The consumer advocacy group Consumer Watchdog wants to take regulation of health insurance rates to Calfornia voters with a ballot initiative set for 2012.
The ballot measure would expand Proposition 103, which regulates auto and home insurance rates in California, to include health insurance rates. It would also roll back health insurance rates by 20 percent and give the insurance commissioner power to approve or reject rate increases.
Critics are already lining up against the ballot idea. Democratic political consultant Steve Maviglio said Friday the initiative effort is "bogus," calling it an effort to save a floundering Assembly Bill 52.
AB 52, penned by Mike Feuer, D-Los Angeles, seeks to grant the insurance commissioner authority to regulate health insurance rates. The bill moved to the Senate floor this week, but is facing growing opposition from medical groups, insurers and, increasingly, state officials including Gov. Jerry Brown's finance team.
Maviglio also questioned Consumer Watchdog's chances of getting the initiative on the 2012 ballot or raising the cash needed to wage a statewide campaign if the measure did go to voters.
The California Association of Health Plans strongly opposes AB 52 and appeared to dismiss the notion of a health insurance ballot initiative Friday.
"What we're focused on and taking seriously now is AB 52," said association spokeswoman Nicole Evans.
Consumer Watchdog has allies among other advocate groups and in the Capitol, where state Insurance Commissioner Dave Jones has made insurance rate regulation a key part of his agenda.
The initiative push echoes Consumer Watchdog's successful effort to regulate auto insurance rates in the late 1980s.
The health insurance ballot measure outlines a seven-point plan, including:
• Rolling back rates by 20 percent.
• Barring insurers from using credit and insurance history to raise rates or deny coverage.
• Requiring insurers to gain permission from the state's insurance commissioner to raise rates.
• Banning insurers that repeatedly violate consumer protection laws from doing business in the state.
"The Senate doesn't look like it is going to pursue rate regulation in its strongest form," said Jamie Court, president of Consumer Watchdog. "This is an opportunity to do (Proposition) 103 all over again for health insurance."
Proposition 103 author and Consumer Watchdog founder Harvey Rosenfield is behind the proposed ballot initiative and says the time is right to extend controls to the health insurance industry.
"There's a level of outrage that exceeds the 1980s with auto insurance," he said.
Contact The Bee's Darrell Smith, at (916) 321-1040 or [email protected]
