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State Legislation: Bill Amendments · August 27, 2026 · Primary source

CA SB 1037: new version, 08/27/26 - Enrolled

Score 66PRIMARYregulatoryState legislature

Summary

California SB 1037, which would have redefined 'unreasonable rate increase' under the Knox-Keene Act to give state regulators independent authority to reject health plan and insurer rate increases, was vetoed by the Governor on September 27, 2026. The enrolled version of the bill would have required health plans and insurers to demonstrate compliance with health care cost targets in their rate filings and to disclose detailed remediation steps when rate growth was projected to exceed those targets. The bill also would have required regulators to report on whether rates, in aggregate, meet an affordability standard for individuals, couples, and families of four. The bill is now pending consideration of a veto override in the Senate.

What this may mean

Because the Governor vetoed SB 1037, California health care service plans and health insurers are not subject to the redefined 'unreasonable rate increase' standard or the new cost-target compliance disclosure requirements at this time. The affordability reporting obligations on the Department of Managed Health Care and Department of Insurance also do not take effect. A veto override remains procedurally possible in the Senate.

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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