Currently in California, health insurance companies can raise rates and pass on new costs to consumers at will. Unlike 35 other states which allow their state insurance commissioners authority to approve health insurance rates, no one in California has the power to say no to an excessive rate increase. The "Insurance Rate Public Justification and Accountability Act" requires health insurance companies to publicly justify rate increases and obtain approval by the California Insurance Commissioner before they take effect.
Prop 45 will also prohibit health insurance companies from passing on the cost of lavish perks or huge investment returns to consumers. It applies the same rules to health insurance that have saved California driver billions of dollars since 1988.
For more information on Prop 45 visit Yes on 45.
Published August 20th, 2014Like this post? Consider sharing it on
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