California Bill Seeks Cap on Health Insurers’ Administrative Spending
Senate Health Committee Chair Sheila Kuehl (D-Los Angeles) has authored a bill (SB 1440) that would prohibit health insurers from spending more than 15% of every premium dollar on administration and compensation for employees, KPCC's "KPCC News" reports. The bill would require insurers to spend the remaining 85% on patient care.
The California Medical Association is supporting the measure, which could translate into higher reimbursements for more procedures, according to "KPCC News."
However, the California Association of Health Plans says the bill would limit flexibility and innovation in health care.
The segment includes comments from:
- Richard Frankenstein, president of CMA;
- Kuehl; and
- Chris Ohman of CAHP (Small, "KPCC News," KPCC, 4/10).