A Comprehensive Insurance Reform Plan

A Message From Hank Gilbert

Fellow Texans:

Contrary to what Republicans will tell you, tort reform did not lower insurance premiums, improve Texans’ access to insurance, improve the quality of medical care, or help homeowners.

The only thing that will do these things is real, comprehensive insurance reform. That is what I am proposing today.

In 1988, California voters demanded real insurance reform, lower premiums, and better coverage through a ballot referendum. Other states have followed suit. Sadly, the current leadership in Texas believed that closing the courthouse doors to Texans injured or wronged by insurance companies would take the place of insurance reform. It did not.

This is my blueprint for comprehensive insurance reform in Texas. When I am governor, Texans will see lower insurance premiums, better coverage, and real reform.

Sincerely,

INDUSTRYWIDE REFORMS

An Elected Insurance Commissioner.

Hank proposes direct election of the Texas Insurance Commissioner. The Insurance Commissioner’s decisions impact the lives of every Texan every day. Citizens deserve to elect and hold accountable the person who exercises so much power over Texans’ pocketbooks.

An Insurance Premium Rollback.

Hank proposes legislation to require a 20 percent insurance premium rollback on homeowners and auto insurance. Under Hank’s plan, the Legislature would enact a 20 percent insurance premium rollback mandating Texas insurance companies to roll back premiums by 20 percent. No insurance company  would be  granted an insurance premium increase by the Department of Insurance for two years.

Prior Approval Of Rate Hikes.

Hank proposes enacting legislation requiring insurance companies to gain prior approval before hiking insurance rates for all types of property insurance—including homeowners and automotive . Under Hank’s plan, the current “file and use” system where insurance companies can raise rates whenever they want would end. All insurance companies would be required to seek approval for rate hikes before enacting them. This will encourage competition among insurance companies while providing added protection for consumers.

Hank believes that when insurance companies seek prior approval for rate increases, they must provide detailed financial justification, including certified and audited financial statements. These statements must include cost justification that is exclusive to Texas.  Income justification must fully reflect Texas income and may not be diverted out of state.  All financial justification for rate increases must be transparent, and no lobbying expenses may be included in the cost justification to support a rate increase.

Uniform Standards For Insurance Policies.

Hank proposes requiring insurance companies to offer a minimum number of standard policies—consistent across the insurance industry—to allow consumers to make informed decisions by comparing policies offering the same protections side-by-side. Standard policies will help ensure that consumers better understand their policies and what is and is not covered.

Ending Credit Scoring, Data Mining, Pattern Recognition & Regulating The Use Of Rating Territories.

Hank proposes banning the use of credit scoring, data mining, and pattern recognition by insurance companies. Insurance companies use these practices to help determine who to cover and how much to charge consumers. Because insurance is not an extension of credit, the use of credit ratings and consumer spending patterns to determine what to charge an individual who needs insurance are unnecessary. Requiring insurance companies to make neutral reviews of consumers based on actual loss/claim history will lower coverage prices and require companies to use factors relevant to a person’s actual risk such as a driving record or home construction.

Hank proposes requiring the insurance industry to stop using existing rating territories. Instead, Hank proposes requiring a 15 percent limit on the amount that insurers may vary within a single county. This would essentially deem each county as a rating territory. This will allow insurance companies to appropriately consider risk factors while ensuring that residents of the county are treated fairly and equally. The 15 percent limit would not apply to greater variances justified by weather-related risks.

Inquiries May Not Affect Rates.

Hank proposes making it illegal for an insurer to base, wholly or in part, an adverse underwriting or rating decision on a consumer inquiry. Consumers should not be penalized for contacting their insurer to ask questions about coverage or inquire about what might happen in the case of a catastrophic event.

Mandating Collection & Reporting Of Claim Denial Rates

Hank proposes legislation which will require the Texas Department of Insurance to collect and publicly report claim denial rates on all types of insurance policies. This will be a useful barometer for consumers and regulators in determining the performance of companies and value consumers receive for their money.

Reassessing Tort Reform.

Hank proposes a complete reassessment of so-called “tort-reform” from 2003 forward. Tort reform was sold to Texans as a way to reduce insurance premiums, improve access to medical care, and lower medical costs. However, tort reform has done none of these things. Under Hank’s plan, a blue-ribbon commission of legislators, judges, lawyers, and consumer advocates will conduct an extensive review of tort reform policies enacted from 2003 forward and make recommendations to the legislature on what changes are needed.

