California’s legislative agenda will be released later this week, and it is expected to include an attempt to reform the way that the state administers health insurance and a measure to establish a statewide universal pre-existing condition insurance program.
However, a report from the State Board of Equalization suggests that the bills will include a provision that will allow insurers to deny coverage based on pre-conceived diagnoses.
The board’s analysis of California’s insurance marketplace suggests that insurers will likely have to provide limited coverage to people with pre-disease conditions.
“The proposed ACA requirements may be used to deny a policyholder coverage for a pre-specified condition that is not a preexisting condition,” the board wrote in its report.
“The proposed requirement would not apply to a policy holder who is otherwise eligible to obtain insurance coverage under the ACA.”
The proposal, which was not included in the final bill, would give insurers until 2021 to provide coverage to all covered adults and dependents, with an optional period of up to six months between renewals.
California will likely be one of the first states to implement universal pre, pre-condition coverage, but some experts have warned that such coverage may be too costly for people who currently do not have coverage.
While the board’s findings do not directly impact the final state-level bill, it does raise the possibility that the ACA’s universal preconditions provision may be included in California legislation.
A state-wide pre-conditions law was proposed by Republican Gov.
Jerry Brown in 2014 and was backed by the state’s insurance board.
The measure would have required insurers to cover pre-pandemic care, including the prescription drugs that help with the development of a preterm birth, and also cover preterm care during the period of pregnancy.
In November, Brown said that he did not want to use pre-marketplaces to expand insurance, but the legislation was opposed by Democratic Gov.
Gavin Newsom, who argued that the program would be too expensive.
Newsom vetoed the bill.
In a letter sent to state legislators last week, the state Board of Examiners of Insurance said that its analysis of the proposal “does not suggest that pre-Marketplace coverage would be cost-effective.”
The state board also noted that the bill’s language does not prohibit insurers from excluding people with preexisted conditions.
The proposal will likely face a significant backlash from the California insurance industry, which is currently fighting to get coverage expanded to cover people with medical conditions.
California’s insurance marketplaces, which offer coverage to a subset of California residents, are already experiencing some challenges.
The California Association of Insurance Commissioners (CAIC), a trade group, released a report in March 2017 that said that the number of consumers who were enrolled in ACA-compliant coverage in California was lower than in any other state.
According to the report, about 20.6 million people have enrolled in pre-ACA coverage.
California is currently the third-largest state in terms of pre-approval of ACA-coverage.
The CAIC report comes as the federal government has announced plans to expand coverage for Americans with precondisions.
Under the federal program, people with a preexisting condition would be able to get insurance, or they would have to purchase insurance from a federally-funded state-run marketplace.
The California Association for Health Insurance Research (CAHIR), a non-profit that researches the state of California, has been monitoring how the federal ACA-Coverage program is performing.
In a survey released earlier this month, CAHIR found that about 60 percent of the 1,000 consumers surveyed reported that they had enrolled in an ACA-approved pre-policy or plan.