BILL NUMBER: AB 119	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 3, 2009

INTRODUCED BY   Assembly Member Jones
    (   Principal coauthor:   Senator 
 Leno   ) 
    (  Coauthor:   Assembly Member  
Evans   ) 
    (   Coauthor:   Senator   Hancock
 ) 

                        JANUARY 15, 2009

   An act to amend Section 1365.5 of the Health and Safety Code, and
to add Section 10140.2 to the Insurance Code, relating to health care
coverage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 119, as amended, Jones. Health care coverage: pricing.
   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 and makes a willful
violation of that act a crime. Existing law prohibits health care
service plans from charging premium, price, or charge differentials
because of sex, but makes an exception for differentials based on
specified statistical and actuarial data.
   This bill would eliminate that exception.
   Because a willful violation of this provision by a health care
service plan would be a crime, this bill would impose a
state-mandated local program.
   Existing law provides for the regulation of life and disability
insurers by the Department of Insurance. Existing law prohibits life
and disability insurers from engaging in certain discriminatory
practices, but specifies that premium, price, or charge differentials
because of sex are not prohibited when based on specified
statistical or actuarial data or sound underwriting practices.
   This bill would prohibit health insurers from charging a premium,
price, or charge differential because of the sex of specified
individuals  , even if the premium, price, or charge
differential is based on statistical and actuarial data or sound
underwriting practices  .
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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 age of any individual
when based on objective, valid, and up-to-date statistical and
actuarial data are not prohibited.
   (c) It shall be deemed a violation of subdivision (a) for any
health care service plan to utilize marital status, living
arrangements, occupation, sex, 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) "Sex" as used in this section shall have the same meaning as
"gender," as defined in Section 422.56 of the Penal Code.
  SEC. 2.  Section 10140.2 is added to the Insurance Code, to read:
   10140.2.  (a) Notwithstanding Section 10140, a health insurance
policy issued, amended, or renewed on or after January 1, 2010, shall
not be subject to premium, price, or charge differentials because of
the sex of any contracting party, potential contracting party, or
person reasonably expected to benefit from the policy as  a
policyholder, insured, or otherwise, even if that premium, price, or
charge differential is based on statistical and actuarial data or
sound underwriting practices.   a policyholder, insured,
or otherwise. 
   (b) For purposes of this section, "sex" shall have the same
meaning as "gender," as defined in Section 422.56 of the Penal Code.
  SEC. 3.  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.