California 2009-2010 Regular Session Status: Passed Assembly

AB 2578 — Health care coverage: rate approval.

Last action — Read third time, passage refused. (Ayes 16. Noes 19. Page 5114.)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law, the Knox-Keene Health Care Service Plan Act of 1975 (Knox-Keene Act) , provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law also provides for the regulation of insurers by the Department of Insurance, including health insurers. Existing law makes the violation of a final order by the Insurance Commissioner relating to rates imposed by certain insurers, other than health insurers, subject to assessment of a civil penalty and makes the willful violation by those insurers of specified rate provisions a misdemeanor. Under existing law, no change in premium rates or coverage in a health care service plan or a health insurance policy may become effective without prior written notification of the change to the contractholder or policyholder. Existing law prohibits a plan and insurer during the term of a group plan contract or policy from changing the rate of the premium, copayment, coinsurance, or deductible during specified time periods. This bill would require approval by the Department of Managed Health Care or the Department of Insurance of an increase in the amount of the premium, copayment, coinsurance obligation, deductible, and other charges under health care service plan contracts or health insurance policies, other than Medicare supplement, dental-only, or vision-only contracts or policies. The bill would require a plan or insurer to submit to the Department of Managed Health Care or the Department of Insurance, respectively, an application for a rate increase that would be effective on or after January 1, 2012, and would require review of the application in accordance with regulations that each department would be required to adopt no later than January 1, 2012. The bill would subject a rate increase that became effective January 1, 2010, to December 31, 2011, inclusive, to review by the appropriate department. The bill would require each department to notify the public of a rate application and would deem the application approved within 60 days of the date of that notice unless the department holds a hearing on the application, as specified. The bill would authorize the initiation of, and intervention in, proceedings relating to rate approvals and the award of advocacy fees and costs in those proceedings in specified circumstances. The bill would require the departments to work together in implementation of these provisions and to take specified actions in order to ensure coordination and consistency in implementation. The bill would authorize each department to assess a charge in connection with its costs associated with a rate application. The bill would direct the deposit of these fees into the respective department's Health Rate Approval Fund, which would be created by the bill, and would make those funds available to each department for those purposes, upon appropriation. The bill would specify that a violation of its provisions is punishable by criminal sanctions under the Knox-Keene Act and under provisions applicable to insurers and, therefore, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Action History

  1. Read third time, passage refused. (Ayes 16. Noes 19. Page 5114.)

  2. Reconsideration granted. (Ayes 37. Noes 0. Page 5034.)

  3. Motion to reconsider made by Senator Lowenthal.

  4. Read third time, passage refused. (Ayes 17. Noes 17. Page 5033.)

  5. Read second time and amended. Ordered to third reading.

  6. From committee: Amend, and do pass as amended. (Ayes 7. Noes 4.) (August 12).

  7. In committee: Placed on APPR suspense file.

  8. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 5. Noes 1.) (June 24).

  9. Referred to Com. on HEALTH.

  10. In Senate. Read first time. To Com. on RLS. for assignment.

  11. Read third time, passed, and to Senate. (Ayes 43. Noes 28. Page 5525.)

  12. Read second time. To third reading.

  13. Read second time and amended. Ordered returned to second reading.

  14. From committee: Amend, and do pass as amended. (Ayes 12. Noes 5.) (May 28).

  15. In committee: Set, first hearing. Referred to APPR. suspense file.

  16. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 13. Noes 5.) (March 23).

  17. Re-referred to Com. on HEALTH.

  18. From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

  19. Referred to Com. on HEALTH.

  20. Read first time.

  21. From printer. May be heard in committee March 23.

  22. Introduced. To print.

Sponsors

  • Brownley · Cosponsor
  • Jones · Primary
  • Salas · Cosponsor
  • Saldana · Cosponsor
  • Fuentes · Cosponsor
  • Feuer · Cosponsor
  • Leno · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 6 co-sponsors · 115 not signed on · 5 voted No

Sponsors (1)

  • Jones

Co-sponsors (6)

  • Brownley
  • Salas
  • Saldana
  • Fuentes
  • Feuer
  • Leno

Not signed on (115)

115 members have not signed on to this bill.