SPECIFIC SECTOR REFORMS

Reforming Auto Insurance

Hank proposes legislation requiring that auto insurers insuring consumers in Texas be mandated to offer a 20 percent “good driver” discount.

Hank proposes legislation to prohibit the use of any socio-economic rating factors such as age, sex, sexual orientation or gender identity, marital status or credit score, to allow auto insurers to set or modify rates. Hank proposes that more weight be put on an individual’s driving record, and the number of miles driven annually than on socio-economic factors. Any portion of a rate which is determined by auto thefts in a consumer’s county of residence must be made based on most recent full year data instead of multiyear average data. The rates can only be based on a differential between the number of thefts in a county versus the number in the state as a whole. No smaller statistical area than the county where the insured lives may be used to determine rates. This will effectively put an end to prices based on microtargeted data which is extremely expensive for Texas consumers.

Hank proposes capping deductibles for all auto insurance policies at $500. Hank believes that when auto insurance deductibles rise above $500, a lot of insured cars won’t be repaired because the policyholders can’t afford to pay the deductible.  In such cases a high deductible defeats the purpose of purchasing auto insurance, and the policyholder is the loser.

Hank proposes requiring continuing coverage for spouses during separation. Under Hank’s plan, insurance companies would be required to provide continuing coverage for a spouse during a period of separation in contemplation of divorce; and not exclude from coverage any other family member of the insured, including any person who is related by blood, adoption or marriage and who resides in the  named insured’s household.

Reforming Homeowner’s Insurance

In addition to industry-wide reforms outlined above, Hank proposes specific reforms relating to homeowner’s insurance.

Hank proposes requiring residential property insurance offered in Texas to include provisions to compensate insured persons for loss incurred as a result of compliance with an emergency evacuation order applicable to the covered property. Such coverage must include provisions to allow for payment of each day or part of a day that an evacuation order is in effect.

Hank proposes homeowner’s insurance rate freezes for the disabled and persons 65 years of age and above. Under Hank’s plan, individuals deemed totally disabled or over the age of 65 would have their homeowner’s insurance policy rates frozen at age 65 or upon the date they are declared fully disabled.

Hank proposes requiring insurance companies to pay for the actual cost of replacement. Under Hank’s proposal, insurance companies would be required to pay the actual cost of replacement for real or tangible personal property.

.
Hank proposes capping deductibles for all homeowner’s insurance policies at $2,500. Hank believes that when homeowner’s insurance deductibles rise above $2,500, a lot of insured homes won’t be repaired because the policyholders can’t afford to pay the deductible.  Failure to repair damage to a home may result in additional damage, making the cost even more unbearable.  Homeowner’s insurance is supposed to protect the homeowner and the home.  Neither one is protected If the deductible is too high.

Reforming Group & Individual Health Benefit Plans

While Hank favors a “public option” for national healthcare, work still must be done to improve the quality and affordability of group and individual health benefit plans in Texas. Toward that end, Hank proposes several reforms.

Hank proposes improved coverage for mammography. Under Hank’s plan, all health benefit plans offered in Texas must provide coverage to females age 35 and above for annual mammography screening. Such examinations must be subject to the same dollar limit deductibles and coinsurance factors as coverage for all other radiological examinations under the insurance plan, and may not restrict a woman from selecting a mammography provider of her choice.

Hank proposes requiring coverage in health plans for prostate cancer screenings for men 40 years of age or older.

Hank proposes requiring insurers to cover routine patient care costs associated with enrollment in clinical trials. Under Hank’s plan, insurance companies would no longer leave insured Texans out in the cold when it comes to costs associated with Phase I, II, III, or IV clinical trials approved by the CDC, NIH, FDA, Department of Defense, Department of Veterans Affairs, or the U.S. Department of Health and Human Services.

Hank proposes restricting the ability of insurance companies to cancel policies or modify premiums for individuals who have taken part in clinical trials.

Hank proposes changing existing Texas law to allow non-profits with fewer than two employees access to group health insurance. Under Hank’s plan, non-profit entities—including chambers of commerce, business and trade associations, non-profit charities, and local labor unions with fewer than two employees would be eligible to participate in single-employee group insurance cooperatives to attain group health insurance for employees at more accessible prices to employees and non-profits.

