California Bill Would Mandate Minimum Insurance Coverage at Rehabs

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Assemblywoman Cottie Petrie-Norris, D-Laguna Seashore, in collaboration with California Insurance coverage Commissioner Ricardo Lara launched a invoice supposed to make sure that licensed drug abuse restoration and therapy amenities and restoration residences that contract with the federal government have minimal insurance coverage protection ranges, in addition to elevating the requirements to guard sufferers from abuse or damage.

The said reasoning behind the invoice is that the COVID-19 pandemic has led to an unprecedented rise in substance use and an rising variety of Californians have begun to seek for restoration providers.

Meeting Invoice 1158 seeks to handle the abuses of susceptible sufferers, together with loss of life and critical damage, by offering extra shopper protections.

“Californians in search of assist for alcohol and substance use urgently want extra shopper protections now greater than ever throughout this pandemic,” Lara mentioned in a press release. “Requiring minimal insurance coverage requirements and reporting of accidents and deaths means my division’s investigators can swiftly act to guard public well being and security.”

The invoice follows media stories about allegedly unscrupulous enterprise practices that exploit sufferers for income, together with the Orange County Register’s investigative collection about Southern California’s “Rehab Riviera,” which highlighted the issues attributable to unlicensed restoration residences working with little to no authorities regulation or non-public insurance coverage danger administration.

AB 1158 would require a restoration residence, together with a sober residing residence, that contracts with a authorities entity or an alcohol or drug abuse restoration or therapy facility that’s licensed by the federal government to keep up minimal insurance coverage protection ranges, together with legal responsibility and staff’ compensation to guard sufferers and staff on website.

The invoice would additionally reportedly enhance the flexibility for an insurance coverage firm to guard the well-being of individuals in restoration by guaranteeing a residence or facility’s compliance with well being and security requirements, together with reporting any incidents of loss of life or accidents requiring hospitalization, again to the insurance coverage firm and respective authorities entity.

The invoice can be designed to reinforce the flexibility of state regulatory companies to work collaboratively to research insurance coverage complaints, defend sufferers, and stop fraud at these amenities and residences.

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