California 2019-2020 Regular Session Status: Enacted 1 D cosponsors

AB 731 — Health care coverage: rate review.

Last action — Chaptered by Secretary of State - Chapter 807, Statutes of 2019.

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

This bill has been enacted into law. Introduced February 19, 2019. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

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 provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan or health insurer offering a contract or policy in the individual or small group market to file specified information, including total earned premiums and total incurred claims for each contract or policy form, with the appropriate department at least 120 days before implementing a rate change. Existing law requires a health plan that exclusively contracts with no more than 2 medical groups in the state to disclose actual trend experience information in lieu of disclosing specified annual medical trend factor assumptions and projected trends, as specified. Existing law requires the Department of Managed Health Care to conduct an annual public meeting regarding large group rates. This bill, commencing July 1, 2020, would expand those requirements to apply to large group health care service plan contracts and health insurance policies, and would impose additional rate filing requirements on large group contracts and policies. On and after July 1, 2020, the bill would require a plan or insurer to disclose with a rate filing specified information by geographic region for individual, grandfathered group, and nongrandfathered group contracts and policies, including the price paid compared to the price paid by the Medicare Program for the same services in each benefit category. The bill would eliminate separate reporting and disclosure requirements for a health plan that exclusively contracts with no more than 2 medical groups in the state. On and after July 1, 2020, the bill would require a health care service plan that fails to file specified information to disclose other information by market and by geographic region. If a plan or insurer fails to provide all the information required, the bill would specify that the filing is an unjustified rate on and after July 1, 2020. The bill would authorize a large group contractholder that has experience-rated or blended coverage and meets specified criteria to apply to the Department of Managed Health Care or Department of Insurance, as appropriate, within 60 days of receiving notice of a rate change to review a rate change and determine if it is unreasonable or not justified, and would require the appropriate department to use reasonable efforts to complete the review within 60 days of receiving all the information required to make a determination. The bill would require the Department of Managed Health Care to conduct a public meeting regarding large group rates in every even-numbered year. Because a willful violation of the bill's requirements relative to health care service plans would be a crime, 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. Chaptered by Secretary of State - Chapter 807, Statutes of 2019.

  2. Approved by the Governor.

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

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 56. Noes 20. Page 3140.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 8 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 12. Page 2560.).

  7. Read second time. Ordered to third reading.

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

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

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

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

  12. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 1.) (July 3).

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

  14. Referred to Com. on HEALTH.

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

  16. Read third time. Passed. Ordered to the Senate. (Ayes 52. Noes 20. Page 1942.)

  17. Read second time. Ordered to third reading.

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

  19. From committee: Amend, and do pass as amended. (Ayes 12. Noes 5.) (May 16).

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

  21. From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 4.) (March 26). Re-referred to Com. on APPR.

  22. Re-referred to Com. on HEALTH.

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

  24. Referred to Com. on HEALTH.

  25. From printer. May be heard in committee March 22.

  26. Read first time. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 1 co-sponsors · 120 not signed on · 14 voted No

Sponsors (1)

Co-sponsors (1)

  • Pan

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"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 731 Kalra Concurrence in Senate Amendments

Passed 56 Yea · 20 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 361501
Democratic 20002
Republican 0500
Total 562003
% of votes cast 71%25%0%4%
How each member voted (79)
Member Party Vote
Smith — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Chiu — 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
McCarty — Yea
Low — Yea
Nazarian — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
O'Donnell — Yea
Weber — Yea
Salas — Nay
Fong — Nay
Brough — Nay
Kiley — Nay
Mayes — Nay
Mathis — Nay
Frazier — Nay
Bigelow — Nay
Cooley — Nay
Cunningham — Nay
Voepel — Nay
Obernolte — Nay
Melendez — Nay
Waldron — Nay
Gray — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
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 Not Voting
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Not Voting
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Nay
Lackey, Tom Republican Nay

Official roll call →

3rd Reading AB731 Kalra et al. By Pan

Passed 25 Yea · 12 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 16803
Democratic 9100
Republican 0300
Total 251203
% of votes cast 63%30%0%8%
How each member voted (40)
Member Party Vote
Rubio — Yea
Monning — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Skinner — Yea
Allen — Yea
Hertzberg — Yea
Portantino — Yea
Pan — Yea
Moorlach — Nay
Borgeas — Nay
Bates — Nay
Morrell — Nay
Nielsen — Nay
Wilk — Nay
Chang — Nay
Galgiani — Not Voting
Glazer — Not Voting
Roth — Not Voting
Mark Stone — Nay
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Nay
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 Nay
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 →

Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

Passed 7 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 5100
Democratic 2000
Republican 0001
Total 7101
% of votes cast 78%11%0%11%
How each member voted (9)
Member Party Vote
Rubio — Yea
Monning — Yea
Mitchell — Yea
Pan — Yea
Leyva — Yea
Mark Stone — Nay
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Grove, Shannon Republican Not Voting

Official roll call →

AB 731 Kalra Assembly Third Reading

Passed 52 Yea · 20 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 301107
Democratic 22201
Republican 0700
Total 522008
% of votes cast 65%25%0%10%
How each member voted (80)
Member Party Vote
Smith — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Chiu — Yea
Holden — Yea
Eggman — Yea
Maienschein — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Ting — Yea
Kamlager-Dove — Yea
Levine — Yea
McCarty — Yea
Nazarian — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
Weber — Yea
Salas — Nay
Brough — Nay
Kiley — Nay
Mayes — Nay
Mathis — Nay
Bigelow — Nay
Cunningham — Nay
Voepel — Nay
Obernolte — Nay
Melendez — Nay
Waldron — Nay
Gray — Not Voting
Frazier — Not Voting
Daly — Not Voting
Cooley — Not Voting
O'Donnell — Not Voting
Low — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Not Voting
Mark Stone — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
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
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Nay
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 Nay
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Not Voting
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay
Dahle, Megan Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Nay
Lackey, Tom Republican Nay
Patterson, Joe Republican Nay

Official roll call →

Do pass as amended.

Passed 12 Yea · 5 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 5200
Unaffiliated 7301
Total 12501
% of votes cast 67%28%0%6%
How each member voted (18)
Member Party Vote
Bloom — Yea
Eggman — Yea
Gonzalez — Yea
Quirk — Yea
Chau — Yea
Brough — Nay
Obernolte — Nay
Bigelow — Nay
Diep — Not Voting
Maienschein — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Nay
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Nay
Rivas, Robert Democratic Yea

Official roll call →

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

Passed 11 Yea · 4 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6300
Democratic 5000
Republican 0100
Total 11400
% of votes cast 73%27%0%0%
How each member voted (15)
Member Party Vote
Burke — Yea
Wood — Yea
Rodriguez — Yea
Santiago — Yea
McCarty — Yea
Nazarian — Yea
Mayes — Nay
Waldron — Nay
Bigelow — Nay
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 Nay

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does AB 731 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 provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan or health insurer offering a contract or policy in the individual or small group market to file specified information, including total earned premiums and total incurred claims for each contract or policy form, with the appropriate department at least 120 days before implementing a rate change. Existing law requires a health plan that exclusively contracts with no more than 2 medical groups in the state to disclose actual trend experience information in lieu of disclosing specified annual medical trend factor assumptions and projected trends, as specified. Existing law requires the Department of Managed Health Care to conduct an annual public meeting regarding large group rates. This bill, commencing July 1, 2020, would expand those requirements to apply to large group health care service plan contracts and health insurance policies, and would impose additional rate filing requirements on large group contracts and policies. On and after July 1, 2020, the bill would require a plan or insurer to disclose with a rate filing specified information by geographic region for individual, grandfathered group, and nongrandfathered group contracts and policies, including the price paid compared to the price paid by the Medicare Program for the same services in each benefit category. The bill would eliminate separate reporting and disclosure requirements for a health plan that exclusively contracts with no more than 2 medical groups in the state. On and after July 1, 2020, the bill would require a health care service plan that fails to file specified information to disclose other information by market and by geographic region. If a plan or insurer fails to provide all the information required, the bill would specify that the filing is an unjustified rate on and after July 1, 2020. The bill would authorize a large group contractholder that has experience-rated or blended coverage and meets specified criteria to apply to the Department of Managed Health Care or Department of Insurance, as appropriate, within 60 days of receiving notice of a rate change to review a rate change and determine if it is unreasonable or not justified, and would require the appropriate department to use reasonable efforts to complete the review within 60 days of receiving all the information required to make a determination. The bill would require the Department of Managed Health Care to conduct a public meeting regarding large group rates in every even-numbered year. Because a willful violation of the bill's requirements relative to health care service plans would be a crime, 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 731?
AB 731 is sponsored by Kalra, Ash (Democratic) and Pan.
What is the current status of AB 731?
This bill has been enacted into law. Introduced February 19, 2019. Enacted.
Where can I track AB 731?
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