

“The real concern last year was that the students were getting Covid,” said Tarangioli. There are additional concerns this year given the Delta variant, mental health and well-being, and other risks, she added. “Sales are more than four times as high as in 2019 and twice as high as in 2020.”

Even though 63% of parents said their child’s plans after high school have returned to what they were before the coronavirus crisis, cost remains a top concern.

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Tuition and fees plus room and board for a four-year private college averaged $ 50,770 for the 2020-21 school year. It was $ 22,180 at four-year state colleges, according to the College Board, which tracks trends in college pricing and student grants.

When you add other expenses, the total bill can be in excess of $ 70,000 a year for students at some private colleges, or even for students out of state attending public four-year schools.

While the cost of a four-year college degree continues to skyrocket, tuition insurance is relatively inexpensive, said Nick Holeman, director of financial planning at Betterment.

Additionally, some tuition insurance policies will reimburse you for up to 100% of the total cost of attending – not just tuition fees – including room and board and even books and other materials.

However, not all policies offer the same level of protection, added Holeman.

“Many Covid-19 tuition fee insurances only pay out if your child actually falls ill with the disease,” he said. “So you will not be reimbursed if you pull your child out due to Delta variant concerns or future outbreaks.”

“You are also non-refundable if your child’s college changes their teaching method from face-to-face to virtual,” added Holeman, which means you can still be hooked on college courses through Zoom.

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Health

Racial Inequities Persist in Well being Care Regardless of Expanded Insurance coverage

Racial Inequities Persist in Health Care Despite Expanded Insurance

In Dr. Johnston’s hometown St. Louis, as in other cities, fewer health care providers and specialists are found in low-income and minority neighborhoods, which is a function of structural racism and a legacy of residential segregation, Dr. Johnston said.

“It’s not a question of insurance — it has more to do with the supply side,” he added. “If you want to access a good specialist, your choice of cardiologists is going to be different if you live out in the counties that are more affluent versus if you live in the poor areas in northern St. Louis.”

Another study in the journal compared health care spending by race and ethnicity, finding that at $8,141 per year, spending for white individuals is higher than for Americans of other races and ethnicities, and the portion of it spent on outpatient care is higher than the average.

Health care spending for Black individuals is $7,361 per year, and a smaller proportion of the funds are spent on outpatient care. The amounts that go to pay for care of Black people in an emergency room and hospital are 12 percent and 19 percent higher, respectively, than the nationwide averages.

“This is about poverty, geography and where people live and where primary care clinics are located, and it is about health insurance,” said Joseph Dieleman, an associate professor at the Institute for Health Metrics and Evaluation at the University of Washington in Seattle and an author of the study.

But the difference also reflects patient behavior. “It is also about people’s past experiences with the health care system and the quality of care they or their loved ones have received, which leads to hesitation or resistance to accessing health care early,” Dr. Dieleman said.

The findings may explain some of the disparities in health outcomes, though social and economic factors also play a role, among them poverty, so-called food deserts and neighborhoods that expose residents to pollution and offer few opportunities for physical exercise and recreation.

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Health

Faculty tuition insurance coverage might assist with uncertainty attributable to Covid

College tuition insurance could help with uncertainty due to Covid

Even before the pandemic, Eden Schiano, 19, had concerns about her freshman year.

Schiano suffered from anorexia in high school and wasn’t sure how fall 2020 would go as a freshman at Virginia Commonwealth University.

Being largely isolated in her dormitory quickly took its toll. “I was in my dorm, taking online classes and starting to lose weight,” she said. In October, Schiano decided to retire.

Whether because of mental illness or concerns about Covid, the number of students taking time off has skyrocketed in the past year.

However, withdrawing in the middle of the semester could be associated with high financial costs.

More from Personal Finance:
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Colleges and unvaccinated students face a stalemate

While a number of colleges and universities have announced that they will reimburse fees and room and board if campus closes again, reimbursement policies vary from school to school – and almost all have drawn the line on tuition.

Depending on when a student de-signs out during a semester, a school’s refund policy can reimburse a significant amount (especially if it is done within the first month or so of the semester, although this varies by school).

However, refunds are usually staggered and most schools don’t give any money back after the fifth week of classes.

Zoom In Icon Arrows pointing outwards

Typical refund policy for schools

Source: GradGuard

There is another way of doing it: Many schools also offer protection from outside lessons or this can be obtained directly from a provider such as GradGuard or AWG Dewar.

