California bill addresses narrow network controversy

With a 52-18 vote, the California Assembly has approved a bill aimed at limiting narrow networks in health plans in the state.

Senate Bill 964 was introduced by Sen. Ed Hernandez (D-West Covina), and calls on the Department of Managed Health Care to create standardized methods for payers in California to file annual reports concerning their provider networks. The bill also requires DMHC to review those reports.

"I introduced the bill in response to complaints we've heard about inadequate networks in the Medi-Cal program, as well as Covered California," said Sen. Hernandez. "By increasing oversight and network adequacy enforcement, S.B. 964 will help consumers select the right plan for themselves and access the care they need."

Recently, narrow networks have received a lot of attention in California, with a group of 33 Anthem Blue Cross members filing a lawsuit against the insurer in Los Angeles County Superior Court alleging the company misrepresented the size of its physician networks and the benefits provided under the plans it offered under the Patient Protection and Affordable Care Act.

S.B 964 will now move to the California governor's desk for final approval.

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