business
California rate approval bill tabled
NEWS IN BRIEF — Posted Sept. 19, 2011
California state legislators have tabled legislation that would have made it more difficult for health insurers to raise rates.
Assembly Bill 52, which would have granted the state's insurance commissioner the authority to reject proposed health insurance premium increases, passed the Assembly but was "moved to inactive file" Sept. 1 at the request of its Senate co-sponsor after it became clear the bill didn't have the votes to pass in the Senate.
Bills granting the commissioner prior approval authority have come up in California at least twice before. One bill passed in 2010 but was vetoed by then-Gov. Arnold Schwarzenegger.
Twenty-two states' insurance regulators have the authority to deny rate increases in the individual and group health insurance markets. Twelve other states' insurance regulators have more limited rate regulation power. Under the Patient Protection and Affordable Care Act, the federal government also now has the authority to intervene in cases of "unreasonable" rate hikes, defined as any that average 10% or more.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/09/19/bibf0919.htm.
