Bill Text: CA AB2587 | 2009-2010 | Regular Session | Introduced

California Assembly Bill 2587 (Prior Session Legislation)

Introduced

Bill Title: Health care coverage: benefit mandates.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-20 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2587 Detail]

Download: California-2009-AB2587-Introduced.html

BILL NUMBER: AB 2587	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Tom Berryhill

                        FEBRUARY 19, 2010

   An act to add Section 1367.001 to the Health and Safety Code, and
to add Section 10112.55 to the Insurance Code, relating to health
care coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2587, as introduced, Tom Berryhill. Health care coverage:
benefit mandates.
   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. Existing law also
provides for regulation of health insurers by the Department of
Insurance. Existing law imposes certain benefit mandates on health
care service plan contracts and health insurance policies.
   This bill would exempt a health care service plan contract or
health insurance policy issued, amended, or renewed on or after
January 1, 2011, from complying with those benefit mandates, as
specified, until the Department of Managed Health Care or the
Department of Insurance, as applicable, issues a declaration finding
that the state unemployment rate has been no more than 5.5% for 4
consecutive quarters.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1367.001 is added to the Health and Safety
Code, to read:
   1367.001.  (a) Notwithstanding any other provision of this
chapter, until the department issues a declaration finding that the
state unemployment rate, as determined by the official statistics of
the Labor Market Information Division of the Employment Development
Department, has been no more than 5.5 percent for four consecutive
quarters, a health care service plan contract issued, amended, or
renewed on or after January 1, 2011, shall not be required to comply
with the benefit mandates imposed by this chapter, including any
benefit mandates that become operative on or after January 1, 2011.
   (b) (1) For purposes of this section, "benefit mandate" means a
requirement to do any of the following:
   (A) Permit a subscriber or enrollee to obtain health care
treatment or services from a particular type of health care provider.

   (B) Offer or provide coverage for the screening, diagnosis, or
treatment of a particular disease or condition.
   (C) Offer or provide coverage of a particular type of health care
treatment or service, or of medical equipment, medical supplies, or
drugs used in connection with a health care treatment or service.
   (2) Notwithstanding paragraph (1), "benefit mandate" does not
include the requirement to provide basic health care services imposed
under subdivision (i) of Section 1367.
  SEC. 2.  Section 10112.55 is added to the Insurance Code, to read:
   10112.55.  (a) Notwithstanding Section 10112.5 or any other
provision of this part, until the department issues a declaration
finding that the state unemployment rate, as determined by the
official statistics of the Labor Market Information Division of the
Employment Development Department, has been no more than 5.5 percent
for four consecutive quarters, a health insurance policy issued,
amended, or renewed on or after January 1, 2011, shall not be
required to comply with the benefit mandates imposed by this part,
including any benefit mandates that become operative on or after
January 1, 2011.
   (b) For purposes of this section, "benefit mandate" means a
requirement to do any of the following:
   (1) Permit a policyholder or insured to obtain health care
treatment or services from a particular type of health care provider.

   (2) Offer or provide coverage for the screening, diagnosis, or
treatment of a particular disease or condition.
   (3) Offer or provide coverage of a particular type of health care
treatment or service, or of medical equipment, medical supplies, or
drugs used in connection with a health care treatment or service.