Sacramento, CA- Assemblymember Hector De La Torre (D-South Gate) announced that his Assembly Bill 1324, which will provide consumers with additional protections against retroactive cancellation of health insurance policies, passed the Senate Committee on Insurance last night by a vote of 3-2.   

Health Maintenance Organizations (HMOs) have engaged in a practice of dumping policyholders after authorizing medical treatment and then refusing to pay the medical bills.  Regulators at the Department of Managed Health Care examined 90 randomly selected cases of policy cancellations —and found violations in each one.

“Due to this unscrupulous practice, sick people are being denied benefits that they have paid for, been approved for, and should reasonably expect to receive.  At a time where the focus is on increasing coverage of California’s uninsured, there are scores of Californians who are battling to hold on to coverage they have paid for,” stated De La Torre. 

“Even after consumers make their payments, some HMOs look for a cheap way out when it comes time to provide coverage.  I will continue fighting the health plan lobby to ensure that Californian’s have the protections they deserve.  AB 1324 will ensure that HMOs will no longer leave the sick stranded when they need medical attention the most,” stated De La Torre.