In addition to my responsibilities intimacy, i serve in leadership roles on the National Association of Insurance Commissioners. And as a member of the federal advisory committee. I spent most of my career and insurance regular can, previously serving in kentucky. I have a strong affinity for the statebased oversight. My testimony today will highlight the history of tennessee coops. My comments will focus on events this year that ultimately led to on october 14. They were awarded loans and advances to launch the company. In first offered plans 2014 with plans and five of disease eight Service Areas of tennessees eighth Service Areas. Options,mited network the company memberships and rate challenges were compounded by a population that was love healthy and sought less healthy and sought more services. The loss was 22 million in 2015. Enrollment grew financially, during open enrollment. And are the same period, medical costs continued to increase. The department and cha quickly recognize
To the other plan raise costs . Every plan lost. That is what i understand. They had to underbid. Some survived and some did not. We did not have any company accurately. And so some of our larger established companies could withstand losses, but the coop did not have resources available. What would you say are the top reasons, 1200 the 23 failed . Internal problems, too. Do you have insight into the top reasons why they fail . I do not know what happened in the other groups surprising payments a set of receivables. Why dont we just suggest that there were no mistakes made by management in coops , but if you look across the marketplace where you see is that this was a competitive marketplace and Insurance Companies priced aggressively. The difference was they did not have other business and surplus, and their capitol was continuously reduced and whenwhen the commissioner talks about learning to sail in a hurricane that is especially apt to a situation where we were prohibited from build
Influence the upcoming decades . And if so, what is the strategic solution if they have one solution. But this can dissolve this issue with the new appointment. Because as we have been witnessing the party has not forgotten [inaudible] who have this party and they have not forgotten this. How do we expect that the person who is a leading member of the party will be with the taliban overall. Thank you. Well, lets look at it from a different angle. There was a war. They were one in infection. [inaudible] and if one of them called themselves. [inaudible] going back to a title that they had earlier, that is just a title. And they are now transformed into a Political Party nonaudit its a Political Party, no . [inaudible] [inaudible] and so it is not 100 there may be 80 . [inaudible] and so they may be transformed into a Political Party like this. [inaudible] and that can be a time when we have a solution to the problem. [inaudible] i want to thank all of you for coming here this afternoon a
Corridors and they were confident they would get the must be back because i said what are you presuming for the number of healthy subscrapers under age 30 . Well, a third of our subscribers will be young and healthy. And i said you know what are you guys smoking . Thats not going to happen. Whats going to happen when it community . Well, well lose money and the government will make it up to us. This was set up for failure from day one. The Insurance Companies knew it was going to fail. They released a product that was underpriced that could not make money. So mr. Morrison, when you talk about it being not capitalized properly, would you agree with me if the coops made money we wouldnt be having this discussion . You dont need more capital if you start with x and you make money. Isnt that just fundamental common sense . I would agree with that. So and all the companies lost money. So were here because obamacare was set up for failure. It was set up to encourage low premiums, to deceive
Is it federal or state and local job . It is a job of every local government. City, county, state, federal. When i was in the state legislature i discovered we had passed laws that essentially banned 56 provisions from people who had been incarcerated. One was you wouldnt get a license to barber. Yet in state prison we taught barbering. Then the individual couldnt get a license. So we had to pass legislation to undo that. So when the war on drugs started in the 1980s we passed 2,000 laws of the years. We banned people from working. We need to look at a lot of legislation passed over the years and essentially unwind some of it. But we do have to create supportive services. People need support groups to help them do basic things, get their i. D. S, drivers license, may back child support, get their children back if their children have been entered into foster care. One of the things we dont pay a lot of attention to is the fact that a lot of people have been incarcerat incarcerated. The