Sunday, October 5, 2008

California Governor Vetoes Insurance Consumer Protection Bill

By Ethan Calvin

Yesterday, California Governor Arnold Schwarzenegger vetoed a health insurance bill that would have protected consumers from having their policies canceled. Under the now dead bill, health insurance companies would have not been allowed to cancel coverage if a policyholder made expensive claims without an independent review.

The Associated Press and San Diego Union-Tribune report that independents review processes permit insurance companies to cancel policies is it can be proven that the policyholder purposely lied about their health on applications.

the question was asked, why would Governor Shwarzenegger veto this bill that seems to protect consumers? The AP article cites that he did not approve it because the six provisions he wanted included, were not. The article also states that Shwarzenegger responded, "[The bill was] written by the attorneys that stand to benefit from its provisions."

Critics of Governor Shwarzenegger are pointing fingers at his 'flip-flopping" on his own insurance initiatives, by vetoing the bill. One lawmaker in CA revealed that some of the provisions the Governor wanted included were already in other bills.

"The governor's veto betrays the promise he repeatedly made to Californians to protect them from insurance companies canceling their health insurance when they need it most," said president of the California Medical Association, Dr. Richard Frankenstein. Something smells funny with this veto.

About the Author:

No comments: