California 2015-2016 Regular Session Status: In Committee

SB 932 — Health care mergers, acquisitions, and collaborations.

Last action — May 27 hearing: Held in committee and under submission.

Track this bill free

No card. One bill, free forever — alerts when it moves.

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

This bill died with 2015-2016 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 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 requires every nonprofit health care service plan applying to restructure, as defined, or convert its activities to secure the approval of the Director of the Department of Managed Health Care. Existing law requires the Director of the Department of Managed Health Care to provide the public notice of, reasonable access to, and an opportunity to comment on, public records relating to the restructuring or conversion of a health care service plan. Existing law requires any nonprofit health care service plan that is formed under, or subject to, either the Nonprofit Public Benefit Corporation Law or the Nonprofit Mutual Benefit Corporation Law to secure the written consent of the Director of the Department of Managed Health Care prior to any merger. If a health care service plan proposes a merger, consolidation, acquisition of a controlling interest, or sale of the plan or all or substantially all of the assets of the plan, existing law requires the plan to file a notice of material modification with the Director of the Department of Managed Health Care, who shall, within 20 business days or additional time as the plan may specify, approve, disapprove, suspend, or postpone the effectiveness of the change, subject to specified procedural requirements. This bill would require any person that intends to merge with, consolidate, acquire, purchase, or control, directly or indirectly, any health care service plan to give notice to, and to secure the prior approval from, the Director of the Department of Managed Health Care. The bill would require the director to hold a public hearing and to make specified findings regarding the proposal prior to approving these transactions, including that the proposal does not adversely affect competition. In making this finding, the bill would require the director to request an advisory opinion from the Attorney General regarding whether competition would be adversely affected and what mitigation measures could be adopted to avoid this result. The bill would authorize the director to give conditional approval for any transaction if the parties to the transaction commit to taking action to prevent adverse impacts on competition, or health care costs, access, and quality of care in this state. This bill would prohibit specified provisions in agreements between health care service plans or health insurers that contract with providers for alternative rates of payment and contracting providers, and agreements between network vendors, as defined, or payors, as defined, and general acute care hospitals that are contracting providers, as defined, including a requirement that the health care service plan, health insurer, or network vendor or payor include in its network any one or more providers owned or controlled by, or affiliated with, the contracting provider or general acute care hospital that is a contracting provider. The bill would also prohibit a contracting provider from imposing these prohibited terms as a condition to its participation in a network or as a condition to more favorable contract rates. The bill, commencing January 1, 2017, would provide that any contract provision that violates these prohibitions in an agreement entered into, issued, amended, or renewed before, on, or after January 1, 2017, shall become void and unenforceable. Because a willful violation of the act is 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. May 27 hearing: Held in committee and under submission.

  2. Set for hearing May 27.

  3. May 9 hearing: Placed on APPR. suspense file.

  4. Set for hearing May 9.

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

  6. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 1. Page 3645.) (April 20).

  7. Set for hearing April 20.

  8. Re-referred to Com. on HEALTH.

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

  10. Referred to Com. on RLS.

  11. From printer. May be acted upon on or after March 3.

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

Sponsors

  • Hernandez · Primary

Sponsorship breakdown

Export CSV (upgrade) →

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

Placed on suspense file

Passed 6 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 5001
Democratic 1000
Total 6001
% of votes cast 86%0%0%14%
How each member voted (7)
Member Party Vote
Lara — Yea
Hill — Yea
Bates — Not Voting
Beall — Yea
Mendoza — Yea
Nielsen — Yea
McGuire, Mike Democratic Yea

Official roll call →

Subjects

healthcare
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 932 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 also provides for the regulation of health insurers by the Department of Insurance. Existing law requires every nonprofit health care service plan applying to restructure, as defined, or convert its activities to secure the approval of the Director of the Department of Managed Health Care. Existing law requires the Director of the Department of Managed Health Care to provide the public notice of, reasonable access to, and an opportunity to comment on, public records relating to the restructuring or conversion of a health care service plan. Existing law requires any nonprofit health care service plan that is formed under, or subject to, either the Nonprofit Public Benefit Corporation Law or the Nonprofit Mutual Benefit Corporation Law to secure the written consent of the Director of the Department of Managed Health Care prior to any merger. If a health care service plan proposes a merger, consolidation, acquisition of a controlling interest, or sale of the plan or all or substantially all of the assets of the plan, existing law requires the plan to file a notice of material modification with the Director of the Department of Managed Health Care, who shall, within 20 business days or additional time as the plan may specify, approve, disapprove, suspend, or postpone the effectiveness of the change, subject to specified procedural requirements. This bill would require any person that intends to merge with, consolidate, acquire, purchase, or control, directly or indirectly, any health care service plan to give notice to, and to secure the prior approval from, the Director of the Department of Managed Health Care. The bill would require the director to hold a public hearing and to make specified findings regarding the proposal prior to approving these transactions, including that the proposal does not adversely affect competition. In making this finding, the bill would require the director to request an advisory opinion from the Attorney General regarding whether competition would be adversely affected and what mitigation measures could be adopted to avoid this result. The bill would authorize the director to give conditional approval for any transaction if the parties to the transaction commit to taking action to prevent adverse impacts on competition, or health care costs, access, and quality of care in this state. This bill would prohibit specified provisions in agreements between health care service plans or health insurers that contract with providers for alternative rates of payment and contracting providers, and agreements between network vendors, as defined, or payors, as defined, and general acute care hospitals that are contracting providers, as defined, including a requirement that the health care service plan, health insurer, or network vendor or payor include in its network any one or more providers owned or controlled by, or affiliated with, the contracting provider or general acute care hospital that is a contracting provider. The bill would also prohibit a contracting provider from imposing these prohibited terms as a condition to its participation in a network or as a condition to more favorable contract rates. The bill, commencing January 1, 2017, would provide that any contract provision that violates these prohibitions in an agreement entered into, issued, amended, or renewed before, on, or after January 1, 2017, shall become void and unenforceable. Because a willful violation of the act is 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 932?
SB 932 is sponsored by Hernandez.
What is the current status of SB 932?
This bill died with 2015-2016 Regular Session. It reached “In Committee” 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 SB 932?
Track SB 932 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 932

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 932

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →