Bloomberg Law
Sept. 10, 2018, 11:21 AM

California Health Plan Mergers to Have Stricter Scrutiny

Laura Mahoney
Laura Mahoney
Staff Correspondent

Health plans that want to merge must get approval from the California Department of Managed Health Care under a new law signed by Gov. Jerry Brown (D).

A.B. 595 by Assemblyman Jim Wood (D) broadens the state’s say in mergers and acquisitions in the health-care industry. Under current law, the department can make recommendations about a proposed merger but the transactions don’t require state approval or review.

Brown signed the bill Sept. 7. It takes effect Jan. 1, 2019. The new law comes amid concerns about further concentration of the insurance market in California.

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