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September 04, 2014 01:00 AM

California bill would spur higher insurance rates

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    Lujan

    Regarding: “Narrow-network controversy spurs tougher rules for California plans”:

    As with most things related to healthcare reform and how to best serve Californians, it's complicated. In this case, the problem is very real: How to improve access to care without increasing costs. This bill attempts to solve the “narrow-network problem” by allowing patients to get care outside of the network, which undermines the very mechanism to keep rates lower. If passed, the law could reverse the favorable medical-cost trend California is finally enjoying and cause rates to increase as more care is accessed by higher-cost, lower-quality providers. Like the Proposition 45 rate-regulation initiative, it appears to solve one problem by creating a new and larger problem.

    These initiatives are supported by single-payer advocates who prefer to dismantle the private health insurance system in favor of a Medicare-for-all model. I personally am not in favor of single payer, but if that is what the bill sponsors want, then let Californians vote on it, instead of packaging a bundle of bills and calling it something else. If the governor wants to protect affordable health insurance, he will not sign this bill and, hopefully, he will listen to the experts who are already implementing solutions for ensuring network adequacy.

    Michael Lujan

    President-electCalifornia Association of Health UnderwritersRedwood City, Calif.
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          • - Top 25 Women Leaders
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        • ESG: The Implementation Imperative Summit
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        • - Value Based Care
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        • - Future of Staffing
        • - Hospital of the Future (Fall)
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