As I think most of you know, the California legislators considered a bill to allow for rate regulation by the Insurance Commissioner and the Department of Managed Care[ AB51]. Small Business California did not take a position on this and it has not passed.
In Maine, which allows the state to regulate rates Anthem, is suing the state for rejecting their rate filings. The state said that the insurance company could make a profit of 0% in 2009,.5% in 2010 and 1% this year. Anthem is basing their lawsuit on the theory that the state cannot regulate to the point of not allowing a company to make a fair rate of return on their investment.
What do you think about this? It should be noted that states can regulate rates in 26 states and there has been legislation to allow state regulation in 7 other states including California.
Small Business California
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San Francisco, CA 94116