Prop 45: Approval of Healthcare Insurance Rate Changes

Put on the Ballot by Petition Signatures

40.2% YES
59.8% NO


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.

What Your Vote Means

A YES Means Rates for individual and small group health insurance would need to be approved by the Insurance Commissioner before taking effect.
A NO Means State regulators would continue to have the authority to review, but not approve, rates for individual and small group health insurance.


PRO Californians are being overcharged for health insurance. Prop 45 will stop the price gouging by requiring health insurance companies to be transparent and publicly justify rates before premiums can increase. The same regulation of auto insurance has saved drivers billions. Sponsors: Consumer Watchdog, California Nurses Association, Opponents: health insurance companies.
CON Prop 45 is a power grab by special interests to take control over health care benefits and rates from California's successful new independent commission ? and give it to one Sacramento politician instead. Higher costs, more bureaucracy. Political interference with treatment options. Exempts big corporations. Nurses, doctors, consumers say vote No!
Prop 2
Prop 46