In light of Obamacare and subsequent backlash, health insurance is one of those topics that has remained front and center in a wide array of debates as consumers and providers grapple with costs, coverage, etc. There are now a few initiative proposals circulating that would affect the health insurance industry.

The first would regulate insurers to protect consumers, such as prohibiting insurers from reducing policy benefits without prior consent and refund. The proponent, John Metz, must collect signatures of 504,760 registered voters in order to qualify it for the ballot and the signatures must be collected by May 25th. The official ballot title and summary are as follows:

HEALTH INSURANCE. INITIATIVE STATUTE. Requires interpretation of insurance policies according to plain meaning of words unless special definition included in policy. Prohibits insurers from reducing policy benefits without prior consent and refund. Requires insurers to provide written reasons for delay, limitation, or denial of benefits and certify determinations are not based on false or misleading information. Voids agreements rewarding providers for denial of covered services. Subjects violators to license suspension, disgorgement, damages, punitive damages, and publication of otherwise confidential business information involved in violation. Authorizes individual enforcement actions on behalf of State. Creates ownership interest in one’s own health information. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government, if this measure is interpreted to apply only to health plans and insurers regulated by CDI and DMHC: Likely increase in costs to the state and local governments, at least in the millions of dollars annually, associated with increased premiums for government-purchased health insurance. Likely minor impact on state General Fund revenues from gross premiums and corporate income taxes. Potentially significant increase in state court costs depending on the number of cases filed and how they are adjudicated by the courts. (11-0060)

Next, there are two versions of the following proposal currently floating. This measure would prevent health insurance rates from changing without the Insurance Commissioner’s approval. We’ve posted below the title and summary for the two different versions.

Second version, which is different because large group plans won’t be excluded if a rate increase exceeds 10 percent:

APPROVAL OF HEALTHCARE INSURANCE RATE CHANGES. INITIATIVE STATUTE. Requires health insurance rate changes to be approved by Insurance Commissioner before taking effect. Requires sworn statement by health insurer as to accuracy of information submitted to Insurance Commissioner to justify rate changes. Provides for public notice, disclosure and hearing on health insurance rate changes, and subsequent judicial review. Exempts employer large group health plans, unless requested or rate increase exceeds 10 percent. Prohibits health, auto and homeowners insurers from determining policy eligibility or rates based on lack of prior coverage or credit history. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state administrative costs in the low tens of millions of dollars annually to regulate health insurance rates, funded with revenues collected from filing fees paid by health insurance companies. (11-0072)

First version:

APPROVAL OF HEALTHCARE INSURANCE RATE CHANGES. INITIATIVE STATUTE. Requires health insurance rate changes to be approved by Insurance Commissioner before taking effect. Requires sworn statement by health insurer as to accuracy of information submitted to Insurance Commissioner to justify rate changes. Provides for public notice, disclosure and hearing on health insurance rate changes, and subsequent judicial review. Does not apply to employer large group health plans. Prohibits health, auto and homeowners insurers from determining policy eligibility or rates based on lack of prior coverage or credit history. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state administrative costs ranging in the low millions to low tens of millions of dollars annually to regulate health insurance rates, funded with revenues collected from filing fees paid by health insurance companies. (11-0070)