Health insurance companies doing business in California woke up to good news Wednesday: Voters appeared to be strongly opposed to a ballot initiative that would have permitted the state insurance commissioner to review and veto any proposed rate increases deemed too high.
Proposition 45, a proposal backed by California Insurance Commissioner Dave Jones that would create a powerful oversight on rate increases, was defeated at the polls. About 60 percent of Californians voted against the measure.
Insurance carriers spent some $50 million fighting the measure, proposed by Consumer Watchdog, a self-styled advocacy organization.
Recommended For You
Proponents of Proposition 45 were wildly outspent by the industry. Contributors to the anti-Prop 45 campaign war chest included Kaiser Permanente, WellPoint, Blue Cross Blue Shield and Health Net.
Homeowner and auto insurance companies operating in California must justify any rate increases, which can be rejected by the state. The measure would have set the same rules for health insurance carriers, and would have granted veto power over requested rate hikes to the commissioner.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
