Today's Law As Amended


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AB-591 Individual health care coverage: premium rates.(2009-2010)



As Amends the Law Today


SECTION 1.

 Section 1385.01 is added to the Health and Safety Code, to read:

1385.01.
 (a) Notwithstanding any other provision of law, a health care service plan shall not increase the premium rate it charges a subscriber of an individual plan contract for a period of 90 days beginning on the date this section becomes operative.
(b) This section shall not apply to a plan that increases the premium rate it charges a subscriber of an individual plan contract when the subscriber enters into a new or amended contract that includes increased benefits, provided that the increased premium rate is equivalent to the premium rate charged by the plan for contracts that include similar increased benefits.
(c) This section shall not apply to a health care service plan contract that is issued through a publicly funded state health care coverage program, including the Medi-Cal program and the Healthy Families Program, or to Medicare supplement contracts.
(d) This section shall become inoperative 90 days after it becomes operative.

SEC. 2.

 Section 1385.02 is added to the Health and Safety Code, to read:

1385.02.
 (a) A health care service plan shall not increase the premium rate it charges a subscriber of an individual plan contract by more than the average percentage increase in the medical care component of the consumer price index for the immediately preceding calendar year, as calculated by the United States Bureau of Labor Statistics. In addition, any plan filing with the department containing a proposed premium rate increase for an individual plan contract shall comply with all other state and federal laws.
(b) A health care service plan shall not increase the premium rate it charges a subscriber of an individual plan contract during the 12 months following the effective date of the immediately preceding premium rate increase applied by the plan to the subscriber.
(c) The department may adopt regulations to implement this section in accordance with Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code.
(d) This section shall not apply to a health care service plan contract that is issued through a publicly funded state health care coverage program, including the Medi-Cal program and the Healthy Families Program, or to Medicare supplement contracts.
(e) This section shall become operative on the date that Section 1385.01 becomes inoperative.

SEC. 3.

 Section 10181 is added to the Insurance Code, to read:

10181.
 (a) Notwithstanding any other provision of law, a health insurer shall not increase the premium rate it charges a policyholder of an individual health insurance policy for a period of 90 days beginning on the date this section becomes operative.
(b) This section shall not apply to an insurer that increases the premium rate it charges a policyholder of an individual health insurance policy when the policyholder enters into a new or amended policy that includes increased benefits, provided that the increased premium rate is equivalent to the premium rate charged by the insurer for policies that include similar increased benefits.
(c) This section shall not apply to a health insurance policy that is issued through a publicly funded state health care coverage program, including the Medi-Cal program and the Healthy Families Program, or to Medicare supplement policies.
(d) This section shall become inoperative 90 days after it becomes operative.

SEC. 4.

 Section 10182 is added to the Insurance Code, to read:

10182.
 (a) A health insurer shall not increase the premium rate it charges a policyholder of an individual health insurance policy by more than the average percentage increase in the medical care component of the consumer price index for the immediately preceding calendar year, as calculated by the United States Bureau of Labor Statistics. In addition, any health insurer filing with the department containing a proposed premium rate increase for an individual health insurance policy shall comply with all other state and federal laws.
(b) A health insurer shall not increase the premium rate it charges a policyholder of an individual health insurance policy during the 12 months following the effective date of the immediately preceding premium rate increase applied by the insurer to the policyholder.
(c) The department may adopt regulations to implement this section in accordance with Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code.
(d) This section shall not apply to a health insurance policy that is issued through a publicly funded state health care coverage program, including the Medi-Cal program and the Healthy Families Program, or to Medicare supplement policies.
(e) This section shall become operative on the date that Section 10181 becomes inoperative.
SEC. 5.
 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.
SEC. 6.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to protect consumers from premium rate increases on individual health care coverage, it is necessary that this act take effect immediately.