California Bill Would Give State More Power Over Health Insurance Companies

California Bill Would Give State More Power Over Health Insurance Companies in Politics and Legislation

California state Legislature recently passed a measure that gives the state more power to enforce fines on health insurance companies who do not pay medical bills.

The bill, proposed by Assemblyman Jared Huffman (D-San Rafael), passed the state Assembly yesterday in a vote of 45 to 24.

Last year, the state Senate approved the measure 24 to 11, reported the Los Angeles Times.

Health Maintenance Organizations oppose the bill, arguing it opens the door for excessive lawsuits against health insurance companies. They also point out state law already requires insures to pay medical bills.

But Assemblyman Huffman contends the state doesn’t have enough power to go after insurance companies who refuse to pay doctors for their services.

“[We need to put] teeth into our state’s health care watchdog. We have a wimpy watchdog,” said Assemblyman Huffman.

Still, the measure isn’t anything California’s insurance companies are too excited about.

According to the LA Times article, California Governor Arnold Schwarzenegger hasn’t decided if he’ll sign the bill, but many, including regulators in his administration, are pushing for a veto.

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