BILL NUMBER: SB 900	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Alquist

                        JANUARY 26, 2010

   An act to add Division 114 (commencing with Section 135000) to the
Health and Safety Code, relating to health care coverage.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 900, as introduced, Alquist. California Health Insurance
Exchange.
   Existing law does not provide a system of health care coverage for
all California residents. Existing law provides for the creation of
various programs to provide health care coverage to persons who have
limited incomes and meet various eligibility requirements. These
programs include the Healthy Families Program, administered by the
Managed Risk Medical Insurance Board, and the Medi-Cal program,
administered by the State Department of Health Care Services and
county welfare departments. Existing law provides for the licensure
and regulation of health care service plans by the Department of
Managed Health Care and for the regulation of health insurers by the
Department of Insurance. Existing law creates the California Health
and Human Services Agency, which consists of various departments.
   This bill would establish the California Health Insurance Exchange
within the California Health and Human Services Agency. The bill
would require the exchange to, among other things, provide, or make
available, health care coverage through participating health plans,
determine eligibility, enrollment, and disenrollment criteria and
processes, authorize expenditures from the California Health
Insurance Exchange Fund, which the bill would create in the State
Treasury, and be governed by an unspecified board whose members would
be appointed by the Legislature.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Division 114 (commencing with Section 135000) is added
to the Health and Safety Code, to read:

      DIVISION 114.  CALIFORNIA HEALTH INSURANCE EXCHANGE


   135000.  (a) There is hereby established in the California Health
and Human Services Agency, the California Health Insurance Exchange.
   (b) For purposes of this division, "exchange" means the California
Health Insurance Exchange established by this section.
   (c) The exchange shall do all of the following:
   (1) Determine eligibility, enrollment, and disenrollment criteria
and processes for the exchange, consistent with federal law.
   (2) Determine the participation requirements and the standards and
selection criteria for participating health plans, including
reasonable limits on a plan's administrative costs.
   (3) Enter into contracts, including selective provider contracts
with health plans.
   (4) Negotiate rates paid to participating health plans.
   (5) Provide, or make available, health care coverage through
participating health plans.
   (6) Provide for the offering of one or more community benefit
plans, including, but not limited to, local initiative plans, county
organized health systems, joint ventures of local initiative plans
and county organized health systems, self-funded plans, and other
plans authorized by federal law.
   (7) Provide for the processing of applications and the enrollment
and disenrollment of exchange enrollees, and the administration of
federal subsidies for exchange enrollees.
   (8) Employ necessary staff.
   (9) Authorize expenditures, as necessary, from the fund
established under Section 135005 to pay exchange expenses that exceed
enrollee contributions and to administer the exchange.
   (10) Receive federal funds for administration of the exchange.
   (11) Be governed by a board whose members are appointed by the
Legislature. This board shall hold public meetings on a bimonthly
basis.
   135005.  (a) The California Health Insurance Exchange Fund is
hereby created in the State Treasury as a special fund consisting of
revenue necessary for the purposes of this division. Any moneys in
the fund that are unexpended or unencumbered at the end of a fiscal
year may be carried forward to the next succeeding fiscal year.
   (b) The governing board of the exchange shall establish a prudent
reserve in the fund.
   (c) Moneys in the fund shall, upon appropriation by the
Legislature, be used by the governing board of the exchange for the
purposes of this division.
   (d) Notwithstanding Section 16305.7 of the Government Code, all
interest earned on the moneys that have been deposited into the fund
shall be retained in the fund.