BILL NUMBER: AB 1586	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Koretz, Goldberg, Laird, Leno, and
Lieber
   (Principal coauthor: Senator Kuehl)
   (Coauthor: Senator Kehoe)

                        FEBRUARY 22, 2005

   An act to amend Section 1365.5 of the Health and Safety Code, and
to amend Section 679.71 of the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1586, as introduced, Koretz.   Insurers: health care service
plans: discrimination.
   Existing law provides for licensing and regulation of health care
service plans by the Department of Managed Health Care. Existing law
provides for licensing and regulation of insurers by the Department
of Insurance.
   Existing law prohibits certain discriminatory acts by health care
service plans and insurers, including discrimination based on the sex
of an enrollee or insured.
   This bill, for purposes of these provisions, would provide that
"sex" includes, but is not limited to, a person's gender, as defined.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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


  SECTION 1.  Section 1365.5 of the  Health and Safety Code  is
amended to read:
   1365.5.  (a) No health care service plan or specialized health
care service plan shall refuse to enter into any contract or shall
cancel or decline to renew or reinstate any contract because of the
race, color, national origin, ancestry, religion, sex, marital
status, sexual orientation, or age of any contracting party,
prospective contracting party, or person reasonably expected to
benefit from that contract as a subscriber, enrollee, member, or
otherwise. (b)  The terms of any contract shall not be modified, and
the benefits or coverage of any contract shall not be subject to any
limitations, exceptions, exclusions, reductions, copayments,
coinsurance, deductibles, reservations, or premium, price, or charge
differentials, or other modifications because of the race, color,
national origin, ancestry, religion, sex, marital status, sexual
orientation, or age of any contracting party, potential contracting
party, or person reasonably expected to benefit from that contract as
a subscriber, enrollee, member, or otherwise; except that premium,
price, or charge differentials because of the sex or age of any
individual when based on objective, valid, and up-to-date statistical
and actuarial data are not prohibited. Nothing in this section shall
be construed to permit a health care service plan to charge
different premium rates to individual enrollees within the same group
solely on the basis of the enrollee's sex.
   (c) It shall be deemed a violation of subdivision (a) for any
health care service plan to utilize marital status, living
arrangements, occupation, gender, beneficiary designation, zip codes
or other territorial classification, or any combination thereof for
the purpose of establishing sexual orientation. Nothing in this
section shall be construed to alter in any manner the existing law
prohibiting health care service plans from conducting tests for the
presence of human immunodeficiency virus or evidence thereof.
   (d) This section shall not be construed to limit the authority of
the director to adopt or enforce regulations prohibiting
discrimination because of sex, marital status, or sexual orientation.
  
   (e) As used in this section, "sex" includes, but is not limited
to, a person's gender, as defined in Section 422.56 of the Penal
Code. 
  SEC. 2.  Section 679.71 of the  Insurance Code  is amended to read:

   679.71.  No admitted insurer, licensed to issue any policy of
insurance covered by this chapter, shall fail or refuse to accept an
application for, or to issue a policy to an applicant for, such
insurance (unless such insurance is to be issued to the applicant by
another insurer under the same management and control), or cancel
such insurance, under conditions less favorable to the insured than
in other comparable cases, except for reasons applicable alike to
persons of every marital status, sex, race, color, religion, national
origin, or ancestry; nor shall sex, race, color, religion, national
origin, or ancestry of itself constitute a condition or risk for
which a higher rate, premium, or charge may be required of the
insured for such insurance.   As used in this section, "sex"
includes, but is not limited to, a person's gender, as defined in
Section 422.56 of the Penal Code.