Liberals are fighting liberals over referenda that would make the health law worse.
Democrats keep saying that opposition to the Affordable Care Act is a spent political force, but not so fast. Senate Republican candidates have run more ads against ObamaCare than on any other issue, according to Kantar Media/CMAG. But perhaps more fascinating this election year are the state referenda that confront rising costs and declining patient choice.
The pity is that these states are trying to solve the problems caused by ObamaCare with more ObamaCare-like rules and government control. Leading this challenge from the left as always is California, where on Tuesday voters will consider Proposition 45, which would impose stronger price controls on health insurers.
The state’s individual and small-business insurance markets were reasonably functional, but now all coverage must conform to the White House’s income-redistribution goals, and premiums are headed up fast. Anthem Blue Cross—whose 2010 rate hikes President Obama infamously served up as a reason to vote for the bill—is raising small group rates 9.8% next year. The California insurance commissioner prefers 2.1%.
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.
Bedfellows make for strange politics, and the double irony is that the campaign against Prop. 45 is led by Covered California and such ObamaCare supporters as Nancy Pelosi . They don’t want an interloper to disturb their discretion. With characteristic California unwisdom, Prop. 45 gives outside pressure groups and especially trial lawyers the right to challenge rates in court.