California 2021-2022 Regular Session Status: Enacted

SB 718 — Health care coverage: small employer groups.

Last action — Chaptered by Secretary of State. Chapter 736, Statutes of 2021.

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

This bill has been enacted into law. Introduced February 19, 2021. 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 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

(1) 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 provides for the regulation of individual, small employer, grandfathered small employer, and nongrandfathered small employer health care service plan contracts and health insurance policies, as defined. Existing federal law, the federal Employee Retirement Income Security Act of 1974 (ERISA) , authorizes multiple employer welfare arrangements (MEWAs) in which 2 or more employers join together to provide health care coverage for employees or to their beneficiaries. Under existing state law, the status of each distinct member of an association determines whether that member's association coverage is individual, small group, or large group health coverage. This bill, until January 1, 2026, would authorize an association of employers to offer a large group health care service plan contract or large group health insurance policy to small group employer members of the association consistent with ERISA if certain requirements are met, including that the association is the sponsor of a MEWA that has offered a large group health care service plan contract since January 1, 2012, in connection with an employee welfare benefit plan under ERISA, provides a specified level of coverage, and includes coverage for common law employees, and their dependents, who are employed by an association member in the biomedical industry with operations in California. The bill would also require the association to be an organization with business and organizational purposes unrelated to the provision of health care benefits and would require the participating employers to have a commonality of interests from being in the same industry, as specified. The bill would require the large group health care service plan contract or health insurance policy to be treated as a single-risk-rated contract or policy that would not condition premium rates or eligibility on health status, as prescribed. The bill would require the association and the MEWA to file applications for registration with the appropriate department on or before June 1, 2022, and would impose specified coverage restrictions on an association and MEWA that fail to register or comply with the annual filing requirements imposed by the bill. The bill would repeal these provisions on January 1, 2026. The bill, until January 1, 2026, would prohibit a health care service plan or health insurer, on and after June 1, 2022, from marketing, issuing, amending, renewing, or delivering large employer health care service plan or health insurance coverage to any association or MEWA that provides a benefit to a resident in this state unless the association and MEWA have registered and are in compliance with the requirements described above, or have filed applications for registration, as specified, that are pending with the department. The bill would authorize the Department of Managed Health Care and the Department of Insurance to issue guidance to health care service plans and health insurers regarding these requirements, as specified. Because a violation of this prohibition by a health care service plan would be a crime, the bill would create a state-mandated local program. (2) This bill would incorporate additional changes to Section 1357.503 of the Health and Safety Code and Section 10753.05 of the Insurance Code proposed by SB 255 and SB 326 to be operative only if this bill and SB 255, SB 326, or both are enacted and this bill is enacted last. (3) 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 736, Statutes of 2021.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 1:30 p.m.

  4. Assembly amendments concurred in. (Ayes 38. Noes 0. Page 2589.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 80. Noes 0. Page 2895.) Ordered to the Senate.

  7. Ordered to third reading.

  8. Read third time and amended.

  9. Read second time. Ordered to third reading.

  10. From committee: Do pass. (Ayes 16. Noes 0.) (August 26).

  11. August 19 set for first hearing. Placed on suspense file.

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

  13. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (June 22).

  14. Referred to Com. on HEALTH.

  15. In Assembly. Read first time. Held at Desk.

  16. Read third time. Passed. (Ayes 39. Noes 0. Page 1347.) Ordered to the Assembly.

  17. Ordered to special consent calendar.

  18. Read second time. Ordered to third reading.

  19. From committee: Do pass. (Ayes 7. Noes 0. Page 1201.) (May 20).

  20. Set for hearing May 20.

  21. May 17 hearing: Placed on APPR suspense file.

  22. Set for hearing May 17.

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

  24. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 956.) (April 28).

  25. Set for hearing April 28.

  26. April 21 hearing postponed by committee.

  27. Set for hearing April 21.

  28. April 14 hearing postponed by committee.

  29. Set for hearing April 14.

  30. Re-referred to Coms. on HEALTH and APPR.

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

  32. Referred to Com. on RLS.

  33. Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)

  34. (Ayes 32. Noes 4.)

  35. Art. IV. Sec. 8(a) of the Constitution dispensed with.

  36. Read first time.

  37. From printer. May be acted upon on or after March 24.

  38. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

  • Bates · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Bates

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

Unfinished Business SB718 Bates Concurrence

Passed 38 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 12001
Unaffiliated 22001
Republican 4000
Total 38002
% of votes cast 95%0%0%5%
How each member voted (40)
Member Party Vote
Borgeas — Yea
Bradford — Yea
Portantino — Yea
Newman — Yea
Dodd — Yea
Melendez — Yea
Kamlager — Yea
Min — Yea
Hueso — Yea
Roth — Yea
Bates — Yea
Rubio — Yea
Skinner — Yea
Hertzberg — Yea
Nielsen — Yea
Wieckowski — Yea
Gonzalez — Yea
Pan — Yea
Leyva — Yea
Atkins — Yea
Glazer — Yea
Wilk — Yea
Eggman — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Not Voting
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

SB 718 Bates Senate Third Reading By Maienschein

Passed 80 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 27000
Unaffiliated 44000
Republican 9000
Total 80000
% of votes cast 100%0%0%0%
How each member voted (80)
Member Party Vote
Bloom — Yea
Mullin — Yea
Holden — Yea
Jones-Sawyer — Yea
Wood — Yea
Smith — Yea
Cunningham — Yea
Cooper — Yea
Voepel — Yea
Cooley — Yea
Maienschein — Yea
Rodriguez — Yea
Kiley — Yea
Nazarian — Yea
Ting — Yea
O'Donnell — Yea
Waldron — Yea
Medina — Yea
McCarty — Yea
Friedman — Yea
Bigelow — Yea
Chiu — Yea
Rendon — Yea
Villapudua — Yea
Salas — Yea
Quirk — Yea
Low — Yea
Levine — Yea
Daly — Yea
Gray — Yea
Burke — Yea
Mathis — Yea
Santiago — Yea
Mayes — Yea
Frazier — Yea
Chau — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Luz Rivas — Yea
Mark Stone — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. 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
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie 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
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass.

