During a press conference earlier today Republican Gov. M. Jodi Rell said her proposal to eliminate the offices of state healthcare advocate and consumer counsel is really “a matter of streamlining government” that could also ultimately save residents money on their household expenses.
It was the same argument her budget staff gave me last week.
The two advocates are the independent watchdogs for, respectively, residents grappling with their insurers and residents grappling with their utility companies.
The cuts were included in Rell’s budget proposal alongside her recommendations to eliminate other “watchdogs” like the state property rights ombudsman and the various commissions on aging and minorities. Her goal? Re-organizing state government to help address the gaping budget hole.
But, critics argued, the healthcare advocate and consumer counsel aren’t paid out of the general fund like some of those other entities on the chopping block. They’re paid by fees levied on insurance companies and utilities that have nothing to do with the state budget or closing the deficit.
In an interview with The Advocate last week, Jeffrey Beckham, a spokesman for Rell’s budget office, acknowledged: “It’s not being done to help save money in the general fund or help the deficit.”
Beckham, like Rell, said the move would streamline government. And he also said by eliminating the fees that fund the two advocates, insurance companies could cut back on their premiums and utilities on the cost of electricity.
But I just can’t see how that is going to happen.
Jeff, who is probably reading this, is an awfully nice, patient, helpful and knowledgable guy who I hope will continue answering my phonecalls.
But the healthcare advocate’s budget is about $1 million, split amongst numerous insurers, and the consumer counsel’s budget is around $3 million, split among numerous utilities. It just seems so unlikely that such small savings divided up amongst these big companies with big budgets would translate into any meaningful money in consumers’ pockets – PARTICULARLY if the state is not MANDATING they do so.
I briefly outlined this same reasoning to the Governor today but she stuck by her guns and argued she believes the savings “may be miniscule now” but will eventually be passed along in worthwhile amounts.
So now I guess it’s up to the legislature to decide whether to take that chance and support her proposal.
In the meantime, someone enlighten me. Because unless the insurance companies and utilities are like Jesus and can just keep pumping out loaves and fishes, I just don’t understand how cutting these fees is going to multiply into savings for residents.