Tag Archives: insurance

Trump expected to sign order side-stepping Obamacare rules

FILE PHOTO: U.S. President Donald Trump calls on Republican Senators to move forward and vote on a healthcare bill to replace the Affordable Care Act, as people negatively affected by the law stand behind him, in the Blue Room of the White House in Washington, U.S., July 24, 2017. REUTERS/Joshua Roberts

By Yasmeen Abutaleb

WASHINGTON (Reuters) – President Donald Trump was expected to sign an executive order on Thursday that would make it easier for Americans to buy bare-bones health insurance plans and circumvent rules put in place by Obamacare, though such an order could face legal challenges.

Stymied in Congress by the failure of Senate Republicans to roll back former President Barack Obama’s 2010 healthcare law, Trump’s executive order would represent his administration’s latest effort to undermine the law without legislation.

The order would allow small businesses and individuals to band together as associations to buy cheaper health plans that would be exempt from some Obamacare requirements. Among the requirements would be the mandate that all health plans cover 10 essential health benefits, including maternity and newborn care, prescription drugs, and mental health and addiction treatment.

The order would also change an Obama-era limit on the time span people can use short-term health insurance plans, which are cheaper but cover few medical benefits. Trump was expected to order an extension for the period that long short-term insurance can be used to about a year, versus three months under Obamacare.

Republicans, despite having control of the White House and both chambers of Congress, have for months been unable to make good on their seven-year promise to repeal Obamacare, which they view as a government intrusion into Americans’ healthcare.

Experts questioned whether Trump has the legal authority to expand association health plans and whether some plans, but not others, could be exempt from Obamacare rules.

The action could open Trump to legal challenges from Democratic state attorneys general, who have said they will sue Trump if he tries to destroy Obamacare, a law that brought health insurance coverage to millions of Americans.

Experts said the association health plans could attract young, healthy people and leave a sicker, more expensive patient pool in the individual insurance markets created under the healthcare law, driving up premiums and effectively eroding the law’s protection for those with pre-existing conditions.

Conservative groups and lawmakers, including Republican Senator Rand Paul, who said he has worked with Trump for months on the expected order, and Republican Senator Ron Johnson, have cheered the expected order. Paul opposed the Senate’s most recent attempt to overhaul Obamacare because he said it left too many of Obamcare’s regulations and spending programs in place.

Trump has taken a number of steps since assuming power in January to weaken or undermine Obamacare. He has not committed to making billions of dollars of payments to insurers guaranteed under Obamacare, prompting many to exit the individual market or hike premiums for 2018.

The administration also halved the open enrollment period, which begins Nov. 1, and slashed the Obamacare advertising and outreach budget.

(Reporting by Yasmeen Abutaleb; Editing by Kevin Drawbaugh and Leslie Adler)

Hiscox estimates $150 million net claims from Harvey

FILE PHOTO: Jesus Rodriguez rescues Gloria Garcia after rain from Hurricane Harvey flooded Pearland, in the outskirts of Houston, Texas, U.S. August 27, 2017. REUTERS/Adrees Latif/File Photo

By Noor Zainab Hussain

(Reuters) – Lloyd’s of London underwriter Hiscox Ltd <HSX.L> estimated it would face net claims of about $150 million from Hurricane Harvey and said it has yet to determine losses from Hurricane Irma.

Insurers and reinsurers are counting the cost of Harvey, which lashed Texas in the last week of August causing flooding that put it on the scale of Hurricane Sandy in 2012.

Hiscox said it had two main areas of exposure to the hurricane – reinsurance and insurance lines, including flood cover for homeowners and businesses.

“This (claims) is within the group’s modelled range of claims for an event of this nature, and reinsurance protections for the group remain substantially intact,” Hiscox said in a statement. It said its claims’ estimate was based on an industry forecast that Harvey would lead to a total insured market loss of $25 billion.

