CHA News Article

Department of Insurance Holds Network Adequacy Hearing

CHA and other hospital organizations testified yesterday at a hearing held by the Department of Insurance to review possible revisions to its network adequacy regulations. The Department plans to revise its regulations to respond to changes in health coverage resulting from the Affordable Care Act and related state legislation.  CHA, along with Private Essential Access Community Hospitals and the California Children’s Hospital Association, testified about the impact of network changes on hospitals. CHA focused its comments on the trend toward narrow networks and the impact on rural hospitals, academic medical centers, children’s hospitals and behavioral health providers.

Insurance Commissioner Dave Jones, who chaired the hearing, noted testimony from several participants regarding the need to ensure that the physicians and specialists who refer and practice in network hospitals are also in the network – otherwise the coverage is illusory. CHA also highlighted the importance of provider networks including the full spectrum of post-acute care services. CHA’s comments are attached.