California 2013-2014 Regular Session Status: Passed Assembly

AB 2400 — Health care coverage: provider contracts.

Last action — From Senate committee without further action.

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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 2013-2014 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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, 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 health insurers by the Department of Insurance and authorizes health insurers to contract with providers for alternative rates of payment. Existing law, known as the Health Care Providers' Bill of Rights, prescribes restrictions on the types of contractual provisions that may be included in agreements between health care service plans or health insurers and health care providers. Under existing law, if a change is made by amending a manual, policy, or procedure document referenced in the contract between a health care service plan and a provider, the plan is required to provide at least 45 business days' notice to the provider and the provider has the right to negotiate and agree to the change and terminate the contract prior to the change, as specified, except that if the contract between the plan and the provider provides benefits through a preferred provider arrangement, the provider only has the right to terminate the contract prior to the change. Existing law authorizes the contract between a health insurer and a provider to contain provisions permitting a material change to the contract by the insurer if the insurer provides at least 45 business days' notice to the provider. This bill would require a health care service plan to provide at least 90 business days' notice to a contracting provider if a change is made by amending a manual, policy, or procedure document referenced in the contract and would require that the provider under a preferred provider arrangement have the right to negotiate and agree to the change. The bill would authorize a contract between a provider and a health insurer for alternative rates of payment to contain provisions permitting a material change to the contract by the insurer if the insurer provides at least 90 business days' notice to the provider. The bill would also prohibit a contract between a plan or insurer and a provider that is issued, amended, or renewed on or after January 1, 2015, from including any provision that would require a provider to accept or participate in any additional products or product networks, without making specified disclosures, or that would terminate the health care provider's contract, or the provider's eligibility to participate in other product networks, when the provider exercises the right to negotiate, accept, or refuse a material change to the contract. By expanding the scope of a crime with respect to health care service plans, this bill would create 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. From Senate committee without further action.

  2. In committee: Set, first hearing. Hearing canceled at the request of author.

  3. Referred to Com. on HEALTH.

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

  5. Read third time. Passed. Ordered to the Senate. (Ayes 55. Noes 8. Page 5298.)

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 12. Noes 1.) (May 23).

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

  9. Re-referred to Com. on APPR.

  10. Read second time and amended.

  11. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 17. Noes 1.) (April 29).

  12. Re-referred to Com. on HEALTH.

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

  14. In committee: Set, first hearing. Hearing canceled at the request of author.

  15. Referred to Com. on HEALTH.

  16. Read first time.

  17. From printer. May be heard in committee March 25.

  18. Introduced. To print.

Sponsors

  • Ridley-Thomas · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 2 voted No

Sponsors (1)

  • Ridley-Thomas

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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

AB 2400 RIDLEY-THOMAS Assembly Third Reading

Passed 55 Yea · 8 Nay · 16 Other
Party YeaNayPresentNot Voting
Unaffiliated 517014
Democratic 3001
Republican 1101
Total 558016
% of votes cast 70%10%0%20%
How each member voted (79)
Member Party Vote
Achadjian — Not Voting
Ammiano — Yea
Bloom — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Levine — Yea
Linder — Not Voting
Logue — Yea
Mansoor — Not Voting
Olsen — Nay
Weber — Yea
Williams — Yea
Dababneh — Yea
Daly — Not Voting
Lowenthal — Yea
Hagman — Yea
Garcia — Yea
Gray — Yea
Atkins — Yea
Fong — Yea
Holden — Yea
Ridley-Thomas — Yea
Rodriguez — Yea
Skinner — Yea
Campos — Yea
Chau — Yea
Bonilla — Yea
Bocanegra — Yea
John A. Pérez — Yea
Gomez — Yea
Salas — Yea
Gorell — Not Voting
Harkey — Yea
Jones-Sawyer — Yea
Allen — Not Voting
Maienschein — Yea
Chesbro — Yea
Chávez — Yea
Medina — Yea
Melendez — Yea
Alejo — Yea
Bigelow — Not Voting
Conway — Nay
Cooley — Nay
Donnelly — Not Voting
Eggman — Not Voting
Mullin — Yea
Nazarian — Not Voting
Nestande — Yea
Pan — Yea
Perea — Yea
Quirk — Yea
Rendon — Yea
Ting — Yea
Wagner — Nay
Waldron — Not Voting
Wieckowski — Yea
Wilk — Yea
Dickinson — Nay
Fox — Nay
Frazier — Not Voting
Gatto — Yea
Yamada — Yea
Gordon — Not Voting
Hall — Yea
Beth Gaines — Nay
Jim Patterson — Not Voting
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Not Voting
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Yea
Jones, Brian W. Republican Nay

