This week marked the end of Arnold Schwarzenegger’s seven-year term as California’s 38th governor. The new administration is not wasting any time when it come to health care, apparently.
On Monday, California’s new insurance commissioner David Jones ordered emergency regulations requiring insurance companies to devote at least 80% of their income to policyholders’ claims in the state’s individual insurance market.
California now requires insurers to spend at least 70% of revenue on policyholders’ medical bills, but Jones’ plan matches provisions in the federal Patient Protection and Affordable Care Act (PPACA).
The regulations must still be approved by California’s Office of Administrative Law. If permitted, they would take effect this month and be in place for six months while the Insurance Department writes permanent rules.
Jones also announced other plans to press his health care agenda, including the creation of a new post in the Insurance Department to oversee health care policy. Jones also intends to work with the Legislature on a bill to give him direct authority over health insurance rates in the same way that he oversees auto insurance rates.
Jones was elected November 2, 2010 and took the Oath of Office as California’s fourth elected Insurance Commissioner on January 3, 2011. As Insurance Commissioner, Jones regulates California’s insurance industry, which makes up almost one-tenth of the California economy.
[audio:http://hospitalstay.com/wp-content/uploads/2011/01/09-Sympathy.mp3|titles=Sympathy]Additional Source: Los Angeles Times
The Supreme Court has traditionally iternpreted the Commerce Clause very liberally. Congress can legislate something which affects interstate commerce, even if it is not interstate commerce in itself: the Court upheld a farmer being prosecuted for growing wheat on his own farm for his own consumption, in violation of federal wheat quotas. While you may consider the healthcare law against the spirit of the Constitution, legal precedent is not on your side.As far as the Amish go, they would likely be exempted from the provision. The Amish are also exempt from Social Security tax, for example, because they do not use Social Security as part of their religious beliefs. Was this answer helpful?