Comm. Has Hard
Times Ahead – Sullivan

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“If insurance is in [the bill] or not, that remains to be seen,” Sullivan said. “It was carved out in the House version of the bill, so we don’t think there’s a need for dual regulation, but things like systemic risk regulation do need to be dealt with.” Sullivan said when he testified in front of Barney Frank, chairman of the House Financial Services Committee, Frank was complimentary in his comments about why state regulation works and is important.

“The crisis that we’ve all just been through has proven the worthiness of state regulation and we’ve gotten the attention of everyone in Congress,” Sullivan said, noting that PIA has been a National Association of Insurance Commissioners (NAIC) ally in fighting an optional federal charter (OFC).

“That threat is omnipresent; the well-funded insurance industry would rather have one single regulator than dealing with 50 of me – imagine 50 of me?” he joked.

Sullivan added that the NAIC is also working on a set of uniform standards for state insurance commissioners to improve harmonization between states, and called it “foolhardy” to displace a functioning regulatory regime for a single regulator.

Healthcare

Sullivan said that no matter which health care bill is crafted, it will not fix what he considers the root problem of the healthcare industry – the fact payment is not “fee for service.” “Providers, doctors, and medical professionals are getting paid every time you walk through the door – they don’t get paid based on whether they make you healthy or cure your cancer,” he said, adding jokingly, “[Agents], by the way, you get paid regardless if you produce the next policy, or whether

or not you’re successful in running your business, right? The medical community gets paid on volume – it’s all about how many times you treat the patient.” Sullivan said the way to change that system is to pay doctors for producing results in their patients, which could be measured by tracking patients’ wellness and paying doctors more who get their patients healthier in a given amount of time.

On the Home Front

More locally, Sullivan said the state of Connecticut is increasingly being pushed up against a wall, with its debt growing and growing – and the measures that will have to be taken to remedy the state’s downward spiral into debt will most likely affect small business owners.

“Good luck to the General Assembly next year because the crisis is real, and the effects of kicking the can down the road over the last few years have reared their ugly head,” he said, noting that last year’s budget woes were solved mainly due to federal stimulus money and the state’s rainy day fund.

Legislative Initiatives

There are currently four proposals that the Commissioner’s Office is pursuing in Connecticut – a bill increasing the authority of the Commissioner in dealing with bail bondsmen undercutting one another, another enforcement bill that would strengthen the authority of the commissioner’s office on some smaller technical details, another which would require third party health insurance administrators to obtain licenses in Connecticut, and a medical malpractice data reporting bill.

Sullivan added that he greatly appreciates the hard work of agents in the state of Connecticut, and that they provide a real value to consumers.

 

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“We have 300 million residents – some of them just don’t want to talk to a lizard or a 1-800 number, he said. “Keep doing what you’re doing.”

calendar

The South Shore Independent Insurance Agents Association meets on March 17 at 8 a.m. at Granite Grill in Braintree, Mass. Peg O'Brien of the National Fire Protection Association, the authority on fire and building safety, will give an overview of the NFPA's operations.Cost of the event is $15 and registration is requested by March 15. Members of the group are encouraged to offer suggestions for future meetings. More information is available by emailing csharland@ wgbridges.com.

The Essex Chapter of the Massachusetts Association of Insurance Women (MAIW) will meet on March 10 at 5 p.m. at Carrabba's Italian Grill in Peabody, Mass.

Jon Coppelman from Lynch Ryan, co-author of the blog "WorkersCompInsider," will speak. More information is available by contacting Mary Sarsfield, via email to Mary.Sarsfield@chartisinsurance.com.

The Boston Chapter of the CPCU Society will meet on March 11, at 8:30 a.m. at Seaport Hotel in Boston.

Gerry Leone, Middlesex District Attorney, will address the group. More information is available by contacting Leslie Emack via email at lemack@ risk-strategies.com.

The Berkshire Chapter of the MAIW meets on March 17 at 5 p.m. at Mazzeo's Ristorante in Pittsfield, Mass. Angela Dunn of Travelers Insurance will discuss "How to Read Your Customers." Officers for the 2010-2011 term will be elected at this meeting and special guest Cara Curtis, MAIW president, will attend.

Registration is requested by March 10 and can be sent to Donna Bishop, tel. (413) 663-2320 or email to dmbishop@cpdcinsurance.com. This meeting is the last opportunity to donate puzzle books to the nation's armed forces.