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State Legislation: Bill Amendments · February 11, 2026 · Primary source

CA SB 1037: new version, 02/11/26 - Introduced

Score 60PRIMARYregulatoryState legislature

Summary

California SB 1037, introduced February 11, 2026, would shift authority to define an 'unreasonable rate increase' from the federal CMS standard under the ACA to a determination by the California Director of the Department of Managed Health Care or the Insurance Commissioner. The bill would require health plans and insurers whose rate growth exceeds state cost targets to include detailed remediation plans in their rate filings, and would mandate annual affordability reporting on premiums and cost sharing for individuals and families. The Governor vetoed the bill on September 27, 2026, and the Senate is considering whether to override the veto.

What this may mean

Because the Governor vetoed SB 1037, no new obligations took effect. Had it been enacted, California-licensed health care service plans and health insurers would have faced enhanced rate-filing requirements, state-level unreasonableness review independent of CMS, and annual affordability reporting obligations covering the prior five years of premium and cost-sharing data. Willful violations by health care service plans would have constituted a misdemeanor under Knox-Keene.

Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.

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