Lawmakers pass measure to limit health insurance rate hikes

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Health insurance firms would be barred from raising rates more than once a year under a measure approved Monday by state lawmakers in response to consumer complaints about rising costs.

The measure, AB 2042, was part of a flood of bills approved as the Legislature heads into its last week of the current session. Other measures would exempt some state agencies from furloughs, require the state to accept its own IOUs from businesses, urge the Census Bureau to ask people whether they’re gay, and restrict the use of taxpayer funds to film commercials outside of California.

The health insurance bill by Assemblyman Mike Feuer (D-Los Angeles) is one of several proposed this year in response to controversial rate hikes and the passage of a federal healthcare overhaul. In April, Anthem Blue Cross withdrew a rate hike of up to 39% for individual policyholders after an outside actuary found errors in its filing.

‘If health insurers begin to raise their rates multiple times per year when their subscribers aren’t expecting an increase, cash-strapped families could be forced to give up their coverage,’’ Feuer said.

The bill was previously approved by the Assembly. Other legislation approved Monday includes measures that would:

-- Exempt employees of the Franchise Tax Board and the Board of Equalization from furloughs ordered by the governor because they generate revenue. AB 2008, by Assemblyman Juan Arambula, an independent from Fresno, was approved by the Senate.

-- Require the state, if it ends up issuing IOUs because of budget problems, to accept those IOUs from businesses for payment of state-imposed fees and costs. AB 1506, by Assemblyman Joel Anderson (D-San Diego), as approved by the Senate. The bill, according to Sen. Mark Wyland (R-Escondido) provides ‘equity for those who suffer when not paid by the state.’

-- Bar the use of taxpayer funds to pay for commercials promoting California that are filmed outside the state. The bill was introduced after the California Milk Advisory Board filmed part of its ‘Happy Cow’ commercials in New Zealand. The board argued that the ads were paid for by the industry, not taxpayers. AB 1778, by Assemblyman Ted Lieu (D-Torrance), was sent to the governor Monday. ‘When taxpayers finance the filming of a commercial that promotes California or its products the money should be spent in California, employing California workers to support our economy,’ said Sen. Alan Lowenthal (D-Long Beach).

-- Urge the federal government to collect data on ‘sexual orientation and gender identity’ in the 2020 census. Supporters say SJR 28, by Sen. Christine Kehoe (D–San Diego), would help the government allocate services to the gay and transgender community. Opponents call it an unwarranted invasion of privacy, noting that census takers don’t ask respondents to divulge other personal information, like their religion or their political party affiliation.

-- Require junior high and high schools to include self-defense training as part of gym class. SB 1290, also by Kehoe, instructs the State Board of Education to include personal safety instruction in its next revision of the approved physical education curriculum.

‘Students are increasingly becoming victims of violent crimes at a younger and younger age,’ noted Assemblywoman Noreen Evans (D-Santa Rosa).

No word on whether the lessons will teach kids how to avoid wedgie.

-- Jack Dolan and Patrick McGreevy in Sacramento