There is a movement which is underway to change the insurance law, giving California the power to regulate health insurance rate hikes.
Consumer Watchdog, a group based in Santa Monica, has proposed an initiative which will make it mandatory for health insurance companies to seek permission from the State Insurance Commissioner before raising premiums.
AdvertisementConsumer Watchdog President Mr. Jamie Court said that people cannot afford their health insurance and they will have the power in their hands to tell the insurance company 'No' when the rates are unjustified.
California is among the 17 states without any regulation and that's the reason why, during the past decade, health insurance premiums have gone up 5 times faster than inflation.
Paul Phinney, president-elect of the California Medical Association said that they feel that it is a deeply flawed measure that does nothing to address the cost drivers that are behind the increasing cost of medical care.
An email campaign is being conducted by the Consumer Watchdog to gather 505,000 signatures required by May 1 to put the initiative on the Nov 2012 ballot.