A Californian lawmaker has revealed a proposed plan to for the state to determine health care prices set in the commercial insurance market. State Senator Ricardo Lara (D-Bell Gardens) said he would introduce legislation that would require insurers and employers to offer coverage at rates comparable with those charged by Medicare. In order to ensure that costs do not rise too far, the bill calls for an independent commission that will set health care reimbursements for hospitals, doctors and other providers within the private insurance market. However, the bill faces a range of opposition from physician groups and hospitals. Sponsors of the bill have said they intend to use Medicare reimbursements as a benchmark before factoring in other drivers of operating costs. Nationwide, similar approaches have been made by employers, but predominantly these have sidestepped insurers and paid directly to insurers. Proponents of the plan insist this will help cut administrative costs and encourage transparency in pricing and billing. There are fears however, that the bill would drive medical providers out of the state and exacerbate physician shortages.
A Californian lawmaker has revealed a proposed plan to for the state to determine health care prices set in the commercial insurance market. The Health Care Price Relief Act is intended to support efforts by California in expanding its insurance coverage by ensuring that costs do not squeeze too many families. In order to ensure that costs do not rise too far, the bill calls for an independent commission that will set health care reimbursements for hospitals, doctors and other providers within the private insurance market. However, the bill faces a range of opposition from physician groups and hospitals. Sponsors of the bill have said they intend to use Medicare reimbursements as a benchmark before factoring in other drivers of operating costs. Nationwide, similar approaches have been made by employers, but predominantly these have sidestepped insurers and paid directly to insurers. Proponents of the plan insist this will help cut administrative costs and encourage transparency in pricing and billing. There are fears however, that the bill would drive medical providers out of the state and exacerbate physician shortages.