Bill Text: CA AB1018 | 2013-2014 | Regular Session | Amended
Bill Title: Income taxes: deduction: medical expenses.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1018 Detail]
Download: California-2013-AB1018-Amended.html
BILL NUMBER: AB 1018 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Conway
FEBRUARY 22, 2013
An act to amend Section 1389.5 of the Health and Safety
Code, relating to health care service plans add
Section 17131.11 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy .
LEGISLATIVE COUNSEL'S DIGEST
AB 1018, as amended, Conway. Health care service plans:
transfers to different individual plans. Income taxes:
deduction: medical expenses.
The Personal Income Tax Law defines gross income as all income
from whatever source derived, unless specifically excluded.
This bill would exclude from gross income $____ for qualified
expenses, as defined, for specified medical expenses, as provided.
This bill would take effect immediately as a tax levy.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975
(the Knox-Keene Act), provides for the licensure and regulation of
health care service plans by the Department of Managed Health Care
and makes a willful violation of the act a crime. Existing law
requires a health care service plan to permit an individual who has
been covered for at least 18 months under an individual plan contract
to transfer, without medical underwriting, as defined, to another
individual plan contract offered by the same health care service
plan, that provides equal or lesser benefits.
This bill would make technical, nonsubstantive changes to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17131.11 is added to the
Revenue and Taxation Code , to read:
17131.11. (a) For each taxable year beginning on or after January
1, 2013, gross income shall not include ____ dollars ($____) of
qualified expenses.
(b) For purposes of this section, "qualified expenses" means
expenses paid during the taxable year, not compensated for by
insurance or otherwise, for medical care of the taxpayer, the
taxpayer's spouse or registered domestic partner, or a dependent, for
any of the following:
(1) Medical care, as defined by Section 213 of the Internal
Revenue Code, relating to medical, dental, etc., expenses.
(2) Preventative care, as that term is used in Section 223(c)(2)
(C) of the Internal Revenue Code, relating to high deductible health
plan.
(3) Care provided for an elderly dependent within the taxpayer's
home or at a day facility.
(c) The exclusion from gross income under this section shall be in
addition to any deduction for qualified expenses that is allowed
under Section 17201, relating to a deduction for unreimbursed
expenses paid for medical care.
SEC. 2. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. Section 1389.5 of the Health and
Safety Code is amended to read:
1389.5. (a) This section shall apply to a health care service
plan that provides coverage under an individual plan contract that is
issued, amended, delivered, or renewed on or after January 1, 2007.
(b) At least once each year, the health care service plan shall
permit an individual who has been covered for at least 18 months
under an individual plan contract to transfer, without medical
underwriting, to any other individual plan contract offered by that
same health care service plan that provides equal or lesser benefits,
as determined by the plan.
"Without medical underwriting" means that the health care service
plan shall not decline to offer coverage to, or deny enrollment of,
the individual or impose a preexisting condition exclusion on the
individual who transfers to another individual plan contract pursuant
to this section.
(c) The plan shall establish, for the purposes of subdivision (b),
a ranking of the individual plan contracts it offers to individual
purchasers and either post the ranking on its Internet Web site or
make the ranking available upon request. The plan shall update the
ranking whenever a new benefit design for individual purchasers is
approved.
(d) The plan shall notify in writing all enrollees of the right to
transfer to another individual plan contract pursuant to this
section, at a minimum, when the plan changes the enrollee's premium
rate. Posting this information on the plan's Internet Web site shall
not constitute notice for purposes of this subdivision. The notice
shall adequately inform enrollees of the transfer rights provided
under this section, including information on the process to obtain
details about the individual plan contracts available to that
enrollee and advising that the enrollee may be unable to return to
his or her current individual plan contract if the enrollee transfers
to another individual plan contract.
(e) The requirements of this section shall not apply to the
following:
(1) A federally eligible defined individual, as defined in
subdivision (c) of Section 1399.801, who is enrolled in an individual
health benefit plan contract offered pursuant to Section 1366.35.
(2) An individual offered conversion coverage pursuant to Section
1373.6.
(3) Individual coverage under a specialized health care service
plan contract.
(4) An individual enrolled in the Medi-Cal program pursuant to
Chapter 7 (commencing with Section 14000) of Division 9 of Part 3 of
the Welfare and Institutions Code.
(5) An individual enrolled in the Access for Infants and Mothers
Program pursuant to Part 6.3 (commencing with Section 12695) of
Division 2 of the Insurance Code.
(6) An individual enrolled in the Healthy Families Program
pursuant to Part 6.2 (commencing with Section 12693) of Division 2 of
the Insurance Code.
(f) It is the intent of the Legislature that individuals have more
choice in their health coverage when health care service plans
guarantee the right of an individual to transfer to another product
based on the plan's own ranking system. The Legislature does not
intend for the department to review or verify the plan's ranking for
actuarial or other purposes.
