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Bill Would Give State Regulators More Control Over Health Care Premiums

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(Sacramento, CA)
Monday, April 4, 2011

Insurance Commissioner Dave Jones says he currently has the power to reject auto and property insurance rate increases he finds excessive:

Commissioner Dave Jones: "But I don't have that authority for health insurance and as a result we see 10, 20, 30, 40, as much as 80 percent cumulative rate hikes year after year in California."

Jones supports the bill that would require health plans and insurers to get approval from state regulators before raising rates.  But Nicole Kasabian Evans with the California Association of Health Plans says the legislation is unnecessary:

Nicole Kasabian Evans: "People are having a hard time affording their insurance.  We absolutely recognize that, but it's really the underlying medical costs that are driving up the costs of the premium and we really need to address that."

The bill will be taken up in the Assembly health committee. Similar efforts have failed in the past.  
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