Bob Graham, Executive Editor

If Barack Obama were to choose Kansas Gov. Kathleen Sebelius as his running mate, it might be good for the insurance industry. She understands the various facets of insurance issues and she could offer a more balanced view on insurance regulatory reform than any other candidate, including and especially Hillary Clinton.

Sebelius served as an insurance commissioner in Kansas and is a former president of the National Association of Insurance Commissioners. Carriers probably remember her as the commissioner who in 2002 blocked a proposed merger of Blue Cross and Blue Shield of Kansas, the state’s largest health insurer, with Indiana-based Anthem Blue Cross. To ensure her independence and that of the state insurance agency, she even declined campaign contributions from insurance companies while running for office.

A second-term governor, Sebelius gave the Democratic response to President Bush’s 2008 State of the Union Address, a job that put her on the short list for vice president and introduced her to the nation. She has been named by the Washington Post as the top choice for Obama, something she’s used to. Her name was bandied about when John Kerry ran in 2004, and she had been mentioned as a possible presidential candidate for this election. She has twice won election in a largely Republican state, and she helped deliver Kansas to Obama with her endorsement a week before its primary. If chosen, Sebelius could pull in women and the Midwestern vote, two missing links in the Obama candidacy.

Sebelius is a viable vice presidential candidate. The question is, can Obama free himself of Hillary Clinton? If so, can he and should he still pick a woman for a running mate? And, most importantly for the Democrats, would the pairing win the election?Having someone in Washington who understands and appreciates all sides of the ongoing debates on the universal health, the plight of the uninsured, catastrophe funds, terrorism insurance risks, an optional federal charter and how altering the regulatory climate could affect insurers and producers would be invaluable at this critical juncture in the industry’s lifecycle. Kathleen Sebelius could be that person – and a welcome choice for the insurance industry.