SACRAMENTO, June 2 (UPI) -- California's soaring healthcare costs may result in the state taking the unusual step of limiting the profits of its health insurers.
Two bills in the state legislature would limit the insurers' profits and also cap consumers' out-of-pocket payments for medical treatment, reports The Los Angeles Times. Separately, the state Department of Insurance has its own to limit profits.
Other states such as Connecticut and New York regulate how much health plans can charge in premiums, the report said. In Minnesota, only nonprofit groups can operate health maintenance organizations.
The proposals in California may not pass because insurers say any such move would limit the types of insurance residents can buy, the report said. However, they point to a growing consumer opposition to rising costs and the feeling that insurers must absorb a greater share of these costs. The proposals also are seen as a renewed call for a government-sponsored healthcare system.
