SACRAMENTO – The State Assembly’s Health Committee has approved a bill by First District Assemblymember Wesley Chesbro (D-North Coast) that would require health plans to maintain sufficient provider networks to ensure their customers have access to physicians.

“When insurance companies charge premiums and then fail to provide the health care, it is plain and simple fraud and should be prohibited,” Chesbro said. “This bill is about putting a stop to the abuses of health insurance companies who shrink provider networks after enrolling members in their plans.

“Last year, Anthem Blue Cross canceled contracts statewide with 53,000 doctors who serve Healthy Families kids, attempting to force these doctors to accept significantly reduced rates,” he added. “Understandably, many doctors refused to sign these new contracts, resulting in huge reductions to Anthem’s provider network.”

AB 2586 would require that network directories are accurate and up to date. If a provider network is substantially modified the insurer must demonstrate to the regulator, prior to making the change, there will still be an adequate provider network. The state Department of Managed Health Care would be required to ensure a plan’s compliance with current network adequacy standards during its periodic on-site medical review.

“AB 2586 is a simple measure that will bring more accountability and transparency to health plan provider networks to ensure that patients can access a health-care provider when they need one,” Chesbro said.

The California Medical Association is the sponsor of AB 2586. The bill is also supported by the American College of Emergency Physicians, California Dental Association, California Chiropractic Association, California Hospital Association, California Psychological Association, Children Now, Health Access and the California Association of Marriage and Family Therapists.