Bill Text: CA SB951 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Health care coverage: essential health benefits.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-30 - Chaptered by Secretary of State. Chapter 866, Statutes of 2012. [SB951 Detail]

Download: California-2011-SB951-Amended.html

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BILL NUMBER: SB 951	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	AMENDED IN SENATE  APRIL 16, 2012
	AMENDED IN SENATE  MARCH 26, 2012

INTRODUCED BY   Senator Hernandez

                        JANUARY 5, 2012

   An act to add Section 1367.005 to the Health and Safety Code, and
to add Section 10112.27 to the Insurance Code, relating to health
care coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 951, as amended, Hernandez. Health care coverage: essential
health benefits.
   Commencing January 1, 2014, existing law, the federal Patient
Protection and Affordable Care Act (PPACA), requires a health
insurance issuer that offers coverage in the small group or
individual market to ensure that such coverage includes the essential
health benefits package, as defined. PPACA requires each state to,
by January 1, 2014, establish an American Health Benefit Exchange
that facilitates the purchase of qualified health plans by qualified
individuals and qualified small employers. PPACA defines a qualified
health plan as a plan that, among other requirements, provides an
essential health benefits package. Existing state law creates the
California Health Benefit Exchange (the Exchange) to facilitate the
purchase of qualified health plans by qualified individuals and
qualified small employers by January 1, 2014.
   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. Existing law also provides for the
regulation of health insurers by the Department of Insurance.
Existing law requires health care service plan contracts and health
insurance policies to cover various benefits.
   This bill would require an individual or small group health care
service plan contract or health insurance policy issued, amended, or
renewed on or after January 1, 2014, to cover essential health
benefits, which would be defined to include the  health 
benefits  and services  covered by particular 
benchmark  plans.  The bill would authorize a plan or
insurer to place scope and duration limits on those benefits, except
as specified, provided that the limits are not greater than the
limits imposed by the benchmark plans and would generally prohibit a
plan or insurer from making substitutions of the benefits required to
be covered.  The bill would specify that  this
provision applies   these provisions apply 
regardless of whether the contract or policy is offered inside or
outside the Exchange but would provide that  it does
  they do  not apply to grandfathered plans or
plans that  offer   cover only  excepted
benefits, as specified. The bill would prohibit a health care service
plan or health insurer, when offering,  issuing, 
selling, or marketing a plan contract or policy, from indicating or
implying that the contract or policy covers essential health benefits
unless the contract or policy covers essential health benefits as
provided in the bill.  The bill would enact other related
provisions.  
   These provisions would only be implemented to the extent essential
health benefits are required pursuant to PPACA. 
   Because a willful violation of the bill's provisions with respect
to health care service 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.  The Legislature hereby finds and declares the
following:
   (a) Commencing January 1, 2014, the federal Patient Protection and
Affordable Care Act (PPACA) requires a health insurance issuer that
offers coverage to small employers or individuals, both inside and
outside of the California Health Benefit Exchange, with the exception
of grandfathered plans  as defined under Section 1251 of PPACA
 , to provide minimum coverage that includes essential health
benefits, as defined.
   (b) It is the intent of the Legislature to comply with federal law
and consistently implement the essential health benefits provisions
of PPACA and related federal guidance and regulations, by adopting
the uniform minimum essential benefits requirement in state-regulated
health care coverage regardless of whether the policy or contract is
regulated by the Department of Managed Health Care or the Department
of Insurance and regardless of whether the policy or contract is
offered to individuals or small employers inside or outside of the
California Health Benefit Exchange.
  SEC. 2.  Section 1367.005 is added to the Health and Safety Code,
to read:
   1367.005.  (a) An individual or small group health care service
plan contract issued, amended, or renewed on or after January 1,
2014, shall, at a minimum, include coverage for essential health
benefits. For purposes of this section, "essential health benefits"
means all of the following:
   (1) (A) The  health  benefits  and services
 covered by the Kaiser Foundation Health Plan  Small
 Group HMO  thirty-dollar ($30) deductible plan contract
  30 plan  (federal health product identification
number 40513CA035) as this  contract   plan
 was offered during the first quarter of 2012, including, but
not limited to, all of the following:
   (i) The  items and services   health benefits
 covered by the plan  contract  within the
categories identified in subsection (b) of Section 1302 of PPACA,
including, but not limited to, ambulatory patient services, emergency
services, hospitalization, maternity and newborn care, mental health
and substance use disorder services, including behavioral health
treatment, prescription drugs, rehabilitative and habilitative
services and devices, laboratory services, preventive and wellness
services and chronic disease management, and pediatric services,
including oral and vision care.
   (ii)  Mandated benefits   The health benefits
mandated to be covered by the plan  pursuant to statutes
enacted before December 31, 2011  , including, but not limited
to, basic health care services required to be covered pursuant to
Section 1367, as defined in Section 1345 and in Section 1300.67 of
