Ironic Twist: "Nonprofit" California Carrier May Lead to Price Controls on California Carriers

• Kaiser's announcement of a 40% increase in profits to $2.1 billion for the first half of this year is the latest in a string of hefty health insurer profit reports that add fuel to California's Proposition 45 firestorm. 

• If passed in November via a statewide ballot initiative, Proposition 45 will place bureaucratic price caps on insurers in the Golden State for the first time in history.  

• After raising rates last January for individuals by as much as 22 percent and for small businesses by as much as 56 percent, Kaiser had some of the highest premium rates in California this year. Those high rates dramatically increased Kaiser's profits. Kaiser's net income the first six months of this year was $601 million higher than the $1.5 billion reported for the same period in 2013.

• On top of this, Kaiser has accumulated a reserve that, as of December 31, 2103 was $21.7 billion, or 1626% more than is required by the state to remain financially sound. 

Source: Insurance News Net.  Hat tip: Ryan Kennedy.