So Prop. 45 would give the commissioner the power to reject rates he deems “unreasonable,” with no reference to actuarial or solvency standards. Government would dictate what products consumers are allowed to buy and use its clairvoyance to decide what businesses can charge. One irony is that the ObamaCare exchange known as Covered California already fixes prices via crony capitalism, albeit in the back room. Instead of promoting competition among many insurers to lower costs, the bureaucracy follows a practice called selective contracting: Insurers receive a list of demands and Covered California then picks a few compliant winners. The losers are excluded from the exchange’s subsidized consumers.
Posted on: Sat, 01 Nov 2014 16:10:43 +0000