Declarations

They Took the Money and Ran

“In a difficult economy and a time when health insurance is becoming more expensive, these companies took the money from Missouri consumers and ran.”

—Missouri Insurance Director John M. Huff recently issued cease and desist orders and more than $1 million in fines in a massive crackdown against bogus health insurance plans being sold in Missouri. The department targeted 14 companies and individuals Huff said defrauded Missouri consumers by selling them health discount plans designed to look like comprehensive medical insurance. Earlier this year, the department demanded the companies and individuals appear at a hearing in Jefferson City; none did. The groups market their products largely through junk faxes, using phrases like “Control your health care costs,” “Group health plan” and “dependent coverage.” The department said at least 150 Missouri consumers paid the companies for services.

A Continuing Objective

“Our objective remains the same at AIG, which is to repay taxpayers and position AIG over time as a strong, independent company worthy of investor confidence.”

—An anonymous source from American International Group Inc. (AIG) commenting on continued negotiations with the U.S. government on a deal through which the Treasury Department would exit its investment in the bailed-out insurer. The situation is still fluid and there are many moving parts, one of the sources said. A possible conversion of the Treasury’s $49 billion preferred stake in AIG into common stock is one of the options being discussed, Reuters reported. Such a conversion, which could start as soon as the first half of next year, would possibly raise the government’s stake in AIG to above 90 percent from nearly 80 percent. The Treasury would sell its common stake to investors over time. The sources are anonymous because talks are not public.

Repair Roads, Stimulate Economies

“Communities all over the state will be able to repair roads, which will improve safety and stimulate local economies by putting more people to work.”

—Illinois Gov. Pat Quinn announced a $100 million capital investment in local transportation needs as part of Illinois Jobs Now! The $100 million will be distributed to local officials to repair municipal, township and county infrastructure; improve public safety; and put people to work throughout Illinois. Chicago region counties, municipalities and road districts will receive $59 million. This includes Cook, DuPage, Kane, Lake, McHenry and Will counties. The initial $100 million investment, along with five subsequent installments, will be distributed to local governments by the same formula as the Illinois Motor Fuel Tax. The first investment will boost municipalities’ normal distribution of the state fuel tax by 17 percent. Projects will be selected and administered locally. Qualified projects include: local street and bridge maintenance, new traffic signals, storm sewer and bike path construction, sidewalk replacements, and pothole repairs.