PUC vacancy
The resignation of James J. Malachowski as chairman of the three-member state Public Utilities Commission, and the fact that one of its members has been serving for months awaiting a replacement, again leaves this most important regulatory agency vulnerable. Gov. Lincoln Almond has said it would take at least three months to find a replacement for Malachowski, who has brought a level of fairness, understanding and perseverance to an agency that has overseen dramatic changes within the industries it regulates.
The Public Utilities Commission is the agency that oversees our energy providers and communications carriers.
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Malachowski, whose resignation is effective Oct. 18, has served the commission for nearly a dozen years. He has at times been left with only one other commissioner, leaving the agency vulnerable to illnesses and other mishaps that would make it impossible for the one remaining commissioner to hear arguments and make decisions on issues that have such a dramatic impact on our personal and corporate well-being.
Currently, Kate Racine remains a commissioner, although her term expired in March. Almond has yet to name her replacement.
The PUC has been among our most important – if not most important – regulatory agencies. It is imperative that the governor move swiftly to fill Racine’s position first and then meet his deadline of January to fill Malachowski’s post.
It is difficult to comprehend that in the months leading up to the expiration of Racine’s term, and in the seven months since, the governor has yet to find someone qualified to fill the post. Now he is facing a more difficult task of not only finding Racine’s replacement, but finding one for Malachowski, who as chairman of the PUC has universally won the praises of public utility officials and consumer group advocates for his fairness and tenacity.
Health insurance
The decision by Blue Cross Blue Shield of Rhode Island to remain independent has been hailed in many circles as a triumph for the local community, keeping Blue Cross local and non-profit, warding off the potential for merger with the for-profit Anthem or neighboring Blue Cross of Massachusetts.
The decision by Blue Cross came after its first profitable period in years. The announcement did not rule out further merger considerations if financial difficulties return. Meanwhile, other health insurers indicated that difficulties were continuing, underscored by the reality that Harvard Health remains for sale.
What this means for businesses in Rhode Island, which have just gone through a substantive health insurance rate increase, is more of the same – double digit increases for the next few years. Undoubtedly, companies will pass on some of the cost to employees.
While we may all agree that local control of Blue Cross is important, we also must recognize that this is again another stop-gap measure that may be temporary, or resolve an issue for one segment of health care, but fails to look at the entire industry.
Health insurance premiums are rising because health care costs are rising. Hospitals are running deficits, while the quality of care comes into question more often, at least in part because of reduced staffing, sometimes in critical areas like Visiting Nurses and emergency rooms.
The Blue Cross Blue Shield decision should not be hailed as a triumph, but only a respite during which it is imperative that we take a comprehensive look at our health care system, from the insurers to medical care, and find a way to assure the best quality care available to the broadest spectrum of our population.
