http://benefitpackages.com/ | Proposition 45 would allow the state of California to regulate health insurance rates. While supporters believe this would lower overall insurance rates, opponents believe it is a redundant law that undercuts the Affordable Care Act and the effectiveness of the Covered California program.

1. The Facts about Proposition 45
This November, California voters will head to the voting booth to vote on Proposition 45,
which deals with health care rate regulation in California. Voters need to understand exactly
what this proposition means for California health insurance in order to make an educated
decision.
What Is Proposition 45?
Proposition 45, also known as the Insurance Rate Public Justification and Accountability Act,
would give state regulators control over changes in California medical insurance coverage rates.
If passed, all changes in health insurance rates or costs would have to be approved by the
California Insurance Commissioner, although large employer group plans would be exempt from
this requirement. Insurance companies would have to issue sworn statements to the insurance
commissioner for consideration before health care rates could be raised, and insurance eligibility
and rates could not be based on prior insurance history or credit history.
Arguments in Favor
Those in favor or Proposition 45 argue that California health insurance costs are out of control
and that California needs measures in place to put the brakes on exorbitant rate hikes. Proponents
say that health insurance premiums have risen at five times the rate of inflation since 2002, with
no regulations in place to protect consumers. Proposition 45 will require insurance companies to
be more transparent in justifying rate increases, and proponents cite a similar regulation on auto
insurance (Proposition 103, 1988) that has saved California drivers billions of dollars since
passed. Those in favor believe that Proposition 45 will ultimately lower healthcare costs by
preventing unreasonable rate hikes.
Opposing Arguments
Opponents argue that Proposition 45 is unnecessary, creates additional layers of bureaucracy,
and undercuts the Affordable Care Act’s ability to provide health insurance to Californians who
wouldn’t otherwise be able to afford it. They argue that Covered California has already received
critical acclaim for doing exactly what the Affordable Care Act was designed to do: bring
affordable health insurance to everybody regardless of their circumstances. If Proposition 45
were to pass, private citizens could file complaints against Covered California or other low-cost
insurance programs, interfering with the administration of those programs until the already
overworked Insurance Commissioner could review the complaints. Thus, opponents argue, many
people would be denied health care benefits, rendering the Affordable Care Act useless. Since
over 3 million Californians are covered through Covered California, opponents of Proposition 45
argue that the proposition is unwarranted and disruptive.
Conclusion
Proposition 45 is another contentious battle in the ongoing debate on U.S. health care reform.
Supporters of the proposition are generally in favor of broader government oversight of the
health care industry, and are fearful that, if left to their own devices, health insurance companies
will raise rates unreasonably and keep coverage from those most in need. Opponents believe that
the state’s current powers to review, but not approve, rates for individual and small group
insurance is sufficient. They suggest adding more government intervention is inefficient and

2. potentially costly, and warn that California health insurance exchange options under the
Affordable Care Act could be adversely affected by additional regulations. Ultimately,
supporters and opponents of Proposition 45 disagree about the role of government and the way
costs should be distributed.
About Benefit Packages
Benefit Packages is a Southern-California based insurance agency that has been helping
individuals, businesses and seniors find affordable California health insurance for more than two
decades. The Certified Insurance Agency has expert knowledge of the new healthcare law and
assists consumers with enrollment in Covered California plans. For more information, visit
benefitpackages.com or call 1-800-356-3615.
References
"California Proposition 45, Public Notice Required for Insurance Company Rates Initiative
(2014)." - Ballotpedia. N.p., n.d. Web. 28 Sept. 2014.
"Chronicle Recommends: No on Prop. 45." SFGate. N.p., n.d. Web. 29 Sept. 2014.
"Local and Breaking News from The Modesto Bee in Modesto, CA | ModBee.com." Local and
Breaking News from The Modesto Bee in Modesto, CA | ModBee.com. N.p., n.d. Web. 29 Sept.
2014.
"Why We Support Prop 45: Our Health Insurance Premium Went Up Over 1,300%." California
Progress Report. N.p., n.d. Web. 29 Sept. 2014.