Bill Text: CA AB2115 | 2015-2016 | Regular Session | Enrolled
Bill Title: Health care coverage: disclosures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2016-09-26 - Vetoed by Governor. [AB2115 Detail]
Download: California-2015-AB2115-Enrolled.html
BILL NUMBER: AB 2115 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 22, 2016
PASSED THE ASSEMBLY AUGUST 25, 2016
AMENDED IN SENATE AUGUST 17, 2016
AMENDED IN SENATE AUGUST 2, 2016
AMENDED IN ASSEMBLY MAY 11, 2016
AMENDED IN ASSEMBLY APRIL 20, 2016
AMENDED IN ASSEMBLY APRIL 5, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Wood
FEBRUARY 17, 2016
An act to amend Section 1366.50 of the Health and Safety Code, and
to amend Section 10786 of the Insurance Code, relating to health
care coverage.
LEGISLATIVE COUNSEL'S DIGEST
AB 2115, Wood. Health care coverage: disclosures.
Existing law, the federal Patient Protection and Affordable Care
Act, requires each state to, by January 1, 2014, establish an
American Health Benefit Exchange that makes available qualified
health plans to qualified individuals and small employers. Existing
state law establishes the California Health Benefit Exchange within
state government for the purpose of facilitating the enrollment of
qualified individuals and qualified small employers in qualified
health plans.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the 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 provides for the regulation of health
insurers by the Department of Insurance. Existing law requires
specified health care service plans and health insurers to provide to
individuals who cease to be enrolled in individual or group health
care coverage a notice informing those individuals that they may be
eligible for reduced-cost coverage through the California Health
Benefit Exchange or no-cost coverage through Medi-Cal.
This bill would require, on and after January 1, 2018, that the
notice include a statement indicating that additional information on
low- or no-cost programs for health care and prescription medicines
may be found on the Office of the Patient Advocate's Internet Web
site. The bill would require the Department of Insurance, the
Department of Managed Health Care, the Office of the Patient
Advocate, and the California Health Benefit Exchange to develop the
statement no later than July 1, 2017. Because a willful violation of
these requirements by a health care service plan 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1366.50 of the Health and Safety Code is
amended to read:
1366.50. (a) (1) On and after January 1, 2014, a health care
service plan providing individual or group health care coverage shall
provide to enrollees or subscribers who cease to be enrolled in
coverage a notice informing them that they may be eligible for
reduced-cost coverage through the California Health Benefit Exchange
established under Title 22 (commencing with Section 100500) of the
Government Code, or no-cost coverage through Medi-Cal. The notice
shall include information on obtaining coverage pursuant to those
programs, shall be in no less than 12-point type, and shall be
developed by the department, no later than July 1, 2013, in
consultation with the Department of Insurance and the California
Health Benefit Exchange.
(2) (A) On and after January 1, 2018, the notice shall include a
statement indicating that additional information on low- or no-cost
programs for health care and prescription medicines may be found on
the Office of the Patient Advocate's Internet Web site, or the
Internet Web site determined to be the most appropriate to contain
this information, but that these programs may not meet the
requirements of the individual mandate under the federal Patient
Protection and Affordable Care Act.
(B) No later than July 1, 2017, the department, in consultation
with the Office of the Patient Advocate, the Department of Insurance,
and the California Health Benefit Exchange, shall develop the
statement to be included in the notice pursuant to subparagraph (A).
(b) The notice described in subdivision (a) may be incorporated
into or sent simultaneously with and in the same manner as any other
notices sent by the health care service plan.
(c) This section shall not apply with respect to a specialized
health care service plan contract or a Medicare supplemental plan
contract.
SEC. 2. Section 10786 of the Insurance Code is amended to read:
10786. (a) (1) On and after January 1, 2014, a health insurer
providing health insurance coverage shall provide to policyholders in
individual policies or certificate holders in group policies who
cease to be enrolled in coverage a notice informing them that they
may be eligible for reduced-cost coverage through the California
Health Benefit Exchange established under Title 22 (commencing with
Section 100500) of the Government Code, or no-cost coverage through
Medi-Cal. The notice shall include information on obtaining coverage
pursuant to those programs, shall be in no less than 12-point type,
and shall be developed by the department, no later than July 1, 2013,
in consultation with the Department of Managed Health Care and the
California Health Benefit Exchange.
(2) (A) On and after January 1, 2018, the notice shall include a
statement indicating that additional information on low- or no-cost
programs for health care and prescription medicines may be found on
the Office of the Patient Advocate's Internet Web site, or the
Internet Web site determined to be the most appropriate to contain
this information, but that these programs may not meet the
requirements of the individual mandate under the federal Patient
Protection and Affordable Care Act.
(B) No later than July 1, 2017, the department, in consultation
with the Office of the Patient Advocate, the Department of Managed
Health Care, and the California Health Benefit Exchange, shall
develop the statement to be included in the notice pursuant to
subparagraph (A).
(b) The notice described in subdivision (a) may be incorporated
into or sent simultaneously with and in the same manner as any other
notices sent by the health insurer.
(c) This section shall not apply with respect to a specialized
health insurance policy or a health insurance policy consisting
solely of coverage of excepted benefits as described in Section 2722
of the federal Public Health Service Act (42 U.S.C. Sec. 300gg-21).
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.
