Existing law provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and the regulation of health insurers by the Department of Insurance. For these purposes, existing law defines "unreasonable rate increase" to have the same meaning as in the federal Patient Protection and Affordable Care Act, which is that an unreasonable rate increase exists when the federal Centers for Medicare and Medicaid Services makes a determination that a rate increase is excessive, unjustified, or unfairly discriminatory, among other things.
This bill would instead provide that an "unreasonable rate increase" exists if the Director of the Department of Managed Health Care or the Insurance Commissioner, as applicable, makes a determination that a rate increase is excessive, unjustified, unfairly discriminatory, or otherwise unreasonable.

Statutes affected:
AB 789: 1385.03 HSC
02/18/25 - Introduced: 1385.03 HSC
03/17/25 - Amended Assembly: 1385.01 HSC, 1385.01 HSC, 10181 INS, 10181 INS, 1385.03 HSC
06/23/25 - Amended Senate: 89517.5 GOV, 89517.5 GOV, 1385.01 HSC, 10181 INS