Hiscox shares fell 3.1 percent to 1212 pence by 0913 GMT, the second biggest loser on the Stoxx Europe 600 Price Index <.STOXX>, as analysts expected the company would face bigger losses from Hurricane Irma than Harvey.

Germany’s Munich Re <MUVGn.DE> last week warned it could miss its profit target this year, the first major reinsurer to flag a hit to earnings from damage caused by hurricanes Harvey and Irma.

Shore Capital analyst Eamonn Flanagan noted that the loss from Harvey equated to about 6 percent of Hiscox’s net tangible asset value as at the June end.

Hiscox said it would announce an estimate of net claims arising from Hurricane Irma, once the impact of that storm has become clearer.

Chief Executive Bronek Masojada said the storms meant insurance rates were on an uptrend.

“After a long period of price reductions, insurance rates in the affected areas and in specific sectors such as large property are likely to increase. In the wider global insurance market for large risks, we expect rates to stabilise and begin to increase,” Masojada said.

Irma, one of the most powerful Atlantic Ocean storms on record, ravaged several islands in the northern Caribbean, killing at least 60 people, before barrelling into Florida’s Gulf Coast, causing further destruction.

“With Irma expected to be a larger event, our initial view is this is slightly more negative than we had anticipated. We expect Hiscox to trade down today and expect uncertainty to persist around Beazley <BEZG.L> and Lancashire <LRE.L> who are yet to publish their own estimates,” Keefe, Bruyette & Woods analyst Rufus Hone, said, referring to other Lloyd’s of London insurers.

Hone added that while the this year would likely be a net loss overall for Hiscox, it would not have “much of an impact” on the insurer’s expansion plans or put the dividend under threat.

Risk modelling firms RMS estimates insured losses from Harvey of $25-$35 billion, while AIR Worldwide forecast total insured losses in the United States for Irma of $25-35 billion.

 

(Reporting by Noor Zainab Hussain in Bengaluru Editing by Anjuli Davies and Susan Fenton)

 

Obamacare repeal must move quickly, says Senate’s McConnell

Activists participate in a rally to protect the Affordable Care Act outside the U.S. Capitol in Washington, U.S., September 19, 2017. REUTERS/Aaron P. Bernstein

By Susan Cornwell

WASHINGTON (Reuters) – The U.S. Senate’s top Republican on Tuesday urged quick action on a bill to repeal Obamacare but stopped short of promising to bring it to the Senate floor for a vote, as the clock ticks down on the latest attempt to kill the 2010 healthcare law.

Mitch McConnell, the Senate’s Republican leader, called the legislation drafted by senators Lindsey Graham and Bill Cassidy “an intriguing idea and one that has a great deal of support.”

Lawmakers should act because “our opportunity to do so may well pass us by if we don’t act soon,” McConnell said on the Senate floor.

The bill has revived a fight that many in Washington thought was over when an Obamacare repeal-and-replace bill flopped in the Senate in July, humiliating McConnell and President Donald Trump.

The latest measure has less than two weeks before procedural rules in the Senate make it much more difficult for the Republicans to do away with Obamacare.

The bill proposes replacing Obamacare with a system that would give states money in block grants to run their own healthcare programs and let them opt out of some Obamacare rules. Critics say it would bring deep cuts to the Medicaid program for the poor and higher insurance premiums for older people.

“Graham-Cassidy would be devastating for individuals with pre-existing conditions,” the Center for American Progress, a liberal think tank in Washington, said in a statement.

McConnell stopped short of promising to bring the legislation to the Senate floor. But he said Republican lawmakers would continue to discuss it. He has been meeting with lawmakers to assess whether the bill has the votes to pass.

The proposal is the latest salvo in a long-running Republican war on Obamacare, and Graham and Cassidy say they are close to securing the votes needed for passage.

If approved, it would replace the 2010 Affordable Care Act, known informally as Obamacare, which Republicans have long seen as government overreach into the healthcare business.

