Prop 103 Authors File Health Insurance Ballot Measure

Consumer Watchdog is hoping to do for health insurance what they did for auto insurance. The group that authored Proposition 103 filed a ballot initiative this week that would require health insurance companies to “open their books and publicly justify, under penalty of perjury, proposed rate changes before they take effect,” announced Jamie Court, President of Consumer Watchdog.

The measure would expand the insurance commissioner’s authority to approve rate increases for health insurance companies, health maintenance organizations and preferred-provider organizations, currently jurisdiction of the Department of Managed Health Care.

The measure goes beyond health insurance and seeks to preempt the passage of the measure being circulated by prohibiting the consideration of prior insurance or credit history in the price of  auto and homeowners insurance as well as health insurance.

“Basically it goes to the heart of the persistency initiative that’s being circulated,” said John Norwood, managing partner of Norwood & Associates, and legislative advocate for Insurance Brokers & Agents of the West told Insurance Journal magazine.

“The 2012 Auto Insurance Discount Act is being sponsored by the American Agents Alliance, which says the initiative’s new law “will allow consumers to receive a discount for their years of continuous automobile coverage regardless of the company where they seek insurance,” reported Insurance Journal. (Click here to read the complete story.)

To qualify for the ballot, Consumer Watchdog must collect over 500,000 by May 1, 2012.

Click here to read a copy of the proposed measure.