California lawmakers pass bill limiting rescissions; veto possible

NEWS IN BRIEF — Posted Sept. 21, 2009

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California's Legislature on Sept. 10 passed a bill, supported by the California Medical Assn., calling for state review of every individual health insurance policy rescission and for standardized application questions for individual health insurance.

Gov. Arnold Schwarzenegger is expected to veto the bill, as he did a similar bill that reached his desk in September 2008.

The governor said that last year's bill wouldn't provide enough protections for consumers, and would "only increase costs and further restrict access for over 2 million Californians that currently obtain coverage in the individual market."

This year's measure also could be vetoed or delayed by a standoff between the Legislature and the governor. The governor's administration announced a few days before the latest rescission bill passed that he would veto any bills that did not deal with his priorities, which include the economy, water and the state prison system.

Note: This item originally appeared at

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