According to Consumer Watchdog, the major insurance carriers and the association that represents them (California Association of Health Plans) have collectively given $25 million of policyholder money to a campaign against the upcoming ballot initiative to limit the amount carriers may raise their rates. The “Justify Rates” ballot measure requires carriers to get permission from the state before raising rates like auto and home insurance companies
Actually, and interestingly, it’s not the rate increases so much, but the fact that carriers continue to raise their rates while they have excessive reserves. Consumer Watchdog cited Blue Shield, a non profit which has $3.68 billion in reserves now, which is 1,667% more than required. Then again there is all the advertising, such as Kaiser’s “Thrive” campaign at a cost of $40–50 million per year. Also noted are “excessive” executive pay (a common complaint) and the fines that carriers have paid due to inappropriate claims actions – and we all get to pay.
