BILL NUMBER: AB 1282	CHAPTERED  09/15/02

	CHAPTER  549
	FILED WITH SECRETARY OF STATE  SEPTEMBER 15, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 14, 2002
	PASSED THE ASSEMBLY  AUGUST 24, 2002
	PASSED THE SENATE  AUGUST 12, 2002
	AMENDED IN SENATE  AUGUST 5, 2002
	AMENDED IN SENATE  APRIL 1, 2002
	AMENDED IN SENATE  FEBRUARY 20, 2002
	AMENDED IN ASSEMBLY  JANUARY 24, 2002
	AMENDED IN ASSEMBLY  JANUARY 22, 2002
	AMENDED IN ASSEMBLY  JANUARY 9, 2002

INTRODUCED BY   Assembly Member Cardoza
   (Principal coauthor:  Assembly Member Matthews)
   (Coauthor:  Senator Soto)

                        FEBRUARY 23, 2001

   An act to add Section 1366.1 to the Health and Safety Code,
relating to health care service plans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1282, Cardoza.  Health care service plans.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the regulation of health care service plans by the
Department of Managed Health Care and makes a willful violation of
the act's provisions a crime.
   This bill would require the department to adopt regulations that
establish an extended geographic accessibility standard for access to
health care providers served by a health care service plan in
counties with a population of 500,000 or less that have 2 or fewer
health care service plans providing coverage to the entire county in
the commercial market. The bill would also require a health care
service plan to hold a public meeting in a county with a population
of 500,000 or less if the plan intends to withdraw coverage from that
county or a portion thereof.
   Because a willful violation of these provisions by a health care
service plan would be a crime,  the bill would impose a
state-mandated local program by creating a new crime.
  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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1366.1 is added to the Health and Safety Code,
to read:
   1366.1.  (a) The department shall adopt regulations on or before
July 1, 2003, that establish an  extended geographic accessibility
standard for access to health care providers served by a health care
service plan in counties with a population of 500,000 or less, and
that, as of January 1, 2002, have two or fewer health care service
plans providing coverage to the entire county in the commercial
market.
   (b) This section shall not apply to specialized health care
service plans or health care service plan contracts that provide
benefits to enrollees through any of the following:
   (1) Preferred provider contracting arrangements.
   (2) The Medi-Cal program.
   (3) The Healthy Families program.
   (c) (1) At least 30 days before a health care service plan files
for modification of its license with the department in order to
withdraw from a county with a population of 500,000 or less, or a
portion of that county, the health care service plan shall hold a
public meeting in the county or portion of the county from which it
intends to withdraw, and shall do all of the following:
   (A) Provide notice announcing the public meeting at least 30 days
prior to the public meeting to all affected enrollees, health care
providers, advocates, public officials, and other interested parties.

   (B) Provide notice announcing the public meeting at least 30 days
prior to the public meeting in a newspaper of general circulation
within the affected county or portion of the affected county.
   (C) At the public meeting, allow testimony, which may be limited
to a certain length of time by the health care service plan, of all
interested parties.
   (D) Send a summary of the comments received at the public meeting
to the department.
   (E) Send a summary of the comments received at the public meeting
to the Centers for Medicare and Medicaid Services if the modification
would affect Medicare beneficiaries.
   (F) File with the department for review, no less than 30 days
prior to the date of mailing or publication, the notices required
under subparagraphs (A) and (B).
   (2) A representative of the department shall attend the public
meeting.
  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.