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Friday, September 3, 2010

California Health Insurance Rates


As millions of Californians continue to face rising costs of health insurance, legislators, consumer advocates and lobbyists in Sacramento have been wrangling over the difficulty in dealing with companies large increases.

August will be an important month that government officials try to establish a strategy to meet the new health law of the country are forging. By far the provisions of the Act is a call to states to plan for the review of "unreasonable" increases in health insurance premiums grow.

Analysts say they expect the insurance Gov. Arnold Schwarzenegger and lawmakers to act quickly. The legislature is scheduled for August 31 to adjourn and all pending legislation that will not die down.

"It's certainly a whole month active in terms of obtaining a bill," said Shana Alex Lavarreda, director of health studies at the UCLA Center for Health Policy. "This time when such a focus on the regulation of tariffs, is the best opportunity for that. "

The legislature has been grappling with three measures to crack down against the insurance.

One would prohibit health insurers to raise rates without regulatory approval, a requirement already applies to companies and automobile insurance. Another would require insurers decide to cover or charge higher than standard rates justify the refusal. The third measure would be temporary moratorium on rate increases and insurers are required to seek permission for encouraging premiums considerably.

Schwarzenegger calls that rate regulation of a "blunt instrument" that would do little to the underlying growth of medical costs to treat.

Instead, the governor's office was a separate plan that would require insurers to hire independent actuaries of their deposits, and review their proposed increases on the Internet.

Schwarzenegger contends that such review and public pressure to keep the insurers will be compatible. His government points to the recent example of insurance giant Anthem Blue Cross that higher rates up to 39% for individual policyholders in April after an independent actuary shot found errors in their submission.

"Our belief is that better consumer information and greater transparency in health care ... ensure that the costs have been contained, "said Jennifer Kent, which deals with health legislation for the governor.