The California Assembly Appropriations Committee removed language from SB 524 that would restrict self-insured plans from steering patients within their benefit designs. Originally, the bill mandated that “a self-insured employer plan or the agent of a self-insured employer plan shall not engage in patient steering.” If SB 524 had not been amended, it would have eliminated an important tool self-insured plans use to negotiate lower costs for their employees, and drive value in benefit plans.
Thanks to ERIC’s timely work and the work of our California partners, we were able to protect large employers and their employees in California, and ultimately preserve ERISA uniformity.
At this time, we remain neutral on SB 524 and will continue to work with elected officials and stakeholders in the state to ensure this language is not added back in.