California, like other states, is debating how to meet the new health reform law's requirement that states develop plans for reviewing "unreasonable" increases in health insurance premiums.
California, given its size and budget pressures, has often been viewed as a potential forerunner for what other states do. According to the Los Angeles Times, the state is likely to take action on the issue before Aug. 31, when the state Legislature adjourns and pending legislation dies.
So far, four measures, including an option from the governor, are before the state Legislature. The options include requiring regulatory approval for increases, requiring insurers' to justify coverage denials and decisions to charge higher-than-standard rates, and the governor's plan of requiring insurers to post proposed increases online and hire independent actuaries to review their filings.
- read the Los Angeles Times article