Legislative Committee Considers Moving BSR

The Legislative Committee reviewing the woes of the former Local Government Center (LGC) dropped a bomb yesterday when a majority of the Committee’s members actually considered a suggestion by Senator Forrester. Senator Forrester is the sole appointee to the Committee by former Senator Peter Bragdon who now heads the (former) LGC’s Health Trust. And the Health Trust is one of the Trusts that is appealing the rulings that led to the reorganization of the LGC and the order to return over $50 million dollars to the Health and Property and Liability Trusts members.

Senator Forrester proposed that the Bureau of Security Regulation (BSR) continue to be the regulator of managed risk pools. But she went on to suggest that the BSR which is now a branch of the Secretary of States Office (SOS) be moved to the Insurance Department. It is important to remember the the LGC has been lobbying to have the Insurance Department as their regulator since the BSR alleged the LGC illegally reorganized when they registered as LLCs in Delaware. It was also alleged that the LGC didn't adhere to State Statutes that govern risk pools. The BSR’s allegations against the LGC were upheld (for the most part) by the hearing officers ruling last summer.

I have written often about the LGC and have attended all the Committee's hearings. While I felt the Committee would make recommendations that would lead to changes in RSA 5:B, I can tell you I was blindsided by the fact that a majority of the Committee would even consider the idea of transferring authority to oversee risk pools to the Insurance Department. I wasn’t surprised that Senator Forrester made the recommendation. It has been obvious (to me) that she has been displeased with the Secretary of States office and the BSR from the start of the hearings. And one could make the argument that Bragdon appointed her to the Committee because she would be sympathetic to the self inflicted woes the LGC had created for themselves.

But when Representative Smith followed Senator Forrester’s concerns about which agency is best poised to oversee the State’s risk pools, I’m quite sure I wasn’t the only person in the room with a dazed look on their faces. Representative Danielson then followed suit and stated it is something he could also consider. Now a consideration and a recommendation can be entirely different beasts. So when Representative Sullivan asked if making this recommendation should even be considered as a part of the Committees charge, the brakes were applied ever so gently. Discussion ensued as to what if any recommendation should be made and how that recommendation (if approved by the Committee) should appear in their report.

It will be more then a little interesting to see the final report. And it will be more then a little interesting to see how the Committee addresses the issue of which agency should  oversee the State’s risk pools. And should the Committee recommend that the BSR be moved to the Insurance Department and the recommendations make it to the House floor, I would expect some lively discussion.