Hank proposes requiring all health benefit plans offered in Texas to provide pregnant enrollees benefits for prenatal care that are medically necessary and recommended under generally accepted standards of medical practice. This would include requiring coverage for child birth, and access to obstetrical or gynecological care.

Hank proposes requiring health plans offered in Texas to cover inpatient and outpatient treatment for the diagnosis and treatment of serious mental illness—including eating disorders. Under Hank’s plan, policies must cover no less than 45 days of inpatient treatment and 60 visits for outpatient treatment with no lifetime maximum on the number of days of inpatient treatment or the number of visits for outpatient treatment for serious metal illnesses—including eating disorders. Such coverage must include the same amount limitations, deductibles, co-payments, and co-insurance factors as provided for physical illness and may not impose treatment or financial requirements not imposed for other medical conditions.

Hank proposes requiring health plans offered in Texas to cover orally administered anticancer medications in the same manner as intravenously administered anticancer medications. Texas insurers typically cover intravenously administered cancer medications under a health plan while orally administered medications are covered under a pharmacy benefit plan. This causes cancer patients to have very high out-of-pocket costs. Hank’s plan ensures equity of health coverage relating to patient out-of-pocket responsibilities concerning cancer treatments.

Hank proposes requiring health plans to provide coverage for necessary care and treatment of lost or impaired speech, language, or hearing.

Hank proposes requiring health plans to provide coverage for insulin infusion and injection devices and medications that facilitate insulin therapy and enhance glucose control.

Calls For Premium Rollback, Prior Approval Of Rate Hikes, Elected Insurance Commissioner

HOUSTON—Democratic gubernatorial candidate Hank Gilbert (D-Whitehouse) called for bold and comprehensive insurance reform including a 20 percent insurance premium rollback and an elected insurance commissioner during a press conference in Houston.

“Insurance companies are putting the squeeze on Texans with high premiums while offering less coverage. We need bold, common sense reforms to protect Texas consumers and their pocketbooks,” Gilbert said.

“Insurance has an impact on the lives and pocketbooks of millions of Texans. The state mandates minimum coverage for drivers, and homeowners need it to insure their property from loss. The industry has taken advantage of Texans’ need for insurance and used that to drive prices so high that Texans are paying far to much for minimal coverage,” he said.

The economic impact insurance has on Texas consumers is a key reason Texans need a voice in selecting the Insurance Commissioner, Gilbert said.

“Texans need to elect the person who oversees this industry in Texas. The Texas Department of Insurance should work for consumers, not the insurance companies,” he continued.

In calling for a state mandated 20 percent across-the-board premium reduction for homeowners’ and auto insurance, Gilbert said that “Texans need immediate relief from skyrocketing insurance premiums.”

Gilbert also called for other common sense reforms, including mandating that any rate hikes by insurance companies get prior approval from the Texas Department of Insurance. This is not required under current law. “Insurance companies can decide they want to hike their premiums, send their lawyers down to TDI and file a notice, and immediately start charging consumers the new higher premium,” Gilbert said. “That is not common sense regulation of the industry,” he continued.

In his reform plan, Gilbert also proposed:

• Requiring insurance companies to provide detailed financial justification for rate increases including cost justification exclusive to Texas without Texas income diverted out of state. In addition, all financial justification must be transparent and lobbying expenses would not be allowed to be included in cost justifications to support rate increases.
• Requiring insurance companies to offer a minimum number of standard policies to allow consumers to make better informed decisions through being able to compare policies offering identical protections side by side.
• Banning the use of credit scoring, data mining, and pattern recognition by insurance companies.
• Mandating the end to use of any rating territories in Texas except individual counties, and setting a 15 percent limit on the amount insurers may vary premiums within a single county excluding counties to which greater variances would be justified because of weather-related risks.
• Making it illegal for an insurer to base adverse underwriting or rating decisions on consumer inquiries.
• Mandating the collection and public reporting of claim denial rates on all types of insurance policies.
• A blue-ribbon commission to reassess tort reform legislation.
• A mandatory 20 percent “good driver” on auto insurance.
• Capping deductibles for auto insurance at $500 and homeowner’s insurance at $2,500.
• Requiring homeowner’s insurance rate freezes for the disabled and persons 65 years of age and above.

Although Gilbert favors a public option at the federal level, he did propose a number of reforms relating to health insurance offered by insurance companies in Texas including improved mammography and prostate cancer screening coverage; and improved coverage for mental illness including mandating coverage for eating disorders.

