Premium increases by health insurers across the nation are taking center stage to justify the need for health care reform, as a way to stuff the pocket of company executives and now, in Connecticut, the reason the state should elect its insurance commissioner.

Ed Meyer

Connecticut State Senator Ed Meyer (D-12th District) said he is planning two bills to combat rising premiums, including one to have the public elect its top insurance regulator. Currently, the top post at the Connecticut Insurance Department is appointed by the governor, as is the case in several states nationwide.

Meyer said these appointments “have traditionally come from the insurance companies, and their actions have reflected little independence and a pro-industry bias.

“Thus, I am proposing that the Connecticut insurance commissioner be elected by the people,” Meyer said in a statement. “A little more democracy will help.”

In a statement to IFAwebnews.com, Connecticut Insurance Commissioner Thomas R. Sullivan said he supports “increased transparency” regarding insurance regulation.

“We are currently collaborating with the proponents of legislation to increase transparency and public participation into our process while preserving the actuarial standards of practice,” he said.

Meyer, a former federal prosecutor, said he also plans to propose a bill allowing the state’s attorney general and healthcare advocate to intervene in all premium increase proceedings held by the Connecticut Insurance Department. Those discussions are currently closed and “clearly not in the public interest,” he said.

The ‘travesty’ of premium increases

Meyer said Connecticut was once known as the insurance capitol of the world, gaining that reputation by protecting insurers charging among the highest premiums in the nation, activity that continues today.

He cited a study by the Connecticut Office of Legislative Research indicating that of the 23 most recent rate increase applications by health insurance companies conducting business in the state, 19 were approved exactly as submitted. The increases, Meyer said, averaged about 15% on an annual basis and increases at this rate have been granted by insurance regulators for the last five years.

“The travesty of this premium increase pattern comes from the fact that our health insurance companies are reporting extraordinary profits,” he said. “These large profits were achieved not only by the premium rate increases granted by our insurance department but also by the sad fact that the insurance companies covered fewer patients than in previous years.”

Sullivan called rate review “serious business” in his department, noting staff “thoroughly review each filing while adhering to the actuarial standards of practice.

“We are regulators and have a multi-layered mission that prevents us from making decisions without actuarial evidence and data to support that decision,” he said. “The undeniable fact is that more people are using medical services and those services are more expensive each year and are growing at an alarming rate.”

Sullivan invited Meyer and others to an informational hearing March 11 on how his office conducts rate authority an also invited the state senator to the insurance department “to provide him with a better understanding of the process.”