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AB-1586 Health care service plans: contract requirements.(2011-2012)

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Assembly Bill
No. 1586

Introduced  by  Assembly Member Garrick

February 06, 2012

An act to amend Section 1389.1 of the Health and Safety Code, relating to health care coverage.


AB 1586, as introduced, Garrick. Health care service plans: contract requirements.
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. A willful violation of the act is a crime. Existing law prohibits the director of the department from approving any plan contract unless he or she finds the application conforms to specified requirements.
This bill would make a technical, nonsubstantive change to these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


 Section 1389.1 of the Health and Safety Code is amended to read:

 (a) The director shall not approve any plan contract unless the director he or she finds that the application conforms to both of the following requirements:
(1) All applications for coverage which include health-related questions shall contain clear and unambiguous questions designed to ascertain the health condition or history of the applicant.
(2) The application questions related to an applicant’s health shall be based on medical information that is reasonable and necessary for medical underwriting purposes. The application shall include a prominently displayed notice that shall read:
“California law prohibits an HIV test from being required or used by health care service plans as a condition of obtaining coverage.”
(b) Nothing in this section shall authorize the director to establish or require a single or standard application form for application questions.