Quackenbush Open to Regulating HMOs

Proclaiming that HMO regulation in California is “completely inadequate” and that HMOs have often been “unresponsive to consumers,” Insurance Commissioner Chuck Quackenbush said Tuesday he would be happy to regulate health maintenance organizations.

But Quackenbush, addressing a Town Hall Los Angeles luncheon, expressed doubt that the Legislature would grant the state Insurance Department the sweeping powers it would require “to take . . . on” auditing responsibilities of HMOs.

Under the circumstances, Quackenbush said, HMO regulation may as well be left under the control of Gov. Pete Wilson, who, he said, “has the authority and the ability” to increase surveillance of the industry. Wilson, he said, also has “the bully pulpit” to command attention in the matter.

Quackenbush’s comments about HMO regulation came in response to a questioner who suggested that such regulation be left to the industry. The Republican commissioner is campaigning for reelection to a second four-year term.

At least four of the 10 tables set for 10 people each at the Intercontinental Hotel luncheon were purchased by the insurance industry; two by State Farm, one by Transamerica and one by the California Assn. of Health Underwriters.

One of Quackenbush’s two Democratic challengers for the post, Marin County Supervisor Hal Brown, has been making HMOs a major issue of his campaign.

Brown, campaigning elsewhere in Los Angeles on Tuesday, said he does not regard Quackenbush as so strong an advocate of consumers that it would be a good idea to give him control over HMOs.

“He hasn’t said one word on this issue until right now,” Brown said, “while I have been pushing for reform for a year, since I started campaigning.”

Brown said he favors a bill of rights for 16 million Californians who receive their medical care through HMOs, including granting doctors and their patients the right to decide when the patient should go to a hospital and how long the stay should be.

The second challenger, Assemblywoman Diane Martinez (D-Monterey Park), could not be reached for comment.

Jamie Court, director of the health reform group Consumers for Quality Care, said that despite Brown’s assertion that Quackenbush has not been talking about the HMO issue, the commissioner has occasionally suggested that he might regulate the industry.

“We’d accept the insurance commissioner as a regulator, and prefer it to the current appointed position under the governor’s office,” Court said.

The last four people Wilson has appointed to the job have served only about a year each, Court said.

“Right now, it seems the regulation has been accountable only to the governor’s campaign contributors.”

Wilson last week announced a plan to boost regulation, including a renaming of the state Department of Corporations, which handles HMO regulation.