Katrina's Karmic Payback: Insurance Reform

This is the fifth in a series of five to help the Democratic Party, particularly its presidential hopefuls, to get the framework right, to broaden its lens through which it views Katrina, what’s stopping recovery, what will speed up a vibrant recovery, and how Katrina affords us the opportunity to transform the basic quality of life for all Americans.

We all know that small and large businesses are choking on skyrocketing health care costs. The other day, a friend of mine said that his tiny company just wrote out a $44,000 check to cover the annual costs of its seven employees and their families. The other employees are covered through the insurance benefits of their respective spouses. Without businesses covering the costs, however, families are often going without attending to their health care needs to the tune of 47 million in 2005, according to the Census Bureau. This is a national crisis.

These aren’t the only insurance costs that are hurting us. Worker’s comp costs are also skyrocketing and hurting businesses in their pocketbook.

What is less well tracked, however, is the national crisis of insuring our homes—the most valuable asset for most families. News reports inside Katrina Land have revealed rate increases or rate increase requests from 23 to 400%.

Inside and out of this Katrina-ravaged region, companies are either jacking up their premiums or refusing to write new policies altogether. Read on . . .