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Gene Reed Action Plan 2008
There are many challenging issues that we will face over the next four years. It takes an experienced and proven leader to continue and expand upon strong consumer advocacy programs. For 23 years I’ve been standing up for your rights and will continue to do so in all aspects of insurance regulation as Delaware’s next Insurance Commissioner.
The most important role of the Insurance Commissioner is to protect ALL Delaware policyholders. We do that through strong financial solvency and market conduct oversight of the insurance industry. I am the only candidate with the experience needed to continue the current fight on issues that strengthen consumer protection and provide affordable and attainable insurance for ALL Delawareans. Here is part of my action plan for you as Delaware’s next Insurance Commissioner.
Healthcare All Delawareans, from families to employers, are overwhelmed by the rising cost of healthcare. Concerns include double digit increases in the cost of insurance protection. The increases far exceed increases in income. While reductions in benefits and increases in deductibles and co-pays are used to attempt to offset the rising costs of health insurance, these offsets represent further long-term costs to the consumer. Unreasonable denials for medication or treatments cause further distress to consumers.
If we are going to be successful in bringing about a system of health care that we can deliver for the citizens of our state that is available and affordable then we must focus on solutions for containing and controlling the escalating cost of health care. The cost of health care today threatens our very standard of living. With a strong emphasis on eliminating excesses and containing medical costs, Delaware can become the FIRST STATE to be successful in delivering a universal health care system that the rest of country will want to emulate.
Part of an approved health care system can and must focus upon preventative treatments. Chronic illness has been an issue adversely affecting the cost of health care for years. A study of strategies for expanding the availability of insurance coverage for diagnostic services and preventive care related to chronic illness as well as the education of insurance companies regarding the effectiveness of providing coverage for preventive treatments such as nutritional counseling must move forward. As your next Insurance Commissioner, I will continue working with the Governor, Lieutenant Governor, legislators, the Health Care Commission, Chronic Illness Task Force and community leaders on a comprehensive plan to reign in cost and to move forward with preventative care initiatives so that a viable universal health care system is accessible, available and affordable for all Delawareans.
The first step in the process of finding a resolution is to focus on programs that will bring the 13% of Delawareans currently uninsured into the ranks of the insured. To reach that goal, I will continue to fight for:
1. The creation of a statewide health insurance purchasing pool that will allow individuals and small businesses to obtain the most favorable premiums possible from the private insurance market. 2. Access to health care and health insurance coverage for all children through continued expansion of SCHIP regardless of family income. 3. Expanding access to coverage for children and young adults up to the age of 28 provided that the students either live in Delaware or are full-time students. 4. Regulation of all health insurance rates by the Department of Insurance. 5. Development of a Medicaid Buy-In Program to allow individuals with disabilities who would not otherwise be eligible for Medicaid to gain Medicaid coverage. 6. Reimbursement for mental health care services. Mental Health issues and coverage for mental health services are a primary concern. Insurance company approaches to mental health services should be on par with approaches to medical services. One change with immediate impact is reimbursement for court-ordered mental health treatment. Insurance companies should be approached and encouraged to determine what type of evaluation is necessary in order to have claims paid in these situations. In a situation where a qualified mental health care giver diagnoses and treats a patient, the treatment should be covered regardless of whether the treatment originated by a court order or private means. If a legitimate diagnosis is present and treatment is given by a covered provider, coverage should be available. 7. Continued and expanded consumer advocacy programs to ensure a successful roll-out and transition of all programs.
Annuities: Stop predatory practices on our Senior Citizen population. We need to continue to strengthen disclosure information pertaining to annuity products purchased by Delaware consumers. As Director of Market Conduct and Analysis for the Delaware Insurance Department, I know firsthand the horror stories of misrepresentations in this area. I have fought hard to recover hundreds of thousands of dollars in refunds to Delaware consumers. We need to ensure that consumers receive all of the information they need before they purchase retirement planning products. I am currently working on a plan to develop suitability standards that encompass both indexed fixed annuities and non-indexed fixed annuities.
Homeowners Insurance I will continue supporting Senate Bill 191, related to unfair cancellation of homeowners’ insurance and barring insurance companies from canceling homeowners’ policies because of reasonable claims. I will continue to work toward attracting and retaining good companies to expand homeowners’ insurance availability and affordability.
Flood Insurance I plan to continue and expand the Department’s outreach efforts to educate our public on flood insurance issues, and to make flood insurance more accessible, I will work closely with the State Banking Commissioner’s office, banking industry and Delaware Home Builders Association to promote an awareness campaign.
As your next Insurance Commissioner, I will advocate on a national level to increase the maximum coverage limits, to include optional coverage such as business interruption coverage and additional living expenses, and to improve affordability. An increase in coverage limits will allow consumers the option to better insure against losses due to flooding. The inclusion of additional living expenses and business interruption will ultimately help our residential and commercial policyholders.
Automobile Insurance I will continue and expand coordination with the Fraud Department and law enforcement in efforts to reduce consumer costs associated with uninsured drivers. We can and must leverage our use of technology in this area to develop an insurance identification smart card. This will ultimately reduce the number of uninsured drivers that drive up the cost of automobile premiums paid by every consumer.
Auto Insurance for Firefighters: There is current legislation in process barring auto insurance companies from canceling the policies of volunteer fire company members because they are volunteers. I will continue to follow and support this legislation.
Crack down on “Bait and Switch” tactics: I will advocate strengthened disclosures during the quote process that inform consumers about the factors that could change the original quote or impact their renewal premium. Consumers must have all options available to make an informed decision.
Workers Compensation Over the past year, we have been extremely successful in comprehensive reform of Delaware's workers compensation system. I will monitor the progress of efforts designed to lower the cost of workers’ compensation insurance for the state's employers while continuing to seek remedies to the high cost of workers’ compensation insurance.
Additional Initiatives The “WINNING PTS Program” is designed to work with Parents, Teachers and Students with an emphasis on teenage education programs. Currently, other states have legislation in place requiring high school students to receive a minimum level of education on financial matters including insurance. The programs that developed out of this legislation are targeted exclusively for teenagers. I believe that Delaware should embrace this type of program and educate our future adults to make smart decisions about their finances including insurance, as they are the future of our state and country.
I plan to establish a summer intern program for high school and college students. The internship program will be designed so that each individual will learn the overall impact of insurance decisions, how it impacts the businesses of our state, clients and citizens. It will emphasize consumer advocacy, personal knowledge and insurance regulation. WINNING PTS — Parents, Teachers and Students (PTS) proposed internships will require students to share their knowledge received from the summer internship experience with their peers. It is a win-win for both students and businesses throughout the state as the Winning PTS program will also allow our younger generation to learn from and assist an experienced work force through the use of technology.
Veterans There is current legislation in process which will allow retired doctors to work for the Veterans Administration hospital in Elsmere. Currently the VA hospital has no orthopedic surgeons. If retired doctors want to volunteer, they risk losing their medical malpractice insurance coverage. I will continue to follow and support this legislation to ensure the doctors who volunteer at the VA hospital will not lose their malpractice insurance.
Warranties If ever there was a need to regulate this market, it is now. More and more warranty contracts are being offered to Delawareans with little or no protection when bogus companies wreak havoc on Delaware businesses and homeowners. I will work to pass legislation that requires registration of these entities to ensure that those selling these products to Delawareans are legitimate and can meet the financial obligations to contract holders when claims occur.
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