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News & Press: CalAdvisor Newsletter

Legislative Update

Friday, May 5, 2017   (0 Comments)
Posted by: Shari McHugh
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AB 989 (Cooper) – Health Savings Accounts – SUPPORT

NAIFA-California is pleased to support, along with CAHU and IIABCal, AB 989 by Assemblyman Cooper (D-Elk Grove), which would enable California taxpayers to take advantage of a health expense benefit, in fact the same tax benefit enjoyed by the majority of other states (as well as Federally), as an effort to make health care expenses more reasonable. As most of you know, HSAs offer consumers and employers alternatives in health care coverage that are affordable. HSA's improve existing tax-deductible saving options because both the employer and employee may contribute to the HSA without impacting the employee's taxable income and the unspent funds are permitted to rollover from year to year, rather than being forfeited.

The bill was recently heard by the Assembly Revenue and Taxation Committee and NAIFA-California’s Past President, Mike McCaffrey was there to testify on NAIFA-California’s behalf. Since the opponents to the bill were asserting that HSA's only benefit the rich, Mike focused his testimony describing the value that HSA's provide to his policyholders regardless of their level of income. Following the hearing Mike had the following to say about his experience in front of the Committee: “Several members, including Assemblyman Dababneh, had a good understanding of the benefits of HSA’s to mainstream Californians, which contradicted testimony from representatives of labor organizations, who believe HSA’s only benefit the rich.”

The bill passed out of the Committee by a vote of 8-1 with one abstention. The bill now goes to the Assembly Appropriations Committee for its consideration.

SB 425 (Mendoza) Product Filings--SUPPORT

NAIFA-California is co-sponsoring SB 425 with the Association of California Life and Health Insurance Companies (ACLHIC) and the Chairman of the Senate Insurance Committee, Senator Mendoza (D-Artesia), is the author of the bill.

While the Department of Insurance has made progress in reviewing product filings, it still takes quite some time for carriers to get their products approved and to market…especially compared to other states.  SB 425 would authorize the Department to develop and publish an expedited policy form approval application for certain new products, and would alleviate some of the backlog in the product approval bureau. This expedited process will provide consumers with more products to meet their insurance and retirement planning needs, without sacrificing consumer protections. 

The bill was scheduled to be heard by the Senate Insurance Committee on April 26.

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