Landry to testify on insurance bill as rates remain highest in US
BATON ROUGE, La. (Louisiana First) — Gov. Jeff Landry will testify before state lawmakers Wednesday morning as part of his ongoing push to overhaul Louisiana's insurance system and bring down the highest car and home insurance rates in the nation.
Landry is supporting House Bill 576, sponsored by Rep. Robby Carter (D-Amite), which would make sweeping changes to how insurance rates are regulated in Louisiana. The bill would strip the state's insurance commissioner of the power to reject rates in competitive markets—even if they're considered excessive, inadequate, or unfairly discriminatory. It would also prohibit the commissioner from rejecting any rate that is actuarially justified.
The proposed legislation repeals current rules that distinguish between 'competitive' and 'noncompetitive' markets, replacing them with a uniform standard. Under the bill, a rate could only be disapproved if it fails to meet the general standards of fairness and actuarial support.
Car and homeowners insurance in Louisiana have been identified as the most expensive in the country. According to Bankrate, the average cost of full-coverage car insurance is $3,994—more than double the national average. Insurify estimates the state's average annual home insurance premium will rise to $13,937 in 2025, the highest in the U.S.
Gov. Jeff Landry outlines priorities for Louisiana legislative session
The changes come amid growing public frustration over soaring premiums and limited insurance availability following several destructive storm seasons.
In a post to X last week, Landry appeared to take aim at Insurance Commissioner Tim Temple, writing, 'I'd remind him that we were not elected by insurance companies or trial lawyers, but instead were elected by the people who entrusted us to fix this mess.'
Temple has pushed back on criticism, arguing that companies are not profiting in Louisiana but are instead leaving the state because of unsustainable losses and legal risk. He has introduced his own package of insurance reform bills, setting up competing visions for how to stabilize the market.
Landry's plan includes a ban on insurers passing along advertising costs to consumers and a proposal to hold both insurance companies and trial lawyers accountable for costs passed on to policyholders.
The regular legislative session continues through June 12. The full House Insurance Committee is expected to take up HB 576 at 9 a.m. Wednesday, April 16. Landry's testimony before the House Insurance Committee will be streamed live within this story.
Lying to get cheaper car insurance can end up costing you
Landry to testify on insurance bill as rates remain highest in US
Bigger Social Security payments going out this month: Do you qualify?
Judge rules against parents who wore wristbands to protest transgender student athlete
White House on tariff deal with Beijing: 'The ball is in China's court'
Who is Cody Allen Balmer, man accused of attack on Pennsylvania Gov. Josh Shapiro's home?
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Why everyone from Musk to Wall Street is worried about U.S. debt payments
The Republicans' "big beautiful" budget package is uniting everyone from Elon Musk to Wall Street over an issue that experts say could pose a threat to the nation's long-term fiscal stability: The rising cost of servicing the U.S. government's growing mountain of debt. The U.S. spent $1.1 trillion in interest on its debt in 2024 — almost double the amount it was paying five years ago, according to Federal Reserve Bank of St. Louis data. The nation now spends more on interest payments than it does on defense, data from the Stockholm International Peace Research Institute shows. Those costs could rise even more under the Republican tax and spending bill now being considered in the Senate, according to a June 5 analysis by the Congressional Budget Office. The version of the tax bill passed by the House last month is projected to increase the federal deficit — the gap between what the federal government spends each year and what it collects in revenue — by $2.4 trillion over the next decade, the nonpartisan agency found. That would require the government to raise additional debt, resulting in additional interest payments of about $550 billion over the next decade, the CBO forecasts. By 2035, interest on the nation's debt could reach $1.8 trillion, according to the Committee for a Responsible Federal Budget, a nonpartisan think tank focused on fiscal issues. "The interest costs now are bigger than defense spending, which is an extraordinary," Chris Edwards, an expert on federal tax issues at the Cato Institute, a libertarian-leaning think tank, told CBS MoneyWatch. "The budget threat here is that all of these increasing federal interest costs will crowd out all the other priorities in the federal budget that the policymakers want to spend on." In other words, the federal government could struggle to support vital programs like Social Security as a larger share of its budget is eaten up by interest payments on the nation's swelling debt. Federal interest payments as a share of the nation's gross domestic product stood at 3% last year, according to Federal Reserve Bank of St. Louis data. If current trends holds, that could rise to 4.1% of GDP by 2035, the nonpartisan Peter G. Peterson Foundation estimates. This embedded content is not available in your region. !function(){"use strict"; 0!