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California Moves Closer to Prior Approval of Health Rates
insurance newsnet

A bill to impose mandatory rate review on health plans in California moved a step closer to passage after the Appropriations Committee advanced it to the full Senate.

The Senate committee voted 7-4 to require prior regulatory approval before health insurance premiums, co-payments or deductibles could be increased. Under A.B. 2578, health maintenance organizations and health insurers would have to follow the same rules that apply to automobile and homeowners insurance policies under 1988’s Proposition 103.