In Brief: Premium Regulation Initiative Resurrected

An initiative that failed to quality for the November ballot that would more closely regulate insurance premium increases in California if approved by the voters will appear on the 2014 ballot instead.

The Santa Monica-based advocacy group Consumer Watchdog said in a statement earlier this week that the California Secretary of State had declared it had gathered 567,790 signatures after counts for 57 of the state’s 58 counties had been verified. That represents 112% of the signatures required for qualification. State rules require a 110% threshold for qualification.

However, the initiative was disqualified for this November’s ballot when initial random sampling by state officials determined the signatures obtained were 109% of what was required. Consumer Watchdog requested a full count in response.

"A flawed signature verification process wasted hundreds of thousands of taxpayer dollars on an unnecessary full signature count, and Californians now have to wait two extra years to vote to get outrageous health insurance prices under control," said Carmen Balber, a Consumer Watchdog director.

The initiative – which would give the California Insurance Commissioner power to reject proposed rate increased by health carriers – is opposed by California’s insurance industry.

“This measure would give one politician too much power over health coverage, do nothing to address the underlying costs driving health care premiums, and create an expensive and duplicative state bureaucracy that will be paid for with higher health insurance premiums,” said Patrick Johnston, chief executive officer of the California Association of Health Plans.