Posted by
GB Crean on Tuesday, November 27, 2007 8:43:06 AM
In my last posting I called out Connecticut Goveronor Jodi Rell for firing four in-state insurance companies who provide uninsured state residents with the Husky plan. Why was I surprised the next day when the Hartford Courant editorial staff endorsed this short sighted policy. In one of my favorite movies "Back to School" Rodney Dangerfield portrays Thornton Mellon a millionaire businessman who goes back to college. During one business class, Dangerfield tries to enlighten the business professor about how the real world works. At one point the professor, who has only text book knowledge of how the real business word operates asks the class where they should locate their fictional business. Dangerfield blurts out, "How about fantasyland?". That same sentiment goes out to Governor Rell, and the Courant editorial staff. Shouldn't the Rell adminstration have located other insurance companies who are willing to write the Husky policy under the guidelines of full disclosure before they terminated with the four instate companies. Will the full disclosure cost twice as much in premium dollars, for less coverage? Will that $700 million in premiums go to out of state insurance companies? What about the reduction in sales, income, and corporate taxes that will take place if Connecticut cannot locate an in-state insurance carrier? I am astonished how naive state officials in the Insurance Capital are of how premiums are calculated. There is never a free lunch when it comes to insurance premiums. Additions always cost more, and you are always at the liberty of who is willing to write the coverage. There is a strong possibility that no insurance companies will step up to write the Husky policy, what will happen then? Wil the state of Connecticut go into the health insurance business? If an insurance company is willing to write the Husky policy we can be assured it will be for a premium increase because the four lowest costs competitors will not bid the policy. Seems like the Rell administration should take business courses in long range planning, and risk management, before playing policy games with the Husky policy