== e= t in r,i=0;r=e[i];i++)if( d= Democrats have pointed to analyses showing the bill's tax cuts will benefit wealthier Americans far more than low- and middle-income workers while also adding to the national debt. "No single piece of legislation in my time here in Congress will do more to add to the national debt than this one," Rep. Brendan Boyle, a Democrat from Pennsylvania who voted against the legislation, said last month on the House floor. Many Republicans, however, point to the bill's proposed tax cuts as providing an avenue for economic growth. "We are going to celebrate a new golden age in America," House Speaker Mike Johnson said last month after the bill passed in the House. Concerns from Elon Musk, Wall Street The cost of paying for the nation's debt has drawn concern from many corners, including Tesla CEO Elon Musk, who earlier this month posted about it on social media as he voiced his objections to the GOP bill. "Congress is spending America into bankruptcy!" Musk posted on June 5, pointing to data showing that interest payments have risen from $416 billion in 2014 to more than $1 trillion in 2024. Moody's Ratings downgraded U.S. credit last month, citing among its reasons the mounting concerns about the nation's increasing debt load and interest payments. "Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs," the credit rating agency said. "Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat." Moody's added, "In turn, persistent, large fiscal deficits will drive the government's debt and interest burden higher." On June 7, the White House said in a memo that the GOP tax bill "significantly improves our nation's fiscal trajectory by including $1.7 trillion in mandatory savings," while President Trump's tax cuts will spur economic growth. Some economic forecasters project that Mr. Trump's tariffs will drag down U.S. growth. The nation's growth could slide to 1.6% in 2025 and 1.5% next year partly because of those import levies, a sharp reduction from the 2.8% growth recorded last year, the Organization for Economic Cooperation and Development said last week. How did interest payments get so big? In recent years, interest payments on the federal debt have ballooned for two main reasons. First, a series of COVID-related spending bills provided $4.6 trillion to individuals and businesses to help them keep afloat during the pandemic, with much of that financed through new debt. Second, the Federal Reserve started hiking interest rates in March of 2022 to tame high inflation. But that also meant the Treasury Department needed to pay higher rates to bondholders, adding to the cost of servicing the nation's burgeoning debt. In 2020, the U.S. had about $27 trillion in outstanding debt, according to Treasury data. By 2024, that had jumped 32% to $35.5 trillion. Over that time, the Fed's benchmark interest rate rose from close to zero percent to a high of more than 5% in 2024. One reason the Republican budget bill is forecast to increase the deficit — and add to the nation's interest costs — is that it would extend President Trump's 2017 tax cuts, as well as add other breaks, such as eliminating taxes on worker tips and overtime pay. Altogether, those tax cuts will cost $3.75 trillion, the CBO estimates. The revenue loss would be partially offset by nearly $1.3 trillion in reduced federal spending elsewhere, namely through Medicaid and food assistance. But that still leaves a significant funding gap. In the meantime, the U.S. could face a financial strain in servicing its debt, especially in the face of an economic slowdown, experts have warned. "The most dangerous scenario is that the giant size of our debt precipitates a U.S., and even global, economic recession and financial crisis," Cato's Edwards told CBS MoneyWatch. "We saw this 15 or so years ago in Greece and some other European countries. That sort of crisis could be coming to the United States at some point, but no financial expert knows exactly when that's going to be." An accused woman skips her pedicure, kills her ex-husband Watch California Gov. Gavin Newsom's full speech on federal response to Los Angeles protests LAPD chief speaks out about deployment of military forces to anti-ICE protests
Yahoo
2 hours ago
- Yahoo
Why More People Are Claiming Social Security This Year — Should You?
