Existing law provides for the regulation of health care service plans by the Department of Managed Health Care and health insurers by the Department of Insurance. Commencing January 1, 2014, the federal Patient Protection and Affordable Care Act (PPACA) requires every individual to be covered under minimum essential coverage, as specified, and requires every health insurance issuer issuing individual or group health insurance coverage to accept every employer and individual who applies for coverage. Existing federal law authorizes states to seek a State Innovation Waiver of specified requirements of that coverage so the state can pursue its own legislative program that, among other things, provides its residents coverage that is at least as comprehensive and at least as affordable as the coverage that would have been provided under PPACA.

This bill would declare the intent of the Legislature to enact legislation that would create a competitive marketplace for health care coverage consistent with the State Innovation Waiver requirements.