BILL NUMBER: AB 1586	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Garrick

                        FEBRUARY 6, 2012

   An act to amend Section 1389.1 of the Health and Safety Code,
relating to health care coverage.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1586, as introduced, Garrick. Health care service plans:
contract requirements.
   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. A willful violation
of the act is a crime. Existing law prohibits the director of the
department from approving any plan contract unless he or she finds
the application conforms to specified requirements.
   This bill would make a technical, nonsubstantive change to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1389.1 of the Health and Safety Code is amended
to read:
   1389.1.  (a) The director shall not approve any plan contract
unless  the director   he or she  finds
that the application conforms to both of the following requirements:
   (1) All applications for coverage which include health-related
questions shall contain clear and unambiguous questions designed to
ascertain the health condition or history of the applicant.
   (2) The application questions related to an applicant's health
shall be based on medical information that is reasonable and
necessary for medical underwriting purposes. The application shall
include a prominently displayed notice that shall read:
   "California law prohibits an HIV test from being required or used
by health care service plans as a condition of obtaining coverage."
   (b) Nothing in this section shall authorize the director to
establish or require a single or standard application form for
application questions.