Several Republicans – the same ones whose votes blocked repeal of Obamacare in July – are still undecided on the latest bill and time is running out.

A special parliamentary procedure that would allow the bill to move forward with only 51 votes will expire at the end of the month. After that, it would need 60 votes, like most Senate legislation. Republicans have a 52-vote Senate majority.

The Senate Finance Committee said it will hold a hearing on the bill next week.

If the Senate can pass the bill, “the hope would be that the House would take it up and pass it and the president sign it,” said John Cornyn, the No. 2 Senate Republican.

Senate Democratic Leader Chuck Schumer said Republicans were “grossly irresponsible” to consider legislation before even getting a full assessment of its impacts from the non-partisan Congressional Budget Office.

(Additional reporting by Richard Cowan and Amanda Becker; Editing by Chizu Nomiyama and Alistair Bell)

Texas governor signs bill to limit insurance coverage for abortions

FILE PHOTO: The Texas capitol building, crafted from pink granite, is seen in Austin, Texas September 19, 2012. REUTERS/Julia Robinson/File Photo

By Jon Herskovitz

AUSTIN, Texas (Reuters) – The Republican governor of Texas signed into law on Tuesday a measure that will restrict insurance coverage for abortions, compelling women to buy a supplemental plan if they want coverage for the procedure.

Governor Greg Abbott said the measure known as House Bill 214 would protect abortion opponents from subsidizing the procedure. Democratic critics decried it as forcing people to buy “rape insurance.”

Texas, the most-populous Republican-controlled state, has been at the forefront in enacting abortion restrictions, with many of its measures followed by other socially conservative states. But when HB 214 goes into law on Dec. 1, Texas will be the 11th state to restrict abortion coverage in private insurance plans written in the state.

“As a firm believer in Texas values, I am proud to sign legislation that ensures no Texan is ever required to pay for a procedure that ends the life of an unborn child,” Abbott said in a statement.

The Republican sponsor of a Senate bill on abortion insurance restriction, Brandon Creighton, has told local media supplemental coverage would cost $12 to $80 a year.

House Bill 214, which passed both chambers this month, mostly on a party-line vote, does not offer exceptions for cases of rape or incest. Abortion rights groups said they plan a court fight to prevent it from becoming law.

“By signing HB 214 into law, Governor Abbott has told women and parents they must pay extra for what is tantamount to ‘rape insurance,'” Democratic Representative Chris Turner, who opposed the bill, said on Tuesday.

There are 25 states with restrictions on abortion coverage in plans set up by state exchanges as part of the Affordable Care Act under former Democratic President Barack Obama, according to the Guttmacher Institute, which tracks such legislation.

Also on Tuesday, Abbott signed another measure that expands reporting requirements for complications arising from abortions.

(Reporting by Jon Herskovitz; Edited by Colleen Jenkins and Sandra Maler)

Texas bill restricting insurance coverage for abortions nears approval

Texas bill restricting insurance coverage for abortions nears approval

By Jon Herskovitz

AUSTIN, Texas (Reuters) – A Texas bill that would restrict insurance coverage for abortions was approved by the state’s Republican-controlled House of Representatives on Wednesday, a move critics called cruel and damaging to women’s health.

The House measure would ban insurance coverage for abortions and require women who wanted coverage to purchase a supplemental plan for an abortion, the latest effort by the most-populous Republican-controlled state to place restrictions on the procedure.

If enacted, the bill would take effect on Dec. 1 and make Texas the 11th state to restrict abortion coverage in private insurance plans written in the state.

The Republican-dominated Senate has passed a similar bill, and Republican Governor Greg Abbott has shown support for the measures.

The bill’s backers say it would protect abortion opponents from subsidizing the procedure. A Democratic critic decried it as forcing people to buy “rape insurance.”

“It’s a question of economic freedom and freedom in general,” Republican Representative John Smithee, the bill’s sponsor, said in House debate on Tuesday ahead of the bill receiving preliminary approval.

