health insurance

California panel wants say on health insurance rate hikes

(LOS ANGELES TIMES) - California lawmakers who want to go further than the newly signed federal healthcare overhaul scored a victory Tuesday when a proposal to make insurance companies justify rate hikes sailed through the Assembly’s Health Committee.

The bill would put health insurers and health maintenance organizations under the same strict regulation that has covered automobile and other types of property insurance for the last two decades. It would require approval of some rate hikes by state agencies.

“Now that Congress has mandated that every American must show proof of owning a health insurance policy or face fines, California must ensure that the prices that insurers charge for coverage are fair,” said Jerry Flanagan, healthcare policy director for Consumer Watchdog.

The bill, AB 2578, is similar to one the Assembly passed in 2007, only to see it die in the Senate by one vote. But this time, the bill’s supporters hope that public outrage will help get the bill passed.

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