Proposition 45 would expand the regulation of health insurace 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.
For more information on this proposition, including voter resources, in-depth analysis, and endorsements, please see the California Choices web site.
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.
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.