RATE REGULATION INITIATIVEPROPOSITION 45

CAHU No on Prop 45 Grassroots Campaign:Agents of Action

AGENDA

What is Proposition 45

Why Proposition 45 Must Be Defeated

What You Can Do

September 10, 2014

AGENDA

What is Proposition 45

Why Proposition 45 Must Be Defeated

What You Can Do

September 10, 2014

PROPOSITION 45

Insurance Rate Public Justification & Accountability Act

Failed to move forward as a bill

Qualified for November 4th Ballot Initiative

September 10, 2014

PROPOSITION 45 CORE CLAIM

Giving California Insurance Commissioner the power to dictate rates and benefits for all Individual and Small Group health plans will lower rates

September 10, 2014

AGENDA

What is Proposition 45

Why Proposition 45 Must Be Defeated

What You Can Do

September 10, 2014

TOO MUCH POWER FOR ONE POLITICIAN

One elected politician will approve or disapprove rates, benefits, co-pays, deductibles and treatments

Expands Insurance Commissioner’s power to include plans regulated by the Department of Managed Care• All elected Insurance Commissioners

have run for Governor, except the indicted and the current ones

September 10, 2014

POORLY WRITTEN

Retroactive to November 6, 2012• Insurance Commissioner could rollback

2013 and 2014 rates and require commission paybacks

September 10, 2014

TOO BROAD

Proposition 45 claims to address only premiums and benefits, reality is everything about health plans is covered• Networks sufficiency• Network discounts• Underwriting relativities• Cost sharing• Broker compensation

September 10, 2014

FAILS TO ADDRESS COST DRIVERS

The cost of medical treatment

Increasing prescriptions costs

The cost of new technologies

Changing demographics

Preventable chronic conditions

September 10, 2014

UNNECESSARY

Affordable Care Act already addresses premiums through the MLR requirements• Refunds have been made

September 10, 2014

IS TOO EXPENSIVE

The Legislative Analyst estimates administrative costs to be in the tens of millions of dollars per year

Funded with fees charged to insurers that will be passed on to consumers

September 10, 2014

UNINTENDED CONSEQUENCES

Carriers may reduce product offerings or leave the market altogether

Commissioner’s decisions could interfere with physician treatment decisions

September 10, 2014

ENCOURAGES CHAOS

Interveners can earn $675 per hour for objecting to filings

Interventions would delay product introductions and rate changes• Under Proposition 103, average rate filing

subject to intervention takes 343 days

Last minute challenges to Covered California’s plan designs and rates would disrupt the Exchange

September 10, 2014

COVERED CALIFORNIA CONCERNS

Prop. 45 sparks

turf war over

health insurance

regulation in

California

Ventura County Star

California health exchange weighs formal opposition to Proposition 45The Sacramento Bee

Prop 45 Threatens California’s Health Reform Success StorySan Jose Mercury

September 10, 2014

FAILS TO BENEFIT CONSUMERS

But does benefit:

Politicians

Trial lawyers (the funders)

Interveners

September 10, 2014

AGENDA

What is Proposition 45

Why Must Proposition 45 Be Defeated

What You Can Do

September 10, 2014

JOIN THE NO ON PROP 45 COALITION

ACA proponents

Physicians and Nurses

Hospitals

Unions

Building and construction trades

Business groups

Democratic and Republican Legislators

Health plans and brokers

September 10, 2014

California Chamber of Commerce

Small Business Majority

California Hispanic Chamber

California Black Chamber of Commerce

California Asian Pacific Chamber of Commerce

Service Employee International Union California

State Building and Construction Trades Council of California

GROUPS OPPOSED (PARTIAL LIST)

September 10, 2014

California Medical Association

American Nurses Association California

California Hospital Association

California Children’s Hospital Association

William Jefferson Clinton Democrats

California State Conference NAACP

William Jefferson Clinton Democrats

CAHU and NAIFA

GROUPS OPPOSED (PARTIAL LIST)

September 10, 2014

YOU CAN MAKE THE DIFFERENCE

The 40 Vote CAHU Challenge 10 NO Votes from CLIENTS 10 NO Votes from CLIENTS’ EMPLOYEES 10 NO Votes from FAMILY & FRIENDS 10 NO Votes from EMPLOYEES/COLLEAGUES

40 NO VOTES x 2,500 CAHU Members =

100,000 NO VOTES

September 10, 2014

TOOLS YOU CAN USE

The Agents of Action Web Site

September 10, 2014

TOOLS YOU CAN USE

Materials to educate and motivate your clients, colleagues, family and friends:

Emails

Letters and Postcards

Flyers and Brochures

LinkedIn posts

Campaign giveaways (posters, pens, buttons)

September 10, 2014

WHAT WE MUST DO

Vote NO on Prop 45

Educate and motivate clients, colleagues, friends and family

Recruit local businesses and civic groups

Get out the vote: No on 45!

September 10, 2014

ADDITIONAL RESOURCES

www.AgentsofAction.org

www.NoOn45.org

September 10, 2014

QUESTIONS?

CAHUInfo@gmail.com

Jennifer Zins • jennifer@perrycom.com• (916) 871-0603

Paid for by No on 45: California Association of Health Underwriters Issues Committee for Responsible Health Insurance Regulation, with major funding by California Association of Health Underwriters, LISI, Inc., National Association of Health Underwriters, Warner Pacific Insurance Services, and Word & Brown Insurance Administrators, Inc.

September 10, 2014