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CA Prop 45: Insurance Company Rates Initiative
Aug 12, 2014
August 8, 2014
California Proposition 45, the Public Notice Required for Insurance Company Rates Initiative, is on the November 4, 2014 ballot in California as an initiated state statute.
Two different versions of the initiative - #11-0070 and #11-0072 - were submitted to election officials. Initiative #11-0070 is the one that qualified for the ballot.
If approved by voters, the initiative would:
- 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.
The initiative, in general, would expand to health insurance rate regulation system to what Proposition 103 (1988) imposed on automobile and homeowners insurance.
Supporters refer to the initiative as the Insurance Rate Public Justification and Accountability Act.
Its sponsors originally hoped to qualify their measure for the November 6, 2012 ballot. They submitted over 800,000 signatures on May 18, 2012. On June 28, it became evident that election officials would not have adequate time to scrutinize the signatures for validity in time for placement on the November 6, 2012 ballot. On August 23, 2012, it was announced that the measure had qualified for the 2014 ballot.
Click here to read the text of measure, supporter's and opponent's arguments, etc.