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 ##s Act is intended to support efforts by California in expanding its insurance coverage by ensuring that costs do not squeeze too many families . Backed by labor and consumer groups, a California lawmaker unveiled a proposal Monday calling for the state to set health care prices in the commercial insurance market. 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 lot 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 concerns however , that the bill will 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 ##s 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 lot 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 concerns however , that the bill will drive medical providers out of the state and exacerbate physician shortages .