Behind BSCA's 2% Solution

Jones is behind AB-52, which is winding its way through the California legislation. The bill will give extend the DOI's authority concerning insurance rates from just reviewing to approving or denying.

Blue Shield and a host of other health insurers in the state oppose that move. Some see the 2% announcement as an effort to convince lawmakers that the industry can self-regulate.

So if this is just for PR purposes, Reinhardt concedes it's a good gimmick and suggests that other health plans take the same step. "If they are smart, they will. It's a good PR gimmick, certainly for the non-profits."