California 2015-2016 Regular Session Status: Enacted

SB 908 — Health care coverage: premium rate change: notice: other health coverage.

Last action — Chaptered by Secretary of State. Chapter 498, Statutes of 2016.

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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 January 26, 2016. 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 its provisions a crime. Existing law provides for the licensure and regulation of health insurers by the Department of Insurance. Existing law prohibits, among other things, a change in premium rates for group health care service plan contracts and group health insurance policies from becoming effective unless a written notice is delivered, as specified. This bill would require, if the Department of Managed Health Care or the Department of Insurance determines that a small group rate is unreasonable or not justified, the contractholder or policyholder of a small group health care service plan contract or health insurance policy to be notified by the health care service plan or health insurer in writing of that determination. The bill would require the notification to be developed by the Department of Managed Health Care and the Department of Insurance, as specified. Existing law prohibits, among other things, a change in premium rates for individual health care service plan contracts and individual health insurance policies from becoming effective unless a written notice is delivered at least 15 days prior to the start of the annual enrollment period applicable to the contract or 60 days prior to the effective date of the contract renewal, whichever occurs earlier in the calendar year. This bill would require, if the Department of Managed Health Care or the Department of Insurance determines that an individual rate is unreasonable or not justified, the contractholder or policyholder to be notified by the health care service plan or health insurer in writing of that determination. The bill would require the notification to be developed by the Department of Managed Health Care and the Department of Insurance, as specified. The bill would instead prohibit a change in premium rates for individual health care service plan contracts and individual health insurance policies from becoming effective unless a written notice is provided at least 10 days prior to the start of the annual enrollment period applicable to the contract or 60 days prior to the effective date of the contract renewal, whichever occurs earlier in the calendar year. (2) Existing law requires a health care service plan or health insurer in the individual or small group market to file rate information with the Department of Managed Health Care or the Department of Insurance, as applicable, at least 60 days prior to implementing any rate change and requires that the information include a certification by an independent actuary that the rate increase is reasonable or unreasonable. Existing law authorizes the Department of Managed Health Care and the Department of Insurance to review these filings to, among other things, make a determination that an unreasonable rate increase is not justified. This bill would instead require, for grandfathered individual and grandfathered and nongrandfathered small group health care service plan contracts or health insurance policies, a health care service plan or health insurer to file rate information at least 120 days prior to implementing any rate change. The bill would require, for nongrandfathered individual health care service plan contracts or health insurance policies, a health care service plan or health insurer to file rate information either 100 days before the first day of the applicable open enrollment period for the preceding policy year, as defined, or on the date specified in federal guidance issued pursuant to a specified federal regulation, whichever date is earlier. The bill would require a health care service plan or health insurer to respond to any request for additional rate information necessary for the Department of Managed Health Care or the Department of Insurance to complete its review of the rate filing for products in the individual or small group market within 5 business days of the request and would require, except as provided, the Department of Managed Health Care and the Department of Insurance to review these filings and make its determination no later than 60 days following receipt of the rate information. The bill would require, for nongrandfathered individual health care service plan contracts and health insurance policies, the respective department to make its determination no later than the 15 days before the first day of the applicable open enrollment period for the preceding policy year, as defined, and would authorize the Department of Managed Health Care and the Department of Insurance, respectively, to determine that a plan's or health insurer's rate increase is unreasonable or not justified if the plan or health insurer fails to provide all the information necessary for the respective department to complete its review. The bill would require, if the respective department determines that a plan's or health insurer's rate increase for an individual or small group market product is unreasonable or not justified, the health care service plan or health insurer to provide notice of that determination to any individual or small group applicant, as specified. (3) This bill would also revise obsolete references and would make other conforming and technical, nonsubstantive changes. (4) Because a willful violation of the bill's requirements with respect 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 498, Statutes of 2016.

  2. Approved by the Governor.

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

  4. Assembly amendments concurred in. (Ayes 25. Noes 12.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 51. Noes 26. Page 6014.) 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 14. Noes 6.) (August 3).

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

  12. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 7.) (June 28).

  13. June 21 set for first hearing canceled at the request of author.

  14. Referred to Com. on HEALTH.

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

  16. Read third time. Passed. (Ayes 24. Noes 12. Page 4095.) Ordered to the Assembly.

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

  18. From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3999.) (May 27).

  19. Set for hearing May 27.

  20. April 18 hearing: Placed on APPR. suspense file.

  21. Set for hearing April 18.

  22. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 2. Page 3445.) (April 6). Re-referred to Com. on APPR.

