California 2019-2020 Regular Session Status: To Executive

AB 1249 — Health care service plans: regulations: exemptions.

Last action — Consideration of Governor's veto stricken from file.

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

This bill died with 2019-2020 Regular Session. It reached “To Executive” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 federal law defines a voluntary employees' beneficiary association as an organization composed of a voluntary association of employees that provides for the payment of life, sick, accident, or similar benefits to members or their dependents, or designated beneficiaries. Existing federal law defines a welfare plan as any plan, fund, or program established or maintained by an employer or employee organization, or both, for the purpose of providing participants or their beneficiaries specified benefits, such as medical, surgical, or hospital care or benefits. Existing law further defines a multiemployer plan as a plan to which more than one employer is required to contribute, that is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and that meets other specified requirements. 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 the willful violation of the act a crime. Existing law exempts specified persons or plans from the requirements of the act and authorizes the Director of the Department of Managed Health Care to exempt additional specified persons or plans if the director finds, among other things, that the exemption is in the public interest. Under existing law, upon the request of the Director of Health Care Services, the director must exempt a county-operated pilot program contracting with the State Department of Health Care Services, and may exempt a noncounty-operated pilot program, subject to any conditions the Director of Health Care Services deems appropriate. Existing law also exempts a health care service plan operated by a city, county, city and county, public entity, political subdivision, or public joint labor management trust that satisfies certain criteria, including that the plan requires providers to be reimbursed solely on a fee-for-service basis. This bill would authorize the director, no later than May 1, 2020, to authorize 2 pilot programs, one in northern California and one in southern California, under which providers approved by the department may undertake risk-bearing arrangements with a voluntary employees' beneficiary association with enrollment of more than 100,000 lives, notwithstanding the fee-for-service requirement described above, or a trust fund that is a welfare plan and a multiemployer plan with enrollment of more than 25,000 lives, if certain criteria are met, including that each risk-bearing provider is registered with the department as a risk-based organization and holds or will obtain a limited or restricted license, as applicable. The bill would require the association or trust fund and each health care provider participating in each pilot program to report to the department information regarding cost savings and clinical patient outcomes compared to a fee-for-service payment model, and would require the department to report those findings to the Legislature by June 1, 2026. The bill would require pilot program participants to reimburse the department for reasonable regulatory costs of up to $500,000. The bill would repeal these provisions on January 1, 2029.

Bill Text

Action History

  1. Consideration of Governor's veto stricken from file.

  2. Vetoed by Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 3388.).

  5. Assembly Rule 77 suspended. (Page 3370.)

  6. In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 12 pursuant to Assembly Rule 77.

  7. Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 8. Page 2771.).

  8. Read second time. Ordered to third reading.

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

  10. From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 30).

  11. In committee: Referred to APPR. suspense file.

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

  13. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (July 10).

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

  15. Referred to Com. on HEALTH.

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

  17. Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 2078.)

  18. Read second time. Ordered to third reading.

  19. From committee: Do pass. (Ayes 16. Noes 0.) (May 16).

  20. Joint Rule 62(a), file notice suspended. (Page 1760.)

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

  22. Joint Rule 62(a), file notice suspended. (Page 1609.)

  23. Re-referred to Com. on APPR.

  24. Read second time and amended.

  25. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (April 23).

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

  27. Re-referred to Com. on HEALTH.

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

  29. Referred to Com. on HEALTH.

  30. From printer. May be heard in committee March 24.

  31. Read first time. To print.

Sponsors

  • Maienschein · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Maienschein

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

Passed 77 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 51001
Democratic 21001
Republican 5000
Total 77002
% of votes cast 97%0%0%3%
How each member voted (79)
Member Party Vote
Mathis — Yea
Cooley — Yea
Diep — Yea
Chau — Yea
Quirk — Yea
Low — Yea
Burke — Yea
Cooper — Yea
Rendon — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Bloom — Yea
Voepel — Yea
Rodriguez — Yea
Chiu — Yea
Gray — Yea
Maienschein — Yea
Mullin — Yea
Kamlager-Dove — Yea
Medina — Yea
Chu — Yea
Ting — Yea
McCarty — Yea
O'Donnell — Yea
Waldron — Yea
Salas — Yea
Brough — Yea
Gloria — Yea
Obernolte — Yea
Holden — Yea
Daly — Yea
Jones-Sawyer — Yea
Friedman — Yea
Nazarian — Yea
Weber — Yea
Kiley — Yea
Mayes — Yea
Frazier — Yea
Bigelow — Yea
Santiago — Yea
Eggman — Yea
Levine — Yea
Wood — Yea
Melendez — Yea
Fong — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Not Voting
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Passed 31 Yea · 8 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 10000
Unaffiliated 21600
Republican 0201
Total 31801
% of votes cast 78%20%0%3%
How each member voted (40)
Member Party Vote
Skinner — Yea
Allen — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Glazer — Yea
Pan — Yea
Moorlach — Nay
Borgeas — Nay
Bates — Nay
Morrell — Nay
Nielsen — Nay
Chang — Nay
Rubio — Yea
Monning — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Mark Stone — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Do pass as amended

