SB 1163 (Leno) Sunshine on Price Gouging

Would require health plans to provide, in writing, specific reasons for denial of coverage or for charging higher than the standard rates.

Click Here for: SB 1163 status, bill text, legislative analysis, and vote history.

Why UULM supports SB 1163: Strong Insurance Company oversight is a necessary component of reform. The abuses of the industry must stop and they cannot be trusted to oversee themselves. They have had their chance. Working toward justice, equity, and compassion, UULM CA prefers supporting SB 2578 as it is a stronger oversight bill. We encourage you to call and support it. UULM is supporting SB 1163, even though it is a weaker bill, on the basis that it is still better oversight than is currently possible.

Analysis: Jones AB 2578 in real trouble. The Governor won't sign it and moderate Democrats don't support it. The alternative is SB 1163 (Leno ), a rate review not a regulation, yet insurance rates have to be: 'actuarially sound,' consistent with state rules and laws, make room for public review, comment, input. The CA Medical Assn. and Hospitals are totally opposed to any language that would make payment for procedures public. There are negotiations happening to see what the Governor will sign. Better to have some baby steps than nothing.

ACTION: Call and write your CA Assembly members asking them to support SB 1163. We prefer the passage of AB 2578 (Jones and Feuer) as it is a stronger means of oversight, but will grudgingly settle for SB 1163 if we need to.