Rate review: Requires additional data collection and review of health insurance rates in the large-group market (generally comprised of purchasers who are large employers or multi-employer trusts). Specifically, this bill:1) Establishes a rate review process for increases to large-group rates that meet specified thresholds (a rate greater than 150% of the aggregate increase for all that plan’s rates, or a rate that will subject the product to a federal excise tax). It requires the Department of Managed Health Care (DMHC) and the California Department of Insurance (CDI) to determine whether such large-group rate increases are reasonable or unreasonable;2) Modifies aggregated information plans and insurers must file regarding rate changes in the large-group market;
3) Requires DMHC and CDI to conduct a public meeting between November and March each year, regarding aggregate rate changes for each carrier that offers coverage in the large-group market; and
4) Stipulates requirements for specified notices to large-group purchasers about rate increases.