The California Assembly has unanimously approved a bill aimed at clamping down on health insurers that illegally cancel members' policies. The measure would prevent health plans from paying employees bonuses based on the number of policies they cancel. KPBS reporter Kenny Goldberg has more.
Late last year, state regulators fined Health Net $1 million for using a quota system for terminating policies. The company paid a bonus to a senior analyst who exceeded cancellation goals.
The Assembly bill would expand a state law that already makes that practice illegal.
Bryan Liang is with the California Western School of Law. He's not surprised the measure passed unanimously.
Liang : This has become a bipartisan issue that's really affecting a huge array of people, and so I think the legislators are saying you know what -- enough is enough.
State regulators have fined Health Net , Kaiser , and Blue Cross for illegally canceling policies. Regulators say they're looking into the practices of other insurers, too.
Kenny Goldberg, KPBS News.
