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Public Participation & Transparency

How do we know if health insurance rates are fair when insurance companies are allowed to set prices behind closed doors with no accountability? Proposition 45 brings insurance pricing into the light of day.

Transparency
Insurance companies will have to publicly justify rate increases, under penalty of perjury.

Every document an insurance company files to justify a rate increase will be a public record and accessible by any member of the public.

The insurance commissioner must hold a public hearing if a member of the public requests it for any rate increase of 7% or higher. In such cases, fees will be paid by the insurance company. No taxpayer dollars are involved.

Public Participation
Californians will have the right to challenge an unfair or excessive rate increase.

In such cases, fees will be paid by the insurance company. No taxpayer dollars are involved.

Funding public participation will ensure consumers have the professional actuaries, economists and lawyers they need to stand up the legions of experts hired by the insurance industry.

This public process has a deterrent effect as well. The mere presence of public interest experts who can take a second look at insurers’ rate filings results in more reasonable rate requests in the first place.

Savings
The public participation provisions in the Insurance Rate Public Justification and Accountability Act are based on California’s successful insurance law regulating auto, homeowners and other property and business insurance.

Consumer Watchdog has used the public participation provisions of that law to challenge excessive rates and HAS SAVED POLICYHOLDERS OVER $3 BILLION on their insurance premiums since 2002.