SACRAMENTO - A bill that will raise health care costs and carve a loophole in California's model medical lawsuit reform act was approved today by a state Legislative committee, reports the Civil Justice Association of California (CJAC).

The bill (AB 1751 - Kuehl) seeks to prohibit arbitration agreements which are currently used to quickly and fairly resolve disputes between consumers and their health plans. It barely received the eight votes needed to pass the Assembly Judiciary Committee.

"If this measure becomes law, it will hurt consumers who cannot not afford to hire an attorney to represent them in small disputes. These are the kind cases trial lawyers are less likely take on a contingency fee basis," said Jeff Sievers, CJAC legislative consultant. He added that cases that do go to trial will ultimately delay care and force health plans to recoup lawsuit or settlements costs through higher premiums.

"The higher premiums that will accompany AB 1751 will mean more people will join California's seven million uninsured-hardly a consumer 'protection'," said Sievers.

AB 1751 is expected to be heard on the Assembly Floor next week.