Title 28 of the California Code of Regulations. These benefits are
required to be covered to the extent described in the following
sections: Sections 1367.002, 1367.06, and 1367.35 (preventive
services for child   ren); Section 1367.25 (prescription
drug coverage for contraceptives); Section 1367.45 (AIDS vaccine);
Section 1367.46 (HIV   testing); Section 1367.51 (diabetes);
Section 1367.54 (alpha feto protein testing); Section 1367.6 (breast
cancer screening); Section 1367.61 (prosthetics for laryngectomy);
Section 1367.62 (maternity hospital stay); Section 1367.63
(reconstructive surgery); Section 1367.635 (mastectomies); Section
1367.64 (prostate cancer); Section 1367.65 (mammography); Section
1367.66 (cervical cancer); Section 1367.665 (cancer screening tests);
Section 1367.67 (osteoporosis); Section 1367.68 (surgical procedures
for jaw bones); Section 1367.71 (anesthesia for dental); Section
1367.9 (conditions attributable to diethylstilbestrol); Section
1368.2 (hospice care); Section 1370.6 (cancer clinical trials);
Section 1371.5 (emergency response ambulance or ambulance transport
services); subdivision (b) of Section 1373 (sterilization operations
or procedures); Section 1373.4 (inpatient hospital and ambulatory
maternity); Section 1374.56 (phenylketonuria); Section 1374.17 (organ
transplants for HIV); Section 1374.72 (mental health  
parity); and Section 1374.73 (autism/behavioral health treatment)
 . 
   (B) The services and benefits described in this paragraph shall be
covered to the extent they are medically necessary. Scope and
duration limits imposed on the services and benefits described in
this paragraph shall be no greater than the scope and duration limits
imposed on those services and benefits by the plan contract
identified in subparagraph (A).  
   (iii) The health benefits covered by the plan that are not
otherwise required to be covered under this chapter, to the extent
required pursuant to Sections 1367.18, 1367.21, 1367.215, 1367.22,
1367.24, and 1367.25, and Section 1300.67.24 of Title 28 of the
California Code of Regulations, whether or not the health benefits
are specifically referenced in the plan contract.  
   (B) Coverage of mental health and substance use disorder services
pursuant to this paragraph, along with any scope and duration limits
imposed on the benefits, shall be in compliance with the Paul
Wellstone and Pete Domenici Mental Health Parity and Addiction Equity
Act of 2008 (Public Law 110-343), and all binding rules,
regulations, or guidance issued pursuant to Section 2726 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-26). 
   (2) With respect to habilitative services, in addition to any
habilitative services identified in paragraph (1),  the same
services as the plan contract covers for rehabilitative services
  coverage shall also be provided as required by binding
federal rules, regulations, and guidance issued pursuant to Section
1302(b) of PPACA  . Habilitative services shall be covered under
the same terms and conditions applied to rehabilitative services
under the plan contract.
   (3) With respect to  pediatric oral care and 
pediatric vision care, the same  services and  
health  benefits for  pediatric oral care and 
pediatric vision care covered under the Federal Employees Dental and
Vision Insurance Program  dental plan and  vision
plan with the largest national enrollment as of the first quarter of
2012.  Scope and duration limits imposed on the services and
benefits described in this paragraph shall be no greater than the
scope and duration limitations imposed on those benefits by the
Federal Employees Dental and Vision Insurance Program dental plan and
vision plan with the largest national enrollment as of the first
quarter of 2012.  The pediatric  oral and 
vision care benefits covered pursuant to this paragraph shall be in
addition to, and shall not replace, any  dental, orthodontic,
or  vision services covered under the plan 
contract  identified in paragraph (1). 
   (4) With respect to pediatric oral care, the same health benefits
for pediatric oral care covered under the dental plan available to
subscribers of the Healthy Families Program in 2011-12, including the
provision of medically necessary orthodontic care provided pursuant
to the federal Children's Health Insurance Program Reauthorization
Act of 2009. The pediatric oral care benefits covered pursuant to
this paragraph shall be in addition to, and shall not replace, any
dental or orthodontic services covered under the plan identified in
paragraph (1).  
   (4) Any 
    (5)     Except as otherwise provided in
subdivision (p), any  other benefits required to be covered
under this chapter. 
   (b) When offering, issuing, selling, or marketing a health care
service plan contract, a health care service plan shall not indicate
or imply that the plan contract covers essential health benefits
unless the plan contract covers essential health benefits as defined
in this section.  
   (b) (1) Medically necessary health benefits described in this
section shall be covered subject to cost sharing approved by the
director and any limitations consistent with this section.
Limitations imposed on health benefits shall be no greater than the
limitations imposed by the corresponding plans identified in
subdivision (a).  
   (2) A plan may place scope and duration limits on health benefits
described in this section, other than basic health care services
described in clause (ii) of subparagraph (A) of paragraph (1) of
subdivision (a), provided that the scope and duration limits are no
greater than the scope and duration limits imposed on those benefits
by the corresponding plans identified in subdivision (a).  
   (c) Except as otherwise provided in subdivision (d), if it is
determined that a plan identified in subdivision (a), with respect to
benefits and services covered by a plan contract and any scope and
duration limits applied to those benefits and services pursuant to
the contract, is not fully in compliance with this chapter, the
identification of that plan pursuant to this section shall not be
construed to exempt the plan from full compliance with this chapter.
 