Tuition insurance, also known as Tuition Reimbursement Insurance, generally covers families for medical or psychological reasons, with some obvious exclusions, such as:

GradGuard’s tuition insurance starts at $ 39.95 for $ 2,500 per semester, although most families buy $ 10,000 per semester in insurance that starts at $ 106 to cover their own expenses with no loans and grants protect. This covers tuition fees as well as financial losses from room and board and tuition fees.

Schiano said her tuition insurance helped ease pressure to stay in school despite her deteriorating condition.

“It took away the shame and guilt factor of having to go and feel like it was going to be such a burden on my parents,” she said.

Zoom In Icon Arrows pointing outwards

Even though nearly two-thirds of parents, or 63%, said their child’s plans after high school returned to what they were before the coronavirus crisis, cost remains a top concern.

Tuition and fees plus room and board for a four-year private college averaged $ 50,770 for the 2020-21 school year; It was $ 22,180 at four-year state colleges, according to the College Board, which tracks trends in college awards and student grants.

When you add other expenses, the total bill can be in excess of $ 70,000 a year for students at some private colleges, or even for students out of state attending public four-year schools.

At the same time, Covid cases are on the rise again, and the possibility of further campus closures has sparked renewed interest in college reimbursement policies and tuition insurance.

Trisha Jung recently bought a GradGuard policy for her stepdaughter, who will be a junior at Appalachian State University in Boone, North Carolina. “It just seemed like a good idea based on the world of today.”

Jung, who is from Nashville, Tennessee, said she wouldn’t have considered doing this before the pandemic. “Life is full of unexpected events,” she said.

“Since the beginning of Covid, we’ve seen dramatic interest from schools, students and families,” said Natalie Tarangioli, Marketing Director at GradGuard, which now works with more than 400 universities.

Before the pandemic, health conditions such as mononucleosis and pneumonia were among the top diseases that stood in the way of timely or even conclusion.

“The real concern last year was that the students would get Covid; There are additional mental health and wellbeing concerns this year, ”Tarangioli said.

“We have already more than doubled the number of tuition insurance policies sold this fall compared to last year,” she added.

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Business

There are extra causes this yr to verify your owners insurance coverage

There are more reasons this year to check your homeowners insurance

Floods are pouring down the road in Muhlenberg Township, Pennsylvania, following a severe storm last August.

Ben Hasty | MediaNews Group | Getty Images

Ongoing climate change and rising timber costs are two things to consider when insuring your homeowner.

Whether you live in an area exposed to hurricanes, tornadoes, floods, hail, forest fires, or severe storms that are becoming increasingly common, it is important to know what types of weather-related damage your policy covers, excludes, or a separate one Fee levies (and probably higher) deductible for.

Add in current lumber prices – they’re up 67% already this year and 340% year over year – and the cost of repairing or replacing your home during severe weather may be far higher than expected.

“You could be a great financial success if you do not understand the policy you are purchasing,” said Spencer Houldin, president of Ericson Insurance Advisors.

With the warmer weather in the US, the likelihood of severe weather increases too. The tornado season is already underway, and the official hurricane season begins June 1st and lasts through November 30th. California and parts of the Southwest have drought conditions that are conducive to forest fires.

According to the National Oceanic and Atmospheric Administration, there were 22 different weather and climate catastrophe events valued at $ 1 billion last year in the United States. There were also 30 Atlantic storms named – a record – of which 12 landed in the United States

Depending on where you live and the typical weather for that area, your homeowners policy may provide coverage for some of the more location-specific events, and state law will often dictate what is required for the policies offered in your jurisdiction.

Here are some things to check in your policy.

Replacement costs

Standard policies usually repair or replace your home up to the amount for which it is insured. Or, you may have a clause that increases that replacement amount to 125% or 150% of your home coverage. Or there is no upper limit on the replacement cost.

“If you have a guaranteed reimbursement scheme, see if it is capped at 125% or 150% or not,” Houldin said. “In disaster-prone areas in particular, it is really important that you have adequate coverage.”

When evaluating the replacement cost of your policy, consider the higher cost (e.g. lumber) of rebuilding your home – especially if you took out the insurance some time ago.

Different damage, different deductibles

While many risks fall under the standard part of your policy, some weather-related events fall under a different part that has a different deductible.

If you live in a state on the east coast or the Gulf of Mexico, there is a good chance your homeowner insurance policy has a hurricane deductible. Likewise, in states more prone to wind-related events – that is, tornadoes – you are likely to have a wind deductible.

