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
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
And that relationship that we have with canada has enabled us to truly be able to provide Aerospace Control and maritime warning. That relationship is critical to the security of the United States and canada. Both our countries benefit from that against existential threats. That relationship that we have with canada is a model that is worthy of emulating. But a an Aerial Threat over the poles is not the only threat that north america faces. The Security Landscape is evolving. And north america faces a threat from the south. Now our threat from the south is not presently an existential threat but it is a Security Threat nonetheless and this threat that is transnational in nature exploits seams between countries. Its an organized threat. It is a networked threat. It is agile. Its adaptive and it can reach the point to where it actually destabilizes regions and it can also challenge sovereignty. So we broadly describe that threat as transnational organized crime. Now this threat enters th
Good morning. The Committee Meets today to receive testimony on u. S. Strategy in the middle east, and i want to thank our distinguished witnesses for appearing this morning and for their service to our nation. Before i proceed, id like to remind our witnesses this committees rules require written testimony be submitted 24 hours in advance of a hearing, and id like to try from now on for our witnesses to adhere to that. The tragic loss last week of Master Sergeant joshua walker, a veteran of 14 combat deployments reminds us of the high stakes of our mission in the middle east and how grateful we are to americans serving there. We need a strategy worthy of those who carry it out and, unfortunately, we dont have that. Whats worse it appears the administration has not even defined the problem correctly. A policy of isil first fails to understand that eye significant for all of the threat it poses is actually a symptom of another power thats now raging across the middle east. The epicenter