AB-789
Health & Public Health

Health care coverage: unreasonable rate increases.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Transfers authority to determine unreasonable health insurance rate increases from federal to state regulators.
  • Empowers state officials to reject rate hikes deemed excessive, unjustified, or discriminatory.
  • Strengthens California's oversight of health insurance premium increases through local regulation.

Summary

Assembly Member Bonta's health care rate oversight legislation shifts the authority to determine unreasonable insurance rate increases from federal regulators to California state officials. The measure modifies existing state law, which currently relies on the Centers for Medicare and Medicaid Services to evaluate whether rate increases are excessive or unjustified.

Under the proposed changes, the Director of the Department of Managed Health Care and the Insurance Commissioner would assess whether health plan rate increases qualify as unreasonable based on four specific criteria: whether the increase is excessive, unjustified, unfairly discriminatory, or otherwise unreasonable. The bill amends parallel sections of both the Health and Safety Code and Insurance Code to maintain consistent standards across California's regulated health coverage markets.

The legislation maintains the existing framework for rate review while localizing oversight authority within state agencies. Health insurers and managed care plans would submit rate increases for evaluation by state regulators rather than federal authorities, though the fundamental criteria for unreasonable increases remain aligned with established standards under the Affordable Care Act. The measure requires no new state appropriations, indicating implementation would occur through current regulatory resources and processes.

Key Dates

Next Step
Referred to the Senate Standing Committee on Rules
Next Step
Senate Committee
Referred to the Senate Standing Committee on Rules
Hearing has not been scheduled yet
Vote on Assembly Floor
Assembly Floor
Vote on Assembly Floor
Vote on Assembly Floor
Assembly Health Hearing
Assembly Committee
Assembly Health Hearing
Assembly Health Hearing
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Contacts

Profile
Shannon GroveR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Brian JonesR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Mike McGuireD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Eloise ReyesD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
John LairdD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 6 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Shannon GroveR
Senator
Committee Member
Profile
Brian JonesR
Senator
Committee Member
Profile
Mike McGuireD
Senator
Committee Member
Profile
Eloise ReyesD
Senator
Committee Member
Profile
John LairdD
Senator
Committee Member
Profile
Mia BontaD
Assembly Member
Bill Author

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Mia Bonta
Mia BontaD
California State Assembly Member
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (4/21/2025)

Latest Voting History

April 21, 2025
PASS
Assembly Floor
Vote on Assembly Floor
AyesNoesNVRTotalResult
5941679PASS

Key Takeaways

  • Transfers authority to determine unreasonable health insurance rate increases from federal to state regulators.
  • Empowers state officials to reject rate hikes deemed excessive, unjustified, or discriminatory.
  • Strengthens California's oversight of health insurance premium increases through local regulation.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Mia Bonta
Mia BontaD
California State Assembly Member

Summary

Assembly Member Bonta's health care rate oversight legislation shifts the authority to determine unreasonable insurance rate increases from federal regulators to California state officials. The measure modifies existing state law, which currently relies on the Centers for Medicare and Medicaid Services to evaluate whether rate increases are excessive or unjustified.

Under the proposed changes, the Director of the Department of Managed Health Care and the Insurance Commissioner would assess whether health plan rate increases qualify as unreasonable based on four specific criteria: whether the increase is excessive, unjustified, unfairly discriminatory, or otherwise unreasonable. The bill amends parallel sections of both the Health and Safety Code and Insurance Code to maintain consistent standards across California's regulated health coverage markets.

The legislation maintains the existing framework for rate review while localizing oversight authority within state agencies. Health insurers and managed care plans would submit rate increases for evaluation by state regulators rather than federal authorities, though the fundamental criteria for unreasonable increases remain aligned with established standards under the Affordable Care Act. The measure requires no new state appropriations, indicating implementation would occur through current regulatory resources and processes.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (4/21/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Rules
Next Step
Senate Committee
Referred to the Senate Standing Committee on Rules
Hearing has not been scheduled yet
Vote on Assembly Floor
Assembly Floor
Vote on Assembly Floor
Vote on Assembly Floor
Assembly Health Hearing
Assembly Committee
Assembly Health Hearing
Assembly Health Hearing
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Latest Voting History

April 21, 2025
PASS
Assembly Floor
Vote on Assembly Floor
AyesNoesNVRTotalResult
5941679PASS

Contacts

Profile
Shannon GroveR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Brian JonesR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Mike McGuireD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Eloise ReyesD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
John LairdD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 6 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Shannon GroveR
Senator
Committee Member
Profile
Brian JonesR
Senator
Committee Member
Profile
Mike McGuireD
Senator
Committee Member
Profile
Eloise ReyesD
Senator
Committee Member
Profile
John LairdD
Senator
Committee Member
Profile
Mia BontaD
Assembly Member
Bill Author