PROHIBITS HEALTH INSURANCE COMPANIES WITH SPECIFIED FINANCIAL RESERVES FROM INCREASING RATES. INITIATIVE STATUTE.

Prohibits health insurance companies (including HMOs and PPOs) with more than 100,000 insured members and financial reserves above specified amounts from increasing consumer rates (including premiums and out-of-pocket costs) for most policies. Requires insurers with reserves above defined amounts to report to the Legislature. Requires asset transfers between insurers and related medical providers to be reported and included in reserve calculations. Prohibits insurers from increasing reimbursement rates for services by related providers to avoid reporting surplus reserves, and authorizes Attorney General to investigate such increases. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Uncertain average annual effects over time on state and local government costs for employee health coverage, ranging from potential net savings in the short run to potentially significant net costs in the long run