Aetna Health Insurance

The Foundation for Taxpayer and Consumer Rights (FTCR) released today an analysis of health insurance industry contributions to the California legislature which helps explain why the Senate Health Committee supported a proposal requiring employees to pay for private coverage but refused to pass a bill to regulate what insurers can charge for the policies.

Employer-Sponsored Health Insurance in CA

The California Department of Insurance in a report released last week alleged 67 violations of fair-claims handling laws by health insurer BC Life & Health after the company rescinded some members' health insurance coverage, the Los Angeles Times reports. BC Life & Health, owned by WellPoint, canceled 1,880 individual health insurance policies in 2004 and 2005. Insurance regulators reviewed 83 sample cases and issued citations in 49 of the cases for a number of violations, including:

California Senate President Pro Tempore Don Perata (D) and Assembly Speaker Fabian (D) on Thursday merged their health care proposals into a single bill (AB 8) that would require employers to contribute 7.5% of their payrolls to workers' health coverage, the Los Angeles Times reports. The proposal excludes a requirement that all state residents obtain health care insurance -- a "cornerstone" of Gov. Arnold Schwarzenegger's (R) health care proposal, the Times reports (Rau, Los Angeles Times, 6/22).