California 2019-2020 Regular Session Status: Enacted

AB 1124 — Health care service plans: regulations: exemptions.

Last action — Chaptered by Secretary of State - Chapter 266, Statutes of 2020.

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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 21, 2019. Enacted.

Prognosis

Likely to advance 70% · 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.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 10 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 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, 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. Existing law exempts specified persons or plans from the requirements of the act and authorizes the Director of the Department of Managed Health Care (director) 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 non-county-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, 2021, 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, for independent periods of time beginning no earlier than January 1, 2022, to December 31, 2025, inclusive, 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 be responsible for providing certain services, as specified, 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 no later than January 1, 2027. 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, 2028.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 266, Statutes of 2020.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 0. Page 5477.).

  5. From committee: That the Senate amendments be concurred in. (Ayes 10. Noes 0.) (August 31).

  6. Joint Rule 62(a), file notice suspended. (Page 5372.)

  7. Re-referred to Com. on HEALTH. pursuant to Assembly Rule 77.2.

  8. In Assembly. Concurrence in Senate amendments pending.

  9. Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 6.).

  10. Read second time. Ordered to third reading.

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

  12. Read second time. Ordered to third reading.

  13. From committee: Do pass. (Ayes 5. Noes 2.) (August 20).

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

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

  16. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (August 10).

  17. Re-referred to Com. on HEALTH.

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

  19. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c).

  20. Read second time. Ordered to third reading.

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

  22. Ordered to second reading.

  23. From inactive file.

  24. Ordered to inactive file at the request of Senator McGuire.

  25. Read second time. Ordered to third reading.

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

  27. Read second time. Ordered to third reading.

  28. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  29. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 12). Re-referred to Com. on APPR.

  30. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.

  31. Referred to Com. on L., P.E. & R.

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

  33. Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 66. Noes 0. Page 1509.).

  34. Read second time. Ordered to third reading.

  35. From committee: Do pass. (Ayes 14. Noes 4.) (April 24).

  36. Re-referred to Com. on APPR.

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

  38. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 3). Re-referred to Com. on APPR.

  39. Referred to Com. on L. & E.

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

  41. Read first time. To print.

Sponsors

  • Maienschein · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 3 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

AB 1124 Maienschein Concurrence in Senate Amendments

Passed 71 Yea · 0 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 45006
Democratic 22000
Republican 4002
Total 71008
% of votes cast 90%0%0%10%
How each member voted (79)
Member Party Vote
Bigelow — Yea
Cunningham — Yea
Daly — Yea
Diep — Yea
Salas — Yea
Gray — Yea
Ting — Yea
Cooper — Yea
Levine — Yea
Jones-Sawyer — Yea
Mayes — Yea
Nazarian — Yea
Friedman — Yea
Wood — Yea
Rendon — Yea
Holden — Yea
Medina — Yea
Bloom — Yea
Waldron — Yea
Mullin — Yea
Rodriguez — Yea
Chiu — Yea
Burke — Yea
Maienschein — Yea
Weber — Yea
Mathis — Yea
Kamlager — Yea
Santiago — Yea
Smith — Yea
Gonzalez — Yea
Quirk — Yea
Gloria — Yea
McCarty — Yea
Chu — Yea
Kiley — Yea
Low — Yea
O'Donnell — Yea
Chau — Yea
Obernolte — Yea
Cooley — Yea
Frazier — Not Voting
Eggman — Not Voting
Voepel — Not Voting
Fong — Not Voting
Brough — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Not Voting
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 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 Not Voting
Gallagher, James Republican Not Voting
Lackey, Tom Republican Yea

Official roll call →

With recommendation: That Senate amendments be concurred in.

