Federal healthcare reform is now the law of the land; the healthcare mandate will go into effect in 2014. It’ll require Californians to buy health insurance. Okay. But if we’re required to buy insurance, what’s to stop insurance companies from charging unfair rates? Assembly Bill 2578 from State Assemblyman Dave Jones would require insurance companies to justify any rate increase to the insurance commissioner. Jones says without it, insurance companies could raise their rates to whatever they want. But insurance companies say the bill goes far beyond federal requirements for rate review and will not make health care more affordable because it doesn’t address the cost of medical care.
Assemblyman Dave Jones, representing Sacramento and also Democratic nominee to be next insurance commissioner. Co-sponsor, along with Mike Feuer, of AB 2578.
Patrick Johnston, CEO of California Association of Health Plans