The Republican sponsor of the Senate bill, Brandon Creighton, has told local media supplemental coverage would cost $12 to $80 a year

House Bill 214, which passed mostly on a party-line vote, does not offer exceptions for cases of rape or incest. Abortion rights groups are likely fight the measure in court if enacted.

“Women and parents will be faced with the horrific decision of having to purchase ‘rape insurance’ to cover them if they are victimized,” Democratic Representative Chris Turner said in a statement. “This is not only ridiculous, but it is cruel.”

Idaho, Kansas and Oklahoma are among the 10 other states that make abortion coverage a supplement on private plans. There are 25 states with restrictions on abortion coverage in plans set up by state exchanges as part of the Affordable Care Act under former Democratic President Barack Obama, according to the Guttmacher Institute, which tracks such legislation.

“It is surprising that Texas has not done this before,” said Elizabeth Nash, senior state issues manager for Guttmacher.

The insurance measure is one of several bills concerning abortion before Texas lawmakers in a special session that runs through next week.

The Senate has already approved bills that include requiring physicians to improve notification of complications that occur during abortions and another that prohibits local governments from having contracts with abortion providers and their affiliates.

(Reporting by Jon Herskovitz; Editing by Colleen Jenkins and Lisa Shumaker)

Hundreds of counties at risk for no Obamacare insurer in 2018

FILE PHOTO: Healthcare activists protest against the Republican healthcare bill on Capitol Hill in Washington, U.S., July 19, 2017. REUTERS/Aaron P. Bernstein

By Caroline Humer

NEW YORK (Reuters) – With Republican efforts to dismantle Obamacare in disarray, hundreds of U.S. counties are at risk of losing access to private health coverage in 2018 as insurers consider pulling out of those markets in the coming months.

Republican senators failed this week to repeal and replace Obamacare, former President Barack Obama’s signature healthcare reform law, creating new uncertainty over how the program providing health benefits to 20 million Americans will be funded and managed in 2018.

In response, Republican President Donald Trump on Friday again suggested that his administration would let the Obamacare program “implode.” He has weakened enforcement of the law’s requirement for individuals to buy insurance, threatened to cut off funding and sought to change plan benefits through regulations.

Anthem Inc, Cigna Corp, Health Care Service Corp and Molina Healthcare, four of the biggest health insurers selling Obamacare plans, said they are weighing whether to pull out of more markets for 2018 rather than face financial losses. They have until Sept. 27 to finalize their plans.

So far, 40 U.S. counties are expected to have no insurer offering individual coverage next year, but that number could rise by the hundreds, according to U.S. government data, Kaiser Family Foundation analysis and insurer disclosures. More than 1,300 counties, primarily in 15 states, currently have only one insurer participating in 2018. Anthem and HCSC are the last man standing in one-third of those counties and states – putting those areas in particular at risk.

“Right now the number of counties at immediate risk of having no insurers in 2018 is small, but it could easily grow significantly if a couple major insurers decide to exit,” Larry Levitt, health economist at the Kaiser Family Foundation, said.

Many insurers have been waiting for an answer from Trump or lawmakers on whether they will continue to fund $8 billion in annual government subsidies. Without assurances, many insurers plan to raise rates an additional 20 percent by an Aug. 16 deadline for premium prices. Others say that the many unknowns will make the business too risky.

The last-minute drama has left millions of Americans questioning whether they will have medical coverage next year.

Julie Grady, a 59-year-old small business owner in Carson City, Nevada, is currently covered by Blue Cross Blue Shield of Nevada, part of Anthem, which has already decided to leave the exchanges in her county and most of the state. Carson City will have no insurer on the exchanges next year.

Grady’s pays a reduced premium of $70 per month and a deductible under $1,000 for her plan, which is part of the Affordable Care Act, commonly called Obamacare. Grady is looking at being uninsured, as she was before the law.

