Bill Text: CA AB314 | 2013-2014 | Regular Session | Amended

California Assembly Bill 314 (Prior Session Legislation)

Bill Title: Health care coverage: self-funded student plans.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2013-07-09 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED. [AB314 Detail]

Download: California-2013-AB314-Amended.html

BILL NUMBER: AB 314	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 9, 2013
	AMENDED IN ASSEMBLY  APRIL 9, 2013

INTRODUCED BY   Assembly Member Pan

                        FEBRUARY 12, 2013

   An act to add Section 1367.004 to the Health and Safety Code,
relating to health care coverage.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 314, as amended, Pan. Health care coverage:  self-funded
 student  plans and policies.   plans.

   Existing federal law, the federal Patient Protection and
Affordable Care Act (PPACA), enacts various health care coverage
market reforms that take effect January 1, 2014. Among other things,
PPACA prohibits a health insurance issuer issuing health insurance
coverage from establishing lifetime limits or unreasonable annual
limits on the dollar value of benefits for any participant or
beneficiary, as specified.
   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. That act does not apply to a plan
directly operated by a bona fide public or private institution of
higher learning that directly provides health care services only to
its students, faculty, staff, administration, and their respective
dependents.
   Existing law requires every health care service plan that issues,
sells, renews, or offers contracts or policies for health care
coverage in this state to comply, to the extent required by federal
law, with the requirements of the above-described provision of PPACA
and any rules or regulations issued under that provision.
   This bill would prohibit a plan directly operated by a bona fide
public or private college or university that directly provides health
care services only to its students, faculty, staff, administration,
and their respective dependents from establishing an annual limit or
a lifetime limit on the dollar value of  essential health 
benefits  , as defined,  for any participant or beneficiary.
Because a willful violation of these requirements with respect to
those plans 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.
   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 1367.004 is added to the Health and Safety
Code, to read:
   1367.004.  (a) Notwithstanding Section 1343, a plan directly
operated by a public or private college or university that directly
provides health care services only to its students, faculty, staff,
administration, and their respective dependents shall not establish
any of the following:
   (1) A lifetime limit on the dollar value of  essential health
 benefits  , as defined in Section 1367.005,  for any
participant or beneficiary.
   (2) An annual limit on the dollar value of  essential health
 benefits  , as defined in Section 1367.005,  for any
participant or beneficiary.
   (b) This section does not establish any other requirements under
this chapter upon a plan described in subdivision (a).
  SEC. 2.  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.