This initiative will be on the November ballot and is strongly supported by Insurance Commission Dave Jones. The proposition claims to regulate health insurance premiums, but in reality:
- Gives one politician, the Insurance Commissioner, sweeping new power over every aspect of health care coverage, including premiums, benefits, and networks. It could even give the commissioner control over the treatment options that health insurance covers.
- Creates a massive new bureaucracy that will cause chaos in the market by delaying product launches, second guessing the Department of Managed Care and interfering with Covered California.
- Will greatly reduce the number of plans – and potentially the number of carriers in the marketplace.
- The Affordable Care Act already contains rate regulations such as medical loss ratio (MLR) rules.
- Creates a new system that pays the measure’s trial lawyer sponsors to file costly lawsuits – ultimately paid for by consumes and insurers
