California’s Insurance Commissioner, Dave Jones, has introduced a plan that would augment the Legislature’s attempt to create six health care regions, instead opting for 18 regions. The increase in geographic subdividing could lead to less rate shock and save consumers money.
Because the cost for health care varies by location, more regions could help consumers pay a more accurate reflection of their local health costs. According to Jones’ office, an 18-region plan could result in a maximum increase of 8 percent, instead of the 22.6 percent that could result from the Legislature’s plan.
While the Assembly and Senate haven’t yet heard details from Jones about his proposal, one advocate group says that further breakdowns in state regions could result in gamesmanship by insurance companies and “red-lining.”
Read the full article at the Sacramento Bee.