Election judge watches a voter cast their ballot. (Reuters)
As part of what advocates call the “next step” of the Affordable Care Act, California voters will consider an initiative next year that will empower regulators and consumer advocates to challenge health insurance premium rate hikes.
Though healthcare reform, better known these days as Obamacare, gives the government the ability to shine a spotlight onto insurance rates, it does not in itself enable regulators to block them. That power resides with the states. Currently, about thirty-four states have some laws on the books to give regulators the authority to block unjustified rate hikes; California is not one of them. And while advocates in California are optimistic about the prospects of reform, the health insurance lobby has wasted no time in preparing to defeat the measure.
Californians Against Higher Healthcare Costs, a political group created to defeat the rate review initiative, describes itself as a “coalition of doctors, hospitals, health insurers, and California employers.” Though the group bills itself as a diverse coalition, our review of disclosures with the California secretary of state’s office show that, since last year, the organization has received 99.27 percent of its funds from health insurance companies and health insurance political action committees. Health insurance interests such as UnitedHealth, Anthem Blue Cross, HealthNet and Kaiser Health Plans have raised $1,366,120 to fight the rate review. In addition, the California Hospital Committee on Issues has donated a mere $10,000.
The group has retained a number of consultants to help defeat rate review, including Thomas W. Hiltachk, a Sacramento attorney known for creating deceptive corporate campaigns for oil and tobacco companies. The media company retained by the insurers, Goddard Claussen (now known as Redwood Pacific Public Affairs), gained infamy for helping insurance companies block health insurance reforms in the past, including the advertising campaign known as “Harry and Louise” that many believe helped sink President Clinton’s attempt to overhaul the health care system.