Newly elected Insurance Commissioner Dave Jones, a Democrat, is on the opposite end of the political spectrum from his predecessor, Republican Steve Poizner. But Jones would do well to emulate Poizner’s approach to the office.
When Poizner, a Silicon Valley entrepreneur, was elected commissioner in 2006, he promised to keep politics out of the job, which he thought should be nonpartisan. He made good on that promise overall, standing up for policy holders while trying to maintain a healthy insurance industry, also part of the job description.
California’s insurance industry is a $120 billion operation, about 15 percent of the state’s economy. Outside of the governor, the insurance commissioner may have more impact on Californians’ daily lives than any other elected official. And the less political the office is, the greater respect it commands.
Jones knows the industry and has a well-deserved reputation as a consumer advocate from his years in the Assembly. That’s why we recommended him for this office. But he’ll need to resist the temptation to swing so far toward consumer interests that he harms the insurance industry and, as a consequence, limits Californians’ choices. His first eight goals listed in campaign literature were aimed at fighting insurance companies.
Poizner’s main goal was creating more affordable insurance options. He pioneered pay-as-you-drive auto insurance in California, allowing companies to offer rates based on the number of miles people drive. Two companies have taken him up on it so far. The plans both help drivers save money and create an incentive to drive less.
Poizner was aggressive in going after insurance fraud, making nearly 3,000 arrests and achieving more than $120 million in restitution in his first three years in office. When Anthem Blue Cross filed in 2010 for a rate increase of up to 39 percent, it was Poizner’s office that organized a meticulous review of Anthem’s outrageous proposal and found major errors, forcing a double-digit reduction in the increase.
Candidates tend to talk big about fighting waste. Poizner did it. He cut operating costs in his office by 15 percent (despite what Meg Whitman said during the Republican primary for governor) and improved efficiency. This leaves Jones both an advantage and a challenge. He needs to keep costs under control, having been shown that it’s possible.
We wish Poizner had worked more actively with Gov. Arnold Schwarzenegger to position California to take advantage of federal health care reform. This is an area of strength for Jones, who pushed through the legislation making this the first state to set up a health care exchange for the uninsured. And we agree with Jones that the commissioner should have authority over medical rates similar to auto insurance.
It’s tempting to use an office like this as a bully pulpit to grandstand and build support for future campaigns. Though his ambition was to be governor, Poizner resisted this temptation and ran the commissioner’s office like a pro. Jones should do the same.