“I would have to go without health insurance,” she said. “I would just stay healthy, hike, eat well. I’d be in trouble if something catastrophic happened. I would lose everything.”

ANTHEM CONSIDERING 2018 PLANS

Anthem, the second-largest U.S. health insurer, sells Blue Cross Blue Shield plans in 14 states. It has already decided to pull out of most individual markets in Nevada, Ohio, Indiana and Wisconsin in 2018. Earlier this week, Chief Executive Officer Joe Swedish said he was still weighing 2018 participation in its other states.

In states like Colorado, Georgia, Kentucky, Missouri, and Virginia, Anthem sells plans in more than 250 counties where it is the only insurer, and they could be left “bare” next year, according to government data.

Health Care Services Corp is a Blue Cross Blue Shield licensee in five states and is the only Obamacare individual insurer in more than 90 Texas counties, more than 75 Oklahoma counties, and half a dozen Illinois counties. It confirmed on Friday that it has submitted products for its five states but is still weighing next year.

“We’re working through the regulatory filing process and hope to fully participate…in 2018, however no final decisions have been made,” HCSC spokeswoman Kristen Cunningham said.

Molina, which has more than 1 million members in Obamacare plans, and Cigna, with more than 250,000 participants, have said they need more certainty from the government to decide on 2018 participation and would weigh their decisions up until the late September deadline.

State insurance regulators have worked hard in recent months to replace insurers who have left. In Nevada, for instance, Centene Corp and Aetna Inc entered in some counties that Anthem left after the insurance commissioner said he would favor these insurers for its Medicaid contract bids.

But they are unlikely to find replacements for new dropouts in these final weeks, particularly if the Trump administration signals it won’t fund $8 billion in subsidies for out-of-pocket medical costs.

“There is almost no chance they would step in to participate,” said Kurt Wrobel, a fellow at the Society of Actuaries and chief financial officer of the Geisinger Health Plan in Pennsylvania.

Some insurers say they will likely just raise rates and hope it works. Blue Cross Blue Shield of Michigan filed two sets of rates with the state department of insurance, one up to 32 percent higher if the fate of subsidies remains unclear.

“We don’t have any plans to pull out,” said Rick Notter, director of the individual business at BCBS Michigan. “But it would certainly help to have more certainty around what the market holds.”

(Additional reporting by Jilian Mincer; Editing by Michele Gershberg and Cynthia Osterman)

Insurance could cut $29 billion natural disaster bill for poor nations

natural disaster

LONDON (Reuters) – New types of insurance could cut the costs of natural disasters for poorer countries and reduce the amount of humanitarian aid needed, according to a report commissioned by Britain’s international development ministry.

The cost of natural disasters to some of the world’s poorest countries has averaged a total of $29.1 billion a year in the past 15 years, catastrophe modeling firm RMS said.

While aid has covered 8 percent of this, insurance has only paid for 3 percent of the average costs of earthquakes, drought or floods in 77 low and low-middle income countries, or $900 million, but could cover up to $6.8 billion if more insurance structures were used, RMS said in the report prepared for Britain’s Department for International Development.

Britain said at last weekend’s G20 meeting it would set up the London Centre for Global Disaster Protection to help developing countries use insurance to cut disaster costs.

“There is clear potential for insurance to both reduce the shortfall in funding for natural disaster losses in low and low-middle income countries, and to relieve pressure on humanitarian aid budgets,” RMS said.

This includes using so-called “parametric” structures, where insurance payments are triggered by a predetermined factor, such as an increase in water height, at a specified location.

Such models are used in existing insurance facilities such as African Risk Capacity and make payments more effective.

On a disaster loss of $30 billion, every dollar paid out through parametric insurance has the same impact as $3.50 of slower-moving aid payments, RMS said.

