Vote No on Prop 45

Join us in voting No on Prop 45.  This proposition gives the Insurance Commissioner sole control over health insurance premiums but fails to address medical costs or treatments.

If approved by voters, the initiative would:[1]

  • Require changes to health insurance rates, or anything else affecting the charges associated with health insurance, to be approved by the California Insurance Commissioner before taking effect.
  • Provide for public notice, disclosure, and hearing on health insurance rate changes, and subsequent judicial review.
  • Require sworn statement by health insurer as to accuracy of information submitted to Insurance Commissioner to justify rate changes.
  • Exempt employer large group health plans under any circumstances.
  • Prohibit health, auto, and homeowners insurers from determining policy eligibility or rates based on lack of prior coverage or credit history.

Proposition 45 would add another layer of bureaucracy to California’s insurance premiums, which will be passed on to consumers by the insurance carriers.  It would create “Interveners” who are in fact, Special Interest Trial attorneys.  They will be allowed to step in and challenge insurance carrier increases.  Win or lose, the attorneys will be allowed to keep their fees.  It could delay the process of insurance renewals and possibly decrease the number of plans available to consumers.

Currently the Affordable Care Act regulates premiums through Medical Loss Ratios reported by insurance carriers.  Doctors, nurses, Unions and hospital associations are some of the many entities that oppose this proposition. Covered CA also opposes Prop 45 due to safeguards currently in place.  This proposition would potentially adjust past rates and subsidies, creating further chaos and legal fees.

In summary, Prop 45 would create more bureaucracy, chaos, higher premiums and fewer choices.  If you would like more information, please visit:  Thank you.