With Wednesday Senate Health Commitee approval of AB52, we are one step closer to receive regulated Afforable Health Insurance in Santa Monica.

The recent health insurance premium hikes, which hurt many consumer in the middle of the economic down turn, have justified for many that the health insurance premium needed to be even more regulated by the insurance commissioner. So that if the commissioner feels that rate increases are not justified, he can disallow the premium increase,which at the present time he has no control over.

The opposition, insurance, doctor and hospital point out that the regulation would cost an additional $30 million per year.
Furthermore by attempting to regulate rates, without addressing use and cost of medical care could result in reduced quality of care. Compared to the pharmaceutical and medical devise companies the profit margin of the health insurance industry are low.

The next step is the approval of the Senate, but it’s fate is questionable as Republican and even some Democrats oppose the bill.
We will keep you posted, about any further ruling on Ab52, as this
can be one important step to control
Affordable Health Insurance in Santa Monica.