SANTA MONICA, Calif., July 19, 2016 /PRNewswire-USNewswire/ -- Consumer Watchdog said the 13.2% rise in health insurance premiums for 2017 announced by Covered California is the result of the state's failure to enact health insurance rate regulation like nearly 40 other states.
"These outrageous premium hikes are the consequence of California's failure to adopt health insurance premium regulation like the majority of the states and the disappearance of federal subsidies for insurance companies to even out bumps in the road," said Jamie Court, president of Consumer Watchdog, which sponsored rate regulation Prop 45 in 2014. The ballot initiative failed to pass in a record-low turnout election but garnered 41% of the vote despite a $57 million insurance company campaign against it. "When three health insurance companies control 90% of the market there is no bargaining with them absent a hammer. Rate regulation is the hammer. California consumers cannot continue to pay more for very limited doctors and hospital networks. Rate regulation needs to move to the top of the legislature's list."