To view the PDF copy of the plan, you will need Acrobat Reader. Download it from Adobe’s website.

TYLER-Democratic gubernatorial candidate Hank Gilbert said Monday morning that Texas Governor Rick Perry’s continued comments about how great Texas is doing show just how far out of touch the incumbent governor is with reality.

At a Republican gathering Friday in Fort Worth, Perry criticized the federal government and proclaimed that, “Texas is the blueprint America needs to look at to go forward.”

“If America uses the blueprint from Rick Perry’s Texas as a model to move forward, America would quickly become a third-world country,” Gilbert said. “All we’ve seen from the Perry administration is record unemployment, higher tuition costs, toll road disasters that will end up soaking taxpayers, failed privatization experiments that cost hundreds of millions, cover-ups, and worsening conditions for the middle class and poor,” Gilbert continued.

“For this governor to say that our state is doing so well that everyone should follow our lead shows just how out of touch he is,” Gilbert said. “Ask the thousands of Texans with out health insurance or who have lost their jobs if Rick Perry’s model is working for them. It is not,” Gilbert continued. “If his so-called blueprint was for a house, the roof would be on the floor, there would be no walls, and the toilet would be in the dining room,” Gilbert continued. “The only project Rick Perry could serve as the architect for would be a ditch, because that is where his leadership has driven Texas,” he concluded.

Gilbert pointed out that, under Perry’s leadership, Texas has the highest percentage of uninsured citizens of any state, kept 1.4 million children from health insurance, priced college tuition out of reach of thousands of Texans, has seen utility rates skyrocket 64 percent and property taxes which are at an all time high.

FACT SHEET

Rick Perry’s Bad Blueprint For Texas

SKYROCKETING UTILITY COSTS

Under Governor Perry’s leadership, electric rates have skyrocketed 64 percent. (SOURCE: Associated Press)

INCOME, JOB LOSS & POVERTY

Texas ranks 7th in among the states in the percent of our children living in poverty. (SOURCE: U.S. Census Bureau, R1704. Percent of Children Under 18 Years Below Poverty Level in the Past 12 Months, 2007)

Texas ranks 3d among the state in terms of the percentage of our population living below the Federal Poverty Level. (SOURCE: Henry J. Kaiser Family Foundation)

Texas ranks 3rd among the nation in terms of the percent of our population with food insecurity. (SOURCE: U.S. Department of Agriculture, Economic Research Service, Household Food Insecurity in the United States, 2006)

Texas ranks third in the nation in terms of the percent of women in our population living in poverty. (SOURCE: U.S. Census Bureau, Voting and Registration in the Election of November 2006, Table 4b, Reported Voting and Registration of the Voting-Age Population, by Sex, Race and Hispanic Origin, for States: November 2006)

Job Loss in Rick Perry’s administration has been the worst Texas has seen since the 1970s and 1986 and 1987.

(Texas LMCI TRACER Generated graphic, with modifications to highlight Perry’s years as governor)

UNINSURED TEXANS

The number of uninsured Texans has increased from 4.9 million in 2001 to 6.1 million in 2008. The percent of non-elderly adults with out insurance rose from 27.8 percent to 32.1 percent. This number only considers people who are uninsured for an entire year and doesn’t include many Texans who have lost their health coverage as a result of the recession. (SOURCE: U.S. Department of Health & Human Services)

Employer-based health plans in Texas are quickly disappearing. The percentage of employer-based health coverage decreased from 63.3 percent of the state’s population in 2001 to 55.6 percent in 2008. (SOURCE: U.S. Department of Health & Human Services)

3.4 million Texas workers are without health insurance. The percentage of Texas workers without health insurance rose from 25.6 percent in 2001 to 29.7 percent in 2008. (SOURCE: U.S. Department of Health & Human Services).

Rick Perry’s failures on Children’s Health Insurance has forced over 1.4 million kids to go without health care coverage – over 20%, the highest rate of uninsured children in the nation. (SOURCE: Families USA)

Being uninsured isn’t just a problem for the poor. An additional 361,000 people from homes considered “high-income” households by the census bureau are now uninsured in Texas. (SOURCE: U.S. Department of Health and Human Services).