“It’s not just about speed, it’s about certainty,” said Daniel Stander, global head of the firm’s public sector group, adding that parametric insurance enables countries to know in advance how much money they will receive in a disaster.

(Reporting by Carolyn Cohn; Editing by Alexander Smith)

U.S. Senate Republicans to issue revised health bill to win support

Speaker of the House Paul Ryan (R-WI) speaks after Senate Republicans unveiled their version of legislation that would replace Obamacare on Capitol Hill in Washington, U.S.

By Yasmeen Abutaleb and Richard Cowan

WASHINGTON (Reuters) – U.S. Senate Republicans plan to issue a revised version of their healthcare bill on Monday, according to a Republican Senate aide, as the chamber’s leaders scrambled to get legislation passed ahead of a July 4 holiday recess starting on Friday.

The aide, who is familiar with the plan, did not provide details of changes in the works. Politico reported that a likely change to the bill would be to add a provision to encourage people, mainly those who are young and healthy, to enroll in insurance plans.

President Donald Trump and his fellow Republicans in Congress have been pushing to repeal and replace Obamacare, Democratic former President Barack Obama’s signature domestic legislation. The House of Representatives passed its version of a healthcare bill last month.

The Senate bill unveiled last week was immediately criticized by both conservatives and moderates in the party. With Republicans holding only a 52-seat majority in the 100-seat Senate, the bill was unlikely to win passage in its initial form.

At least four conservative Republicans have expressed opposition to the draft legislation, saying it does not go far enough in repealing Obamacare.

A spokesman for Senate Majority Leader Mitch McConnell would not comment on whether a vote on a bill would be held in the full Senate on Thursday, as originally anticipated.

The nonpartisan Congressional Budget Office later Monday might release its assessment of the bill’s cost and impact on future budget deficits. It was not clear whether the report will also estimate how many people might lose healthcare coverage under the legislation or whether that estimate would come later.

Meanwhile, some moderate Republicans have either withheld judgment or expressed doubts about replacing Obamacare with legislation that is similar to the House version.

They are concerned that the party’s approach to healthcare would cause too many people, and especially those with low incomes, to lose insurance. Trump touted passage of the House bill as a victory but later called it “mean.”

Republicans have targeted Obamacare since it was passed in 2010, viewing it as costly government intrusion and saying individual insurance markets are collapsing. The legislation expanded health coverage to some 20 million Americans, through provisions such as mandating that individuals obtain health insurance and expanding Medicaid, the government program for the poor.

TRUMP’S INVOLVEMENT

As he did during the House negotiations, Trump has personally pushed for a Senate bill, calling fellow Republicans to mobilize support.

In the efforts by Senate Republicans to push through a bill, the party has split over a provision in the draft bill ending federal funding of Planned Parenthood, the women’s healthcare provider, for one year.

Moderates are wary of this, while conservatives have called for an end to federal funding of Planned Parenthood because it provides abortions, even though they are not performed with taxpayer dollars.

Health insurance companies are concerned about the bill’s plan to cut Medicaid and any impact on state governments as well as the prospect of losing Obamacare’s mandate on individuals to buy insurance without creating alternative incentives for people to stay in their plans.

If the Senate passes a bill, it will either have to be approved by the House, the two chambers would have to reconcile their differences in a conference committee, or the House could pass a new version and bounce it back to the Senate.

The House is also controlled by Republicans but faced a similar balancing act between moderates and conservatives to pass its version.

A Republican leadership aide in the House said if the Senate manages to pass a healthcare bill this week, no decision has been made on when the House might schedule a vote on it or whether House Republicans might seek any changes to the Senate measure.

