Calif. moves to control health insurance rates

By Adam Weintraub
Associated Press / July 6, 2011

SACRAMENTO, Calif.—A California legislative committee on Wednesday narrowly approved a bill that would give state officials the power to reject proposed health insurance rate increases, but even some supporters said it will need major changes to survive.

The Senate Health Committee voted 5-3 along party lines to advance the bill, AB52, with Democrats in favor and Republicans opposed. It will go before another committee before coming to the full Senate.

The debate has implications across the United States. California regulations have national influence and the state, home to one in eight Americans, makes up 11 percent of the national market for those with health insurance through an employer and 15 percent of those with individual coverage.

Groups representing insurers, doctors and hospitals oppose the bill.

Backers include organized labor, advocates for low-income Californians and state Insurance Commissioner Dave Jones, a Democrat. Jones' office would gain new leverage over health insurance rates if the bill passes and Gov. Jerry Brown, also a Democrat, signs it.

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http://www.boston.com/lifestyle/health/articles/2011/07/06/calif_moves_to_control_health_insurance_rates/