EDUCATION

Although Texas ranks third in the nation in terms of the money spent on public education, the state ranks 45th in the nation in terms of dollars spent per student. (SOURCES: Congressional Quarterly’s State Fact Finder 2007. & ScoreCard.org)

Texas ranks 34th among the states in average teacher salaries. (Congressional Quarterly’s State Fact Finder 2007)

Texas ranks 50th in terms of the percent of the population over 25 with a high school diploma, and 41st in terms of its high school graduation rate. (SOURCE: ScoreCard.org)

THE ENVIRONMENT

Texas is the worst air polluter in the nation.

Texas releases more volatile organic compounds into the air than any other state in the country. (SOURCE: ScoreCard.org)

Texas releases more toxic chemicals into water than any other state in the nation. (SOURCE: ScoreCard.org)

Texas ranks fifth in the nation in terms of toxic chemicals released into the air. (SOURCE: ScoreCard.org)

Texas releases more cancer-causing carcinogens into the air than any other state in the U.S. (SOURCE: ScoreCard.org)

Texas ranks seventh out of the fifty states in terms of the number of cancer-causing carcinogens released into water. (SOURCE: ScoreCard.org)

Texas ranks second among the fifty states in the amount of hazardous waste generated and first in carbon dioxide emissions. (SOURCE: Environmental Protection Agency)

TYLER—Democrat Hank Gilbert’s gubernatorial campaign Thursday afternoon warned Democratic Primary voters to carefully parse phrases used by gubernatorial candidate Tom Schieffer of Fort Worth concerning healthcare reform when considering who to vote for in the March Democratic Primary.

Schieffer, an intimate of former President George W. Bush and Bush’s appointee as Ambassador to Australia and Japan, was quoted in the October 14 Rio Grande Guardian as promoting mandatory health insurance in a format similar to auto liability insurance in Texas and saying, “I look at it like we have mandatory automobile coverage. Everybody has to have it and you have what they call an Assigned Risk Pool and people compete for the business.”

“That Tom Schieffer is likening the national health insurance crisis to mandatory auto liability insurance in Texas is really crazy,” said Gilbert campaign spokesperson Vince Leibowitz. “What he clearly wants is to simply make health insurance ‘mandatory’ and then let insurance companies gouge consumers using credit scores, rating territories, and data mining to drive up their prices. The end result is much the same as what we have now, insurance that few can really afford but that all will be legally required to obtain,” he continued. “Simply saying ‘health insurance is mandatory,’ will not work. It will not drive the costs down. It hasn’t driven down the cost of auto liability insurance and won’t do it for health insurance,” Leibowitz continued.

Democratic Gubernatorial Candidate Hank Gilbert said Democrats must work together to ensure that a viable healthcare reform package is passed.

“The health care system is broken and it’s got to be fixed. It’s not a matter of access, it’s a matter of a middle man taking his cut instead of a doctor actually making the money and a patient paying for solid coverage. We have to institute basic reform and bring the costs down by creating a real alternative to the cartel-like system of insurance companies we have today,” Gilbert said.

“Simply requiring folks to have insurance doesn’t do a thing to make the insurance affordable. There needs to be real competition and no more excuses,” Gilbert said. “It’s unfortunate that Tom can’t see what the vast majority of people in this state and nation see, that there is no real competition in the health insurance industry and the insurers are doing everything they can to keep it that way so they can bleed people dry. First they told us tort reform will lower costs and it’s done anything but. Malpractice premiums are still through the roof and patients still pay more.”

Gilbert further criticized Schieffer for making his statements about healthcare in one of the state’s poorest regions.

“For Tom to make this car insurance to health insurance comparison in the Rio Grande Valley is a slap in the face to the hardworking people of this region. It isn’t about access; that’s the dumbest argument I’ve ever heard. Anyone can get ‘access’ to health insurance if they walk down to the closest insurance agent; the problem is that they can’t afford any of their options. Tom doesn’t understand that because he’s probably never had to worry about paying for health insurance a day in his life. The taxpayers picked up that bill while he was in Japan and Australia working to advance President Bush’s agenda as the insurance crisis in the United States spiraled out of control,” Gilbert said. “We’ve waited for 16 years for insurance companies to reform and it hasn’t happened. Now it’s time for action to end the crisis.”

“How anyone can stand miles from the poorest communities in our state and colonias without running water in a region where parents have to decide between putting food on the table and keeping the lights on and make these statements is simply beyond comprehension. It isn’t about access, it is about affordability. People cannot afford health insurance, period. What Tom’s advocating won’t do anything to make it more affordable, it’ll just massively increase the profits of health insurance companies leaving ordinary people and health care providers squeezed in the middle,” Gilbert continued.

