In Brief: Covered California Raises Concerns On Ballot Initiative; UCLA Releases Insurance Demographic Data

Covered California Raises Concerns About Rate Regulation Initiative

The Covered California health insurance exchange has issued a report questioning the November ballot  initiative that would allow state regulators to reject premium increases.

In particular, the report raised questions about rate-setting logistics should the initiative be passed by voters.

The initiative proposed giving the California Insurance Commissioner authority to reject any unreasonable rate increases, and to hold public hearings on any proposed premium increases over 7%, which is the current criteria for automobile insurers under Proposition 103, which was passed by voters in the 1980s.

“Covered California needs to better understand its options if a rate change is not approved in 

time for open enrollment,” the report said. “Under federal law, carriers cannot change rates or re-enter the market mid-way through the benefit year. Additionally, under federal regulations, qualified 

health plan recertification must be completed by Sept. 15.” 

Officials also raised questions about the effects on benefit design for plans offered in the exchange if the insurer decides to change its offering if a premium increase is rejected.

Covered California also raised concerns about the overall timeframe of the implementation of the rate review process if it is passed by voters.

The initiative was drafted and placed on the ballot by the Santa Monica-based Consumer Watchdog. The organization's founder, attorney Harvey Rosenfield, was key to getting Proposition 103 passed into law and surviving legal challenges.

In an interview with Payers & Providers, Insurance Commissioner Dave Jones said he believes the legal framework created by Proposition 103 makes it less likely for opponents to the new ballot iniaitive to mount a successful challenge.

UCLA Releases Insurance Data By Ethnic Groups

The UCLA Center for Health Policy Research has released insurance demographic data by ethnicity, which shows stark differences in the coverage rates of Latino and Asian subgroups.

According to the data, Guatemalan and Salvadoran immigrants in California are more than half as likely to lack insurance as Mexicans and South Americans. About 46% of Guatemalans and 50% of Salvadorans living in California lacked insurance all or part of 2011 or 2012. That compares to 30.2% of Mexican and 27.7% of South American immigrants.

Among Asian immigrants, a far larger proportion of Koreans – 46.5% – lacked insurance for all or part of 2011 and 2012. That compares to 13.8% of Filipinos, 17.4% of Chinese and 23.3% of Vietnamese.

Although UCLA officials did not provide analysis with the profiles, researchers noted earlier this year that Korean immigrants are more likely than other ethnic groups to own their own businesses and forego insurance as an unnecessary expense.

Altogether, about 6.2 million Californians lacked insurance in the 2011-12 timeframe, or about one in six of its residents.

The data was extrapolated as part of UCLA’s ongoing California Health Interview Survey.