  23. Set for hearing April 6.

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

  25. March 30 set for first hearing canceled at the request of author.

  26. Set for hearing March 30.

  27. Referred to Com. on HEALTH.

  28. From printer. May be acted upon on or after February 26.

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

Sponsors

  • Hernandez · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 11 voted No

Sponsors (1)

  • Hernandez

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 SB908 Hernandez Concurrence

Passed 25 Yea · 12 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 231102
Democratic 2100
Total 251202
% of votes cast 64%31%0%5%
How each member voted (39)
Member Party Vote
Anderson — Nay
Bates — Nay
Hernandez — Yea
Lara — Yea
Moorlach — Nay
Wieckowski — Yea
Wolk — Yea
Galgiani — Not Voting
Glazer — Yea
Hancock — Yea
Allen — Yea
Mitchell — Yea
De León — Yea
Hertzberg — Yea
Hill — Yea
Beall — Yea
Block — Yea
Hueso — Yea
Leno — Yea
Leyva — Yea
Liu — Yea
Mendoza — Yea
Monning — Yea
Nielsen — Nay
Pan — Yea
Pavley — Yea
Roth — Yea
Cannella — Not Voting
Fuller — Nay
Huff — Nay
Morrell — Nay
Vidak — Nay
Hall — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay

Official roll call →

SB 908 Hernandez Senate Third Reading By SANTIAGO

Passed 51 Yea · 26 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 462103
Democratic 5000
Republican 0500
Total 512603
% of votes cast 64%33%0%4%
How each member voted (80)
Member Party Vote
Achadjian — Nay
Baker — Nay
Bloom — Yea
Brough — Nay
Brown — Yea
Harper — Nay
Jones-Sawyer — Yea
Low — Yea
Maienschein — Nay
Mathis — Nay
Mullin — Yea
Obernolte — Nay
Quirk — Yea
Rodriguez — Yea
Wagner — Nay
Weber — Yea
Eggman — Yea
Cooper — Yea
Daly — Not Voting
Frazier — Yea
Burke — Yea
Bonilla — Yea
Gatto — Yea
Gomez — Yea
Gray — Yea
Gordon — Yea
Lopez — Yea
Holden — Yea
Levine — Yea
Atkins — Yea
Mayes — Yea
McCarty — Yea
Medina — Yea
Salas — Nay
Campos — Yea
Nazarian — Yea
O'Donnell — Yea
Chang — Nay
Alejo — Yea
Bigelow — Nay
Chau — Yea
Chiu — Yea
Chu — Yea
Chávez — Nay
Cooley — Yea
Dababneh — Yea
Dodd — Yea
Olsen — Nay
Rendon — Yea
Ridley-Thomas — Yea
Santiago — Yea
Thurmond — Yea
Ting — Yea
Waldron — Nay
Wilk — Nay
Williams — Yea
Wood — Yea
Kim — Nay
Linder — Not Voting
Melendez — Not Voting
Steinorth — Nay
Hadley — Nay
Beth Gaines — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Nay
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Nay
Gallagher, James Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay
Lackey, Tom Republican Nay

Official roll call →

Do pass.

Passed 14 Yea · 6 Nay
Party YeaNayPresentNot Voting
Unaffiliated 12400
Democratic 2000
Republican 0200
Total 14600
% of votes cast 70%30%0%0%
How each member voted (20)
Member Party Vote
Bigelow — Nay
Bloom — Yea
Obernolte — Nay
Wagner — Nay
Wood — Yea
Eggman — Yea
Daly — Yea
Holden — Yea
Bonilla — Yea
Chang — Nay
Chau — Yea
Quirk — Yea
Santiago — Yea
Weber — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

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

Passed 11 Yea · 7 Nay
Party YeaNayPresentNot Voting
Unaffiliated 11600
Republican 0100
Total 11700
% of votes cast 61%39%0%0%
How each member voted (18)
Member Party Vote
Maienschein — Nay
McCarty — Yea
Steinorth — Nay
Burke — Yea
Campos — Yea
Chiu — Yea
Bonilla — Yea
Gomez — Yea
Nazarian — Yea
Olsen — Nay
Ridley-Thomas — Nay
Rodriguez — Yea
Santiago — Yea
Waldron — Nay
Wood — Yea
Jim Patterson — Nay
Roger Hernández — Yea
Lackey, Tom Republican Nay