Forty-nine year old East Texas Rancher and former teacher Hank Gilbert has kicked off his Democratic race for Governor. KERA’s Shelley Kofler says the little-known candidate is hoping his statewide tour will get him noticed.

Hank Gilbert says he will place a high priority on early childhood education as a way to keep kids from dropping out later on. He wants full-day pre-kindergarten programs and increased awareness of vocational education.

Gilbert: We are going to develop a very comprehensive vocation and technical track for high school students who don’t want to go to college.

Gilbert was a top Democratic vote-getter in 2006 when he ran unsuccessfully for state agriculture commissioner. His campaign then focused on his opposition to Governor Perry’s Trans-Texas Corridor.

On his campaign website this time Gilbert promises to reorganize the state insurance commission. He calls Perry’s appointed commissioner, Mike Geeslin, a “pro-insurance lapdog.”

Gilbert: They all have direct ties back to the same companies they are supposed to be overseeing. I think that was purposeful. Because of that we have the highest health insurance and the highest homeowners’ insurance (rates) in the country with the least amount of coverage.

Gilbert says he understands the difficulties faced by Texans without insurance. He and his family pay their health care bills out of pocket because pre-existing family conditions make their insurance too expensive.

• Employer-based health plans in Texas are quickly disappearing. The percentage of employer-based health coverage decreased from 63.3 percent of the state’s population in 2001 to 55.6 percent in 2008. (SOURCE: U.S. Department of Health & Human Services)

• 3.4 million Texas workers are without health insurance. The percentage of Texas workers without health insurance rose from 25.6 percent in 2001 to 29.7 percent in 2008. (SOURCE: U.S. Department of Health & Human Services).

• Being uninsured isn’t just a problem for the poor. An additional 361,000 people from homes considered “high-income” households by the census bureau are now uninsured in Texas. (SOURCE: U.S. Department of Health and Human Services).

• The current Texas Insurance Commissioner, Mike Geeslin, (a former staffer for Governor Perry), is such a pro-insurance lapdog that a leading insurance industry trade group publicly applauded his reappointment in 2005. (SOURCE: Insurance Journal, June 7, 2005; LINK).

The announcement that health insurance premiums have risen in Texas by almost 100% since 2000 comes as no surprise to Texans who have been constantly burdened by persistently increasing premiums and ever declining coverage. Once again, Governor Perry’s policy of letting the industry regulate itself has failed Texans miserably.

Health insurance has become so expensive in Texas that more than 300,000 households the Census Bureau considers ‘high-income’ households can’t even afford to pay the premiums.

Of course, Texans are used to being failed by their Governor on a consistent basis. It’s why more than 60% of Texans voted for someone else in the 2006 election.

It’s sad that the insurance burden consistently falls on the poor and middle class in this state while they struggle every day just to get by—with no help from Governor Perry or his lobbyist appointees at the Texas Department of Insurance.

This is just one reason I will fight to make the Texas Insurance Commissioner an elected official accountable to the people when I am Governor.

FACT SHEET: Status Quo Isn’t An Option For Health Insurance In Texas

• The number of uninsured Texans has increased from 4.9 million in 2001 to 6.1 million in 2008. The percent of non-elderly adults with out insurance rose from 27.8 percent to 32.1 percent. This number only considers people who are uninsured for an entire year and doesn’t include many Texans who have lost their health coverage as a result of the recession. (SOURCE: U.S. Department of Health & Human Services)

• Employer-based health plans in Texas are quickly disappearing. The percentage of employer-based health coverage decreased from 63.3 percent of the state’s population in 2001 to 55.6 percent in 2008. (SOURCE: U.S. Department of Health & Human Services)

• 3.4 million Texas workers are without health insurance. The percentage of Texas workers without health insurance rose from 25.6 percent in 2001 to 29.7 percent in 2008. (SOURCE: U.S. Department of Health & Human Services).

• Being uninsured isn’t just a problem for the poor. An additional 361,000 people from homes considered “high-income” households by the census bureau are now uninsured in Texas. (SOURCE: U.S. Department of Health and Human Services).

• The current Texas Insurance Commissioner, Mike Geeslin, (a former staffer for Governor Perry), is such a pro-insurance lapdog that a leading insurance industry trade group publicly applauded his reappointment in 2005. (SOURCE: Insurance Journal, June 7, 2005; LINK).

