Free Daily Headlines :

  • COVID-19
  • Vaccine Info
  • Money
  • Politics
  • Education
  • Health
  • Justice
  • More
    • Environment
    • Economic Development
    • Gaming
    • Investigations
    • Social Services
    • TRANSPORTATION
  • Opinion
    • CT Viewpoints
    • CT Artpoints
DONATE
Reflecting Connecticut’s Reality.
    COVID-19
    Vaccine Info
    Money
    Politics
    Education
    Health
    Justice
    More
    Environment
    Economic Development
    Gaming
    Investigations
    Social Services
    TRANSPORTATION
    Opinion
    CT Viewpoints
    CT Artpoints

LET�S GET SOCIAL

Show your love for great stories and out standing journalism

Connecticut insurers have eyes on Washington

  • Money
  • by Ana Radelat
  • May 1, 2014
  • View as "Clean Read" "Exit Clean Read"
Aetna headquarters in Hartford

Aetna, Travelers, The Hartford all have to focus on what's happening on Capitol Hill.

See interactive graphic at end of story

Washington – Connecticut insurance powerhouses Aetna, The Hartford and Travelers have different lobbying agendas in Washington, but all three have stepped up their efforts to  influence lawmakers and federal policy.

Collectively, and including on-staff lobbyists, the three spent nearly $10 million lobbying Congress last year. The reason for this: Even though insurance companies are mainly regulated by states, Congress has in recent years approved bills and delved into several issues that strike at the heart of how these companies do business.

Besides the Affordable Care Act, whose implementation health insurers like the Aetna are closely following, there’s a new federal watchdog that Travelers and The Hartford are worried about. Congress’ unpredictability also causes them concern.

The state’s insurance giants “have always been a pretty strong lobby in Washington,” said Robert Hunter, director of insurance for the Consumer Federation of America. “But they are getting stronger as they worry more about federal government intrusion into their businesses.” Mike Barry, spokesman for the Insurance Information Institute, agreed that “in recent years, there has been more federal interest in insurance issues.”

Aetna officials have always kept an eye on the operations of Medicare, Medicaid and other federal health programs and federal health issues. But the Affordable Care Act spurred the company to ratchet up its activities in Washington.

For The Hartford and Travelers, concerns about the Dodd-Frank financial reform act and uncertainty about the fates of terrorism insurance and the federal flood insurance program forced them to sharpen their focus on Capitol Hill.

Although Aetna’s lobbying priorities differ from those of property and casualty insurers The Hartford and Travelers, they have many common interests when it comes to dealing with Washington.

And like most major U.S. companies, all three insurers have political action committees (PACs) that help the companies win friends and allies on Capitol Hill.

Insurers’ PACs

Aetna’s PAC began to grow rapidly in 2004, and this year, it is on its way to breaking its 2012 record of $1 million in political donations. The Travelers PAC also began to expand in 2004, peaking in 2008 when it donated nearly $1 million. It has remained nearly as active since that time.

The Hartford’s PAC peaked at $1 million in donations in 2010, when the Dodd-Frank Act was approved by Congress, and has leveled off a little since.

Barry said the growth of the companies, and subsequent growth in the number of employees willing to give to a federal PAC, may help account for the increased activities of the insurance PACs.

A Connecticut Mirror analysis of PAC donations in this campaign cycle, which began in January 2013, shows that nearly a third of the time, Aetna and Travelers gave political cash to the same select group of lawmakers, including several from Connecticut.

If The Hartford’s PAC is included, the insurers donated to the same lawmakers or lawmakers’ leadership PACs about 25 percent of the time – underscoring the importance of a small group of lawmakers to the insurance industry.

All three PACs gave to the campaigns and/or leadership PACs of Connecticut Sen. Chris Murphy and three of the state’s House representatives: John Larson, D-1st District, Joe Courtney, D-2nd District, and Jim Himes, D-4th District.

While the companies boasted of a bipartisan bent, all three insurer PACs — and especially Aetna’s – donate most of their money to Republicans. Many Aetna PAC donations went to the most strident opponents of the Affordable Care Act, including Louisiana GOP Reps. Charles Boustany and Steve Scalise, and to Wyoming Sen. John Barrasso.

Millions for lobbying

Lobbying disclosure filings in the House of Representatives show that the bulk of the millions all three insurers spend annually to lobby Washington is spent on in-house lobbyists. But the companies also hire some of the biggest lobbying shops in Washington to help them, including Ernst & Young, DLA Piper, Alston & Byrd, Van Scoyoc & Co. and Steptoe & Johnson.

logo_mainAetna spent more than $3.5 million lobbying Washington last year; Travelers spent nearly $3 million  million; and Hartford Ins. Co., $2.6 million.

PAC donations buy access to lawmakers for lobbyists, with all three insurance companies contributing to a number of members on the House Ways & Means Committee.

