Wednesday, August 17, 2011

BREAKING: Jerry Brown's Finance Office, and CalPERS, Oppose Health Insurance Regulation Bill

It's not quite time for the weekend, but the Sacramento Bee has some good news for us. Apparently Jerry Brown's Department of Finance has added itself to the list of opponents to Mike Feuer's AB 52, a sweeping proposal to dramatically expand California's regulation of private health insurance. According to the Bee, Finance has concluded that the costs of implementing the bill, including "very large staff increases that are likely impractical to be achieved" in order to review all the proposed rates, as well as the costs of litigating in the likely event of a court challenge, are prohibitive. In addition, the board at CalPERS has also come out against the bill, citing costs and complications associated with the health benefits it provides to state retirees and employees. The state's Health Benefit Exchange has also raised concerns about the difficulties the law may create for California's effort to comply with Obamacare.

Because of Finance's estimate of AB 52's cost, it has been moved to the Senate's suspense file for later consideration. The costly measures in this file will be taken up later next week, at which time we'll know whether or not this bill gets a floor vote.

Our analysis of this terrible bill is here.


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