Bill Text: CA AB108 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Individual health care coverage.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 406, Statutes of 2009. [AB108 Detail]

Download: California-2009-AB108-Amended.html

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BILL NUMBER: AB 108	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 24, 2009
	AMENDED IN ASSEMBLY  FEBRUARY 26, 2009

INTRODUCED BY   Assembly Member Hayashi

                        JANUARY 12, 2009

   An act to add Section 1389.21 to the Health and Safety Code, and
to add Section 10384.17 to the Insurance Code, relating to health
care coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 108, as amended, Hayashi. Individual health care coverage.
   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
regulation of health insurers by the Department of Insurance.
Existing law prohibits the cancellation or nonrenewal of an
enrollment or subscription by a health care service plan except in
specified circumstances. Existing law prohibits the nonrenewal of
individual health benefit plans by a health insurer except in
specified circumstances.
   This bill would prohibit a health care service plan or health
insurer from rescinding an individual health care service plan
contract or individual health insurance policy for any reason  ,
or from canceling, limiting, or raising the premiums   of
the plan contract or policy due to any omission, misrepresentation,
or inaccuracy in the application form,  after 18 months
following the issuance of the plan contract or policy, as specified.
   Because this bill would impose additional requirements on health
care service plans, the willful violation of which would be a crime,
it 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1389.21 is added to the Health and Safety Code,
to read: 
   1389.21.  Once a plan has issued an individual health care service
plan contract, the health care service plan may not rescind the
health care service plan contract for any reason after 18 months
following the issuance of the plan contract. 
    1389.21.    Notwithstanding any other provision of
law, after 18 months following the issuance of an individual health
care service plan contract, a plan shall not rescind the plan
contract for any reason, and shall not cancel the plan contract, or
limit any of the provisions of the plan contract, or raise premiums
on the plan contract due to any omissions, misrepresentations, or
inaccuracies in the application form, whether willful or not. 
   SEC. 2.   Section 10384.17 is added to the Insurance Code, to
read: 
   10384.17.  (a) Once an insurer has issued an individual health
insurance policy, the insurer shall not rescind the policy for any
reason after 18 months following the issuance of the policy.

    10384.17.    (a) Notwithstanding any other provision
of law, after 18 months following the issuance of an individual
health insurance policy, an insurer shall not rescind the policy for
any reason, and shall not cancel the policy, or limit any of the
provisions of the policy, or raise premiums on the policy due to any
omissions, misrepresentations, or inaccuracies in the application
form, whether willful or not. 
   (b) Section 10350.2 shall not apply to any health insurance policy
that is subject to subdivision (a). If necessary, the commissioner
may make, amend, or rescind any rules and regulations to implement
this section.
  SEC. 3.   No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.