Hunter said this is unsurprising, given the committee’s broad reach into tax and financial issues. This includes the establishment of a new Federal Insurance Office under the Dodd-Frank Act. The FIO is an agency of the Treasury Department that has no regulatory clout, but it monitors the industry and can investigate its practices.

“Some companies are worried about the prospect of more consumer protections,” Hunter said.

The FIO, for example, is investigating the way insurers price auto policies for low-income drivers.

Other industry donations go to lawmakers in positions of leadership and those who sit on committees with jurisdiction over the insurance industry, including the House Finance Committee, Senate Finance Committee, Senate Health, Education, Labor and Pensions Committee and the Senate Banking Committee.

Deciding who gets donations

A lobbyist for Travelers, who spoke on condition of anonymity in deference to the insurer, said lobbyists make suggestions about how PAC money should be spent, but the decision is ultimately left to officers of the company.travelers 2

Aetna spokesman Matthew Wiggin declined to answer questions about the company’s PAC or lobbying activities. He referred, instead, to the company’s website, which says Aetna’s PAC is funded by contributions from company employees, and that the PAC’s day-to-day operations are the responsibility of the PAC’s treasurer, “subject to the oversight and supervision of the Aetna PAC Board of Directors.”

But the list of those who would receive campaign cash from Aetna is determined by a “contributions committee,” composed of lobbyists who “consider a candidate’s voting record, leadership position, committee assignment and other factors in making contribution decisions.”

Aetna also contributes millions of dollars to state candidates and third party organizations, including political party committees and Super PACs.

Aetna was sued in 2013 by a watchdog group, Citizens For Responsibility and Ethics in Washington, because, the watchdog said, the insurer failed to disclose millions of dollars in corporate donations to groups that were lobbying against the Affordable Care Act by sending out false and misleading proxy statements to shareholders in 2012 and 2013. At issue was $3.3 million to the American Action Network and $4.5 million to a Chamber of Commerce’s political fund in 2012.

Aetna also pays more than $1 million in dues every year to America’s Health Insurance Plans, a trade organization that helps the company lobby Washington.

According to lobbying disclosure reports, Aetna’s main focus this year is the ACA. The company is involved in several proposals that would change Obamacare, including one to redefine who would be considered a full-time worker. The definition now refers to someone who works 30 hours a week; Aetna wants that amended to 40-hour-a-week employees.

Travelers and The Hartford are focusing on the fate of the federal flood insurance program and are concerned about whether Congress will reauthorize the Terrorism Risk Insurance Act, set to expire at the end of 2014. The law provides insurers with a federal backstop that acts like reinsurance in the event of a terrorist incident that results in high numbers of claims.

Property and casualty insurers are also lobbying for Senate passage of a House-approved bill called the Furthering Asbestos Claim Transparency Act of 2013, which would amend federal bankruptcy law so that they may be able to challenge claims against a bankrupt company concerning exposure to asbestos.

Lobbyists for the Travelers and The Hartford insurance companies are also keeping watch on the bitter partisan fights in Congress over the federal budget, a dispute that led to the temporary shutdown of the federal government in 2013.

The shutdown resulted in business interruption claims from companies whose operations were dependent on the federal government.

“And if the government shuts down, the flood insurance program shuts down, too,” the lobbyist for Travelers said.

Getting money from Aetna, Travelers and The Hartford
Hover over the legislators to the see individual donations they received.
Donation was made to…
individual
affiliated pac
either
Highlight…
Democrats
Republicans
CT Delegation
Got money from all three
Got money from both Travelers and Hartford Financial
Got money from both Aetna and Hartford Financial
Got money from both Aetna and Travelers
Got money just from Aetna
Got money just from Travelers
Got money just from Hartford Financial
Source: Center for Responsive Politics (OpenSecrets.org)
Alvin Chang and Ana Radelat / CT Mirror

Sign up for CT Mirror's free daily news summary.

Free to Read. Not Free to Produce.

The Connecticut Mirror is a nonprofit newsroom. 90% of our revenue comes from people like you. If you value our reporting please consider making a donation. You'll enjoy reading CT Mirror even more knowing you helped make it happen.

YES, I'LL DONATE TODAY

ABOUT THE AUTHOR

Ana Radelat Ana has written about politics and policy in Washington, D.C.. for Gannett, Thompson Reuters and UPI. She was a special correspondent for the Miami Herald, and a regular contributor to The New York TImes, Advertising Age and several other publications. She has also worked in broadcast journalism, for CNN and several local NPR stations. She is a graduate of the University of Maryland School of Journalism.

SEE WHAT READERS SAID

RELATED STORIES
Equity issues dominate hearing on Lamont’s marijuana bill
by Kelan Lyons and Mark Pazniokas

The administration's testimony took up the hearing's first five hours. More than 130 people are signed up to speak.