(Writing by Richard Cowan and Frances Kerry; Editing by Jeffrey Benkoe)

After weeks of secrecy, U.S. Senate to unveil healthcare bill

FILE PHOTO - U.S. President Donald Trump (C) acknowledges House Speaker Paul Ryan (3rdL) as he gathers with Congressional Republicans in the Rose Garden of the White House after the House of Representatives approved the American Healthcare Act, to repeal major parts of Obamacare and replace it with the Republican healthcare plan, in Washington, U.S., May 4, 2017. REUTERS/Carlos Barria

By Susan Cornwell and Richard Cowan

WASHINGTON (Reuters) – U.S. Senate Republicans plan to unveil the text of their draft healthcare bill on Thursday as senators struggle over issues such as the future of the Medicaid program for the poor and bringing down insurance costs.

Republicans in the chamber have been working for weeks behind closed doors on legislation aimed at repealing and replacing major portions of the Affordable Care Act, former Democratic President Barack Obama’s signature healthcare law, popularly known as Obamacare.

The effort has been plagued from the start by tensions between moderates and conservatives, which surfaced again on Tuesday. Democrats have also criticized the behind-the-scenes meetings, staging a protest on the Senate floor on Monday.

“Republicans are writing their healthcare bill under the cover of darkness because they are ashamed of it,” Senate Democratic leader Chuck Schumer charged.

President Donald Trump campaigned on a promise to repeal Obamacare. The 2010 law extended insurance coverage to millions of Americans through both subsidized private insurance and an expansion of Medicaid.

The Republican-controlled House of Representatives narrowly approved its version of repeal last month.

Trump has urged the Republican-led Senate to pass a more “generous” bill than that approved by the House, whose version he privately called “mean,” according to congressional sources.

An estimated 23 million people could lose their healthcare under the House plan, according to the non-partisan Congressional Budget Office. Senate Majority Leader Mitch McConnell said on Tuesday the Senate healthcare bill would be different from the House version, but he did not elaborate.

In the Senate, moderates including Senator Shelley Moore Capito have argued for a long, seven-year phase-out to the Medicaid expansion that happened under Obamacare. But Senator John Thune, a member of the Republican leadership, said on Tuesday the phase-out in the bill might just be three years.

Capito said on Tuesday she was also concerned the Senate healthcare plan might cap Medicaid spending and shift it to a lower growth rate in 2025. “That’s an issue,” she said.

CONSERVATIVES WARY

Senate conservatives also seemed wary of the emerging bill. Ted Cruz, a member of a core group of 13 Republicans who have been working on the legislation, told reporters the bill did not yet do enough to lower health insurance premiums. “If it is going to pass, the bill is going to have to make meaningful steps to reduce premiums,” he said.

Given the opposition of all Senate Democrats to repealing Obamacare, Republican leaders will need the support of at least 50 of the chamber’s 52 Republicans to ensure passage.

McConnell announced a discussion draft would be laid out on Thursday. The bill will be brought to the Senate floor once the CBO has assessed its cost and impact, “likely next week,” McConnell said.

Thune said the bill was not yet finalized, saying: “We’re trying to get definitive determinations” on a range of issues.

Vice President Mike Pence predicted that new healthcare legislation would be enacted this summer.

“I want to assure you, before this summer is over … President Donald Trump and this Congress will keep their promise to the American people, and we will repeal and replace Obamacare,” Pence told a meeting of the National Association of Manufacturers.

(Editing by Caren Bohan and Peter Cooney)

Companies use kidnap insurance to guard against ransomware attacks

FILE PHOTO: A screenshot shows a WannaCry ransomware demand, provided by cyber security firm Symantec, in Mountain View, California, U.S. May 15, 2017. Courtesy of Symantec/Handout via REUTERS/File Photo

By Suzanne Barlyn and Carolyn Cohn

NEW YORK/LONDON (Reuters) – Companies without cyber insurance are dusting off policies covering kidnap, ransom and extortion in the world’s political hotspots to recoup losses caused by ransomware viruses such as “WannaCry”, insurers say.

Cyber insurance can be expensive to buy and is not widely used outside the United States, with one insurer previously describing the cost as $100,000 for $10 million in data breach insurance.

