The parallel industry and government advertisements against Proposition 45, which often run back to back on television, demonstrate the close collaboration between Covered California and the four health insurance companies. The government ads testify to affordable insurance and the industry ads erroneously claim Proposition 45 will take it away. / **Why California needs Prop. 45** (Proposition 45 gives the elected insurance commissioner the power to reject excessive rates, just like auto, Homeowners, workers comp, commercial lines and other insurance coverages) Covered California touts the insurance companies as its “plan partners.” Many consultants hired to create the pool and its key staff have been employees at the health insurance companies. That includes key staff members who help the Covered California board negotiate contracts with the companies behind closed doors. / Collaboration may be good in marketing a product, but its not what consumers need to ensure that they dont get ripped off by insurance companies that can set any price on their policies. / Thirty-five other states require health insurance companies to get approval before raising rates, but not California. Proposition 45 gives the elected insurance commissioner the power to reject excessive rates. And thats what Covered California and the insurance industry seem to fear. / If passed, Proposition 45 would require health insurance company chief executives to file public applications to raise rates under penalty of perjury, allow for public hearings and let consumers challenge unreasonable rates. This same public process of consumer group challenges to the auto insurance industry has saved California drivers an estimated $3 billion in rate hikes since 2002, state records show. / Consumers Union questioned some 2015 rates hikes as unjustified based on the insurance companies record-high surpluses, unrealistic claims projections and excessive company perks. The companies were allowed to raise their rates anyway without adequately responding to those concerns. Under Proposition 45, the insurance commissioner could reject those hikes if he found them to be excessive
Posted on: Mon, 27 Oct 2014 18:07:53 +0000
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