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Assembly Approves Legislation on Health Policy Cancellations

Two measures aimed at changing the way health insurers cancel policies have cleared their first hurdle in the California Assembly. Supporters say the bills would reign in a practice that's gotten out

Assembly Approves Legislation on Health Policy Cancellations

Two measures aimed at changing the way health insurers cancel policies have cleared their first hurdle in the California Assembly. Supporters say the bills would reign in a practice that's gotten out of hand. KPBS Reporter Kenny Goldberg has more.

State regulators have received hundred of complaints from people whose health policy was canceled after filing medical claims.  One Assembly bill would subject all cancellations to review by a third party.  Jerry Flanagan is with the non-profit group Consumer Watchdog . He says the concept sounds good, but . .

Flanagan: The problem is that these third party companies like Maximus, which runs the state's medical review, has contracts with the insurance companies on the side.

Another measure would allow companies to terminate a policy only within six months of issuing it.  The insurance industry says companies are already taking steps to reform their practices.

Kenny Goldberg, KPBS News.