This change in the regulation of the industry will be voted on in just over two years.
A California health insurance industry regulation initiative has now qualified to be added to the ballot in November 2014.
This initiative will increase the regulation on the rates that are set by insurers.
The measure was drafted by Consumer Watchdog, a consumer advocacy group based in Santa Monica, after the legislation for the regulation of California health insurance rates fell short last year in the previous effort.
Its approval could change the face of California health insurance rate changes.
Should the initiative be approved, it would provide the commissioner the authority to give his approval or to reject rate changes to California health insurance plans. According to supporters of the measure, it will help to protect consumers against having to suffer unjustified spikes in coverage costs. It also includes an element to help protect consumers from unreasonable changes in their auto coverage premiums.
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Supporters of this initiative have also stated that they feel that its wording would provide the commissioner with the power that would be needed to order California health insurance companies to issue refunds when rate hikes have been excessive following this year’s vote on November 6. This means that if the measure passes in 2014, its effect will be retroactive back as far as November of this year.
The initiative qualified for the ballet following a signature check of its petition. According to Debra Bowen, the Secretary of State, a complete signature check indicated that it had obtained more than the required 504,760 signature that are required in order to make it eligible for a place on the ballot in two years. In fact, there was a total of approximately 800,000 signatures collected by the proponents of the measure.
This is the third measure that has been approved for inclusion into the ballot that remains 26 months away from now. This was, however, the only California health insurance initiative that has been added so far. The others include a rainy day fund measure and a $11 billion water bond. These two had already been placed on the 2014 election ballot by the Legislature.