Proposed Measure Would End Coverage Mandates Until Economy Improves
A recently proposed bill (AB 2587) by Assembly member Tom Berryhill (R-Modesto) would permit insurers to suspend as many as four dozen coverage mandates until California's unemployment rate hits 5.5% or lower for four consecutive quarters, Payers & Providers reports.
Currently, the state unemployment rate is 12.5%.
The mandates stem from state law requiring insurers to provide coverage for certain treatments and conditions. Some of the mandates the bill would suspend are:
- Overnight hospital stays for maternity patients;
- Certain treatments for patients with HIV/AIDS; and
- Testing for various conditions.
The first hearing on the bill is scheduled to take place on March 23. The bill has yet to be assigned to a committee.If lawmakers approve the measure and it becomes law, the mandate suspensions would take effect in early 2011 (Payers & Providers, 3/11). 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.