The number of people filing for Social Security typically increases each year amidst population growth and as more individuals reach retirement age. However, there has been a significant jump this year, likely driven by economic concerns, not just demographics. Check Out: Trending Now: So far this year, claims for retirement benefits are up 13% compared to the same time last year and for all of fiscal year 2025, the number of online retirement claims is on pace to hit 4 million — up 15% from last year, versus a 3% average increase from 2012 to 2024, according to the Urban Institute. Part of this trend involves an increase in people filing for Social Security early, including at age 62 when you can first start taking benefits. Below are why people are claiming early and whether you should, too. 'There is a great deal of national anxiety about the future of Social Security and Medicare that has grown in urgency since the beginning of 2025. People are seeing in the news and across social media a great deal of information about the future solvency issues for both programs, potential benefit cuts, possible increases in eligibility ages and the growing demand for these programs driven by an aging population,' said Chris Orestis, president of Retirement Genius. 'For many people this year, they are feeling like they want to get ahead of the storm and elect to start their benefits at the earliest age possible in fear that if they wait the program could be drastically different or even gone,' he said. Read Next: Another reason could be that more people are experiencing tighter budgets and want that extra income now, rather than several years later. 'Whether this was an early retirement, reduced income later in their career or simply the desire to meet increased expenses due to inflation, this all outweighed the option to wait for a higher benefit amount. If someone found themselves in a cash flow crunch, dollars now would likely win out over dollars later,' said Urban Adams, wealth manager at Dynamic Wealth Advisors. However, just because many new people are filing for Social Security, that doesn't mean you should follow the herd, as it depends on your situation. Although it might seem safer to file for Social Security now, you could be doing more damage in the long run. 'People who elect to take their Social Security benefit at 62 are locking in the lowest monthly benefit they are entitled to for the rest of their lives — and for many they are doing so driven by fear. If a person were to wait until the age of 70 to start collecting benefits they would be collecting almost twice as much compared to starting at 62,' Orestis said. 'But the psychology of the moment is fear and mistrust about the future because of all the negative headlines we are seeing. The future solvency of Social Security is a cause for concern, but electing to start benefits at a younger age and lower amount is being driven by emotion for many people more than by reason,' he added. 'It's important for anyone considering filing to take their entire financial plan into consideration. That will mean taking into consideration current and future cash flow needs, longevity or health issues and other resources — savings, investments, pension — that could help meet monthly expenses,' Adams said. If you can find ways to make your current cash flow work while delaying Social Security, that can greatly improve your future cash flow. But if you have concerns such as regarding your life expectancy, you might prefer the certainty of claiming benefits early. There's a lot to weigh and family considerations also come into play. 'It's also important to consider if the potential filer is married and their spouse is eligible for benefits as well. Taking these and other considerations into account when considering filing early should go a long way in helping one feel confident that they made an informed decision,' Adams explained. For some, that might mean solutions like having one spouse file early while the other waits, such as if that's for a higher-earning spouse who can maximize benefits by delaying them. However, others might find that it's not about strictly optimizing every dollar. 'If filing early helps relieve stress related to current expenses, avoiding that stress could be worth a great deal of peace of mind,' Adams added. More From GOBankingRates 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on Why More People Are Claiming Social Security This Year — Should You? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Americans flunk retirement literacy quiz. Here's why it matters.
