BILL NUMBER: AB 373	CHAPTERED  08/01/03

	CHAPTER  139
	FILED WITH SECRETARY OF STATE  AUGUST 1, 2003
	APPROVED BY GOVERNOR  JULY 31, 2003
	PASSED THE ASSEMBLY  JULY 21, 2003
	PASSED THE SENATE  JULY 17, 2000
	AMENDED IN SENATE  JULY 1, 2003
	AMENDED IN SENATE  JUNE 5, 2003
	AMENDED IN ASSEMBLY  APRIL 22, 2003

INTRODUCED BY   Assembly Member Chu

                        FEBRUARY 14, 2003

   An act to add Section 12693.515 to the Insurance Code, relating to
the Healthy Families Program.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 373, Chu.  Healthy Families Program.
   Existing law establishes the Healthy Families Program,
administered by the Managed Risk Medical Insurance Board, to arrange
for the provision of health care, dental, or vision coverage to
eligible children meeting certain household income requirements.
Under existing law, the Healthy Families Program is repealed on
January 1, 2004.
   This bill would provide, effective July 1, 2004, that a subscriber
in the program who selects or is assigned to a federally qualified
health center, rural health clinic, or primary care clinic shall be
deemed to have been assigned directly to the federally qualified
health center, rural health clinic, or primary care clinic, and not
to any individual provider performing services on behalf of these
entities.  The bill would provide that the assignment of a subscriber
to a physician employee of these entities constitutes an assignment
to the federally qualified health center, rural health clinic, or
primary care clinic.  The bill would not limit the rights of a
subscriber to select an available primary care physician within a
health care service plan's service area.


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


  SECTION 1.  Section 12693.515 is added to the Insurance Code, to
read:
   12693.515.  (a) Effective July 1, 2004, any subscriber who
affirmatively selects, or is assigned by default to, a federally
qualified health center, as defined by Section 1396(d)(l)(2) of Title
42 of the United States Code, a rural health clinic, as defined by
Section 1396(d)(l)(1) of Title 42 of the United States Code, or a
primary care clinic that is licensed under Section 1204 of the Health
and Safety Code, or is exempt from licensure under subdivision (h)
of Section 1206 of the Health and Safety Code, shall be deemed to
have been assigned directly to the federally qualified health center,
the rural health clinic, or the primary care clinic, and not to any
individual provider who performs services on behalf of the federally
qualified health center, the rural health clinic, or the  primary
care clinic.
   (b) (1) When a subscriber is assigned, from any source, to a
physician who is an employee of a federally qualified health center,
a rural health clinic, or a primary care clinic, the assignment shall
constitute an assignment to that federally qualified health center,
rural health clinic, or primary care clinic for purposes of the
subscriber's health care coverage.
   (2) When a subscriber is assigned, from any source, to a dentist
who is an employee of a federally qualified health center, a rural
health clinic, or a primary care clinic, the assignment shall
constitute an assignment to that federally qualified health center,
rural health clinic, or primary care clinic for purposes of the
subscriber's dental coverage.
   (3) When a subscriber is assigned, from any source, to an
optometrist who is an employee of a federally qualified health
center, a rural health clinic, or a primary care clinic, the
assignment shall constitute an assignment to that federally qualified
health center, rural health clinic, or primary care clinic for
purposes of the subscriber's vision coverage.
   (c) This section shall not limit any rights a subscriber may have
to select an available primary care physician within a health care
service plan's service area pursuant to Section 1373.3 of the Health
and Safety Code.