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4100
Democratic 1000
Republican 0100
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Wieckowski — Yea
Portantino — Yea
Hill — Yea
Bradford — Yea
Bates — Nay
Durazo, Maria Elena Democratic Yea
Jones, Brian W. Republican Nay

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 1000
Unaffiliated 5000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Wieckowski — Yea
Portantino — Yea
Bates — Yea
Hill — Yea
Bradford — Yea
Durazo, Maria Elena Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Passed 8 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 2000
Republican 0001
Total 8001
% of votes cast 89%0%0%11%
How each member voted (9)
Member Party Vote
Rubio — Yea
Monning — Yea
Mitchell — Yea
Pan — Yea
Leyva — Yea
Mark Stone — Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Grove, Shannon Republican Not Voting

Official roll call →

Passed 76 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 49003
Democratic 21001
Republican 6000
Total 76004
% of votes cast 95%0%0%5%
How each member voted (80)
Member Party Vote
Salas — Yea
Brough — Yea
Kiley — Yea
Mayes — Yea
Mathis — Yea
Frazier — Yea
Bigelow — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Obernolte — Yea
Voepel — Yea
Chiu — Yea
Gray — Yea
Holden — Yea
Daly — Yea
Eggman — Yea
Maienschein — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Ting — Yea
Kamlager-Dove — Yea
Levine — Yea
Melendez — Yea
McCarty — Yea
Low — Yea
Nazarian — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
O'Donnell — Yea
Weber — Yea
Waldron — Yea
Fong — Not Voting
Cooley — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Not Voting
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Not Voting
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass.

Passed 16 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 6001
Unaffiliated 10001
Total 16002
% of votes cast 89%0%0%11%
How each member voted (18)
Member Party Vote
Bloom — Yea
Brough — Yea
Obernolte — Yea
Maienschein — Yea
Quirk — Yea
Eggman — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Bigelow — Not Voting
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Not Voting
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Passed 14 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 8001
Democratic 5000
Republican 1000
Total 14001
% of votes cast 93%0%0%7%
How each member voted (15)
Member Party Vote
Burke — Yea
Wood — Yea
Rodriguez — Yea
Santiago — Yea
Mayes — Yea
McCarty — Yea
Waldron — Yea
Nazarian — Yea
Bigelow — Not Voting
Aguiar-Curry, Cecilia M. Democratic Yea
Bonta, Mia Democratic Yea
Carrillo, Juan Democratic Yea
Limón, Monique Democratic Yea
Ramos, James C. Democratic Yea
Flora, Heath Republican Yea

Official roll call →

Subjects

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Frequently asked questions

What does AB 1249 do?
Existing federal law defines a voluntary employees' beneficiary association as an organization composed of a voluntary association of employees that provides for the payment of life, sick, accident, or similar benefits to members or their dependents, or designated beneficiaries. Existing federal law defines a welfare plan as any plan, fund, or program established or maintained by an employer or employee organization, or both, for the purpose of providing participants or their beneficiaries specified benefits, such as medical, surgical, or hospital care or benefits. Existing law further defines a multiemployer plan as a plan to which more than one employer is required to contribute, that is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and that meets other specified requirements. 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 the willful violation of the act a crime. Existing law exempts specified persons or plans from the requirements of the act and authorizes the Director of the Department of Managed Health Care to exempt additional specified persons or plans if the director finds, among other things, that the exemption is in the public interest. Under existing law, upon the request of the Director of Health Care Services, the director must exempt a county-operated pilot program contracting with the State Department of Health Care Services, and may exempt a noncounty-operated pilot program, subject to any conditions the Director of Health Care Services deems appropriate. Existing law also exempts a health care service plan operated by a city, county, city and county, public entity, political subdivision, or public joint labor management trust that satisfies certain criteria, including that the plan requires providers to be reimbursed solely on a fee-for-service basis. This bill would authorize the director, no later than May 1, 2020, to authorize 2 pilot programs, one in northern California and one in southern California, under which providers approved by the department may undertake risk-bearing arrangements with a voluntary employees' beneficiary association with enrollment of more than 100,000 lives, notwithstanding the fee-for-service requirement described above, or a trust fund that is a welfare plan and a multiemployer plan with enrollment of more than 25,000 lives, if certain criteria are met, including that each risk-bearing provider is registered with the department as a risk-based organization and holds or will obtain a limited or restricted license, as applicable. The bill would require the association or trust fund and each health care provider participating in each pilot program to report to the department information regarding cost savings and clinical patient outcomes compared to a fee-for-service payment model, and would require the department to report those findings to the Legislature by June 1, 2026. The bill would require pilot program participants to reimburse the department for reasonable regulatory costs of up to $500,000. The bill would repeal these provisions on January 1, 2029.
Who sponsors AB 1249?
AB 1249 is sponsored by Maienschein.
What is the current status of AB 1249?
This bill died with 2019-2020 Regular Session. It reached “To Executive” 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 1249?
Track AB 1249 free on One Click Politics — get push/email alerts when it moves.

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