Their is a ballot in California that will be up for voting in November of 2014. It is called proposition 45. The initiative seeks to add greater transparency in health insurance rate setting and calls for greater oversight by the California Department of insurance when health insurers seek to set rates.
The proposition would affect health insurance plans that take effect after November 6th 2014. It would require the CEO of the health insurer to make a sworn statement under penalty of perjury when submitting health insurance rates. A transition period would be allowed for- when health plans are submitted they could have their rates go live for a temporary time while the California Department of Insurance reviews them. Health insurance companies would be required to pay a filing fee to help the department of insurance pay to regulate the health insurance plans.
Of course, health insurers oppose the additional regulation citing the additional bureaucracy that it would create. Many state that it would provide duplication of what the Department of Managed Health is already doing, as well as create additional lag time in getting rates approved. Stay tuned for additional information…
