SACRAMENTO – Governor Gavin Newsom has signed Assembly Bill 594, authored by Assemblymember José Luis Solache (D-Lynwood) and sponsored by California Insurance Commissioner Ricardo Lara, to strengthen protections for students enrolled in college or university health insurance plans.
AB 594 allows people who are no longer enrolled as students at a college or university to withdraw from their student health insurance coverage and cease paying premiums, makes changes regarding notices that must be given to schools and students when an insurer wants to increase rates, and institutes a penalty when insurers fail to timely file their rate changes with the Department of Insurance.
"The California Department of Insurance identified that some students on college-provided health plans had been charged premiums even after withdrawing from school or securing other coverage, while others never received proper notice of their rate increases," said Assemblymember Solache. "AB 594 provides necessary protections for students, safeguarding against unnecessary charges and surprise rate changes. I am grateful to Insurance Commissioner Lara for his partnership and to Governor Newsom for signing this important measure into law."
The new law builds on Assembly Bill 1823 (2022), ensuring that students are not unfairly charged for coverage they no longer need or qualify for, while also requiring greater transparency when rates change.
"No one should be forced to continue to pay for something they no longer need or can't afford, and policyholders should be clear about any change to their rates," said Commissioner Lara. "I commend Assemblymember Solache for his work on this important piece of legislation which closes the loophole and provides necessary safeguards for students, and I thank Governor Newsom for his support in signing this vital consumer protection bill."
MEDIA INQUIRIES ONLY: Michael Soller (CDI): (916) 492-3566; Chris Mateo (Assemblymember Solache): (916) 319-6200
Email inquiries: cdipress@insurance.ca.gov; Chris.Mateo@asm.ca.gov