The Republican lawsuit targets reinsurance that helps insurance companies provide universal coverage without accounting for pre-existing conditions.
SANTA MONICA, Calif., Aug. 20 -- Consumer Watchdog issued the following news release:
Consumer Watchdog warned today that the 69% public approval rating in the latest Field poll for Prop 45 means that consumers will almost certainly face an avalanche of deceptive insurance company ads designed to scare and confuse voters.
Health insurance companies have raised over $37 million against Prop 45 and are scheduled to start a television advertising blitzkrieg on Labor Day. They hope to scare consumers by claiming it will interfere with California's health insurance exchange, cause delays and increase costs.
"Voters angered by the merciless rate increases health insurers have imposed on them see that the only way the way to rein in these out-of-control rates is with Proposition 45," said Jamie Court, proponent of the initiative and president of Consumer Watchdog.
Proposition 45 will require health insurers to get approval for rate hikes and gives the insurance commissioner the power to reject unreasonable rate increases. It applies the same rules to health insurance that have saved California drivers over $100 billion since 1988, while making the auto insurance market highly competitive and profitable for insurers. More than 35 other states regulate health insurance rates, but not California.
"Proposition 45 would prevent the use of premium dollars to subsidize political activities such as the wave of no on 45 ads we are about to witness," said Court. "Californians should not be forced to pay for political campaigns that will allow health insurance companies to continue to increase rates at will."
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