Bill Would Toughen State Regulators’ Hand

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California doctors won a victory against health insurers in Sacramento on Monday when the Assembly approved a bill to toughen the state’s power to fine insurers for failing to pay medical bills.

But the measure now goes to Gov. Arnold Schwarzenegger, who is coming under pressure from HMOs and his own regulators to issue a veto.

At issue is whether the state needs extra legal powers to penalize health maintenance organizations and their kin, preferred provider organizations, that are found to regularly underpay their bills to doctors, radiologists, anesthesiologists and other specialists.






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