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California Bill Would Require Insurers to Justify Policy Cancellations


Aired 4/19/09

A bill in the California Assembly would require companies that sell long-term care insurance to justify policy cancellations. Currently, insurers simply have to tell state regulators about their decisions. KPBS Reporter Kenny Goldberg has more.

Long-term care coverage is one of the fastest growing health insurance products. It pays for home-based nursing visits or care in a nursing home. San Diego Assemblywoman Lori Saldana says her bill would help make sure companies don't cancel coverage arbitrarily. It would require insurers to provide the reasons for terminations, and track them by the gender of the insured.
Saldana: So we want to ensure that women are receiving equal insurance coverage, as they typically outlive their spouses, and may require more long-term care assistance.
The Assembly insurance committee unanimously approved Saldana's bill. The insurance industry has not taken a position on the measure.

Kenny Goldberg, KPBS News.

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