Bill calling for state (CA) regulation of health insurance rates clears key hurdle

[t0dd]

Source: http://latimesblogs.latimes.com/money_co/2011/07/bill-calling-for-state-regulation-of-health-insuran

A hotly contested bill that would allow state insurance regulators to reject excessive health insurer rate hikes cleared a legislative hurdle Wednesday, but it faces amendments that could weaken its consumer protections.

The measure, Assembly Bill 52, passed through the state Senate Health Committee despite opposition from the insurance industry and trade groups for hospitals and doctors.

The Health Committee’s chairman, Sen. Ed Hernandez (D-Baldwin Park), voted for the bill but said he expected amendments as its heads to the Senate’s Appropriations Committee next month.

Hernandez said he wants, among other things, to “de-politicize” the decision-making process of regulating health insurance rates. Critics of the bill have complained about giving the state’s elected insurance commissioner and a second regulator, the Department of Managed Health Care, too much authority to halt rate increases.

One idea under consideration would allow insurers to appeal rejections to a panel of independent actuaries, according to healthcare experts in Sacramento.

On Wednesday, consumer and small business groups applauded the committee for advancing the bill by state Assemblyman Mike Feuer (D-Los Angeles). They were joined by Insurance Commissioner Dave Jones.

Read more: LA Times

[bemildred]

1. Yep, we need price controls, and we need them now. nt

[Maine_Nurse]

3. Just don't expect it to do much...

my state has rate increase controls and strict regulations, yet we have a lot higher prices than CA. And we lost almost all insurers, making coverage all the more expensive. With a 15K deductible, it would cost me 1400 per month to purchase individual coverage. Even employer provided plans are quite expensive and we are starting to see more and more of them with large deductibles (mine is 3500.00 at work). If I was to be out of work, my COBRA would be 800+ per month.

[bemildred]

4. At best a tourniquet, true.

What is really needed, first, is the destruction of the health insurance racket, root and stock.

[JDPriestly]

6. Californians want single payer or at least a public option, so

if private companies left, it would make a good excuse for the government to step in. There would not be any choice.

Not-for-profit insurance companies would be able to deal with this.

[FreakinDJ]

2. Best way to curb Gov spending cost

[defendandprotect]

5. kr

[LuckyLib]

7. CA pays for the health insurance premiums for every retired state worker plus spouse for life.

It is part of the whole mess of a bankrupt state -- like many US cities, promising workers health insurance without ever knowing that the corporate entities that control it would continue to raise premiums. Those prices are not sustainable.

[Semi_subversive]

8. And you know what?

When I retire in two more years with 37 years of State service, I'll have earned every freaking penny that will be paid for the health insurance for me and my wife until we croak.