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Insurance reform necessary, will lower malpractice rates

Posted On Wed, November 2, 2011

A recent announcement from the creator of the California insurance reform law noted that regulating insurance rates is vital to prevent insurance companies from hurting both doctors and consumers.

The law, Proposition 103, was created in 1988, a report from Consumer Watchdog stated. It forced all rate changes to receive prior approval, which put the onus on insurance companies to get the OK from insurance regulators before seeing any changes. It also allowed lawmakers to challenge proposed rate hikes.

"California's medical malpractice insurance industry was price-gouging doctors to rake in profits while blaming rising premiums on injured patients," said Harvey Rosenfield, author of California insurance regulatory reform law Proposition 103, and founder of the nonprofit, nonpartisan Consumer Watchdog. "Only Proposition 103's insurance rate reform gave state regulators the power to force insurers to open their books and back down on excessive rates."

Consumers who do not live in California and don't have this type of law in their state may want to look for the best health insurance rates they can find. The best way to do this may be to compare various quotes online.

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