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Insurance Companies Fight Against COVID Testing Bill

An affiliation of insurance coverage firms challenged Senate Invoice 510 due to a clause requiring them to retroactively pay for office COVID-19 assessments.

The supply requires well being plans and well being insurers to retroactively pay for all assessments after Gov. Gavin Newsom declared a state of emergency due to the pandemic on March 4, 2020.

The commerce group, the Affiliation of California Life and Well being Insurance coverage Corporations filed the petition in opposition to Legal professional Basic Rob Bonta and Insurance coverage Commissioner Ricardo Lara in Los Angeles Superior Court docket asking the choose to invalidate the retroactive clause. The ACLHIC represents six full-service insurers who cowl about two million Californians’ healthcare. They argue that the clause is unconstitutional.

“There isn’t any public well being justification for the retroactive mandates/prohibitions,” the petition acknowledged. “ACLHIC members will doubtless undergo vital damages if ACLHIC’s claims alleged herein aren’t promptly addressed.

SB510 was signed by Newsom on Oct. 8 and can go into impact on Jan. 1. It requires well being plans and insurers to reimburse each in-network and out-of-network suppliers for COVID-19 testing and associated companies with none cost-sharing, prior authorization or different utilization administration necessities. It additionally requires insurers to pay for office testing even when the people are asymptomatic and haven’t any identified publicity.

The ACLHIC doesn’t dispute the requirement to pay for assessments carried out after Jan. 1.

(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. Metropolis Information Service contributed to this report.)


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