RATE REGULATION
INITIATIVE
PROPOSITION 45
CAHU No on Prop 45
Grassroots Campaign:
Agents of Action
AGENDA
What is Proposition 45
Why Proposition 45 Must Be Defeated
What You Can Do
September 10, 2014
AGENDA
What is Proposition 45
Why Proposition 45 Must Be Defeated
What You Can Do
September 10, 2014
PROPOSITION 45
Insurance Rate Public Justification &
Accountability Act
Failed to move forward as a bill
Qualified for November 4th Ballot Initiative
September 10, 2014
PROPOSITION 45 CORE CLAIM
Giving California Insurance Commissioner
the power to dictate rates and benefits for all
Individual and Small Group health plans will
lower rates
September 10, 2014
AGENDA
What is Proposition 45
Why Proposition 45 Must Be Defeated
What You Can Do
September 10, 2014
TOO MUCH POWER FOR ONE POLITICIAN
One elected politician will approve or
disapprove rates, benefits, co-pays,
deductibles and treatments
Expands Insurance Commissioner’s power
to include plans regulated by the
Department of Managed Care
• All elected Insurance Commissioners
have run for Governor, except the
indicted and the current ones
September 10, 2014
POORLY WRITTEN
Retroactive to November 6, 2012
• Insurance Commissioner could rollback
2013 and 2014 rates and require
commission paybacks
September 10, 2014
TOO BROAD
Proposition 45 claims to address only
premiums and benefits, reality is everything
about health plans is covered
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Networks sufficiency
Network discounts
Underwriting relativities
Cost sharing
Broker compensation
September 10, 2014
FAILS TO ADDRESS COST DRIVERS
The cost of medical treatment
Increasing prescriptions costs
The cost of new technologies
Changing demographics
Preventable chronic conditions
September 10, 2014
UNNECESSARY
Affordable Care Act already addresses
premiums through the MLR requirements
• Refunds have been made
September 10, 2014
IS TOO EXPENSIVE
The Legislative Analyst estimates
administrative costs to be in the tens of
millions of dollars per year
Funded with fees charged to insurers that
will be passed on to consumers
September 10, 2014
UNINTENDED CONSEQUENCES
Carriers may reduce product offerings or
leave the market altogether
Commissioner’s decisions could interfere
with physician treatment decisions
September 10, 2014
ENCOURAGES CHAOS
Interveners can earn $675 per hour for
objecting to filings
Interventions would delay product
introductions and rate changes
• Under Proposition 103, average rate filing
subject to intervention takes 343 days
Last minute challenges to Covered
California’s plan designs and rates would
disrupt the Exchange
September 10, 2014
COVERED CALIFORNIA CONCERNS
California health exchange weighs formal opposition to Proposition 45
The Sacramento Bee
September 10, 2014
FAILS TO BENEFIT CONSUMERS
But does benefit:
Politicians
Trial lawyers (the funders)
Interveners
September 10, 2014
AGENDA
What is Proposition 45
Why Must Proposition 45 Be Defeated
What You Can Do
September 10, 2014
JOIN THE NO ON PROP 45 COALITION
ACA proponents
Physicians and Nurses
Hospitals
Unions
Building and construction trades
Business groups
Democratic and Republican Legislators
Health plans and brokers
September 10, 2014
GROUPS OPPOSED (PARTIAL LIST)
California Chamber of Commerce
Small Business Majority
California Hispanic Chamber
California Black Chamber of Commerce
California Asian Pacific Chamber of Commerce
Service Employee International Union California
State Building and Construction Trades Council
of California
September 10, 2014
GROUPS OPPOSED (PARTIAL LIST)
California Medical Association
American Nurses Association California
California Hospital Association
California Children’s Hospital Association
William Jefferson Clinton Democrats
California State Conference NAACP
William Jefferson Clinton Democrats
CAHU and NAIFA
September 10, 2014
YOU CAN MAKE THE DIFFERENCE
The 40 Vote CAHU Challenge
10 NO Votes from CLIENTS
10 NO Votes from CLIENTS’ EMPLOYEES
10 NO Votes from FAMILY & FRIENDS
10 NO Votes from EMPLOYEES/COLLEAGUES
40 NO VOTES x 2,500 CAHU Members =
100,000 NO VOTES
September 10, 2014
TOOLS YOU CAN USE
The Agents of Action Web Site
September 10, 2014
TOOLS YOU CAN USE
Materials to educate and motivate your
clients, colleagues, family and friends:
Emails
Letters and Postcards
Flyers and Brochures
LinkedIn posts
Campaign giveaways (posters, pens,
buttons)
September 10, 2014
WHAT WE MUST DO
Vote NO on Prop 45
Educate and motivate clients, colleagues,
friends and family
Recruit local businesses and civic groups
Get out the vote: No on 45!
September 10, 2014
ADDITIONAL RESOURCES
www.AgentsofAction.org
www.NoOn45.org
September 10, 2014
QUESTIONS?
CAHUInfo@gmail.com
Jennifer Zins
• jennifer@perrycom.com
• (916) 871-0603
Paid for by No on 45: California Association of Health Underwriters Issues Committee for Responsible Health Insurance Regulation,
with major funding by California Association of Health Underwriters, LISI, Inc., National Association of Health Underwriters, Warner
Pacific Insurance Services, and Word & Brown Insurance Administrators, Inc.
September 10, 2014