Ready for Reform? Health Insurance Regulation in California Under the ACA

submitted by forextv on 01/02/14 1

California's dual health insurance regulatory structure has evolved over the decades based on policy, political, and marketplace dynamics. Oversight of health coverage is divided between the Department of Managed Health Care (DMHC) and the California Department of Insurance (CDI), which have unique statutory histories, administrative structures, and legal frameworks. This dual structure contributes to consumer confusion, added government and insurance carrier administrative burdens, and difficulty in monitoring what is being bought and sold in the insurance marketplace. The changes required by the federal Affordable Care Act (ACA) provide an opportunity to reexamine the state's regulatory system. Under new federal standards, the ACA may narrow the differences between CDI- and DMHC-regulated health coverage. CHCF held a Sacramento briefing on June 23, 2011 to inform policymakers, stakeholders, and the public about health insurance regulation in California and the policies, structures and responsibilities needed to implement the ACA in the state.

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