Prop. 45 – What You Need To Know

Prop. 45 is a under consideration on the ballot and it is extremely important to be fully educated on what this proposition entails and what it means for the future of health insurance.

If Prop. 45 is elected, it could give one state elected commissioner 100% rate-regulation authority over the health insurance marketplace. This will affect nearly 6 million people in California who purchase their insurance through a small business employer or as an individual or family (on or off the exchange). While the state would be able to regulate certain policies, the person assuming the title of health care commissioner would be the only one who could actually approve rates insurers charge.

What is Prop. 45:

  • Allows one person (the commissioner) to review and approve rates
  • Individual and small group health insurance rates, premiums, deductibles, co-payments, and other benefits would be approved by a single person (the commissioner)

Why are people against Prop. 45:

  • It gives one person too much power over an individual’s health insurance premium
  • The state commissioner can accept funding to help assume the role meaning that they can be persuaded to adjust rates based on the people helping them get into office
  • This could increase the cost of Covered California since the process would delay approval for some plans on the exchange

Many of the opponents of this ballot initiative include health insurance companies including Kaiser and Blue Shield of California. While supporters claim that this would give more transparency to the rationale for certain rates determined by health insurance companies, opponents argue that it gives one person too much power.


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