Prop 45: Regulation of Health Insurance Rates

Proposition 45 would require health insurance companies to justify proposed health insurance rate increases, and give the California Insurance Commissioner the authority to veto them. It applies only to so-called individual and employer small group plans, those covering 50 or fewer people; larger groups would be exempt.

Prop 45 would also require insurers to give public notice about increases and make them subject to judicial review.

Passing the measure would make California the 36th state to regulate increases.

In 1988, California voters gave the commissioner power to regulate rates in auto and home insurance, but not healthcare insurance.