IN THE STATES: California Continues its Quest for Health Reform
Paul Testa -
September 4, 2008 - 2:36pm
If at first you don't succeed, try another legislative session.
After falling short this past January on an ambitious plan for comprehensive health reform, California's lawmakers passed a series of smaller initiatives aimed at specific aspects of the current health system. Jordan Rau of the Los Angeles Times has an excellent summary of the measures, which must be signed or vetoed by Gov. Arnold Schwarzenegger by September 30. Below is a brief overview of the bills and the primary issues they address:
- AB 1945 looks to curtail rescissions—the retroactive cancellation of individual health insurance policies by insurers. The practice stirred up controversy in California earlier this year and for background on the issue check out this post by Leif Wellington Haase, the director of New America's California Program.
- SB 541 Following a rash of well-publicized violations of patient privacy at UCLA Medical Center, our colleague Joanne Kenen talked about t he need to establish a relationship between crime and punishment that will allow health IT to flourish. This bill would set penalties for violations of patient privacy as high as $250,000.
- SB 985 and AB 1203 would restrict the ability of hospitals to charge their patients for emergency and follow-up care not covered by their insurance—a practice known as balance billing.
- SB 1058 sets standards for patient safety and infection control. It would build on existing law to require public reporting of levels of "health care associated" infection—such as the deadly methicillin-resistant staphylococcus aureus (MSRA) pathogens which Maryn McKenna guest blogged on here.
- SB 1440 would set a medical loss ratio of 85 percent for California's insurers, requiring them to spend at least 85 percent of the premiums they collect on medical care. The proposal has drawn criticism from insurers, who say it would not address the underlying issues of cost and quality in health care.
For more on what California's past health reforms efforts mean for the nation, check out New America's policy paper on the issue, released this past spring.
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Wow, the idea of a medical
Wow, the idea of a medical loss ratio seems revolutionary to me, but it seems a common-sense idea to curb health care costs.
Wonderful idea. Whomever came up with that has my full appreciation.