Calif. bill targets health insurance premium hikes
by admin on Sep.02, 2010, under Life and Health insurance
SACRAMENTO, Calif.—Health insurance companies would be required to provide more information to the public when they intend to raise premiums under a bill passed by the state Assembly.
The bill, SB1163, would require insurers to give a 60-day notice to consumers before raising the cost of premiums.
Insurers also would have to post information about rate increases on their websites and state a reason for the increase in clear, understandable language.
Democratic Sen. Mark Leno of San Francisco says public outrage over annual, double-digit premium increases prompted lawmakers to seek the bill. It now returns to the Senate for a vote.
A separate bill, AB2578, would require insurance companies to seek state approval before increasing rates. It failed in the Senate on a 17-17 vote and is expected to be reconsidered Tuesday.
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