Show all 115 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Assembly 3rd Reading AB2578 Jones By Lowenthal

Failed 16 Yea · 20 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 161803
Democratic 0101
Republican 0100
Total 162004
% of votes cast 40%50%0%10%
How each member voted (40)
Member Party Vote
Yee — Yea
Cogdill — Nay
Lowenthal — Yea
Corbett — Yea
Ducheny — Yea
Hancock — Yea
Ashburn — Nay
Blakeslee — Nay
Dutton — Nay
Kehoe — Yea
Leno — Yea
Liu — Yea
Pavley — Yea
Romero — Yea
Simitian — Yea
Wyland — Nay
Negrete — Nay
Runner — Nay
Harman — Nay
Huff — Nay
McLeod — Nay
Oropeza — Not Voting
Wolk — Nay
Wright — Nay
Aanestad — Nay
Alquist — Yea
Hollingsworth — Nay
Price — Not Voting
Steinberg — Yea
Walters — Nay
Wiggins — Not Voting
Cedillo — Yea
Emmerson — Nay
Correa — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Calderon, Lisa Democratic Nay
Padilla, Stephen C. Democratic Not Voting
Strickland, Tony Republican Nay

Official roll call →

Assembly 3rd Reading AB2578 Jones By Lowenthal

Failed 17 Yea · 17 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 171505
Democratic 0101
Republican 0100
Total 171706
% of votes cast 43%43%0%15%
How each member voted (40)
Member Party Vote
Yee — Yea
Cedillo — Yea
Cogdill — Nay
Corbett — Yea
Hancock — Yea
Harman — Nay
Hollingsworth — Nay
Huff — Nay
Lowenthal — Yea
Ducheny — Yea
Liu — Yea
Blakeslee — Nay
Dutton — Nay
Pavley — Yea
Price — Yea
Romero — Yea
Steinberg — Yea
Runner — Nay
Negrete — Not Voting
Wyland — Nay
Wiggins — Not Voting
Wright — Nay
Aanestad — Nay
Alquist — Yea
Ashburn — Nay
Kehoe — Yea
Leno — Yea
McLeod — Not Voting
Oropeza — Not Voting
Simitian — Yea
Walters — Nay
Wolk — Not Voting
Emmerson — Nay
Correa — Nay
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Calderon, Lisa Democratic Nay
Padilla, Stephen C. Democratic Not Voting
Strickland, Tony Republican Nay

Official roll call →

Assembly 3rd Reading AB2578 Jones Reconsider

Passed 38 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 35002
Democratic 2000
Republican 1000
Total 38002
% of votes cast 95%0%0%5%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Leno — Yea
Cogdill — Yea
Florez — Yea
Harman — Yea
Corbett — Yea
Ducheny — Yea
Kehoe — Yea
Blakeslee — Yea
Dutton — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
McLeod — Yea
Oropeza — Not Voting
Romero — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Not Voting
Wolk — Yea
Wright — Yea
Aanestad — Yea
Alquist — Yea
Ashburn — Yea
Hollingsworth — Yea
Huff — Yea
Liu — Yea
Pavley — Yea
Price — Yea
Walters — Yea
Cedillo — Yea
Wyland — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Denham — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass as amended.

Passed 7 Yea · 4 Nay
Party YeaNayPresentNot Voting
Unaffiliated 7400
Total 7400
% of votes cast 64%36%0%0%
How each member voted (11)
Member Party Vote
Yee — Yea
Corbett — Yea
Kehoe — Yea
Ashburn — Nay
Price — Yea
Wolk — Yea
Alquist — Yea
Leno — Yea
Walters — Nay
Wyland — Nay
Emmerson — Nay

Official roll call →

Placed on Appropriations Suspense file.

Passed 8 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 8002
Total 8002
% of votes cast 80%0%0%20%
How each member voted (10)
Member Party Vote
Yee — Yea
Corbett — Yea
Leno — Yea
Alquist — Not Voting
Price — Yea
Walters — Yea
Wolk — Yea
Kehoe — Yea
Wyland — Not Voting
Emmerson — Yea

