Proposition 45 (2014)

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.