In AB 8 (Nunez), insurance plans are required to spend at least 85% of funds on actual health care.
In that plan, health plan benefits are standardized by the state, and all applicants without the 3-5% worst conditions are guaranteed acceptance by commercial health plans.
That means the administrative burden of designing health plans, advertizing their features, and selecting advantageous potential enrollees will be eliminated.
Since the administrative tasks of insurers will be less, why not require reduction of administrative expenses of insurance plans so that 90-95% of funds go to actual health care?