Some companies do not even consider it because they do not think they are targets.

The kidnap policies, known as K&R coverage, are typically used by multinational companies looking to protect their staff in areas where violence related to oil and mining operations is common, such as parts of Africa and Latin America. Companies could also tap them to cover losses following the WannaCry attack, which used malicious software, known as ransomware, to lock up more than 200,000 computers in more than 150 countries, and demand payments to free them up. Pay-outs on K&R for ransomware attacks may be lower and the policies less suitable than those offered by traditional cyber insurance, insurers say.

“There will be some creative forensic lawyers who will be looking at policies,” said Patrick Gage, chief underwriting officer at CNA Hardy, a specialist commercial insurer, in London.

He added, however, that given that K&R policies are geared towards a threat to lives, “our absolute preference is that people buy specific cover, rather than relying on insurance coverage that is not specific”.

American International Group Inc, Hiscox Ltd and the Travelers Companies Inc have been receiving ransomware claims from some customers with K&R policies as ransomware attacks become more common, the companies said.

The insurers declined to comment on total claims, citing confidentiality and client security concerns.

“We are seeing claims (over the past 18 months) but not a huge uptick,” a Hiscox spokeswoman said. “These are within expectations and entirely manageable.”

She declined to say whether the firm had seen any such claims from the WannaCry attacks though Tom Harvey, an expert in cyber risk management at catastrophe modeling firm RMS, said “insurers with kidnap and ransom books will want to look closely at their policy wordings to see whether they are exposed.”

A sharp rise in ransomware attacks in the past 18 months has driven companies to use K&R policies to cover some of their damages if they do not have direct cyber coverage or cannot meet initial cyber policy deductible costs, insurers said.

Symantec Corp,, a cyber security firm based in Mountain View in California, observed over 460,000 ransomware attempts in 2016, up 36 percent from 2015, the company said. The average payment demand ballooned from $294 to $1,077, a 266 percent increase. But as the threat mounts, K&R insurers are at risk from steeper claims than they had anticipated. They are responding by making changes to their policies, which were not designed around ransomware, insurance brokers said. MORE DAMAGING THEN KIDNAPPING Most of the computers affected by WannaCry were outside the United States, where companies have been slow to buy cyber insurance. Nearly 90 percent of the world’s annual cyber insurance premium of $2.5-3 billion comes from the U.S. market, according to insurance broker Aon Plc.

Global companies typically buy K&R policies without ransomware in mind. But instances of high-tech hacks and online ransom demands can hit a company’s business more than an executive being held hostage.

“If your CFO (chief financial officer) gets kidnapped, the company is going to continue to function,” said Bob Parisi, cyber product leader for insurance broker Marsh & McLennan Companies Inc.

“If you get a get a piece of malware in the system, you might have two factories that stop working. The actual damage is probably greater.”

The K&R policies, which typically do not have deductibles, cover the ransom payments as well as crisis response services, including getting in touch with criminal and regulatory authorities, said Kevin Kalinich, global head of Aon’s cyber risk practice.

Still, K&R policies may provide only a quick fix since they were not designed for ransomware. Companies can add coverage for business interruption, but the upper limits for pay-outs are usually lower than for a cyber policy, insurers say.

K&R insurers have been adapting to ransomware-related claims – some are modernizing coverage by setting up Bitcoin accounts for clients to speed up ransom payments, brokers said.

But insurers are mindful of their own risks.

Some have added deductibles, said Anthony Dagostino, head of global cyber risk at Willis Towers Watson PLC advisory and brokerage.

AIG has reduced business interruption coverage available for K&R policies to a $1 million maximum, from much higher and more flexible limits, said Tracie Grella, global head of cyber risk insurance at AIG.

“Insurers didn’t anticipate there would be this much ransomware activity,” Grella said.

(Reporting by Suzanne Barlyn and Carolyn Cohn; Editing by Carmel Crimmins adn Timothy Heritage)