STATE POLITICS & POLICY | California Bill Would Require Individual Health Plans To Include Maternity Coverage
[March 25, 2009]

A California lawmaker has proposed a bill (A.B. 198) that would require insurers in the state to include maternity coverage in individual insurance policies, the San Francisco Chronicle reports. According to the Chronicle, the bill was prompted by an increase in the number of individual policies that do not include the coverage. The California Health Benefits Review Program -- which provides independent analysis of proposed health insurance benefits mandates -- found that about 805,000 Californians have insurance policies that specifically exclude maternity coverage, almost a fourfold increase from 192,000 in 2004. The bill was scheduled to be sent to the Assembly Health Committee on Tuesday. According to the Chronicle, Gov. Arnold Schwarzenegger (R) has vetoed two similar bills, once in 2004 and more recently in 2008.

Increasing unemployment in California -- and subsequent loss of health insurance benefits -- is expected to lead more people to choose individual health insurance coverage, which usually is less expensive than paying to remain on a former employer's health plans, the Chronicle reports. The bill's supporters said that denying maternity coverage is unfair to women and that the average $7.17, or 4.24%, increase in the monthly premium price per individual policyholder would save money in the long term because fewer women would need government-supported programs. However, opponents of the bill argue that consumers should not be forced to buy specific coverage they have no intention of using and that the increase in premiums would result in more people going without insurance. Ben Singer -- spokesperson for Anthem Blue Cross, which covers about 50% of the individual policyholders in the state who do not have maternity coverage -- said that requiring the benefit could increase premiums for some members by as much as 107%. He said, "Clearly there are a number of people out there who don't think they need or want a maternity benefit at this point in their lives and recognize there is a significant reduction in costs associated with this."

According to the Chronicle, the issue only involves individual insurance coverage -- which is typically bought by people who are self-employed or work for someone who does not provide health benefits -- because group policies include maternity benefits. In addition, health maintenance organizations are required by the state to include maternity coverage, while preferred provider organization service plans do not have to include the benefit (Colliver, San Francisco Chronicle, 3/24).





The information contained in this publication reflects media coverage of women’s health issues and does not necessarily reflect the views of the National Partnership for Women & Families.

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