“Texas has a higher percentage of its citizens living without health insurance than any other state in the nation.  Instead of working constructively to do something about this problem, Governor Perry and Senator Hutchison behave like children on a school playground—each one peevishly blaming the other for our state’s problems. Or Washington. Or the 10^th Amendment. Basically, doing anything BUT acknowledging their own failure and disregard for their fellow Texans.

One thing you also haven’t heard them say is how they’ll solve the health insurance crisis in Texas. Whether or not the President’s national healthcare plan becomes a reality, we have to do something about health insurance in Texas. We lead the nation in the number of uninsured children. We rank 46^th out of the 50 states when it comes to the number of people covered by employer-funded healthcare plans.

That’s inexcusable. During the 24 years Rick Perry has held public office, and during the 18 years Kay Bailey Hutchison has held statewide office, neither has demonstrated the courage Texas needs to pull our state up by the bootstraps from the health insurance sinkhole. These two have more than four decades of government experience between them, and this is the best we get? Allowing health insurance lobbyists to control the agenda in their offices? Campaign coffers filled with money from health insurance interests?

I applaud the folks in Washington who are trying to do something to ease healthcare costs in an effort to help small businesses and ordinary Texans who have been abused for decades by greedy insurance companies. Insurance companies need aggressive competition and fair but strict regulation so consumers are protected and prices don’t skyrocket out of reach of ordinary Texans. Here in Texas, the first step toward making sure that happens is reforming the Texas Department of Insurance. As your governor, I will transform this agency, in cooperation with the Legislature, to make the Texas Insurance Commissioner an elected office held accountable to the voters, and not the governor.”

Health Insurance In Texas: A State Of Crisis

The following are facts related to Texas’ health insurance crisis for your use. All sources are cited.

Pay To Play. Texas Governor Rick Perry has received more than $1.2 million dollars from the insurance industry for his campaign war chest. (National Institute On Money In State Politics. LINK.) While Perry has been governor, he has done nothing to increase access to healthcare for ordinary Texans, and his “leadership” on tort reform and insurance “reform” have translated into no healthcare savings or better access to care for ordinary Texans. (Texas Observer. “Baby, I Lied.” LINK.) U.S. Senator Kay Bailey Hutchison has taken more than half a million dollars from the insurance industry for her Senate campaigns (Center for Responsive Politics, LINK)

Want Medical Care? Got Money? Under Governor Perry’s watch in Austin and during Senator Hutchison’s time in Washington, six Texas cities have earned the dubious distinction of being among the 20 most expensive cities in the United States for medical care: Houston (20), Lubbock (18), Dallas (13), Corpus Christi (10), Harlingen (5), and McAllen (2). Healthcare is more expensive in Harlingen than it is in Los Angeles. (Forbes, “America’s Most Expensive Places For Healthcare.” LINK.)

First Equals Last. Texas ranks first in the nation in the percentage of uninsured children. (Kaiser Family Foundation. LINK.) Texas ranks first in the nation when it comes to the percentage of the state’s population without insurance (ibid, LINK), and in the percentage of the non-elderly who are uninsured. (ibid, LINK.) Texas ranks 46th in the nation in terms of the population with employer-based healthcare insurance. (ibid, LINK.)

Bad Votes. Senator Hutchison vote against requiring wealthy Medicare beneficiaries to pay a greater share of their Medicare Part D premiums. A couple making over $164,000 per year would have been expected to pay a little over $10 per month more than they paid before. (Bill S.Amdt.4240 to S.Con.Res.70 ; vote number 08-S063 on Mar 13, 2008.) Senator Hutchison also voted against requiring negotiated prices on Medicare Part D drugs. (S.3 & H.R.4 ; vote number 2007-132 on Apr 18, 2007.) She also voted against negotiating bulk purchases for Medicare prescription drugs. (S.Amdt. 214 to S.Con.Res. 18 ; vote number 2005-60 on Mar 17, 2005).

Additionally, Texas has the highest rates for homeowner’s insurance in the country, fostered in no small part by the fact that Governor Perry likes to appoint those from the industry to the regulatory board that oversees the industry. I vow to end appointments of insurance industry lobbyists to the Texas Department of Insurance. I also promise to work with the Legislature to overhaul this moribund agency.