Assembly member Dave Jones

The California Assembly Health Committee has advanced a bill that could control some health insurance rate hikes. AB 2578 addresses rate hike abuses by insurance companies by requiring approval for increases exceeding seven per cent. The recent federal reforms do not address rate hikes, and this measure would rectify that omission for California.

Although the bill passed the committee by a significant majority, its future is less certain. The insurance lobby is stepping up its efforts to fight the bill, and Governor Schwarzenegger has not taken a position on it.

California has led the nation in many groundbreaking laws, and the hope is that it will lead the way in putting a stop to the abusive rate hikes from insurers. Assemblymember Dave Jones, the bill’s sponsor and a candidate for insurance commissioner, is gathering signatures in support of the bill. CLICK HERE to sign the petition.

Read a story in the Los Angeles Times for more information on the bill.