California Assembly Bill AB1389

California 2017-2018 Regular Session

• Introduced: 2/17/17
• Refer: 3/16/17
• Report Pass: 3/29/17
• Refer: 3/30/17
• Refer: 4/6/17
• Failed: 2/1/18

Caption

Employment safety: boiler and tank inspections.

Impact

The proposed legislation would significantly modify the current operational requirements for insurers regarding health insurance claims. By changing the reimbursement structures and timelines, AB 1389 aims to ensure that claimants receive their payments more promptly and fairly. Furthermore, it also introduces amendments that affect safety inspections for boilers and tanks, giving insurers and their agents some immunity from liability related to inspection failures. This change aligns safety responsibilities more closely with public entities, potentially reducing legal exposure for insurers.

Summary

Assembly Bill 1389, introduced by Assembly Member Bigelow, is aimed at amending current provisions in the California Insurance and Labor Codes related to health insurance claims and the safety inspections of boilers and tanks. The bill proposes to extend the timeframe for insurers to reimburse claimants from 30 working days to 45 calendar days, while also increasing the interest penalties for delayed payments. Specifically, if a claim is neither contested nor denied, the insurer is required to pay $30 per year or interest, compared to the previous $15 requirement. Additionally, the bill applies to emergency services provided under certain conditions, ensuring timely reimbursement.

Sentiment

The sentiment surrounding AB 1389 appears to reflect a general push towards improving the efficiency and fairness of health insurance claims processing. Advocates may view the bill positively as it protects the rights of consumers to receive timely payments, while opposing viewpoints might highlight concerns about the potential for increased insurer liability linked to safety inspections. Overall, the legislative discussions indicate a mix of supportive and cautious responses, with proponents stressing the need for better claim resolution processes and critics worrying about the impacts of liability exemptions.

Contention

Notably, the bill has generated discussions around the liability exemptions for insurers regarding safety inspections of boilers and tanks. Critics express concern that increasing the liability protections could lead to less stringent safety oversight, whereas supporters argue that this change is essential for reducing costs and improving compliance. The juxtaposition of enhancing consumer protections in terms of health insurance claims while simultaneously addressing liability issues for insurers showcases the complexity of balancing interests within the legislative framework.