   (d) Notwithstanding subdivision (c) or any other provision of this
section, the home health services benefits covered under the plan
identified in paragraph (1) of subdivision (a) shall be deemed to not
be in conflict with this chapter.  
   (e) Except as provided in subdivision (f), nothing in this section
shall be construed to permit a health care service plan to make
substitutions for the benefits required to be covered under this
section, regardless of whether those substitutions are actuarially
equivalent.  
   (f) To the extent permitted under Section 1302 of PPACA and any
binding rules, regulations, or guidance issued pursuant to that
section, and to the extent that substitution would not create an
obligation for the state to defray costs for any individual, a plan
may substitute its prescription drug formulary for the formulary
provided under the plan identified in subdivision (a) as long as the
formulary complies with the sections referenced in clauses (ii) and
(iii) of subparagraph (A) of paragraph (1) of subdivision (a) that
apply to prescription drugs. 
    (g)     No health care service plan, or its
agent, solicitor, or representative, shall offer, market, r 
 epresent, or sell any product, contract, or discount arrangement
as minimum coverage, or as compliant with the essential health
benefits requirement in federal law, unless it meets all of the
requirements of this section.  
   (c) 
    (h)  This section shall apply regardless of whether the
plan contract is offered inside or outside the California Health
Benefit Exchange created by Section 100500 of the Government Code.

   (d) 
    (i)  A plan contract subject to this section shall
 also  comply with Section 1367.001. 
   (j) A plan contract subject to this section shall comply with
state and federal statutory and regulatory requirements regarding
nondiscrimination, including, but not limited to, Section 1365.5.
 
   (e) 
    (k)  This section shall not be construed to prohibit a
plan contract from covering additional benefits, including, but not
limited to, spiritual care services that are tax deductible under
Section 213 of the Internal Revenue Code. 
   (f) 
    (l)  Subdivision (a) shall not apply to any of the
following: 
   (1) A plan contract that provides excepted benefits as described
in Section 2722 of the federal Public Health Service Act (42 U.S.C.
Sec. 300gg-21).  
   (1) A specialized health care service plan contract.  
   (2) A Medicare supplement plan.  
   (2) 
    (3)  A plan contract that qualifies as a grandfathered
health plan under Section 1251 of PPACA  or any binding rules,
regulations, or guidance issued pursuant to that section  . 