Passed 10 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 5005
Democratic 4000
Republican 1000
Total 10005
% of votes cast 67%0%0%33%
How each member voted (15)
Member Party Vote
Rodriguez — Yea
Nazarian — Yea
Santiago — Yea
Wood — Yea
Waldron — Not Voting
Burke — Not Voting
Mayes — Not Voting
Bigelow — Not Voting
McCarty — Not Voting
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Bonta, Mia Democratic Yea
Limón, Monique Democratic Yea
Ramos, James C. Democratic Yea
Flora, Heath Republican Yea

Official roll call →

3rd Reading AB1124 Maienschein By Portantino

Passed 29 Yea · 6 Nay · 5 Other
Party YeaNayPresentNot Voting
Democratic 10000
Unaffiliated 19503
Republican 0102
Total 29605
% of votes cast 73%15%0%13%
How each member voted (40)
Member Party Vote
Galgiani — Yea
Leyva — Yea
Hertzberg — Yea
Rubio — Yea
Allen — Yea
Monning — Yea
Skinner — Yea
Mitchell — Yea
Roth — Yea
Bates — Not Voting
Borgeas — Not Voting
Melendez — Not Voting
Bradford — Yea
Hill — Yea
Hueso — Yea
Pan — Yea
Wieckowski — Yea
Portantino — Yea
Glazer — Yea
Dodd — Yea
Beall — Yea
Atkins — Yea
Moorlach — Nay
Nielsen — Nay
Morrell — Nay
Wilk — Nay
Chang — Nay
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 Not Voting

Official roll call →

Do pass

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5100
Republican 0100
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Portantino — Yea
Bradford — Yea
Hill — Yea
Leyva — Yea
Wieckowski — Yea
Bates — Nay
Jones, Brian W. Republican Nay

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Republican 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Hill — Yea
Bradford — Yea
Portantino — Yea
Wieckowski — Yea
Leyva — Yea
Bates — 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 · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 5001
Democratic 2000
Republican 0001
Total 7002
% of votes cast 78%0%0%22%
How each member voted (9)
Member Party Vote
Leyva — Yea
Pan — Yea
Rubio — Yea
Mitchell — Yea
Monning — Yea
Melendez — Not Voting
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Grove, Shannon Republican Not Voting

Official roll call →

AB 1124 Maienschein Third Reading Urgency

Passed 66 Yea · 0 Nay · 14 Other
Party YeaNayPresentNot Voting
Unaffiliated 41007
Democratic 23002
Republican 2005
Total 660014
% of votes cast 83%0%0%18%
How each member voted (80)
Member Party Vote
Mayes — Yea
Frazier — Yea
Cooley — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — 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
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
Salas — Not Voting
Brough — Not Voting
Kiley — Not Voting
Obernolte — Not Voting
Mathis — Not Voting
Bigelow — Not Voting
Melendez — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Mark Stone — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Not Voting
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 Not Voting
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
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Not Voting
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Not Voting
Flora, Heath Republican Yea
Gallagher, James Republican Not Voting
Lackey, Tom Republican Yea
Patterson, Joe Republican Not Voting

Official roll call →

Do pass.

Passed 14 Yea · 4 Nay
Party YeaNayPresentNot Voting
Democratic 6100
Unaffiliated 8300
Total 14400
% of votes cast 78%22%0%0%
How each member voted (18)
Member Party Vote
Bloom — Yea
Maienschein — Yea
Quirk — Yea
Jones-Sawyer — Yea
Eggman — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Brough — Nay
Obernolte — Nay
Bigelow — Nay
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Nay
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does AB 1124 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, 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. Existing law exempts specified persons or plans from the requirements of the act and authorizes the Director of the Department of Managed Health Care (director) 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 non-county-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, 2021, 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, for independent periods of time beginning no earlier than January 1, 2022, to December 31, 2025, inclusive, 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 be responsible for providing certain services, as specified, 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 no later than January 1, 2027. 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, 2028.
Who sponsors AB 1124?
AB 1124 is sponsored by Maienschein.
What is the current status of AB 1124?
This bill has been enacted into law. Introduced February 21, 2019. Enacted.
Where can I track AB 1124?
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