samhill wrote:Pastor, I thought that AIG was an independent Insurance Carrier raising rates as they all are because they can before HC fully kicks in as allowed in the free enterprise system & that leway was the best their lobbyist could get. Do you really think that rates would not have been going up all along as they always have if not for the HC Law? They might be going up faster because their time is running out but they have always been going up & it was always unregulated as far as I know.
Very good question samhill......I worked for an insurance company for 27 years. Make no mistake, they are definitely for profit corporations. They are a business like any other business. They are not there for your benefit despite what the ads say. They are there to make a profit. End of story...... I sat on committees that worked up premium increase requests.
Contrary to popular belief insurance companies ARE regulated by the insurance commissioners and committees in all the states. Under normal circumstances the company submits their request for rate increases to the insurance commissioners along with the proof that they NEED the rate increase to remain profitable and continue to pay a reasonable rate of return to their stock holders. The insurance commissions in each state approve\disapprove\ and negotiate premium increases. Under normal circumstances market conditions dictate what the premiums were going to settle at. This is why the cost for the very same coverage will vary from state to state.............................................
Therein lies the whole stinking problem. And NO insurance companies are NOT LIKE ANY OTHER BUSINESS !!!!!!!
Name me another business where you send them money BEFORE you even get to see what you thought you purchased.
Insurance companies are allowed to run amuck without any real oversight.
The last good insurance commissioner we had in PA was Herb Denenberg (sp?) He was the last one to look out for individual consumers. Since then PA has had one after the other commissioner that has been nothing but a puppet to the insurance companies. Their sole function is to make sure that the insurance companies remain PROFITABLE..............
The insurance industry has the largest lobby of any legislature both statewide and federally.
Funny how insurance commissioners usually come from the insurance industry and upon retiring as commissioners, immediately go back to the same insurance industry. Now do you think that they would do anything against an insurer when they expect to go back there for a job ??
As my trade group representatives leave a meeting with the insurance commissioner complaining about insurer practices, the insurance lobbyist is entering the office to downplay our concerns. We have documented evidence of insurer malfeasance but nothing gets done.
Want to straighten out this whole mess ??? Start with the insurance industry !!!!!
Interested in some reading.....google the 1963 Consent Decree.