Assembly Health Panel Weighs Regulation of Rate Increases
Today, the Assembly Health Committee will consider a bill (AB 1218) that would require health plans to seek approval for rate increases from the Departments of Managed Health Care and Insurance, the San Francisco Chronicle reports.
The bill, by Assembly member Dave Jones (D-Sacramento), would apply to increases to:
- Copayments; or
It would exempt increases of less than 5% from insurers that spend at least 90% of premium income on medical care.
Currently, health insurance carriers in California can legally increase rates as much as they want for both group and individual policyholders. Regulators oversee the increases but have no jurisdiction over rates.
The California Association of Health Plans and the California Medical Association oppose the bill.
The California Labor Federation and several consumer groups are backing the legislation (Colliver, San Francisco Chronicle, 4/28).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.