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Dedicated to providing regular (well, as regular as our workload permits) updates concerning legal and regulatory events impacting the regulation of the business of insurance in the State of California.

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Prior Approval
« Landmark Proposition 103 Decision Reached | Main | AB 2578 Before the Senate Health Committee »
Tuesday
Sep142010

AB 2578 Fails to Pass Senate

For those of you who have been following AB 2578, Dave Jones' bill that would require health insurers to receive approval from the Department of Insurance or the Department of Managed Health Care before raising health plan rates, this bill failed to get enough votes to pass through Senate.  The vote was close (17 Ayes -17 Nayes and, on reconsideration, 16 Ayes - 19 Nayes).  The history of AB2578 can be found here.
This is not likely the end of the line for a push toward creating a prior approval regulatory scheme for health insurance rates.  Dave Jones, who is running to be the next Insurance Commissioner for California, and who has pushed for a health insurance prior approval regime before will presumably continue to take steps toward this goal.