Tuesday, June 12, 2012
Idiot Kreidler
Wash state insurance commissioner Kreidler is complaining about two health insurers because they've piled up a large amount of cash.
Apparently insurance commissioner Kreidler doesn't know what insurance means. The whole point of an insurance company is to maintain a large cushion of available cash so it can pay unexpectedly large claims, or allow for unpredictable changes in federal requirements.
If these companies are wasting money on huge executive salaries and lavish buildings, then complaints and controls are fully justified. But Kreidler isn't complaining in that area; he's bashing insurance companies for being insurance companies. ¶ 5:02 AM
Premera Blue Cross and Regence BlueShield each now have surpluses of more than $1 billion, according to their most recent filings for the three months that ended in March. That's more than what the companies are required to set aside in reserves, Insurance Commissioner Mike Kreidler said Monday.
"They're building up a financial cushion for themselves, and it comes at an expense for people," Kreidler said, adding that insurers should use some of that surplus money to reduce rate increases for policyholders. "These aren't reserves, they're financial surpluses."
He noted that the cost of individual health policies in Washington more than doubled between 2005 and 2011.
Apparently insurance commissioner Kreidler doesn't know what insurance means. The whole point of an insurance company is to maintain a large cushion of available cash so it can pay unexpectedly large claims, or allow for unpredictable changes in federal requirements.
If these companies are wasting money on huge executive salaries and lavish buildings, then complaints and controls are fully justified. But Kreidler isn't complaining in that area; he's bashing insurance companies for being insurance companies. ¶ 5:02 AM
