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LOS ANGELES (CBSLA) – An association of insurance companies challenged Senate Bill 510 over a clause requiring them to retroactively pay for COVID-19 workplace testing.
The provision requires health plans and health insurers to retroactively pay for all tests after Governor Gavin Newsom declared a state of emergency due to the pandemic on March 4, 2020.
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The professional organization, the Association of California Life and Health Insurance Companies, has filed a lawsuit against Attorney General Rob Bonta and Insurance Commissioner Ricardo Lara in Los Angeles Superior Court, asking the judge to strike down the retroactive clause. . ACLHIC represents six full-service insurers that cover health care for approximately two million Californians. They argue that the clause is unconstitutional.
“There is no public health justification for the retroactive warrants / bans,” the petition said. “The members of ACLHIC will likely suffer substantial damage if the ACLHIC claims alleged herein are not dealt with promptly.
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SB510 was signed by Newsom on October 8 and will go into effect on January 1. sharing, pre-authorization or other use management requirements. It also forces insurers to pay for workplace testing even if individuals are asymptomatic and have no known exposure.
ACLHIC does not dispute the obligation to pay for tests performed after January 1.
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(© Copyright 2020 CBS Broadcasting Inc. All rights reserved. City News Service contributed to this report.)
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