In February 2018, Assemblyman Ash Kalra (D-San Jose) introduced Assembly Bill 3087 (AB3087) to the California Legislature. The proposal is intended to curb healthcare costs by imposing price controls on commercial insurance plans. This bill was backed labor unions and consumer groups, but faced intense opposition from physicians and hospital. AB3087 would create a state commission for enforcement and oversight, effectively capping payment for all services and creating a model very close to a single payer system. Thankfully, this was shelved for consideration by the Assembly Appropriateness Committee in late May.
Kalra stated he would convene academics and policy experts to craft a new version of the bill next year. His bill sponsors also indicated they would revisit the effort again. APS will be sure to monitor this and other state legislation that impacts your bottom-line. If you have further questions, please contact your Practice Manager.
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