Passed 16 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 8000
Democratic 6000
Republican 2000
Total 16000
% of votes cast 100%0%0%0%
How each member voted (16)
Member Party Vote
Levine — Yea
Quirk — Yea
Bigelow — Yea
Chau — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Gabriel, Jesse Democratic Yea
Kalra, Ash Democratic Yea
Rivas, Robert Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea

Official roll call →

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

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 12000
Republican 1000
Democratic 2000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Waldron — Yea
Bigelow — Yea
Santiago — Yea
Burke — Yea
Maienschein — Yea
McCarty — Yea
Rodriguez — Yea
Wood — Yea
Nazarian — Yea
Mayes — Yea
Eduardo Garcia — Yea
Luz Rivas — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Carrillo, Juan Democratic Yea
Flora, Heath Republican Yea

Official roll call →

Special Consent SB718

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 13000
Unaffiliated 22001
Republican 4000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Glazer — Yea
Roth — Yea
Eggman — Yea
Bates — Yea
Gonzalez — Yea
Portantino — Yea
Bradford — Yea
Min — Yea
Hertzberg — Yea
Borgeas — Yea
Skinner — Yea
Wieckowski — Yea
Leyva — Yea
Nielsen — Yea
Wilk — Yea
Atkins — Yea
Newman — Yea
Hueso — Yea
Kamlager — Yea
Pan — Yea
Rubio — Yea
Dodd — Yea
Melendez — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

Do pass

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

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Republican 1000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Kamlager — Yea
Portantino — Yea
Wieckowski — Yea
Bradford — Yea
Laird, John 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 11 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 7000
Republican 1000
Democratic 3000
Total 11000
% of votes cast 100%0%0%0%
How each member voted (11)
Member Party Vote
Eggman — Yea
Gonzalez — Yea
Pan — Yea
Leyva — Yea
Melendez — Yea
Roth — Yea
Rubio — Yea
Hurtado, Melissa Democratic Yea
Limón, Monique Democratic Yea
Wiener, Scott D. Democratic Yea
Grove, Shannon Republican Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does SB 718 do?
(1) 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 provides for the regulation of individual, small employer, grandfathered small employer, and nongrandfathered small employer health care service plan contracts and health insurance policies, as defined. Existing federal law, the federal Employee Retirement Income Security Act of 1974 (ERISA) , authorizes multiple employer welfare arrangements (MEWAs) in which 2 or more employers join together to provide health care coverage for employees or to their beneficiaries. Under existing state law, the status of each distinct member of an association determines whether that member's association coverage is individual, small group, or large group health coverage. This bill, until January 1, 2026, would authorize an association of employers to offer a large group health care service plan contract or large group health insurance policy to small group employer members of the association consistent with ERISA if certain requirements are met, including that the association is the sponsor of a MEWA that has offered a large group health care service plan contract since January 1, 2012, in connection with an employee welfare benefit plan under ERISA, provides a specified level of coverage, and includes coverage for common law employees, and their dependents, who are employed by an association member in the biomedical industry with operations in California. The bill would also require the association to be an organization with business and organizational purposes unrelated to the provision of health care benefits and would require the participating employers to have a commonality of interests from being in the same industry, as specified. The bill would require the large group health care service plan contract or health insurance policy to be treated as a single-risk-rated contract or policy that would not condition premium rates or eligibility on health status, as prescribed. The bill would require the association and the MEWA to file applications for registration with the appropriate department on or before June 1, 2022, and would impose specified coverage restrictions on an association and MEWA that fail to register or comply with the annual filing requirements imposed by the bill. The bill would repeal these provisions on January 1, 2026. The bill, until January 1, 2026, would prohibit a health care service plan or health insurer, on and after June 1, 2022, from marketing, issuing, amending, renewing, or delivering large employer health care service plan or health insurance coverage to any association or MEWA that provides a benefit to a resident in this state unless the association and MEWA have registered and are in compliance with the requirements described above, or have filed applications for registration, as specified, that are pending with the department. The bill would authorize the Department of Managed Health Care and the Department of Insurance to issue guidance to health care service plans and health insurers regarding these requirements, as specified. Because a violation of this prohibition by a health care service plan would be a crime, the bill would create a state-mandated local program. (2) This bill would incorporate additional changes to Section 1357.503 of the Health and Safety Code and Section 10753.05 of the Insurance Code proposed by SB 255 and SB 326 to be operative only if this bill and SB 255, SB 326, or both are enacted and this bill is enacted last. (3) 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 SB 718?
SB 718 is sponsored by Bates.
What is the current status of SB 718?
This bill has been enacted into law. Introduced February 19, 2021. Enacted.
Where can I track SB 718?
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