Voters have rejected a proposal to require health insurers to seek approval for rate hikes on individual and small group plans from the state's elected insurance commissioner.
With a quarter of precincts reporting, 60 percent were voting against Proposition 45.
Opponents, backed by major health insurers, argued the initiative would give too much power to the commissioner and meddle with the state's recently created health insurance exchange.
Insurance Commissioner Dave Jones, a Democrat, led the opposition. He said the measure would subject health insurers to the same rules as auto and homeowner insurance companies and force insurers to justify rate hikes.