Once again a measure that purportedly is designed to protect consumers ignores the cost of doing business. Ironically, the increased cost of regulation will find its way to consumers, either through increased costs or reduced services.
The bill's intent to control premiums carelessly ignores the underlying problems of rising health care costs, such as the cost of new technologies. Unless some check is put on the driving force behind health care costs, reducing premiums will only serve to limit services. If insurance companies cannot afford the rising costs of health care across the board with premiums limited by government regulation, the companies would undoubtedly restrict medical services and pay only what they can afford.
Besides this practical business reality, there are other costs built into AB 52.
The measure authorizes the imposition of fees on health care service plans and health insurers for purposes of implementing the program. These fees will be deposited in a newly created fund "'— read: new bureaucracy.
