Health Committee's Passage of AB 52 Good News for California Small Businesses

The Senate Health Committee's passage today of AB 52 puts California small businesses one step closer to being better protected from excessive health insurance rate hikes. AB 52 builds on the safeguards of federal healthcare reform, and will give small businesses the same type of defense from unreasonable premium increases that homeowners and auto insurance policyholders have. The Health Committee should be commended for its work on this issue.

AB 52 requires insurers to present proposed premium rate increases to the state for approval and forbids any rate from being approved or kept if it is found to be unnecessarily exorbitant, inadequate or discriminatory. The Affordable Care Act has a rate review process determining whether a hike is unjustified, but it gives states no authority to prevent a hike from going in effect. AB 52 will change that, allowing California to keep costs in check so small businesses aren't held hostage to unreasonable rates.

AB 52 is not the be-all end-all for stemming skyrocketing health insurance premiums, but it's a step in the right direction and California's small businesses will benefit from the protections it would provide. We urge the Senate to pass this critical legislation as soon as possible so Gov. Brown can sign it into law.