SACRAMENTO >> On Thursday Covered California released an analysis finding that Proposition 45, a November ballot initiative that would give the state Insurance Commissioner new powers over health care decisions, could have a “significant detrimental impact” on its operations. The report also states that there would be significant disruption to the offering of plans for its annual open enrollment period.
According to the Covered California analysis:
“Based on a plain reading of the act, its broad definition of ”rate,”” and the rights of intervenors as implemented under Proposition 103, there could be significant detrimental impact on Covered California”s operations.”
The report also states:
“Current timelines under Proposition 103 would provide significant disruption to the offering of plans for the annual open enrollment.”
Dr. Jon Kingsdale, founding executive director of the Commonwealth Health Insurance Connector Authority, the country”s inaugural health benefit exchange created in Massachusetts in 2006, previously issued a report showing that under Prop 103, which is the model for this initiative, regulatory reviews routinely take four months or more; and outside regulatory and court challenges take an average of nearly one year to resolve — past the window for open enrollment for Covered California.
Initiative proponents have made more than $11 million off of “intervenor fees,” using the legal process set up by Prop 103, and stand to make tens of millions of dollars from this same process that would be established through Prop 45.
Some organizations opposing Prop 45 include the California Medical Association, the California Children”s Hospital Association, California Professional Firefighters and SEIU California.
To read the full Covered California analysis, please visit http://board.coveredca.com/meetings/2014/8-21/PDFs/PPT%20-%20Executive%20Director”s%20Report_August%2021,%202014.pdf.
