(Sacramento, CA) – The offices of Assemblymember Hector De La Torre (D-South Gate) and Senator Gloria Negrete-McLeod (D-Chino) introduced legislation to close a loophole exploited by health insurance companies that sell cheap, non-comprehensive coverage.  These "subprime" insurance products usually lack coverage for maternity services.  Assembly Bill 1962 would require all health insurance products regulated under the Department of Insurance to cover maternity services.  

"Health care costs are rising and we must find solutions to keep health insurance affordable," said Assemblymember De La Torre.  "Some insurance companies are preying upon young, healthy individuals by selling 'smoke & mirrors' insurance products that would not cover pregnancy care.  We would not tolerate an insurance product sold to individuals that excluded care for cancer or AIDS.  We should not tolerate insurance products that exclude maternity services," he said.  

"This bill is in the best interest of women and their families," said Senator Negrete-McLeod, the Chair of the California Legislative Women's Caucus and a principal co-author of the bill.  "Women must get proper medical care throughout their pregnancy.  Such care is essential to the health and well-being of both the mother and the child," she said. 

Under California law, health plans are regulated by two state agencies under different regulations.  Health plans (such as HMO's) are already required to include maternity services in any health insurance policy they offer.  Health insurers (such as PPO's) are not. Federal law requires employers to include maternity services when they purchase health insurance; to not do so constitutes employment discrimination against women.   Policies sold to individuals in California are not subject to this requirement.  As more employers are dropping health insurance for their employees, insurance companies are increasingly targeting this young, uninsured segment of the market with these non-maternity products.  AB 1962 would close these loopholes that allow some health insurance products in the individual market to exclude maternity coverage.

"The economic and social costs of restricting or delaying this access to women are intolerable," said Richard Frankenstein, MD, President of the California Medical Association.  "These types of insurance products are inherently barriers to care, and any delay in prenatal care can result in serious health problems for both the mother and her baby," he said.