New Health Insurance Company Prop 45 TV Ads Make False Claims About Protecting Small Businesses That Faced $250 Million In Unreasonable Rate Hikes, Says Consumer Watchdog Campaign

New Health Insurance Company Prop 45 TV Ads Make False Claims About Protecting Small Businesses That Faced $250 Million In Unreasonable Rate Hikes, Says Consumer Watchdog Campaign

Architect of "Harry and Louise" Ads Creates Misleading "Ana and George" Ad

SANTA MONICA, Calif., Sept. 30, 2014 /PRNewswire-USNewswire/ -- Small businesses in California have seen $250 million in health insurance rate hikes that regulators deemed unreasonable, but were powerless to stop without the rate regulation in Prop 45. Nonetheless California's big health insurance companies have begun running a deceptive new television advertisement against Proposition 45's rate protections that features a small business couple, " Ana and George," falsely stating small businesses are protected currently.

The advertisement shows the couple running a grocery store and erroneously claiming that Prop 45 would interfere with the new health benefit exchange while praising the coverage they obtained from it. Just 1,714 small businesses with 11,510 employees and dependents are enrolled in the exchange's small business program, SHOP. According to the Small Business Administration, there were 3.5 million small businesses in California. Proposition 45 requires health insurance companies to get approval before raising rates for 6 million individuals and small businesses, including 4.8 million outside Covered California, which is virtually all small business in the state.

Rick Clausen, creator of the infamous industry-funded Harry and Louise ads that torpedoed Clinton-era health reform, created the "Ana and George" ads for the five health insurance companies that have contributed $37.5 million against Prop 45.

Proposition 45 backers said the phony advertisements proved why Californians cannot trust health insurance companies to set rates without the oversight provided by Prop 45.

"Health insurance companies overcharged one million small business employees $250 million in rate hikes that regulators declared unreasonable but could not stop without Prop 45's authority, but now the same companies are using that stolen money to lie to voters," said Jamie Court, president of Consumer Watchdog and proponent of Prop 45. "A very small number of small businesses participate in Covered California and small businesses have been hardest hit by rate hikes. These phony advertisements show exactly why voters cannot trust 4 health insurance companies that control more than 80% of the market to set their own rates without Prop 45's oversight."

Small business owners spoke out against the deceptive advertising.

"My rates have gone up 1000% since 1997, from $234 to $2,386," said Ron Blasco, owner of a small real estate brokerage in Rancho Cucamonga, who said small business owners needed Prop 45's protections. "I'm a 57-year-old and I was going to retire at 60 but I can't because the cost of my health insurance is so high."

Diana Guth, therapist and owner of LA-based Home Respiratory Care Sleep Solutions, is committed to providing her 14 employees with health insurance. But she has watched her premiums jump 37 percent in four years while offering ever-smaller benefits. "Despite the fact insurance companies are sitting on billions, our rates keep going up," said Guth. I'm paying to build their business, not mine--and it needs to stop. That's why I'm voting yes on Prop 45."

Los Angeles realtor Judy Graff Fisher said, "My business is very important to me. Right after open enrollment ended, my rate almost doubled from $407 to $738. Covered California can't protect us from rate increases, Prop 45 can."

Proposition 45:


-- Requires health insurance companies to publicly disclose and justify,
under penalty of perjury, proposed rate hikes before they take effect.
-- Gives Californians the right to challenge excessive and unfair
premium rate increases.
-- Gives the elected insurance commissioner authority to reject
unjustified rate increases, a power no state official has today.
Text of No on Prop 45 TV ad (which can be viewed at http://stophighercosts.org/ads-small-business-owners/) follows:

GEORGE: Controlling health costs is important for our business.

ANA: That's why we got coverage through the new independent commission. It's good coverage and saved us money.

GEORGE: But along comes prop 45 giving one Sacramento politician the power to override the commission. 45 lets the politician take campaign money from special interests, then do their bidding instead of consumers.'

ANA: That's why small businesses and healthcare organizations across California oppose 45.

GEORGE: It's just too much power for one politician.

ANA: We're voting no on 45

Graphic:

"The Independent Commission is: Controlling Costs, Negotiates Affordable Coverage, Rejects Expensive Plans"

PROP 45 is opposed by

LA Chamber of Commerce

Bay Area Council

California Medical Association

American Nurses Association of CA

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

SOURCE Consumer Watchdog Campaign

Consumer Watchdog Campaign

CONTACT: Jamie Court, 310-392-0075; Carmen Balber, 310-403-0284; or Liza Tucker, 626-372-1964


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