BILL NUMBER: AB 1744	CHAPTERED  08/21/06

	CHAPTER  128
	FILED WITH SECRETARY OF STATE  AUGUST 21, 2006
	APPROVED BY GOVERNOR  AUGUST 21, 2006
	PASSED THE ASSEMBLY  AUGUST 7, 2006
	PASSED THE SENATE  JUNE 29, 2006
	AMENDED IN SENATE  JUNE 27, 2006
	AMENDED IN ASSEMBLY  JANUARY 12, 2006
	AMENDED IN ASSEMBLY  JANUARY 4, 2006

INTRODUCED BY   Committee on Health (Chan (Chair), Aghazarian (Vice
Chair), Berg, Cohn, Frommer, Gordon, Jones, Montanez, Ridley-Thomas,
and Strickland)

                        MARCH 2, 2005

   An act to amend and renumber Section 1389.3 of the Health and
Safety Code, and to repeal Section 14005.20 of the Welfare and
Institutions Code, relating to health care.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1744, Committee on Health   Health care.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans by the Department of Managed Health Care. Existing law provides
for basic health care for qualified individuals under the Medi-Cal
program.
   This bill would make nonsubstantive changes by renumbering a
provision and deleting a duplicate provision.


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


  SECTION 1.  Section 1389.3 of the Health and Safety Code, as added
by Section 4 of Chapter 526 of the Statutes of 2005, is amended and
renumbered to read:
   1389.4.  (a) A full service health care service plan that markets
and sells individual health plan contracts shall be subject to this
section.
   (b) A health care service plan subject to this section shall have
written policies, procedures, or underwriting guidelines establishing
the criteria and process whereby the plan makes its decision to
provide or to deny coverage to individuals applying for coverage and
sets the rate for that coverage. These guidelines, policies, or
procedures shall assure that the plan rating and underwriting
criteria comply with Sections 1365.5 and 1389.1 and all other
applicable provisions of state and federal law.
   (c) On or before June 1, 2006, and annually thereafter, every
health care service plan shall file with the department a general
description of the criteria, policies, procedures, or guidelines the
plan uses for rating and underwriting decisions related to individual
health plan contracts, which means automatic declinable health
conditions, health conditions that may lead to a coverage decline,
height and weight standards, health history, health care utilization,
lifestyle, or behavior that might result in a decline for coverage
or severely limit the plan products for which they would be eligible.
A plan may comply with this section by submitting to the department
underwriting materials or resource guides provided to plan solicitors
or solicitor firms, provided that those materials include the
information required to be submitted by this section.
   (d) Commencing September 1, 2006, the director shall post on the
department's Web site, in a manner accessible and understandable to
consumers, general, noncompany specific information about rating and
underwriting criteria and practices in the individual market and
information about the Major Risk Medical Insurance Program. The
director shall develop the information for the Web site in
consultation with the Department of Insurance to enhance the
consistency of information provided to consumers. Information about
individual health coverage shall also include the following
notification:
   "Please examine your options carefully before declining group
coverage or continuation coverage, such as COBRA, that may be
available to you. You should be aware that companies selling
individual health insurance typically require a review of your
medical history that could result in a higher premium or you could be
denied coverage entirely."
   (e) Nothing in this section shall authorize public disclosure of
company specific rating and underwriting criteria and practices
submitted to the director.
  SEC. 2.  Section 14005.20 of the Welfare and Institutions Code, as
added by Section 18 of Chapter 147 of the Statutes of 1994, is
repealed.