Congress Confused On Who Should Be the Key Decision Makers


Recent meetings the United States Congress still show confusion and indecisiveness as to what role should each state play in regulating auto insurance.

Congress Confused On Who Should Be the Key Decision MakersIn recent Congress meetings, members of the Congress appear to remain in a state of confusion and are unable to decide on whether they should limit the extent on how state powers can control and regulate car insurance. Reports say that the Congress wants the states to have the power to make key decisions in car insurance, particularly in auto insurance reforms. On the other hand, some members of the Congress want to maintain the key powers in car insurance to be distributed in an even and democratic way. A great number of congressional leaders do not want the state to gain control over car insurance.

Reports indicate that it is Sen. Harry Reid who wants to initiate a government managed and operated auto insurance plan which is to be imposed in certain states in the US. Sen. Harry Reid proposed to let the each state have control over the matter, as opposed to an existing public option proposal. Sen. Reid’s plan has led to one of the most troublesome and very difficult to decide upon issues. Debates in the chambers of the US Congress have been made night and day and still, no final decision or resolution has been made.

Issues are now arising, that appearing to be in some state of confusion is exactly a part of the Congress’ plan – in this way, congressional leaders will be free from any accountability that comes with making a bad decision. Studies indicate that allowing the public option to be set to motion can cause problems in the car insurance industry. Letting the public decide on key issues may lead to the decline in the number of private insurers and increase in premium rates.

Large car insurance corporations have been disputing that a decision to let the public decide on key car insurance issues would be, in the long run devastating to consumers. But further studies made found no evidence to this statement made by big companies.

According to reports, the Congress likes the idea of having a public option since it would hit the profit-oriented and sometimes greedy private insurance firms exactly where it hurts the most. Other members of the Congress want to punish auto insurance companies who published reports that the issue on auto insurance would lead to greater public expenditures on paying insurance premiums.

At this point, the stand of the Congress regarding auto insurance reform remains an issue that needs to be resolved and decided upon.