Official roll call →

AB 2578 JONES Assembly Third Reading

Passed 51 Yea · 29 Nay · 11 Other
Party YeaNayPresentNot Voting
Unaffiliated 492808
Democratic 1002
Republican 1101
Total 5129011
% of votes cast 56%32%0%12%
How each member voted (91)
Member Party Vote
Carter — Yea
Chesbro — Yea
Evans — Yea
Feuer — Yea
Furutani — Yea
Hayashi — Yea
Hernandez — Yea
Hill — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
John — Yea
A. — Yea
Perez — Yea
Coto — Yea
Bill — Nay
Huber — Yea
Huffman — Yea
Ammiano — Yea
Bass — Yea
Beall — Yea
Davis — Yea
Mendoza — Yea
Monning — Yea
Skinner — Yea
Solorio — Yea
Swanson — Yea
Torres — Yea
Torrico — Yea
Fletcher — Nay
Tom — Not Voting
Charles — Not Voting
Audra — Not Voting
Conway — Nay
Fuller — Nay
Galgiani — Not Voting
Garrick — Nay
Cook — Nay
Hagman — Nay
Hall — Not Voting
Block — Not Voting
Jeffries — Nay
Knight — Nay
Lieu — Not Voting
Logue — Nay
Nestande — Nay
Norby — Nay
Silva — Nay
Smyth — Nay
Tran — Nay
Adams — Nay
Anderson — Nay
Blakeslee — Nay
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Nay
Harkey — Nay
Ma — Yea
Miller — Nay
Nava — Yea
Nielsen — Nay
Ruskin — Yea
Torlakson — Yea
Villines — Nay
Emmerson — Nay
Eng — Yea
DeVore — Nay
Yamada — Yea
Fuentes — Yea
Gilmore — Nay
Beth Gaines — Nay
Bill Berryhill — Nay
Bill Berryhill — Not Voting
Arambula, Joaquin Democratic Not Voting
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Not Voting
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Not Voting

Official roll call →

Do pass as amended.

Passed 13 Yea · 5 Nay
Party YeaNayPresentNot Voting
Unaffiliated 12500
Democratic 1000
Total 13500
% of votes cast 72%28%0%0%
How each member voted (18)
Member Party Vote
Charles — Yea
Fuentes — Yea
Ammiano — Yea
Miller — Nay
Monning — Yea
Nielsen — Nay
Ruskin — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Torrico — Yea
Bradford — Yea
Harkey — Nay
Norby — Nay
Conway — Nay
Coto — Yea
Davis — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Do pass and be re-referred to the Committee on Appropriations.

Passed 19 Yea · 6 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 18501
Republican 1100
Total 19601
% of votes cast 73%23%0%4%
How each member voted (26)
Member Party Vote
Carter — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Salas — Yea
Eng — Yea
Audra — Nay
Hayashi — Yea
Ammiano — Yea
Monning — Yea
Nava — Yea
Adams — Nay
Hernandez — Yea
Smyth — Not Voting
Conway — Nay
Emmerson — Nay
Beth Gaines — Nay
Jones, Brian W. Republican Yea
Strickland, Tony Republican Nay

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does AB 2578 do?
Existing law, the Knox-Keene Health Care Service Plan Act of 1975 (Knox-Keene Act) , provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law also provides for the regulation of insurers by the Department of Insurance, including health insurers. Existing law makes the violation of a final order by the Insurance Commissioner relating to rates imposed by certain insurers, other than health insurers, subject to assessment of a civil penalty and makes the willful violation by those insurers of specified rate provisions a misdemeanor. Under existing law, no change in premium rates or coverage in a health care service plan or a health insurance policy may become effective without prior written notification of the change to the contractholder or policyholder. Existing law prohibits a plan and insurer during the term of a group plan contract or policy from changing the rate of the premium, copayment, coinsurance, or deductible during specified time periods. This bill would require approval by the Department of Managed Health Care or the Department of Insurance of an increase in the amount of the premium, copayment, coinsurance obligation, deductible, and other charges under health care service plan contracts or health insurance policies, other than Medicare supplement, dental-only, or vision-only contracts or policies. The bill would require a plan or insurer to submit to the Department of Managed Health Care or the Department of Insurance, respectively, an application for a rate increase that would be effective on or after January 1, 2012, and would require review of the application in accordance with regulations that each department would be required to adopt no later than January 1, 2012. The bill would subject a rate increase that became effective January 1, 2010, to December 31, 2011, inclusive, to review by the appropriate department. The bill would require each department to notify the public of a rate application and would deem the application approved within 60 days of the date of that notice unless the department holds a hearing on the application, as specified. The bill would authorize the initiation of, and intervention in, proceedings relating to rate approvals and the award of advocacy fees and costs in those proceedings in specified circumstances. The bill would require the departments to work together in implementation of these provisions and to take specified actions in order to ensure coordination and consistency in implementation. The bill would authorize each department to assess a charge in connection with its costs associated with a rate application. The bill would direct the deposit of these fees into the respective department's Health Rate Approval Fund, which would be created by the bill, and would make those funds available to each department for those purposes, upon appropriation. The bill would specify that a violation of its provisions is punishable by criminal sanctions under the Knox-Keene Act and under provisions applicable to insurers and, therefore, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors AB 2578?
AB 2578 is sponsored by Brownley, Jones, Salas, Saldana, Fuentes, Feuer, and Leno.
What is the current status of AB 2578?
This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 2578?
Track AB 2578 free on One Click Politics — get push/email alerts when it moves.

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