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
Was this article valuable?
Here are more articles you may enjoy.
Global Insured Catastrophe Losses Expected to Average $171 Billion Annually: Verisk 
‘Cockroaches in My Food’ Claim Leads to Insurance Fraud Charge 
Judge Throws Out Bulk of Economic Claims Over Baltimore Bridge Tragedy 
New Illinois Law Requires Insurance for High-Speed E-Bikes 