   (m) Nothing in this section shall be implemented in a manner that
is inconsistent with, or conflicts with, a requirement of PPACA.
 
   (n) This section shall be implemented only to the extent essential
health benefits are required pursuant to PPACA.  
   (g) This section shall be implemented only 
    (o)     An essential health benefit is
required to be provided under this section only  to the extent
that federal law or policy does not require the state to defray the
costs of  benefits included within the definition of
essential health benefits under this section   the
benefit  . 
   (p) A plan is not required to cover, under this section, changes
to health benefits that are the result of statutes enacted on or
after December 31, 2011.  
   (q) No later than February 1, 2013, the director shall, in
consultation with the Insurance Commissioner, develop and publish a
list of covered health benefits and limitations contained in the
plans subject to this section, to ensure consistency and uniformity
between health care service plan contracts and health insurance
policies. In developing the list, the director and commissioner shall
take into account federal statutes, rules, regulations, and guidance
applicable to essential health benefits as of that date. Development
and publication of the list is not subject to the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code).  
   (r) (1) Notwithstanding the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code), the department, until March 1, 2016, may
implement and administer this section through all-plan letters or
similar instruction from the department until regulations are
adopted.  
   (2) The department may adopt emergency regulations implementing
this section. The department may, on a one-time basis, readopt any
emergency regulation authorized by this section that is the same as,
or substantially equivalent to, an emergency regulation previously
adopted under this section.  
   (3) The initial adoption of emergency regulations implementing
this section and the readoption of emergency regulations authorized
by this subdivision shall be deemed an emergency and necessary for
the immediate preservation of the public peace, health, safety, or
general welfare. Initial emergency regulations and the readoption of
emergency regulations authorized by this section shall be exempt from
review by the Office of Administrative Law. The initial emergency
regulations and the readoption of emergency regulations authorized by
this section shall be submitted to the Office of Administrative Law
for filing with the Secretary of State and each shall remain in
effect for no more than 180 days, by which time final regulations may
be adopted.  
   (4) The director shall consult with the Insurance Commissioner to
ensure consistency and uniformity in the development of all-plan
letters and regulations.  
   (h) 
    (s)  For purposes of this section, the following
definitions shall apply:
   (1) "Habilitative services" means health care services 
that help a person keep, learn, or improve skills and functioning for
daily living.   and health care devices that assist an
individual in partially or fully acquiring or improving skills and
functioning and that are necessary to address a health deficit or
health condition, to the maximum extent practical. These services
address the skills and abilities needed for functioning in
interaction with an individual's environment. Habilitation services
do not include respite, day care, recreational care, residential
treatment, social services, custodial care, or education services of
any kind, including, but not limited to, vocational training.
Habilitative services shall be covered under the same terms and
conditions applied to rehabilitative services under the plan
contract.  
   (2) (A) "Health benefits," unless otherwise required to be defined
pursuant to binding federal rules, regulations, or guidance issued
pursuant to Section 1302(b) of PPACA, means health care items or
services for the diagnosis, cure, mitigation, treatment, or
prevention of illness, injury, disease, or a health condition,
including a mental health condition.  
   (B) "Health benefits" does not mean any cost-sharing requirements
or limitations such as copayments, coinsurance, or deductibles. 

   (2) 
    (3)  "PPACA" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any rules, regulations, or guidance issued thereunder.

