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California Governor Vetoes Insurance Consumer Protection Bill

Recently, Governor Schwarzenegger (CA), vetoed a health insurance bill created to protect policyholders from cancellation of their policies. The bill would not have allowed the insurance companies to cancel coverage for a policyholder who had expensive claims that had no independent review.
The Associated Press and San Diego Union-Tribune report that independents review processes permit insurance companies to cancel policies is it can be proven that the policyholder purposely lied about their health on applications.
So why would Governor Schwarzenegger veto a seemingly sound consumer protections bill? According the AP article, the governor struck down the legislation because it didn't contain six provisions that he wanted included. The article also cited Schwarzenegger as saying, "[The bill was] written by the attorneys that stand to benefit from its provisions."
A lawmaker in California recognizes that many of Shwarzenegger's provisions were previously attached to other bills. Some critics of Shwarzenegger also say that he is going back and forth on his health insurance initiatives, by vetoing this bill.
Dr. Richard Frankenstein, president of the CA Medical Association, states, "The governor's veto betrays the promise he repeatedly made to Californians to protect them from insurance companies canceling their health insurance when they need it most." Many are wondering if something is up with this veto.

Article Source: http://www.wcom51.com

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