Calif. bill to regulate health insurance rates dies

Sep 2 2011

Heavy lobbying in the state Senate helped kill the bill, which would have strengthened the state's ability to review insurance premium increases.

Los Angeles Times: Bill To Regulate California Health Insurance Rates Is Shelved
A bill that would allow California officials to regulate health insurance rates for millions of consumers has died in the Legislature after forceful lobbying campaigns by insurers, healthcare providers and other groups. Assemblyman Mike Feuer (D-Los Angeles) said he is pulling his measure, AB52, because he could not muster a majority of votes in the state Senate, the final stop in a months-long effort to increase state regulators' authority over health insurance premiums (Helfand, 9/1).

Politico Pro: Calif. Rate Review Bill Dies En Route To Senate
The new rate reviews under the Affordable Care Act, which are supposed to target any premium hikes higher than 10 percent, go into effect Thursday. The bill, backed by Insurance Commissioner Dave Jones, was heading toward a final vote in the Senate earlier this week (Haberkorn, 9/1).

The Associated Press/San Francisco Chronicle: Bill To Regulate Insurance Rates Is Pulled
Senate Democrats were divided on the bill that passed the Assembly in June. … The bill would have given the state insurance commissioner and other regulators authority to reject rate increases deemed excessive. Supporters, including labor unions and advocates for low-income Californians, said it would help families afford insurance (Weintraub, 8/31).

McClatchy: Bill To Curb Health Insurance Rate Hikes Stalls In Calif. Senate
Local governments, pension funds and Gov. Jerry Brown's Department of Finance had come out against the bill in recent weeks for reasons that included projected costs and complications for public employee health plans. Opposition from the finance department signaled Brown would likely veto the measure if it got to his desk (Van Oot, 8/31).

HealthyCal: Rate Regulation Bill Stalls In Senate
Patrick Johnston, president of the California Association of Health Plans, said the bill failed because it was "deeply flawed." "AB 52 failed to address the underlying cost pressures that are driving up the price of coverage," Johnston said. ... Johnston has said that increases in the cost of doctor visits, hospital care, lab procedures and prescription drugs are driving up the cost of insurance (Weintraub, 8/31).

San Francisco Chronicle: Author Tables Bill To Let State Reject Rate Hikes
Insurance Commissioner Dave Jones, an ardent supporter of the bill, said he will continue to ramp up support for the measure. "First and foremost, AB52 is still alive," Jones said in a statement. "We've made a lot of progress on this critical bill, having moved it to the Senate floor. The bottom line is that the work is not over" (Colliver, 9/1).