Does Watchdog Group Actually Represent Californians When Challenging Insurance Prices?

Source: The Sacramento Bee  |  By Stephen Hobbs

In the state’s tumultuous market, where prices are spiking and coverage is harder to find, the Department of Insurance is now considering a question that goes to the heart of the group’s work: Does Consumer Watchdog actually represent the interest of Californians? State lawmakers, companies and residents are all pressuring Lara to do more. In response, he is supporting rule changes meant to speed up reviews of proposed rate increases. Lara blames delays on companies – but he also claims Consumer Watchdog has slowed the process down by copying department work when it protests price hikes. He has accused the group of holding the reviews hostage at times. Representatives for 14 environmental, legal and other groups co-signed a letter to Lara that said it was “outrageous” for companies to suggest Consumer Watchdog wasn’t working on behalf of residents. It called on the department to grant the organization’s request immediately.

“The fact that the insurance corporations are going after Consumer Watchdog, means Consumer Watchdog is doing their job extremely well,” said Mark Toney, executive director of The Utility Reform Network, and one of the letter signers. “In fact, I would call it a badge of honor.”