Calif. Insurance Commissioner Dave Jones has released draft guidance for Senate Bill 1163. The new law, which went into effect on Jan. 1, 2011, requires health insurers to provide detailed information regarding proposed premium increases and to submit a certification from an outside actuary to the California Department of Insurance (CDI) for review.
The draft guidance, which is subject to a seven-day public comment period before it is finalized, will provide insurers with the factors that will be used by the department to determine if a rate is unreasonable.
“SB 1163 is intended to provide greater transparency, but it does not provide the Insurance Commissioner with the authority to reject excessive rate increases. I will review health insurance rate filings to determine if the insurer has provided complete and accurate information and whether the proposals are in compliance with the law, but I continue to lack the authority to reject excessive health insurance premium increases,” Jones said.
Jones is supporting AB 52 (Feuer), which would grant the Insurance Commissioner authority to reject rate increases. Since the rate increase announcement by three California heath insurers, Jones has been trying to gather momentum for this legislation.
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