The California Assembly has approved a bill requiring insurance companies to get approval by the Department of Managed Health Care or the Department of Insurance before they can increase the amount of their premiums, copayments, coinsurance obligations, deductibles, and other charges under a health care service plan or disability insurance policy.
“The bill, AB1554, will protect Californians against double-digit yearly health premium increases and outrageous fees and co-pays,” the Foundation for Taxpayer and Consumer Rights said in a statement. The group believes that public review and regulation of rate increases
would help to maintain a “vibrant, competitive market,” similar to the state’s auto insurance market.
The bill would apply to applications for rates starting in January 2009.
Sources: California Assembly, FTCR
Topics California Carriers
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