SB 125 — Health care coverage.

Summary

(1) Existing federal law, the federal Patient Protection and Affordable Care Act (PPACA) , enacts various health care coverage market reforms as of January 1, 2014. Among other things, PPACA requires each health insurance issuer that offers health insurance coverage in the individual or group market in a state to accept every employer and individual in the state that applies for that coverage and to renew that coverage at the option of the plan sponsor or the individual. 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. Existing law requires a health care service plan or health insurer, on and after October 1, 2013, to offer, market, and sell all of the plan's or insurer's health benefit plans that are sold in the individual market for policy years on or after January 1, 2014, to all individuals and dependents in each service area in which the plan or insurer provides or arranges for the provision of health care services, as specified, but requires plans and insurers to limit enrollment in individual health benefit plans to specified open enrollment and special enrollment periods. Existing law requires a plan or insurer to provide annual enrollment periods for policy years on or after January 1, 2016, from October 15 to December 7, inclusive, of the preceding calendar year. This bill would instead require that those annual enrollment periods extend from November 1, of the preceding calendar year, to January 31 of the benefit year, inclusive. Because a willful violation of that requirement by a health care service plan would be a crime, the bill would impose a state-mandated local program. (2) PPACA requires each state, by January 1, 2014, to establish an American Health Benefit Exchange that facilitates the purchase of qualified health plans by qualified individuals and qualified small employers. PPACA, in connection with state health benefit exchanges, defines a small employer to mean an employer who employed an average of at least one but not more than 100 employees on business days during the preceding calendar year, and requires the number of employees, for purposes of determining the size of the employer, to be determined using a counting method in which full-time equivalents are treated as full-time employees for plan years beginning on or after January 1, 2016. Existing law establishes the California Health Benefit Exchange within state government for the purpose of facilitating the purchase of qualified health plans through the Exchange by qualified individuals and small employers. Existing law requires, on and after October 1, 2013, a health care service plan or health insurer to fairly and affirmatively offer, market, and sell all of the plan's or insurer's small employer plan contracts or health benefit plans for plan years on or after January 1, 2014, to all small employers in each service area or geographic region in which the plan or insurer provides or arranges for health care services or benefits. For plan years commencing on or after January 1, 2016, existing law defines a small employer to mean any person, firm, proprietary or nonprofit organization, partnership, public agency, or association that is actively engaged in business or service, that, on at least 50% of its working days during the preceding calendar quarter or preceding calendar year, employed at least one, but no more than 100, eligible full-time employees, as specified. This bill would revise the definition of small employer, for plan years commencing on or after January 1, 2016, to instead require the use of the full-time equivalent employee counting method for determining the size of the employer, as specified under PPACA. (3) Existing law establishes the California Health Benefit Review Program to assess legislation that proposes to mandate or repeal a mandated health benefit or service, as defined. Existing law requests the University of California to provide the analysis to the appropriate policy and fiscal committees of the Legislature within 60 days after receiving a request for the analysis. Existing law also requests that the university report to the Governor and the Legislature on the implementation of the program by January 1, 2014. This bill would request the University of California to include essential health benefits and the impact on the California Health Benefit Exchange in the analysis prepared under the program. The bill would further request that the University of California assess legislation that impacts health insurance benefit design, cost sharing, premiums, and other health insurance topics. The bill would request that the university provide the analysis to the appropriate policy and fiscal committees of the Legislature not later than 60 days, or in a manner and pursuant to a timeline agreed to by the Legislature and the program, after receiving the request, as specified. The bill would also extend the date by which the university is requested to report to the Governor and the Legislature on the implementation program until January 1, 2017. Existing law establishes the Health Care Benefits Fund to support the university in implementing the program. Existing law imposes an annual charge on health care service plans and health insurers, as specified, to be deposited into the fund. Existing law prohibits the total annual assessment pursuant to that provision from exceeding $2,000,000. Under existing law, the fund and the program are repealed as of December 31, 2015. This bill would extend until June 30, 2017, the operative date of the program and the fund, including the annual charge on health care service plans and health insurers. The bill would repeal the above-described provisions as of January 1, 2018. (4) 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. (5) This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

• Chaptered 06/17/15 - Chaptered Current pdf June 17, 2015
• Enrolled 06/05/15 - Enrolled pdf June 05, 2015
• Amended 05/21/15 - Amended Assembly pdf May 21, 2015
• Amended 05/19/15 - Amended Assembly pdf May 19, 2015
• Amended 05/06/15 - Amended Assembly pdf May 06, 2015
• Amended 04/06/15 - Amended Senate pdf April 06, 2015
• Amended 02/26/15 - Amended Senate pdf February 26, 2015
• Introduced 01/16/15 - Introduced pdf January 16, 2015
• SB125 View text html

Action History

1. June 17, 2015

   Chaptered by Secretary of State. Chapter 9, Statutes of 2015.

2. June 17, 2015

   Approved by the Governor.

3. June 10, 2015

   Enrolled and presented to the Governor at 3 p.m.

4. June 04, 2015

   Assembly amendments concurred in. (Ayes 39. Noes 0. Page 1333.) Ordered to engrossing and enrolling.

5. June 02, 2015

   In Senate. Concurrence in Assembly amendments pending.

6. June 02, 2015

   Read third time. Urgency clause adopted. Passed. (Ayes 78. Noes 0. Page 1817.) Ordered to the Senate.

7. May 28, 2015

   Read second time. Ordered to consent calendar.

8. May 27, 2015

   From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (May 27).

9. May 21, 2015

   From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

10. May 19, 2015

    Read second time and amended. Re-referred to Com. on APPR.

11. May 18, 2015

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 19. Noes 0.) (May 12).

12. May 06, 2015

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.

13. April 27, 2015

    Referred to Com. on HEALTH.

14. April 16, 2015

    In Assembly. Read first time. Held at Desk.

15. April 16, 2015

    Read third time. Urgency clause adopted. Passed. (Ayes 38. Noes 0. Page 632.) Ordered to the Assembly.

16. April 14, 2015

    Read second time. Ordered to third reading.

17. April 13, 2015

    From committee: Do pass. (Ayes 6. Noes 0. Page 568.) (April 13).

18. April 06, 2015

    Read second time and amended. Re-referred to Com. on APPR.

19. April 02, 2015

    Set for hearing April 13 in APPR. pending receipt.

20. March 26, 2015

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0. Page 434.) (March 25).

21. February 26, 2015

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.

22. February 10, 2015

    Set for hearing March 25.

23. February 05, 2015

    Referred to Com. on HEALTH.

24. January 20, 2015

    From printer. May be acted upon on or after February 19.

25. January 16, 2015

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Hernandez · Primary

Votes

Subjects