   (3) 
    (4)  "Small group health care service plan contract"
means a group health care service plan contract issued to a small
employer, as defined in Section 1357.
  SEC. 3.  Section 10112.27 is added to the Insurance Code, to read:
   10112.27.  (a) An individual or small group health insurance
policy  issued, amended,   marketed, offered,
sold, issued, delivered,  or renewed on or after January 1,
2014, shall, at a minimum, include coverage for essential health
benefits. For purposes of this section, "essential health benefits"
means all of the following:
   (1) (A) The  health  benefits  and services
 covered by the Kaiser Foundation Health Plan  Small
 Group HMO  thirty-dollar ($30) deductible 
 plan contract   30 plan  (federal health
product identification number 40513CA035) as this  contract
  plan  was offered during the first quarter of
2012, including, but not limited to, all of the following:
   (i) The  items and services  health benefits
 covered by the plan  contract  within the
categories identified in subsection (b) of Section 1302 of PPACA,
including, but not limited to, ambulatory patient services, emergency
services, hospitalization, maternity and newborn care, mental health
and substance use disorder services, including behavioral health
treatment, prescription drugs, rehabilitative and habilitative
services and devices, laboratory services, preventive and wellness
services and chronic disease management, and pediatric services,
including oral and vision care.
   (ii)  Mandated benefits   The health benefits
mandated to be covered by the plan  pursuant to statutes
enacted before December 31, 2011  , including, but not limited
to, basic health care services required to be covered pursuant to
Section 1367, as defined in Section 1345 of the Health and Safety
Code, and in Section 1300.67 of Title 28 of the California Code of
Regulations. These benefits are required to be covered to the extent
described in the following sections of the Health and Safety Code:
Sections 1367.002, 1367.06, and 1367.35 (preventive services for
children); Section 1367.25 (prescription drug coverage for  
contraceptives); Section 1367.45 (AIDS vaccine); Section 1367.46
(HIV testing); Section 1367.51 (diabetes); Section 1367.54 (alpha
feto protein testing); Section 1367.6 (breast cancer screening);
Section 1367.61 (prosthetics for laryngectomy); Section 1367.62
(maternity hospital stay); Section 1367.63 (reconstructive surgery);
Section 1367.635 (mastectomies); Section 1367.64 (prostate cancer);
Section 1367.65 (mammography); Section 1367.66 (cervical cancer);
Section 1367.665 (cancer screening tests); Section 1367.67
(osteoporosis); Section 1367.68 (surgical procedures for jaw bones);
Section 1367.71 (anesthesia for dental); Section 1367.9 (conditions
attributable to diethylstilbestrol); Section 1368.2 (hospice care);
Section 1370.6 (cancer clinical trials); Section 1371.5 (emergency
response ambulance or ambulance transport services); Subdivision (b)
of Section 1373 (sterilization operations or procedures); Section
1373.4 (inpatient hospital and ambul   atory maternity);
Section 1374.56 (phenylketonuria);   Section 1374.17 (organ
transplants for HIV); Section 1374.72 (mental health parity); and
Section 1374.73 (autism/behavioral health treatment)  . 

