BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           513 (De Leon)
          
          Hearing Date:  8/17/2009        Amended: 7/23/2009
          Consultant: Katie Johnson       Policy Vote: Health 6-3
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 513 would require health care service plan  
          contract and health insurance policy issued, renewed, or amended  
          on or after January 1, 2010, that provides maternity coverage to  
          provide coverage for lactation consultation with a lactation  
          consultant and for the rental of breast pumps.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          DMHC start-up          $50        $0          $0        Special*

          CalPERS benefits       $50        $100        $100       
          General/**
                                                                  Special/
                                                                  Private
          *Managed Care Fund
          ***Each state agency pays its employees premiums to CalPERS out  
          of its budget. Approximately 55 percent of employee premiums are  
          from the General Fund and 45 percent are from other state funds.  
          These other funds are made up of approximately 67 percent  
          special funds and 33 percent moneys from other sources such as  
          federal funds.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Existing law provides for the regulation of health care service  
          plans and health insurers by the Department of Managed Health  
          Care (DMHC) and the California Department of Insurance (CDI),  
          respectively.

          This bill would require health care service plan contracts and  
          health insurance policies issued, renewed, or amended on or  










          after January 1, 2010, that provides maternity coverage to  
          provide coverage for lactation consultation with an  
          international board certified lactation consultant (IBCLC) and  
          for the rental of breast pumps.

          Costs to CDI to oversee these new policies would be minor and  
          absorbable. DMHC start-up costs are approximately $50,000 for FY  
          2009-2010 to complete the necessary filings. Ongoing costs would  
          be absorbable.

          According to a 2009 California Health Benefits Review Program  
          (CHBRP) report on this bill, there would be no fiscal effect on  
          the publicly-funded Medi-Cal managed care plans or on the  
          Healthy Families Program. There would be a minor cost to the  
          California Public Employees Retirement System (CalPERS), the  
          entity that provides government and public employees with health  
          benefits.
          Revised: 8/16/2009