Today the Assembly Budget Subcommittee on General Administration considered and adopted on a party-line vote 3-2 the proposed budget for the Department of Insurance. Since both the Senate and Assembly budget subcommittees have adopted the same language, the budget for the Department of Insurance for next year is close to final.
This budget includes funding for implementing state and federal legislation enacted last year, including SB1163 authored by Senator Mark Leno (and sponsored by Health Access) on rate review as well as AB2470 by Assemblymember De La Torre ending rescission.
Importantly, Republican Assemblymember Dan Logue asked whether the Legislative Analyst Office had opined that operating the exchange would require a two-thirds vote because of Prop. 26. The LAO responded that so long as the exchange levied fees for services provided, these would be fees under Proposition 26 rather than taxes requiring a two-thirds vote. Also, the statute that creates the exchanges gave the exchange authority to levy fees.