The California Senate Health Committee has approved a bill that would give regulators the authority to reject excessive increases in health insurance premiums, according to a San Francisco Chronicle report.
The bill requires rate increases to receive approval from regulators before they are imposed by insurers. Officials could reject the increase if they find it excessive, inadequate or discriminatory.
Thirty-five other states have similar rules. Supporters of the bill believe that the legislation could prevent the large increases in health premiums that California has seen over the last few years. Supporters also point to high profits for health insurance companies as indicators that the state needs the authority to reject increases.
The bill passed the committee without alterations.
Read the San Francisco Chronicle report on rate increases.
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The bill requires rate increases to receive approval from regulators before they are imposed by insurers. Officials could reject the increase if they find it excessive, inadequate or discriminatory.
Thirty-five other states have similar rules. Supporters of the bill believe that the legislation could prevent the large increases in health premiums that California has seen over the last few years. Supporters also point to high profits for health insurance companies as indicators that the state needs the authority to reject increases.
The bill passed the committee without alterations.
Read the San Francisco Chronicle report on rate increases.
Related Articles on Coding, Billing and Collections:
Blue Shield of California Pledges to Limit Profits Following Criticism of CEO Salary
Allstate Sues Former Owner of New Jersey Surgery Center Seeks $48M in Benefits Reimbursement
State Health Insurance Exchanges Are Moving Too Slowly, Experts Say