Regulation of Health Insurance Rates in California Up for Vote

The Assembly Appropriations Committee on Thursday is scheduled to vote on a measure (AB 1554) that would require health insurers to seek approval from California regulators for premium, copayment and deductible increases, the San Francisco Chronicle reports.

The Foundation for Taxpayer and Consumer Rights and other consumer advocacy groups are supporting the legislation by Assembly member Dave Jones (D-Sacramento), arguing that the bill is targeted directly at the affordability of health insurance.

However, insurance industry groups oppose AB 1554, with Nicole Kasabian Evans, a spokesperson for the California Association of Health Plans, saying that the bill would raise the possibility for further rate increases because it would prompt health insurers and the state government to add another layer of administration to address the rate regulation (Colliver, San Francisco Chronicle, 5/31).