CALIF. LAWMAKERS WORK ON HEALTH INSURANCE IMPROVEMENTS

By Suzanne Potter, Public News Service

April 22, 2014 (Sacramento) -- Changes to some health insurance policies under the Affordable Care Act are winding their way through the California Legislature. The bills aim to free patients from surprise charges and outrageous co-pays.

The Senate Committee on Health just passed a bill requiring health insurers to maintain up-to-date provider directories, so people don't accidentally rack up charges with an out-of-network provider. Another measure would make it illegal for insurance companies to stick consumers with the bill if they go to an in-network hospital but end up being treated by an out-of-network provider.

Assemblyman Rob Bonta (D-Alameda) says it's a matter of fairness.

"People who play by the rules should not be subject to these extremely onerous hidden costs, after the fact," says Bonta.

The Assembly Health Committee is considering another bill that bans the insurance company practice of making patients meet their entire family's deductible before coverage kicks in. Instead, it would require family plans to offer a deductible similar to those in individual plans.

Health insurers defend their practices and point out that all benefits and exclusions are disclosed upfront. Bonta says cost-sharing is an important part of insurance coverage but out-of-pocket expenses shouldn't bust a family budget.

"It's my goal to ensure consumers have access to high quality care and are protected from unexpected and extremely high hidden charges that make it nearly impossible to afford health care," says Bonta.

Perhaps the most controversial proposal is State Senate Bill 4, which would open up Medi-Cal and Covered California plans to undocumented immigrants. It passed the Senate Committee on Health last week, but a similar bill died last session when lawmakers couldn't find a way to cover the $1.5 billion annual price tag.