BILL NUMBER: AB 3041	CHAPTERED  09/18/06

	CHAPTER  326
	FILED WITH SECRETARY OF STATE  SEPTEMBER 18, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 18, 2006
	PASSED THE ASSEMBLY  AUGUST 28, 2006
	PASSED THE SENATE  AUGUST 23, 2006
	AMENDED IN SENATE  AUGUST 15, 2006

INTRODUCED BY   Assembly Member Pavley

                        FEBRUARY 24, 2006

   An act to amend Section 22844 of the Government Code, relating to
public employees' health benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3041, Pavley  Public employees' health benefits: prescription
drug plans.
   The Public Employees' Medical and Hospital Care Act requires the
Board of Administration of the Public Employees' Retirement System to
approve health benefit plans for certain public employees and
annuitants, and authorizes the board to contract with carriers
offering health benefit plans. The act prohibits an employee,
annuitant, or family member enrolled in a prescription drug plan
under Part D of Medicare from enrolling in a board-approved health
benefit plan, unless enrolled in an approved Medicare Advantage
health benefit plan.
   This bill would instead exempt from that prohibition an employee,
annuitant, or family member enrolled in a board-approved or offered
health benefit plan that provides a prescription drug plan or
qualified prescription drug coverage under Part D of Medicare as part
of its benefit design.


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


  SECTION 1.  Section 22844 of the Government Code is amended to
read:
   22844.  (a) Employees, annuitants, and family members who become
eligible to enroll on or after January 1, 1985, in Part A and Part B
of Medicare may not be enrolled in a basic health benefit plan. If
the employee, annuitant, or family member is enrolled in Part A and
Part B of Medicare, he or she may enroll in a Medicare health benefit
plan.
   (b) Employees, annuitants, and family members enrolled in a
prescription drug plan under Part D of Medicare may not be enrolled
in a board-approved health benefit plan. This subdivision does not
apply to an individual enrolled in a board-approved or offered health
benefit plan that provides a prescription drug plan or qualified
prescription drug coverage under Part D of Medicare as part of its
benefit design.
   (c) This section does not apply to employees and family members
that are specifically excluded from enrollment in a Medicare health
benefit plan by federal law or regulation.