States Propose Claims-Denial Legislation Amid Rising Furor at Insurers
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Feb 28, 2025
At least two states have recently proposed legislation taking health insurers to task over claims denials — an issue that has received fierce criticism from the public in the wake of the December 2024 shooting death of UnitedHealthcare CEO Brian Thompson. One expert tells AIS Health that the bills reflect a “deep dissatisfaction” with insurers from the public and lawmakers alike.
On Feb. 18, California state Senator Scott Wiener, a Democrat, introduced Senate Bill 363. The bill requires insurers to disclose details of claims denials. It also states that if more than half of a company’s denials are overturned on appeal, fines will be imposed: $50,000 for the first violation, $100,000 to $400,000 for the second violation and $1 million for each subsequent case. The fines will be reinvested by the state to provide health care services.
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