   (B) The services and benefits described in this paragraph shall be
covered to the extent they are medically necessary. Scope and
duration limits imposed on the services and benefits described in
this paragraph shall be no greater than the scope and duration limits
imposed on those services and benefits by the health care service
plan contract identified in subparagraph (A).  
   (iii) The health benefits covered by the plan that are not
otherwise required to be covered under Chapter 2.2 (commencing with
Section 1340) of Division 2 of the Health and Safety Code, to the
extent otherwise required pursuant to Sections 1367.18, 1367.21,
1367.215, 1367.22, 1367.24, and 1367.25 of the Health and Safety
Code, and Section 1300.67.24 of Title 28 of the California Code of
Regulations, whether or not the health benefits are specifically
referenced in the health insurance policy.  
   (B) Coverage of mental health and substance use disorder services
pursuant to this paragraph, along with any scope and duration limits
imposed on the benefits, shall be in compliance with the Paul
Wellstone and Pete Domenici Mental Health Parity and Addiction Equity
Act of 2008 (Public Law 110-343), and all binding rules,
regulations, and guidance issued pursuant to Section 2726 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-26). 
   (2) With respect to habilitative services, in addition to any
habilitative services identified in paragraph (1),  the same
services as the policy covers for rehabilitative services 
   coverage shall also be provided as required by
binding federal rules, regulations, or guidance issued pursuant to
Section 1302(b)   of PPACA  . Habilitative services
shall be covered under the same terms and conditions applied to
rehabilitative services under the policy.
   (3) With respect to  pediatric oral care and 
pediatric vision care, the same  services and  
health  benefits for  pediatric oral care and 
pediatric vision care covered under the Federal Employees Dental and
Vision Insurance Program  dental plan and  vision
plan with the largest national enrollment as of the first quarter of
2012.  Scope and duration limits imposed on the services and
benefits described in this paragraph shall be no greater than the
scope and duration limitations imposed on those benefits by the
Federal Employees Dental and Vision Insurance Program dental plan and
vision plan with the largest national enrollment as of the first
quarter of 2012.  The pediatric  oral and 
vision care services covered pursuant to this paragraph shall be in
addition to, and shall not replace, any  dental, orthodontic,
or  vision services covered under the plan 
contract  identified in paragraph (1). 
   (4) With respect to pediatric oral care, the same health benefits
for pediatric oral care covered under the dental plan available to
subscribers of the Healthy Families Program in 2011-12, including the
provision of medically necessary orthodontic care provided pursuant
to the federal Children's Health Insurance Program Reauthorization
Act of 2009. The pediatric oral care benefits covered pursuant to
this paragraph shall be in addition to, and shall not replace, any
dental or orthodontic services covered under the plan identified in
paragraph (1).  
   (4) Any 
    (5)     Except as otherwise provided in
subdivision (p), any  other benefits required to be covered
under this  chapter  part  . 
   (b) When offering, issuing, selling, or marketing a health
insurance policy, a health insurer shall not indicate or imply that
the policy covers essential health benefits unless the policy covers
essential health benefits as defined in this section.  
   (b) (1) Medically necessary health benefits described in this
section shall be covered subject to cost sharing approved by the
commissioner and any limitations consistent with this section.
Limitations imposed on health benefits shall be no greater than the
limitations imposed by the corresponding plans identified in
subdivision (a).  
   (2) A plan may place scope and duration limits on health benefits
described in this section, other than basic health care services
described in clause (ii) of subparagraph (A) of paragraph (1) of
subdivision (a), provided that the scope and duration limits are no
greater than the scope and duration limits imposed on those benefits
by the corresponding plans identified in subdivision (a).  
   (c) Except as otherwise provided in subdivision (d), if it is
determined that a plan identified in subdivision (a), with respect to
benefits and services covered by a policy and any scope and duration
limits applied to those benefits and services pursuant to the
policy,                                             is not fully in
compliance with this part, the identification of that plan pursuant
to this section shall not be construed to exempt the plan from full
compliance with this part.  
   (d) Notwithstanding subdivision (c) or any other provision of this
section, the home health services benefits covered under the plan
identified in paragraph (1) of subdivision (a) shall be deemed to not
be in conflict with this part.  
   (e) Except as provided in subdivision (f), nothing in this section
shall be construed to permit a health insurer to make substitutions
for the benefits required to be covered under this section,
regardless of whether those substitutions are actuarially equivalent.
 
    (f) To the extent permitted under Section 1302 of PPACA and any
binding rules, regulations, or guidance issued pursuant to that
section, and to the extent that substitution would not create an
obligation for the state to defray costs for any individual, an
insurer may substitute its prescription drug formulary for the
formulary provided under the plan identified in subdivision (a) as
long as the formulary complies with the sections referenced in
clauses (ii) and (iii) of subparagraph (A) of paragraph (1) of
subdivision (a) that apply to prescription drugs.  
   (g) No health insurer, or its agent, producer, or representative,
shall offer, market, represent, or sell any product, policy, or
discount arrangement as minimum coverage, or as compliant with the
essential health benefits requirement in federal law, unless it meets
all of the requirements of this section.  
   (c) 
    (h)  This section shall apply regardless of whether the
policy is offered inside or outside the California Health Benefit
Exchange created by Section 100500 of the Government Code. 
   (d) 
    (i)  A health insurance policy subject to this section
shall  also  comply with Section 10112.1. 
   (j) A health insurance policy subject to this section shall comply
with state and federal statutory and regulatory requirements
regarding nondiscrimination, including, but not limited to, Section
10140.  
   (e) 
    (k)  This section shall not be construed to prohibit a
policy from covering additional benefits, including, but not limited
to, spiritual care services that are tax deductible under Section 213
of the Internal Revenue Code. 
   (f) 
    (l)  Subdivision (a) shall not apply to any of the
following:
   (1) A policy  that provides    
consisting solely of coverage of  excepted benefits as described
in  Section   Sections  2722  and 2791
 of the federal Public Health Service Act (42 U.S.C. Sec.
 300gg-21)   300gg-21; 42 U.S.C. Sec. 300gg-91
  )  .
   (2) A policy that qualifies as a grandfathered health plan under
Section 1251 of PPACA  or any binding rules, regulation, or
guidance issued pursuant to that section  . 
   (m) Nothing in this section shall be implemented in a manner that
is inconsistent with, or conflicts with, a requirement of PPACA.
 
