California Governor Vetoes Insurance Consumer Protection Bill
Recently, Governor Schwarzenegger (CA), vetoed a health insurance bill created to protect policyholders from cancellation of their policies. The bill would not have allowed the insurance companies to cancel coverage for a policyholder who had expensive claims that had no 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 is posed as to why CA governor would veto such a good sounding bill that would protect consumers. The AP article states that Schwarzenegger shot it down because it did not have six provisions he wanted to be included in the bill. It is also reported that the Governor said, “[The bill was] written by the attorneys that stand to benefit from its provisions.”
A lawmaker in California recognizes that many of Shwarzenegger’s provisions were previously attached to other bills. Some critics of Shwarzenegger also say that he is going back and forth on his health insurance initiatives, by vetoing this bill.
Dr. Richard Frankenstein, president of the CA Medical Association, states, “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.” Many are wondering if something is up with this veto.