BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2252
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2252 (Gordon)
          As Amended August 6, 2012
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 30, 2012)  |SENATE: |37-0 |(August 23,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    HEALTH  

           SUMMARY  :  Amends the Health Care Provider's Bill of Rights with 
          respect to a health care service plan or health insurance 
          policy, including specialized health plans and insurance 
          policies, covering dental services, to require notification if a 
          material change is made to the rules, guidelines, policies, or 
          procedures concerning contracting or coverage of or payment for 
          dental services. 

           The Senate amendments  :  
           
          1)Exclude regulations from the types of documents that require a 
            material change notification.

          2)Clarify that the material change notification is provided to 
            contracting dentists.

          3)Limit the notification to a change to the system by which the 
            plan adjudicates and pays claims for treatment that would 
            reasonably be expected to cause delays or disruptions or a 
            change to the general coverage or general policies that affect 
            rates and fees paid to providers.

          4)Require a plan or insurer to within 60 days (instead of at 
            least 45 days) following a request by the provider, either 
            online, via email, or in paper form, to provide a copy of its 
            current contract and a summary of the changes, as described, 
            in cases of automatic contract renewal.

          5)Delete an Assembly approved provision giving the provider a 
            right to terminate the contract within 30 business days of 
            receiving the summary.

           AS PASSED BY THE ASSEMBLY  , this bill required, if a material 








                                                                  AB 2252
                                                                  Page  2

          change is made to the rules, regulations, guidelines, policies, 
          or procedures governing contracting, coverage, or payment for 
          dental services to a health care service plan contract, 
          specialized health plan contract covering dental, a health 
          insurance policy or specialized health insurance policy covering 
          dental services, the plan or insurer to provide notice of at 
          least 45 business days and give the dentist an opportunity to 
          negotiate or terminate the contract.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee:

          1)The Department of Managed Health Care may incur one-time costs 
            up to $70,000 (Managed Care Fund) to review health plan 
            documents.  Costs to the California Department of Insurance 
            are likely to be minor.

          2)No increase in costs to the state as a provider of dental 
            benefits is likely to occur, as the changes in this bill are 
            not anticipated to significantly increase the costs of 
            providing dental coverage.

           COMMENTS  :  This bill is sponsored by the California Dental 
          Association to strengthen the partnership that already exists 
          between providers and plans by ensuring that adequate 
          notification of significant changes in plan polices are 
          communicated in a transparent and timely manner.


           Analysis Prepared by :    Teri Boughton / HEALTH / (916) 319-2097 



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