Despite all the complaints about our health insurance system, there is one area in which Connecticut is the envy of other states: our individual insurance market. Unfortunately, the politicization of rate adjustments is putting a good thing at risk.

Neighboring states marvel at the amount of choice and competition Connecticut residents enjoy in the individual market. This group of consumers, which includes many self-employed people, can choose plans from eight different companies such as Aetna, Anthem, and ConnectiCare. They can shop for the best rates and the specific benefits that make the most sense for them.

If rates get too high or customers become dissatisfied with the service they are getting, the consumer can switch to another company. This possibility is a strong incentive for insurance companies to provide quality plans and good service at affordable prices. As a result of this competition, Connecticut has some of the least expensive individual insurance plans in the Northeast.

Unfortunately, the General Assembly is considering new, increased regulation of the individual market that jeopardizes a good system. Worse, what is driving this regulatory push isn't the best interests of consumers, but politics.

Insurance companies are already subject to strict regulation and can't just raise their rates automatically or arbitrarily. For example, rate increases have to be approved by the state Department of Insurance after a careful review that includes an independent actuarial analysis of insurance statistics and financial data.

The insurance commissioner has the authority to hold public hearings and can reject rates requested by insurance companies. This is exactly what the Department of Insurance did with one such rate increase request last year.

But politicians have noticed it is easier to pander to consumers who are frustrated by rising health insurance costs by bashing insurance companies rather than tackle the root causes of increasing insurance premiums: higher medical costs and greater use of medical services. The more publicly the politicians can put the insurance companies in the pillory, the better for the politician. It is telling that some politicians, including Senate candidate Attorney General Richard Blumenthal, have taken to holding press conferences during rate adjustment hearings to denounce the insurance companies.

The politicization of rate adjustment reviews is behind a bill before the legislature that would give the attorney general and the health care advocate formal roles in reviewing rate increases without bestowing any responsibility on them for making sure that health insurers take in enough money in premiums to pay doctors for the services they provide to their members.

The bill would require companies to propose changes six months in advance, require public hearings, and require insurance companies to pay for a mailing to all of their customers notifying them of the proposed rate change and the hearing. It would also allow politicians like the attorney general to hire outside experts for hundreds of thousands of dollars to challenge the insurers, and then stick the insurance companies with the bill for those experts.

If this sounds like a set up for a ritual public flogging to allow politicians to posture before the cameras, it is.

The result of this increased regulation will be higher prices for consumers because costs and risk will go up for insurance companies. It will also likely prompt at least some carriers to withdraw from the market.

If Connecticut wants to keep its status as having the lowest insurance prices and most choices in the individual market in the Northeast, if should leave the system alone.