In either case, these amounts are typically between 1% and 5% (with a minimum of $ 500) depending on the specifics of your insurance contract. Some homeowners may opt for an even higher deductible if it is available. In general, the higher the deductible, the lower the premiums and vice versa.

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It is important to note that for these percentage deductibles, the amount is based on your insured value and not on the damage caused.

If your home is insured for $ 500,000 and you have a 5% hurricane deductible, you are responsible for covering the first $ 25,000 regardless of the total cost of the damage. This means that it is wise to have a plan to cover your stake after a disaster.

For example, Houldin knew a homeowner who had a 15% wind deductible – $ 150,000 – on a $ 1 million home. When strong winds tore the roof, the event caused damage of $ 110,000 – below the deductible.

In other words, the homeowner had to pay for the repairs out of pocket.

Also note that earthquakes aren’t covered by standard homeowner policies, even in quake-prone California (you’d need to get separate insurance). Typically there are also no other types of earth moving (i.e. landslides, sinkholes).

Flood risk

Homeowner policies generally exclude floods from coverage. However, according to the Federal Emergency Management Agency, just one inch of water in your home can cause damage up to $ 25,000 worth of damage. And every fourth flood insurance claim comes from outside a high-risk zone.

For insurance coverage, you need separate flood insurance either through the national flood insurance program of the federal government or through a private insurer. However, be aware that there are exclusions and limitations to coverage. It takes 30 days for the flood policy to take effect. The average annual cost is $ 734, although this can vary widely.

“If you are in a dangerous flood area, the mortgage lender requires flood insurance,” Houldin said. “If you’re in a safe zone, the lender says you don’t need it.”

While floods are a common aspect of natural disasters, less than 15% of homeowners have flood insurance, according to the Insurance Information Institute.

If a homeowner is exposed to storm-related damage that is exposed but is in a federally declared disaster area, there may be government programs that can provide financial assistance, including FEMA grants and Small Business Administration loans. However, this help is not guaranteed and probably wouldn’t get you back on your feet quickly.

For example, after Hurricane Harvey in 2017, which dropped as much as 60 inches of rain in some locations in Texas, the average FEMA grant for individuals was $ 7,000, while the average National Flood Insurance Program claim was more than $ 100,000.

If you are a tenant

Even if you don’t own your home, your finances are still at risk if a storm damages the house or building you live in. While the owner’s insurance covers the structure itself, you are responsible for your own property.

Tenant insurance is an option to cover your belongings. It can also cover the cost of living elsewhere if you cannot stay in your home after a storm or other insured event.

The national average for a policy with $ 40,000 personal property coverage, a $ 1,000 deductible, and $ 100,000 liability coverage is $ 197 per year, according to an Insurance.com rate analysis . $ 17 per month).

Protect your important documents

Long before a disaster strikes, important documents – like birth certificates, deeds, titles, and tax returns – should be kept securely in a waterproof location, and duplicates should be kept elsewhere with a trusted person, advises the IRS. You can also scan and save them online or on a flash drive.

Additionally, taking photos of the contents and condition of your home can make the insurance claims process easier if your home is damaged.

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Business

Auto Insurance coverage Throughout a Pandemic

Auto Insurance During a Pandemic

Given the restrictions on virus blocking and health and safety concerns, the majority of your automotive usage today can come from grocery stores. Regardless of where you’ve been going in the past nine months, you’ve likely driven less than you did before the pandemic, and this pattern could last for many weeks or months. As you drive less, you may be wondering if you can cut back on your auto insurance payments. Here are some ways you can potentially save money. (Always read the fine print when reviewing insurance policies. Some have regulations.)

Pay-per-mile policies differ from standard auto insurance in that the premium depends on how many miles you drive. Yes, standard policies offer a small mileage discount, but pay-per-mile goes beyond that.

Arizona-based Metromile offers a pay-per-mile policy with a monthly rate starting at $ 29 and an additional charge of 6 cents for every mile driven. The mileage is recorded by a small device that plugs into the vehicle’s OBD-II diagnostic port. This is the standard equipment of all light commercial vehicles manufactured since 1996. The connector is easily accessible under the dash, and the insurance company provides the device – the car owner simply plugs it in.

Factors such as the age of the driver, credit history, driving history, and insurance history, as well as vehicle type, can all increase monthly payments, and pay-per-mile policies may not be available in your state. Metromile’s guidelines are currently only available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.

