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California Watch

News stories in this section spotlight activities in California, including actions by the state Assembly and state Senate; proposed legislation; regulators like the Department of Managed Health Care and Department of Insurance; and the state ACA exchange, Covered California.

Consumers Union: Doctors on Probation Should Tell Patients

Consumers Union wants the Medical Board of California to require doctors who are on probation to notify their patients. The policy and advocacy division of Consumer Reports filed a petition last week urging the board to take action. The board is expected to hold a public hearing on the issue at its Oct. 30 meeting ...

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Narrow Networks Don’t Sacrifice Quality For Cost

An analysis of narrow networks on the Covered California health plan marketplace found that in most cases consumers don’t need to worry that they are trading quality of care for lower costs. While Covered California plans did offer narrower hospital networks, there was no significant relationship between raw network size and performance, according to the ...

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Aetna, Humana Shareholders Approve Proposed Merger

Health insurer Aetna’s proposed $37 billion acquisition of smaller rival Humana Inc was approved by the shareholders of both companies. The companies continue to expect the deal to close in the second half of 2016, they said in separate statements on Monday. Aetna in July said it would buy Humana to become the largest provider ...

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Blue Shield of California Agrees To Limit Premiums, Recalculate Rebates

Blue Shield of California has agreed to limit its premiums for certain policies next year and in 2017, Payers & Providers reports. Background On Oct. 5, the California Department of Managed Health Careissued an order addressing Blue Shield’s premiums and medical loss ratio calculations. DMHC spokesperson Rodger Butler said the agency had “significant concerns with ...

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Insurance Commissioner Slams Aetna’s Small-Business Rate Hike

California Insurance Commissioner Dave Jones slammed Aetna Thursday for an “unreasonable” quarterly rate hike on small-business owners that brings the annual average increase to more than 27 percent. The hike affects small employers that renew their health insurance policies in the fourth quarter — and an estimated 40,000 employees. Dept. of Insurance actuaries reviewed Aetna’s ...

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Private Health Exchange Has Options for Small Companies Affected by New Mandate

CaliforniaChoice is bullish on expansion of the small-group market. Like its public counterpart, Covered California, the private insurance exchange is prepared to welcome employers with 51 to 100 employees into the program Jan. 1, 2016. California law still requires this group to be considered “small employers” for the purpose of health insurance, starting next year. ...

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53% of Uninsured Californians Eligible for Medi-Cal, ACA Subsidies

More than half of uninsured Californians qualify for either Medi-Cal coverage or subsidies under the Affordable Care Act to help pay premiums, according to a Kaiser Family Foundation report released Tuesday, KPCC’s “KPCC News” reports. Medi-Cal is California’s Medicaid program. For the state-by-state report, KFF reviewed data from the 2015 Current Population Survey Annual Social ...

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Governor’s Vetoes Poke Lawmakers On Special Session Failure

In a series of bundled vetoes, Gov. Jerry Brown sent a hard-to-miss weekend message to state legislators: You dropped the ball before leaving Sacramento for 2015. Brown took action on 80 bills on Saturday, signing landmark legislation on everything from voter registration to farm animal antibiotics. But in a handful of vetoes, the governor quickly ...

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California Doctors’ Lobby Group Pushes Agenda with Swagger

As large clocks around the office counted down to Election Day last year, leading physicians ditched their business meeting and marched downstairs to stuff envelopes with campaign pamphlets in a makeshift war room at the California Medical Association’s Sacramento headquarters. No issue confronting voters threatened the pocketbooks and political prestige of physicians more than Proposition ...

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DMHC Approves Blue Shield’s Acquisition of Care1st Health Plan

Blue Shield of California has won state approval to acquire Care1st Health Plan, but had to make several concessions, including permanently relinquishing its not-for-profit tax exemption, the Los Angeles Times reports. Background Blue Shield proposed the $1.2 billion acquisition of the multi-state Medicaid insurer in December (Terhune, Los Angeles Times, 10/8). Care1st has more than ...

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