BILL NUMBER: SB 270	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Alquist

                        FEBRUARY 24, 2009

   An act to add Sections 1253.2, 1379.2, and 1379.6 to the Health
and Safety Code, and to add Section 10127.45 to the Insurance Code,
relating to health care.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 270, as introduced, Alquist. Health information technology.
   Existing law provides for the licensure and regulation of health
facilities by the State Department of Public Health. 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
the act a crime. Existing law provides for the regulation of health
insurers by the Department of Insurance.
   This bill, on and after January 1, 2011, would require a state
agency that contracts with a health care provider, a health care
service plan, or a health insurer to include in the contract a
provision requiring the provider, plan, or insurer, when
implementing, acquiring, or upgrading its health information
technology systems, to utilize systems and products that meet federal
standards for interoperability and implementation specifications,
where available.
   Existing law requires that contracts between health care service
plans and providers be in writing and provides for the reimbursement
of covered services rendered by providers.
   This bill, on and after January 1, 2011, would require a health
care service plan to offer additional compensation to contracted
providers for improved patient outcomes and coordination of care
resulting from the meaningful use of health information technology.
The bill would require plans to report a schedule of that
compensation to the department.
   Because a willful violation of the bill's provisions relating to
health care service plans would be a crime, this bill would impose a
state-mandated local program.
   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 1253.2 is added to the Health and Safety Code,
to read:
   1253.2.  (a) On and after January 1, 2011, a state agency that
contracts with a health care provider shall include in the contract a
provision requiring the provider to utilize health information
technology systems and products that meet federal standards for
interoperability and implementation specifications, where available,
when the provider implements, acquires, or upgrades those systems.
   (b) For purposes of this section, the following definitions apply:

   (1) "Health care provider" means any professional person, medical
group, independent practice association, organization, health care
facility, or other person or institution licensed or authorized by
the state to deliver or furnish health services.
   (2) "State agency" means any office, officer, department,
division, bureau, board, commission, or agency of the state.
  SEC. 2.  Section 1379.2 is added to the Health and Safety Code, to
read:
   1379.2.  On and after January 1, 2011, a health care service plan
shall offer additional compensation to contracted providers for
improved patient outcomes and coordination of care resulting from the
meaningful use of health information technology. A health care
service plan shall file a schedule of this additional compensation
with the department.
  SEC. 3.  Section 1379.6 is added to the Health and Safety Code, to
read:
   1379.6.  (a) On and after January 1, 2011, a state agency that
contracts with a health care service plan shall include in the
contract a provision requiring the plan to utilize health information
technology systems and products that meet federal standards for
interoperability and implementation specifications, where available,
when the plan implements, acquires, or upgrades those systems.
   (b) For purposes of this section, "state agency" means any office,
officer, department, division, bureau, board, commission, or agency
of the state.
  SEC. 4.  Section 10127.45 is added to the Insurance Code, to read:
   10127.45.  (a) On and after January 1, 2011, a state agency that
contracts with a health insurer shall include in the contract a
provision requiring the insurer to utilize health information
technology systems and products that meet federal standards for
interoperability and implementation specifications, where available,
when the insurer implements, acquires, or upgrades those systems.
   (b) For purposes of this section, "state agency" means any office,
officer, department, division, bureau, board, commission, or agency
of the state.
  SEC. 5.  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.