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Name: GB Crean
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Bad Economics

 

Three cheers to Connecticut Governor Jodi Rell.  Thankfully she never studied economics and learned the rules of cause and effect.  In the following  Hartford Courant article 

http://www.courant.com/news/local/hc-husky1120.artnov20,0,5693652.story the state has basically fired four in-state insurance companies who  received $700 million in premiums, and were probably the four lowest bidders on the Husky health coverage. The reason, the private insurance companies will not adhere to state freedom of information laws.   The state doesn’t have any insurance companies who are willing to take over this coverage for the same amount.  Now these in state insurance companies will have to lay off state residents due to the loss of this big state contract. The unemployed residents will have less money to spend, reducing sales tax revenues, and income tax revenues, and corporate tax revenues on the $70 M in premium revenue will also evaporate. The insurance company employees who currently receive company sponsored health insurance benefits will be out of work and without health insurance benefits.  The aforementioned unemployed insurance workers will then have to go on the Husky plan costing the state more money.  The state will be moving over $700 million in premiums to out of state companies. Less sales tax revenue, less income tax revenue, less corporate tax revenue, and higher rates for the same health insurance. This

brain dead policy is from the Rell administration, hardly the champion of full disclosure and freedom of information. When will the politicians like Rell  get it?  Someone should remind Jodi Rell to turn out the light when everyone has left Connecticut. The politicians  interference with free commerce has a chilling, negative impact on our state's economy. Mark my words, the new insurance providers will charge more, and provide fewer benefits than their predecessors because there will no longer be any competiton for the Husky policy.   The four in-state insurance companies will not longer be willing or able to bid competitively. If it wasn't for bad policies, there would be no policies from the Rell administration.

 

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