Connecticut House joins national civil rights campaign over Black hair styles
by Mark Pazniokas

The Connecticut House voted for a bill intended to protect Black women from discrimination over their hair.

House approves big municipal aid pledge, tax incentive bills
by Keith M. Phaneuf and Mark Pazniokas

The House approved bills Wednesday pledging $100 million-plus in new municipal aid and offering tax incentives to attract data centers.

CT legislature poised to make early budget pledge to help cities and towns
by Keith M. Phaneuf

The state House is expected to approve more than $100 million in new, annual PILOT grants to municipalities.

Connecticut GOP picks Susan Hatfield as state chair
by Mark Pazniokas

Susan Hatfield, vice chair of the Connecticut Republican Party, will complete the term of the former chair, J.R. Romano.

Support Our Work

Show your love for great stories and outstanding journalism.

$
Select One
  • Monthly
  • Yearly
  • Once
Artpoint painter
CT ViewpointsCT Artpoints
Opinion Lamont’s new vaccination priorities are simple and smart
by Richard Davies

Connecticut Gov. Ned Lamont’s new age-eligibility vaccine plan is simple, smart and straightforward. The more complicated the rules are, the greater the chance of screw-ups and of well-connected people getting their shots before they should. The governor is doing a good job.

Opinion Gas pipeline will threaten water quality, wildlife and wetlands
by Susan Eastwood

The Connecticut Department of Energy and Environmental Protection has granted tentative approval of the 401 water quality certification for the Pomfret to Killingly natural gas pipeline. I urge DEEP to deny the 401 certification, as the proposed pipeline would violate the Connecticut’s water quality standards, and the conditions in the draft certification fail to protect our streams, wetlands, and wildlife.

Opinion Connecticut and the other Connecticut. Which will endure?
by Ezra Kaprov

What comes to mind when you hear the word ‘Connecticut’? Possibly, you think of a 43-year-old Puerto Rican man who arrived here with his family following Hurricane Maria. He works full-time as a machinist at the Sikorsky plant, and he coaches a prizefighter on the side.

Opinion COVID-19 increases urgency for legislature to pass medical aid-in-dying law
by Dr. Gary Blick

The COVID-19 crisis has exposed the profound tragedy of loved ones dying alone, in a hospital or nursing home, without the care and comfort of loved ones surrounding them. This pandemic also demonstrates the fragility of life, the limits of modern medicine to relieve suffering, and has magnified the systemic racial disparities in our healthcare system, resulting in higher hospitalization and death rates for people in communities of color. We must eradicate these disparities, so everyone has equal access to the full range of end-of-life care options.

Artwork Grand guidance
by Anne:Gogh

In a world of systemic oppression aimed towards those of darker skintones – representation matters. We are more than our equity elusive environments, more than numbers in a prison and much more than victims of societal dispositions. This piece depicts a melanated young man draped in a cape ascending high above multiple forms of oppression. […]

Artwork Shea
by Anthony Valentine

Shea is a story about race and social inequalities that plague America. It is a narrative that prompts the question, “Do you know what it’s like to wake up in new skin?”

Artwork The Declaration of Human Rights
by Andres Chaparro

Through my artwork I strive to create an example of ideas that reflect my desire to raise social consciousness, and cultural awareness. Jazz music is the catalyst to all my work, and plays a major influence in each piece of work.”

Artwork ‘A thing of beauty. Destroy it forever’
by Richard DiCarlo | Derby

During times like these it’s often fun to revisit something familiar and approach things with a different slant. I have been taking some Pop culture and Art masterpieces and applying the vintage 1960’s and 70’s classic figures (Fisher Price, little people) to the make an amusing pieces. Here is my homage to Fisher -Price, Yellow […]

Twitter Feed
A Twitter List by CTMirror

Engage

  • Reflections Tickets & Sponsorships
  • Events
  • Donate
  • Newsletter Sign-Up
  • Submit to Viewpoints
  • Submit to ArtPoints
  • Economic Indicator Dashboard
  • Speaking Engagements
  • Commenting Guidelines
  • Legal Notices
  • Contact Us

About

  • About CT Mirror
  • Announcements
  • Board
  • Staff
  • Sponsors and Funders
  • Donors
  • Friends of CT Mirror
  • History
  • Financial
  • Policies
  • Strategic Plan

Opportunity

  • Advertising and Sponsorship
  • Speaking Engagements
  • Use of Photography
  • Work for Us

Go Deeper

  • Steady Habits Podcast
  • Economic Indicator Dashboard
  • Five Things

The Connecticut News Project, Inc. 1049 Asylum Avenue, Hartford, CT 06105. Phone: 860-218-6380

© Copyright 2021, The Connecticut News Project. All Rights Reserved. Website by Web Publisher PRO