Tuesday, November 4, 2014 - KPBS
By Kenny Goldberg
Update 10.24 p.m.: Measure would have regulated health insurance
costs by giving commissioner more authority.
Proposition 45 fell to the "no" voters, who decided against granting the
state commissioner the right to cap insurance costs. The ballot measure also
would have required insurance companies to justify any price hikes.
UPDATE 8:10 p.m. Californians rejecting measure to give more muscle
to state regulator to control health insurance prices.
Preliminary results show voters saying "no" to the measure by 61 percent.
HMO's spent heavily to defeat proposition 45 in the weeks leading up to the
election.
Original post:
Health insurance premiums have gone up 172 percent since 2002, according to
the California HealthCare Foundation. That's what prompted supporters of
Proposition 45 to put their measure on today's ballot.
The measure would give California's insurance commissioner the authority to
reject health insurance premium increases found to be unreasonable. Proposition
45 would also require insurers to publicly disclose and justify any rate
increases.
Waning Support
The latest Field Poll, released Friday, shows 36 percent of likely voters are
in favor, 42 percent are opposed, while 28 percent remain undecided. Support for
Proposition 45 has sharply declined since early July, when 69 percent of likely
California voters were in favor of it.
Who supports Proposition 45 and why?
The measure's chief sponsor is the nonprofit group Consumer Watchdog.
Jamie Court, president of Consumer Watchdog, said the measure would fill a
major loophole in the Affordable Care Act.
gThere is no governmental body in California or federally that has the power
to tell health insurance companies theyfre charging too much," he said. "And
yet, the health insurance companies sell policies, and we all have to buy them.
So, the missing link in the Affordable Care Act is having some kind of mechanism
to make sure that health insurance rates are affordable.h
Currently, auto insurance and homeowners insurance companies must get
permission from the California insurance commissioner before they can raise
rates. Court said Prop. 45 would simply put health insurance under the same
system.
Who opposes the measure and why?
A coalition called Californians Against Higher Health care Costs is leading
the charge against Proposition 45. The coalition includes health insurance
companies, the California Chamber of Commerce, and the California Medical
Association.
Opponents raised more than $37 million to fight Proposition 45.
San Diego pediatrician Sherry Franklin, a member of the CMA board of
trustees, said the Affordable Care Act is designed to provide consumers some
relief for high health insurance costs.
gAnd I think we need to let the system play out before we start throwing more
pieces into the mix," Franklin said. "Wefve created a system; itfs brand new.
Letfs let it do its job before we assume that itfs not going to work for
us.h
In addition, Franklin said Proposition 45 would give one elected official in
California too much power over the health insurance industry.