Most American adults are stumped by basic retirement-related questions. That's according to a new report from the TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business. Most quiz respondents bombed, big time, when posed six questions related to Social Security benefits, Medicare coverage, employment-based retirement savings, ensuring lifetime income, and life expectancy in retirement. On average, they answered two out of six questions correctly. But is this surprising? 'Decisions concerning Social Security and Medicare are not that simple and require people to collect quite a bit of information to develop a plan,' said Annamaria Lusardi, co-author of the report and a senior fellow at the Stanford Institute for Economic Policy Research (SIEPR). 'For many people, Social Security and Medicare are not enough, and this is why it is alarming to see that the knowledge of how these institutions work is so limited.' By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Curious about your retirement know-how? Take the abbreviated quiz below. Many Americans expect Medicare, for example, will cover all of their expenses. 'It's a shock to them that it doesn't,' Surya Kolluri, head of the TIAA Institute, told Yahoo Finance. 'And then it's a further surprise that if their income is high, they'll pay higher premiums for Medicare Part B and prescription drug benefits.' Why financial literacy matters: People who have a grip on retirement concepts are more likely to have a better shot at not outliving their money. It's no wonder many of us fall short. Only about 28 states have financial literacy requirements for high school students to graduate. It's typically a one-semester course covering topics like budgeting, saving, and managing debt. The real trouble begins when someone starts a job. Waiting to start a retirement savings account even for a year or so has lifelong consequences in terms of saving for retirement. Can you say compounding? 'One of the places that could make an impact is if employers were to offer this education when young adults join the company,' Kolluri said. 'It's a perfect time." It's good to know how many years you have to save for. Only a third of Americans knew that, on average, in the US a 65-year-old man will live about 19 more years to age 84 and a 65-year-old woman about 22 more years to age 87, according to the report. Learn more: How much should I have saved by 50? Having a bead on how many years you might potentially need to finance after you step away from the workforce is key, Michael Finke, professor of wealth management and director of the Granum Center for Financial Security at The American College of Financial Services, told Yahoo Finance. 'Those who understand average longevity are 54% more likely to plan for spending into their 90s and delay tapping Social Security checks,' Finke, who is the co-author of a new study focused on financial planning for longevity, said. 'Those who had an unrealistically low expectation of retirement longevity were far more likely to indicate that they plan to claim Social Security income benefits before the age of 65,' he added. Read more: What is the retirement age for Social Security, 401(k), and IRA withdrawals? 'The main hurdle for people to answer these questions correctly is they haven't sat down and thought about what they'll need in retirement and what the situation might look like,' Jeremy Burke, a senior economist at the University of Southern California's Center for Economic and Social Research, told Yahoo Finance. 'As people get closer to retirement, they tend to pay a little more attention to it. It's a big ask for a lot of folks to try to think about in 30 years what their financial situation's going to look like.' He's spot on. I certainly didn't give it a passing thought and have been open about cashing out an employer plan when I was 30, paying the penalty and tax, and never looking back. That is until now, when I muse about what that might be worth today. Generally, people become more knowledgeable about finances as it becomes more germane. 'Decisions like whether I should put money away in an Individual Retirement Account (IRA) become relevant when you have enough money to set aside in an IRA, or when you get your first job and are making the decision about how much to save in a 401(k),' Finke said. 'It only becomes salient when we're forced to see the relevancy of that choice in our own lives.' Learn more: What is a 401(k)? A guide to the rules and how it works. Then, too, for the most part many people save for retirement these days in default investments like target-date funds which don't require any knowledge of the financial wizardry behind them. Nearly 7 in 10 of workers save in automatic investments in their employer-provided accounts that don't require that they do anything, Finke said. 'In essence, when it comes to retirement savings, we've bubble wrapped the worker experience when it comes to saving.' That is a good thing in many ways, but sticky stuff comes when they invest outside of their 401(k), and are prone to making investment mistakes because they're not as knowledgeable as they need to be, he tripping point in retirement planning is that when people think about whether they have saved enough for retirement it's all about focusing on their number, Finke said. 'That's the total amount of savings that you have in your retirement account, but that number really doesn't mean anything to anybody because it's so difficult to translate the number into a lifestyle.' I agree. Being a 401(k) millionaire sounds like heady stuff, but what does that really mean when you might have three decades of living costs post-retirement? "Simply saying that people are too stupid to make good financial decisions is not the right way to go about helping people make better choices,' Finke said. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work" and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