   (n) This section shall be implemented only to the extent essential
health benefits are required pursuant to PPACA.  
   (g) This section shall be implemented only 
    (o)     An essential healt   h
benefit is required to be provided under this section only to
the extent that federal law or policy does not require the state to
defray the costs of  benefits included within the definition
of essential health benefits under this section   the
benefit  . 
   (p) An insurer is not required to cover, under this section,
changes to health benefits that are the result of statutes enacted on
or after December 31, 2011.  
   (q) No later than February 1, 2013, the commissioner shall, in
consultation with the Director of the Department of Managed Health
Care, develop and publish a list of covered health benefits and
limitations contained in the health insurance policies subject to
this section, to ensure consistency and uniformity between health
insurance policies and health care service plan contracts. In
developing the list, the commissioner and director shall take into
account federal statutes, rules, regulations, and guidance applicable
to essential health benefits as of that date. Development and
publication of the list is not subject to the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code).  
   (r) (1) Notwithstanding the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code), the commissioner, until March 1, 2016, may
implement and administer this section through insurer letters or
similar instruction from the commissioner until regulations are
adopted.  
   (2) The commissioner may adopt emergency regulations implementing
this section. The commissioner may, on a one-time basis, readopt any
emergency regulation authorized by this section that is the same as,
or substantially equivalent to, an emergency regulation previously
adopted under this section.  
   (3) The initial adoption of emergency regulations implementing
this section and the readoption of emergency regulations authorized
by this subdivision shall be deemed an emergency and necessary for
the immediate preservation of the public peace, health, safety, or
general welfare. Initial emergency regulations and the readoption of
emergency regulations authorized by this section shall be exempt from
review by the Office of Administrative Law. The initial emergency
regulations and the readoption of emergency regulations authorized by
this section shall be submitted to the Office of Administrative Law
for filing with the Secretary of State and each shall remain in
effect for no more than 180 days, by which time final regulations may
be adopted.  
   (4) The commissioner shall consult with the Director of the
Department of Managed Health Care to ensure consistency and
uniformity in the development of insurer letters and regulations.
 
   (s) Nothing in this section shall impose on health insurance
policies the cost sharing or network limitations of the plans
identified in subdivision (a) except to the extent otherwise required
to comply with provisions of this code, including this section, and
as otherwise applicable to all health insurance policies offered to
individuals and small groups.  
   (h) 
    (t)  For purposes of this section, the following
definitions shall apply:
   (1) "Habilitative services" means health care services 
that help a person keep, learn, or improve skills and functioning for
daily living.   and health care devices that assist an
individual in partially or fully acquiring or improving skills and
functioning and that are necessary to address a health deficit or
health condition, to the maximum extent practical. These services
address the skills and abilities needed for functioning in
interaction with an individual's environment. Habilitation services
do not include respite, day care, recreational care, residential
treatment, social services, custodial care, or education services of
any kind, including, but not limited to, vocational training.
Habilitative services shall be covered under the same terms and
conditions applied to rehabilitative services under the policy. 

   (2) (A) "Health benefits," unless otherwise required to be defined
pursuant to binding federal rules, regulations, or guidance issued
pursuant to Section 1302(b) of PPACA, means health care items or
services for the diagnosis, cure, mitigation, treatment, or
prevention of illness, injury, disease, or a health condition,
including a mental health condition.  
   (B) "Health benefits" does not mean any cost-sharing requirements
or limitations such as copayments, coinsurance, or deductibles. 

   (2) 
    (3)  "PPACA" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any rules, regulations, or guidance issued thereunder.

   (3) 
    (4)  "Small group health insurance policy" means a group
health care service insurance policy issued to a small employer, as
defined in Section 10700.
  SEC. 4.  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.