Press Release September 27, 1999	Contact: Elizabeth Imholz, 415/431-6747 Consumers Union's West Coast Regional Office

 

SAN FRANCISCO, CA - Governor Gray Davis is sponsoring an event to sign into law a package of bills that will strengthen consumer protections for Californians in managed health care plans. The following statement is attributable to Elizabeth Imholz, Director of the West Coast Regional Office of Consumers Union, publisher of Consumer Reports magazine. Imholz is an invited guest at the signing ceremony in Los Angeles.

1999 has been a banner year for California health care consumers. The bills that Governor Davis is signing into law are an important step forward for Californians in managed care plans. We applaud the Legislature and the Governor for this historic package of HMO reforms.

Of these reforms, independent review and HMO liability provide critical redress for consumers. The independent review package contains nearly all the features for which we had advocated to create a fair, effective and easily accessible external review process when an HMO denies, delays, or limits care. In addition, holding managed care plans and medical groups financially liable for services denied or delayed will provide a strong incentive for HMOs to provide higher quality care. Disclosure of HMOs' criteria for denial of care, also part of the reform package, will shine light on HMOs' standards and enable the media and advocacy groups to prepare helpful comparisons for consumers.

We also look forward to improved oversight of the managed care industry. Consumers Union and others have documented the failure of the current oversight body to adequately protect and educate consumers in past administrations. Reforms enacted this year will transfer authority to a new department, with expanded staff and greater health expertise. We hope to work with the new department to ensure that it truly incorporates the consumer voice and protects consumers' interests.

Building on these important reforms, there is still much work to be done. Monitoring implementation of the reforms will require great vigilance. And with these important measures in place for Californians with health coverage, Consumers Union joins many Californians in hoping that the focus now can be on extending access to health care to the seven million Californians who have no health insurance.

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.