Nationwide also offers a pay-per-mile plan called SmartMiles, which is offered in 40 states. Like the Metromile plan, SmartMiles determines a base price and then adds an amount per mile. Here, too, a device installed in the OBD-II port tracks the kilometers traveled.

With this guideline, this device also records vehicle speed and other factors. If the policyholder drives carefully during the first term, an additional discount of 10 percent can be granted. The discount will be applied the next time the contract is renewed and remains valid as long as the vehicle is registered with SmartMiles.

Usage-based policies like Farmers Signal, Progressive Snapshot and Geico DriveEasy track mileage and evaluate driver behavior to determine rates. These guidelines not only count the kilometers driven, but also take into account how often you exceed the speed limit, brake hard and accelerate or turn aggressively. Most insurers monitor the driver’s cell phone and penalize those who speak or text messages while driving.

The guidelines generally provide a 10 percent discount when you sign up, although some state regulations limit the initial discount to 5 percent. Additional discounts are granted based on the observed driving record. Some usage-based policies also use a device in the OBD-II port to keep an eye on the driver and track mileage. Others use the driver’s cellphone, which with its global positioning capability, accelerometer, gyroscope, and magnetometer can determine a lot about the way the car is driven.

For both pay-per-mile and usage-based insurance policies, your insurance company must be able to monitor vehicle usage. The companies claim that they don’t track where drivers are going, just the distance traveled and, with usage-based guidelines, how well the driver is behaving behind the wheel.

However, the data includes the location of the vehicle and much more. If you let your insurer go with you, there is a compromise: you get a discount but you sacrifice privacy.

If buying a new insurance policy is causing a headache, there are other ways to save. Do you expect to rarely drive any further? You can qualify for a low mileage discount on a standard policy. You may be asked to check the mileage when you speak to your agent. Maintenance records can help. If you increase your deductible, your premium will also decrease.

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Health

It’s Not Simply You: Selecting a Well being Insurance coverage Plan Is Actually Exhausting

It’s Not Just You: Picking a Health Insurance Plan Is Really Hard

“People want advice, they want leadership,” said Lang. “And it’s pretty hard.”

The people who are most likely to make bad decisions seem to be the least likely to be able to afford them. A recent study in the Netherlands, which offers insurance to everyone through an Obamacare-like market, found that only 5 percent of Dutch customers did a better job choosing an ideal plan than choosing a plan randomly. And the people in that top 5 percent usually had college degrees and jobs in technical fields. People with lower education and incomes, who tend to be in poorer health, are very likely to opt for a plan that costs them more to cover their health care – a situation where they may save on the drugs or procedures they need.

But well-trained Dutch specialists also had problems. People who worked in the insurance industry with an advanced degree made good choices about 30 percent of the time. And only about 40 percent of trained statisticians – the best performing group – chose good plans for their needs.

In the United States, a working paper found that many professionals who help people choose health insurance are also poor at choosing plans and far worse than a computer algorithm.

“These people who are supposed to get the market going can’t do that at all,” said Jonathan Kolstad, associate professor of economics at the University of California at Berkeley, who co-authored both studies. Professor Kolstad said the work made him rethink why we value the health insurance markets so highly when they are so difficult to use.

Choosing a plan is difficult, but a few simple guidelines can help a little. It is helpful to know if a particular plan covers the doctors and hospitals you use, for example. And if you’re willing to take more financial risks, you may prefer a plan with a higher deductible and lower premiums. As you evaluate more predictable expenses, a lower deductible plan may work better. However, actual health needs and insurance fine print vary so widely that these guides can mislead you. The literature shows that it is not uncommon for people to choose a plan during the year that costs them $ 1,000 more than the best plan.

Most plan selection research deals with the financial design of the plan. Researchers can look at the options, see what health services people end up using, and see the total cost of various decisions. This approach leaves out some other elements of health plans, such as the choice of doctors or whether the company provides good customer service. The study of brokers found that people whose plan selection was aided by the computer program were less likely to switch plans over the next year than people who followed the broker’s advice unaided, a sign that they were more satisfied with the overall package .

But what is the alternative to choosing? Amanda Starc, a professor of management at Northwestern University, said there was evidence that people really wanted things other than health insurance. About a third of those 65 and over are currently enrolled on Medicare Advantage private plans. That proportion is large enough to indicate that many would just be less satisfied with their choice of state Medicare.