Consumer Watchdog Warns Public Of Insurance Industry's Deceptive No On Prop 45 Radio Advertising

Consumer Watchdog Warns Public Of Insurance Industry's Deceptive No On Prop 45 Radio Advertising

SANTA MONICA, Calif., Sept. 4, 2014 /PRNewswire-USNewswire/ -- Consumer Watchdog said today that a one-minute radio advertisement released by health insurance companies opposed to Prop 45's health insurance rate regulation provisions fraudulently misrepresents the advertisement's backers, the ballot measure, and the current state of the law governing regulation of health insurance.

The advertisement deceptively obscures the insurance industry's funding for the commercial and confuses the public about having to make a false choice between the state's bulk purchasing pool for some health insurance consumers and rate regulation for 6 million individuals and small businesses. Prop 45 retains both.

Rick Claussen, maker of the infamous industry-funded "Harry and Louise" advertisements that torpedoed federal health reform during the Clinton era, made the advertisement.

"California's health insurance companies cannot win a honest debate about Prop 45 so they have resorted to lies and hiding their role as the funders of the No On 45 campaign," said Jamie Court, proponent of Prop 45 and president of Consumer Watchdog. "Health insurance companies call their coalition Californians Against Higher Healthcare Costs when it is their profiteering that is driving up our costs. That's how phony this is. The only reason insurance companies have spent $37.6 million against Prop 45 is because it will put the brakes on their runaway rates. "

Consumer Watchdog noted the advertisement misleads the public in the following ways:


-- Radio ad narrator Candy Campbell claims to represent California nurses
in favor of the insurance companies' cause. In fact, she sells herself
on her website as the "Florence Nightingale" of healthcare
communications, offering her services as an "actor and filmmaker, author
and educator" with nursing credentials. The 85,000 member strong
California Nurses Association is a sponsor of Prop 45.
-- The ad proclaims that Covered California, the state's new health benefit
exchange, can "reject plans that are too expensive." In actual fact,
Covered California negotiates with insurers - behind closed doors - but
cannot reject unreasonable rate hikes. No federal or California state
agency has the power to do so. Four health insurance companies control
92% of the Covered California market, so there is no leverage for
negotiation and no ability to reject a plan. Prop 45 would give the
insurance commissioner authority to reject excessive rate hikes and
order refunds.
-- Covered California is not an "independent commission" as the ad
describes. Governors and legislative leaders who take significant
contributions from the insurance industry appoint board members to this
new healthcare insurance exchange, which conducts its negotiations
behind closed doors. A bevy of healthcare "consultants" and "advisors"
with extensive histories representing some of the industry's biggest
insurers were temporarily hired to shape the exchange. Some of them have
since returned to the companies that they left. The exchange is a bulk
purchasing pool, much like an insurance broker, that describes the
insurance companies as its "partners." Its negotiations are not subject
to the Public Records Act.
-- The ad implies that the "commission" helps all voters, when its
purchasing decisions only affect its 1.2 million enrollees. Prop 45's
requirement that rates be justified and approved before taking effect
applies to 6 million individuals and small businesses in the state and
will protect them from health insurance company price-gouging while
lowering health insurance premiums. 35 other states have instituted
similar requirements.
-- The ad says "keep the commission and reject the special interests."
Proposition 45 does not alter Covered California or its role. The ad
falsely implies that Prop 45 means California loses its health benefit
exchange. It doesn't. In fact, Prop 45 helps Covered California by
making insurers justify rate increases and allowing California to reject
hikes deemed excessive. This gives Covered California enhanced clout
with insurers to keep rates down. No "special interests" are behind
Prop 45, which is backed by the nonprofit Consumer Watchdog and
California Nurses Association.
-- The ad claims that Prop 45 "lets politicians take millions in campaign
contributions from special interests." No California insurance
commissioner since 2002 has taken a campaign contribution from an
insurance company. In 2010, insurance companies spent $5 million trying
to defeat current Insurance Commissioner Dave Jones. To date, they have
contributed more than $37 million dollars in policyholder premiums to
defeat Prop 45. In contrast, in the last 18 months, Jones has raised
$1.2 million, mainly from individuals and small businesses, for his
campaign. He has also accepted spending limits.
-- The ad's disclaimer states the coalition is made up of "doctors, nurses,
and healthcare clinics." In fact, nearly 100 percent of the funding for
this ad campaign comes from five insurance companies: Blue Shield,
Kaiser, Wellpoint/Anthem, United Healthcare, and HealthNet, who are
profiteering off captive consumers who are now required by law to buy
health insurance.
-- By placing the state required campaign disclosure at the beginning of
the ad instead of the end, using a "chime" sound effect, and switching
the speaker from a man to a woman the disclosure mentioning health
insurance company funding sounds as though it applies to the
advertisement that proceeded this industry ad.
A nationally recognized actuary and Consumer Watchdog found that Proposition 45 could save Californians $200 million or more per year in excessive premiums, which is why the insurance industry is resorting to deceptive ads against Prop 45.

The radio ad copy follows:

AD CONTENT:

"Paid for by No on 45, Californians Against Higher Healthcare Costs. Major funding by Kaiser Foundation Healthplan Inc., Wellpoint Inc, and Blue Shield of California; with a coalition of doctors nurses, hospitals, health plans and California employers. (chime)

I'm Candy Campbell of the American Nurses Association of California. As a nurse I know how important it is to control health care costs. And this year we have a clear choice.

On one hand we can keep the new independent commission established last year to negotiate rates and benefits for consumers and reject plans that are too expensive.

On the other we have Prop 45 that will give one politician the power to override the rates and benefits negotiated by the commission and at the same time lets the politician take millions in campaign contributions from special interests.

The choice is clear. Keep the independent commission and reject the special interests.

Vote no on 45.

Man's Voice: Join doctors, nurses and health care clinics and vote no on 45.

Get the facts at NoOn45.org and stop the politician power grab."

END

For more information on Prop 45 see www.Yeson45.org

Paid for by Consumer Watchdog Campaign - Yes on 45, a coalition of consumer advocates, attorneys, policyholders, and nurses. 777 S. Figueroa St., Ste. 4050, Los Angeles, CA 90017. Major Funding by Consumer Watchdog Campaign and Thomas Steyer.

SOURCE Consumer Watchdog Campaign

Consumer Watchdog Campaign

CONTACT: Jamie Court (310) 392-0522, x 327, Carmen Balber (310) 392-0522 x 323


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