Connecticut insurance commissioner criticized for allowing insurance rate hikes

A Connecticut state senator and a union-backed labor group are calling on Gov. M. Jodi Rell to dismiss Insurance Commissioner Thomas R. Sullivan for what they contend is politically motivated lax oversight of health insurers in the state.

At issue are claims that Sullivan is using the recently passed federal health reform to rubber-stamp and justify large rate increases by insurers, as well as his opposition last year to a bill that would have required public hearings for any instance in which an insurance company requested rate increases in excess of 10 percent.

"Mr. Sullivan is joined by the right-wing politicians across the country spreading distortion that an increase in the insurance rates (is) justified and that passing along the expense to consumers is OK because of the new federal health care reform bill. This reason is not supported by facts," said Phil Wheeler, president of Citizens for Economic Opportunity, which joined State Sen. Edith Sprague in calling for Sullivan's ouster.

In response, Sullivan said "removing me as insurance commissioner does nothing to address the inconvenient truth that the federal healthcare reform law has caused premiums to increase due to the federal government's failure to address the rising costs of medical care while simultaneously increasing the value of the benefits carriers are required to provide."

Sullivan's critics contend that instead of serving the people of Connecticut, he is siding with the insurance companies. They point to a recently approved 47 percent rate increase by Anthem Blue Cross Blue Shield for new individual policies, and say estimates from the Department of Health and Human Services indicate the Affordable Care Act should only lead to an increase of 1 percent to 2 percent.

"There is no doubt in my mind that Commissioner Sullivan is not doing the right thing by the people of this state," said Sprague at a Monday press conference. "I hope he hears this loud and clear and I hope the governor hears this loud and clear."

"Comparing an isolated statement in this report to the Anthem increase is not telling the full story," according to a fact sheet distributed by Sullivan's office. "It does not address the reality that plans with limited benefits will see much higher rate increases than plans with more comprehensive benefits."

Further, the fact sheet singles out the mandate that the change in Anthem's original plan design that covered $500 annually for prescription medications to the federally mandated $750,000 annually to be complaint with the new federal law was responsible for roughly 23 percent of the premium increase.

His opponents aren't buying the argument. In a letter to Rell, CEO contends that Sullivan's opposition to S.B. 194, which would have required public hearings for rate increases of more than 10 percent, show he isn't interested in a transparent and open process.

"What is Mr. Sullivan afraid of?" the letter asks. "When the system is more transparent and consumers have a voice in the process and rate decisions are made openly, everyone benefits."