California-based advocacy group Consumer Watchdog submitted a proposed initiative to the state attorney general's office Wednesday that would require insurance companies, health maintenance organizations and preferred provider organizations to receive prior approval from the California Department of Insurance for proposed rate hikes, according to an LA Times report.
The petition would require about 505,000 signatures from registered votes to appear on the statewide ballot in Nov. 2012, once cleared for circulation. The initiative is expected to spur controversy among insurance and healthcare providers.
The health insurance measure would update Proposition 103, an initiative approved by California voters in 1988 that placed strict regulations on auto and homeowner insurance.
Under the proposed initiative, health insurance executives could also be prosecuted for perjury if they provide inaccurate information about the reason for rate hikes.
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The petition would require about 505,000 signatures from registered votes to appear on the statewide ballot in Nov. 2012, once cleared for circulation. The initiative is expected to spur controversy among insurance and healthcare providers.
The health insurance measure would update Proposition 103, an initiative approved by California voters in 1988 that placed strict regulations on auto and homeowner insurance.
Under the proposed initiative, health insurance executives could also be prosecuted for perjury if they provide inaccurate information about the reason for rate hikes.
Related Articles on Coding, Billing and Collections:
UnitedHealthcare Medicare Simplifies Brand Names
Maine High Court to Hear Anthem Health Insurance Case
Important 2012 CPT Coding Changes to ASC Spine & Pain Management Procedures