California Bill Targets Health Insurers Over Rising Coverage Denials

California lawmakers are advancing legislation known as SB 363, aimed at penalizing health insurers that frequently deny necessary medical treatments. The impetus for this bill is the rising concern over insurance denials, exemplified by the case of Colleen Henderson, whose family incurred significant medical debt due to denied claims. The proposed legislation seeks to enhance transparency by requiring insurers to disclose their denial rates and reasons for those denials. Additionally, insurers could face penalties if state regulators overturn more than half of their appeals, impacting around 12.8 million Californians with private insurance.

Opens on KFF Health News