Calif. Officials Propose Controversial Insurance Rules

The health insurance marketplace continues its march toward change as California's Department of Insurance proposes new controversial rules on small business self-insurance and officials mull increasing premiums on those with unhealthy lifestyles.

Los Angeles Times: Proposed Limits On Health Self-Insurance Plans Debated
Business and insurance groups are attacking a proposal by state regulators to impose new limits on a controversial form of health coverage that insurers are selling to small employers. The California Department of Insurance is pushing legislation that calls for new rules on a type of company self-insurance that's growing more popular as small businesses seek alternatives to ever-rising premiums for conventional health coverage (Terhune, 4/21).

Kansas Health Institute News: Workers With Unhealthy Lifestyles Can Expect Premium Increases, Expert Says
"Companies are moving more toward a pure insurance philosophy where people who create more risk are going to pay more," said J. Michael Brewer, president of Lockton Benefit Group, the world's largest independent and privately owned insurance brokerage firm. The concept, he said, is similar to high-risk drivers having to pay higher car-insurance premiums than low-risk drivers (Ranney, 4/20).

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