Proposition 45 (2014) | californiachoices.org

My vote

Proposition 45 would expand the regulation of health insurance rates in California. Changes to rates or anything effecting the charges associated with health insurance would require California Insurance Commissioner approval. Rate changes would require public notice, disclosure, a hearing, and judicial review. Large health plans would be exempted. Policy eligibility could not be determined by health, homeowner, or auto insurance companies. The measure would likely increase state administrative costs to regulate health insurance.

Proposition 45 is an initiative statute.

Official Results

Yes votes: 2,917,882 [41.1%]

No votes: 4,184,416 [58.9%]

See Endorsements for Proposition 45 (2014)

Details

Pro/Con

Pro:

Proponents argue that Proposition 45 would help slow the increase in health premiums which the state has been experiencing for the last decade. They say the measure will introduce transparency into rate regulation. They say the measure is a necessary one to police insurance companies from instituting rate hikes.

Suporters

Yes on 45

Con:

Opponents argue Proposition 45 will give too much power to the California Insurance Commissioner, who will be susceptible to special interest influence and donations. They claim that the measure will create an costly state bureaucracy and introduce more red tape to the rate regulation system.

Opposition

Stop Higher Costs

In Depth

The management and requirements of health care in California are overseen by the Department of Managed Health Care (DMHC) or the California Department of Insurance (CDI). Most Californians have healthcare which is managed by the DMHC. Small group and individual health insurance is overseen by both the DMHC and the CDI. Fees on insurance companies fund these departments.

Insurance companies are currently required to file information regarding proposed rates for individual and small group insurance with one of these departments. The CDI and the DMHC review the rates and consider whether they are legitimate for the population. They review such elements as cost to enrollees, which benefits are covered, and if a company's adminstrative budget is appropriate. The CDI and the DMHC will then declare their findings. Some of these findings are made available to the public.

Proposition 45 would require that any changes to health insurance rates or management must be approved by the California Insurance Commissioner. The measure would require public disclosure and notice on rate changes as well as a hearing and judicial review. The health insurer would have to sign a sworn statement attesting to the accuracy of the rate information submitted. Large group health plans would not be effected by this measure.

The measure would also prohibit health insurers from considering lack of coverage or credit score when drafting policies on eligibility or rates. These requirements would also extend to auto and homeowners insurance under Prop. 45.

Polling

Field Poll #2490, October 31, 2014
In the case of Prop. 45, 30% of likely voters are now in favor, while 42% are opposed and 28% remain undecided.

Hoover Institution Golden State Poll, October 3-17, 2014

PPIC Californians And Their Government, October 2014

PPIC Californians And Their Government, September 2014

Field Poll #2478, August 20, 2014 - 2014 TCWF-Field Health Policy Poll - Part 2, Field Poll #24378 August 20, 2014
“There is strong early support for Proposition 45, the "Approval of Healthcare Insurance Rate Changes" initiative. After being read a summary of Prop. 45's official ballot description, 69% of likely voters say they would vote YES, while 16% say they would vote NO. Another 15% are undecided. "

FieInternet Poll - Hoover Institution Golden State Poll, October 3-17, 2014
“Proposition 45 asks voters to approve the Public Notice Required for Insurance Company Rates Initiative. This law requires the Insurance Commissioner's approval before a health insurer can change its rates or anything else affecting the charges associated with health insurance. Fiscal Impact: Increased state administrative costs to regulate health insurance, likely not exceeding the low millions of dollars annually in most years, funded from fees paid by health insurance companies. Will you vote for or against Prop 45?. "

Voter Resources

Official CA Documents

Official Voter Information Guide

Campaign Finance Information
Cal-Access
Check out how much money is being raised and spent to pass or defeat this measure, and where the money is coming from.

Cal-Access Ballot Measure Summary Data Search
Select "General 04 November 2014" and "Proposition 045" from the drop-down menus. Cal-Access provides financial information supplied by state candidates, donors, lobbyists, and others.

Nonpartisan Analyses
Ballotpedia
League of Women Voters: Pros and Cons
Project for an Informed Electorate - Fact Check: Prop. 45

Multimedia

Supporters