Official roll call →

Do pass.

Passed 12 Yea · 1 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 11103
Democratic 1000
Republican 0001
Total 12104
% of votes cast 71%6%0%24%
How each member voted (17)
Member Party Vote
Bradford — Yea
Holden — Yea
Linder — Not Voting
Campos — Yea
Gatto — Yea
Bocanegra — Yea
Gomez — Yea
Donnelly — Not Voting
Bigelow — Not Voting
Eggman — Yea
Pan — Yea
Quirk — Yea
Ridley-Thomas — Yea
Wagner — Nay
Weber — Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Not Voting

Official roll call →

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

Passed 17 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 16101
Democratic 1000
Total 17101
% of votes cast 89%5%0%5%
How each member voted (19)
Member Party Vote
Ammiano — Yea
Maienschein — Yea
Wagner — Nay
Wieckowski — Yea
Gomez — Yea
Bonilla — Yea
Lowenthal — Yea
Chau — Yea
Chesbro — Yea
Nazarian — Yea
Nestande — Yea
Pan — Yea
Chávez — Yea
Ridley-Thomas — Yea
Waldron — Not Voting
Jim Patterson — Yea
Lorena Gonzalez — Yea
Roger Hernández — Yea
Bonta, Mia Democratic Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does AB 2400 do?
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, 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 health insurers by the Department of Insurance and authorizes health insurers to contract with providers for alternative rates of payment. Existing law, known as the Health Care Providers' Bill of Rights, prescribes restrictions on the types of contractual provisions that may be included in agreements between health care service plans or health insurers and health care providers. Under existing law, if a change is made by amending a manual, policy, or procedure document referenced in the contract between a health care service plan and a provider, the plan is required to provide at least 45 business days' notice to the provider and the provider has the right to negotiate and agree to the change and terminate the contract prior to the change, as specified, except that if the contract between the plan and the provider provides benefits through a preferred provider arrangement, the provider only has the right to terminate the contract prior to the change. Existing law authorizes the contract between a health insurer and a provider to contain provisions permitting a material change to the contract by the insurer if the insurer provides at least 45 business days' notice to the provider. This bill would require a health care service plan to provide at least 90 business days' notice to a contracting provider if a change is made by amending a manual, policy, or procedure document referenced in the contract and would require that the provider under a preferred provider arrangement have the right to negotiate and agree to the change. The bill would authorize a contract between a provider and a health insurer for alternative rates of payment to contain provisions permitting a material change to the contract by the insurer if the insurer provides at least 90 business days' notice to the provider. The bill would also prohibit a contract between a plan or insurer and a provider that is issued, amended, or renewed on or after January 1, 2015, from including any provision that would require a provider to accept or participate in any additional products or product networks, without making specified disclosures, or that would terminate the health care provider's contract, or the provider's eligibility to participate in other product networks, when the provider exercises the right to negotiate, accept, or refuse a material change to the contract. By expanding the scope of a crime with respect to health care service plans, this bill would create 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 2400?
AB 2400 is sponsored by Ridley-Thomas.
What is the current status of AB 2400?
This bill died with 2013-2014 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 2400?
Track AB 2400 free on One Click Politics — get push/email alerts when it moves.

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