Assembly OKs Bill Aimed at Closing Loophole on Insurance Cancellations
On Tuesday, the Assembly voted unanimously to approve a bill (AB 1150) by state Assembly member Ted Lieu (D-Torrance) that expands state regulation of the health insurance industry, the Los Angeles Times reports. The measure would prohibit health insurers from tying bonus payments to employees for canceling policies.
Media reports detailing insurers' cancellations of individual health insurance policies have drawn widespread attention to the issue, prompting legislators and state regulators to increase scrutiny of insurers' practices, according to the Times.
The bill has no formal opposition and is supported by groups including:
- The California Medical Association;
- Health Access; and
- Health Net.
The legislation now goes to the Senate for consideration (Los Angeles Times, 1/30). 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.