We will go ahead and get started. I am scott madison, the executive director of the National Governors association. Feel free to take your seats. Welcome. This is the 108th summer meeting of the National Governors associati association and taking place with the backdrop of a lot of serious issues across the nation and world and of course two major Party Conventions taking place in the next couple weeks. I am happy to introduce the chairman of the National Governors association from utah, governor branstad and we have the vice chairman, governor mcauliffe from virginia and the host, the longest serving governor in the mystery of the United States terry branstad. We are happy to have him. [applause] and now, it is funny, people say the meeting is going great so far and i say it is good laws of governor branstad. I am turn it over to david yepsen and many of you probably know david. Heavy has been with the Des Moines Register and on Public Television in different capacities and now he is
Actually taken that question out in terms of the financing for the surveys, so that no one can even if, whether it was a monetary incentive or not, if people were thinking and believing that, we wanted to take the action. Now, going to part two, that medication assisted treatment, which i know you all are working deeply on, we are as well, you may have heard that last week we announced that we have put out a final regulation that will increase the numbers that doctors who are prescribing, as long as they meet certain conditions, because we want to make sure we do this in a safe way, that theyre able to do. In terms of that expanding medication assisted treatment. As well as were also today releasing two reports on ways to help pregnant women and new mothers. Because thats a part of this, with the medication assisted treatment. I see head nods. This is something you all have told us is one of the problems. Weve got two reports coming out to help with that treatment in terms of pregnant
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