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AB-2416 Health care coverage.(2017-2018)

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Date Published: 04/26/2018 09:00 PM
AB2416:v97#DOCUMENT

Amended  IN  Assembly  April 26, 2018
Amended  IN  Assembly  March 23, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2416


Introduced by Assembly Member Wood
(Coauthors: Assembly Members Arambula, Burke, Chiu, and Friedman)

February 14, 2018


An act to add Section 1360.7 to the Health and Safety Code, relating to health care coverage.


LEGISLATIVE COUNSEL'S DIGEST


AB 2416, as amended, Wood. Health care coverage.
Existing federal law, the federal Patient Protection and Affordable Care Act (PPACA), enacted various health care coverage market reforms that took effect on January 1, 2014. PPACA required each state, by January 1, 2014, to establish an American Health Benefit Exchange to facilitate the purchase of qualified health benefit plans by qualified individuals and qualified small employers. Existing state law creates the California Health Benefit Exchange, also known as Covered California, to facilitate the purchase of qualified health plans by qualified individuals and qualified small employers.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans, including individual health benefit plans, by the Department of Managed Health Care, and makes a willful violation of its provisions a crime. Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans.
Existing law requires a health care service plan, on and after October 1, 2013, to offer, market, and sell all of the plan’s health benefit plans that are sold in the individual market for policy years on or after January 1, 2014, to all individuals and dependents in a service area in which the plan provides or arranges for the provision of health care services.
This bill bill, commencing January 1, 2020, would require a health care service plan that has a contract with the State Department of Health Care Services to offer Medi-Cal managed care plans or prepaid health plans, or a Program of All-Inclusive Care for the Elderly (PACE) organization contract with the department, plans to negotiate with Covered California regarding offering individual products on the Exchange in approved service areas that overlap with counties where there are 2 or fewer health care service plans offering products on the Exchange, as specified. Because a willful violation of the bill’s requirements 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   Local Program: YES  

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


SECTION 1.

 Section 1360.7 is added to the Health and Safety Code, to read:

1360.7.
 If On or after January 1, 2020, if a health care service plan has a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), 14000) or Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, the plan shall negotiate with Covered California regarding offering individual products on the Exchange in the plan’s approved service areas that overlap with counties where there are two or fewer health care service plans offering products on the Exchange as of the plan year beginning in 2018.

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.