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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