Official roll call →

3rd Reading

Passed 24 Yea · 12 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 221104
Democratic 2100
Total 241204
% of votes cast 60%30%0%10%
How each member voted (40)
Member Party Vote
Block — Yea
Hancock — Yea
Hertzberg — Yea
Hill — Yea
Leno — Yea
Leyva — Yea
Moorlach — Nay
Roth — Yea
Hueso — Yea
Allen — Yea
Mitchell — Yea
Pan — Yea
De León — Yea
Cannella — Not Voting
Fuller — Nay
Runner — Not Voting
Glazer — Not Voting
Hall — Yea
Hernandez — Yea
Huff — Nay
Lara — Yea
Anderson — Nay
Bates — Nay
Beall — Yea
Liu — Yea
Mendoza — Yea
Monning — Yea
Morrell — Nay
Nielsen — Nay
Pavley — Yea
Vidak — Nay
Wieckowski — Yea
Wolk — Yea
Galgiani — Not Voting
Beth Gaines — Nay
Bill Berryhill — Nay
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay

Official roll call →

Do pass as amended

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4200
Democratic 1000
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Beall — Yea
Hill — Yea
Nielsen — Nay
Bates — Nay
Lara — Yea
Mendoza — Yea
McGuire, Mike Democratic Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 7000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Hill — Yea
De León — Yea
Beall — Yea
Lara — Yea
Mendoza — Yea
Nielsen — Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does SB 908 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 its provisions a crime. Existing law provides for the licensure and regulation of health insurers by the Department of Insurance. Existing law prohibits, among other things, a change in premium rates for group health care service plan contracts and group health insurance policies from becoming effective unless a written notice is delivered, as specified. This bill would require, if the Department of Managed Health Care or the Department of Insurance determines that a small group rate is unreasonable or not justified, the contractholder or policyholder of a small group health care service plan contract or health insurance policy to be notified by the health care service plan or health insurer in writing of that determination. The bill would require the notification to be developed by the Department of Managed Health Care and the Department of Insurance, as specified. Existing law prohibits, among other things, a change in premium rates for individual health care service plan contracts and individual health insurance policies from becoming effective unless a written notice is delivered at least 15 days prior to the start of the annual enrollment period applicable to the contract or 60 days prior to the effective date of the contract renewal, whichever occurs earlier in the calendar year. This bill would require, if the Department of Managed Health Care or the Department of Insurance determines that an individual rate is unreasonable or not justified, the contractholder or policyholder to be notified by the health care service plan or health insurer in writing of that determination. The bill would require the notification to be developed by the Department of Managed Health Care and the Department of Insurance, as specified. The bill would instead prohibit a change in premium rates for individual health care service plan contracts and individual health insurance policies from becoming effective unless a written notice is provided at least 10 days prior to the start of the annual enrollment period applicable to the contract or 60 days prior to the effective date of the contract renewal, whichever occurs earlier in the calendar year. (2) Existing law requires a health care service plan or health insurer in the individual or small group market to file rate information with the Department of Managed Health Care or the Department of Insurance, as applicable, at least 60 days prior to implementing any rate change and requires that the information include a certification by an independent actuary that the rate increase is reasonable or unreasonable. Existing law authorizes the Department of Managed Health Care and the Department of Insurance to review these filings to, among other things, make a determination that an unreasonable rate increase is not justified. This bill would instead require, for grandfathered individual and grandfathered and nongrandfathered small group health care service plan contracts or health insurance policies, a health care service plan or health insurer to file rate information at least 120 days prior to implementing any rate change. The bill would require, for nongrandfathered individual health care service plan contracts or health insurance policies, a health care service plan or health insurer to file rate information either 100 days before the first day of the applicable open enrollment period for the preceding policy year, as defined, or on the date specified in federal guidance issued pursuant to a specified federal regulation, whichever date is earlier. The bill would require a health care service plan or health insurer to respond to any request for additional rate information necessary for the Department of Managed Health Care or the Department of Insurance to complete its review of the rate filing for products in the individual or small group market within 5 business days of the request and would require, except as provided, the Department of Managed Health Care and the Department of Insurance to review these filings and make its determination no later than 60 days following receipt of the rate information. The bill would require, for nongrandfathered individual health care service plan contracts and health insurance policies, the respective department to make its determination no later than the 15 days before the first day of the applicable open enrollment period for the preceding policy year, as defined, and would authorize the Department of Managed Health Care and the Department of Insurance, respectively, to determine that a plan's or health insurer's rate increase is unreasonable or not justified if the plan or health insurer fails to provide all the information necessary for the respective department to complete its review. The bill would require, if the respective department determines that a plan's or health insurer's rate increase for an individual or small group market product is unreasonable or not justified, the health care service plan or health insurer to provide notice of that determination to any individual or small group applicant, as specified. (3) This bill would also revise obsolete references and would make other conforming and technical, nonsubstantive changes. (4) Because a willful violation of the bill's requirements with respect 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 SB 908?
SB 908 is sponsored by Hernandez.
What is the current status of SB 908?
This bill has been enacted into law. Introduced January 26, 2016. Enacted.
Where can I track SB 908?
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