BILL ANALYSIS Ó SB 299 Page 1 SENATE THIRD READING SB 299 (Evans) As Amended August 31, 2011 Majority vote SENATE VOTE :27-11 LABOR & EMPLOYMENT 4-2 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Swanson, Allen, Furutani, |Ayes:|Fuentes, Blumenfield, | | |Yamada | |Bradford, Charles | | | | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Morrell, Beth Gaines |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : This bill requires employers to maintain and pay for a pregnant employee's medical coverage during pregnancy leave. Specifically, this bill : 1)Makes it unlawful for an employer to refuse to maintain and pay for coverage for an eligible female employee who takes leave under the conditions that coverage would have been provided if the employee had continued in employment continuously for the duration of the leave. 2)Allows an employer to recover premium costs from the employee for maintaining coverage for the employee under the group health plan if both of the following conditions occur: a) The employee fails to return from leave after the period of time to which the employee is entitled; and, b) The employee's failure to return from leave is for a reason other than one of the following: i) The employee takes leave under the California Family Rights Act (Sections 12945.2 and 19702.3 of the Government Code); or, SB 299 Page 2 ii) The continuation, recurrence or onset of a health condition that entitles the employee to pregnancy leave or other circumstances beyond the employee's control. 3)Requires the collective bargaining agreements of state agencies govern maternity coverage specified in this bill. 4)Contains language to avoid a chaptering conflict with AB 592 (Lara). FISCAL EFFECT : According to the Assembly Appropriations Committee, this bill will have negligible costs to the Department of Fair Employment Housing to enforce this measure. DFEH reports they currently investigate complaints related to pregnancy disability leave (PDL) and the California Family Rights Act (CFRA). COMMENTS : According to the author, the lack of maternity coverage assurance under current state law discourages and prevents women from taking pregnancy leave despite their health needs and the needs of their baby. The author states that women who are forced to pay out-of-pocket costs for health coverage delay or cut short their leave despite well-documented benefits to maternal and child health. In addition, the author notes that approximately four-fifths of pregnant women report that they were unable to take leave because they could not afford it. According to the author, meaningful access to leave - including the maintenance of health insurance coverage - is essential to the health and economic security of working women and their families. The federal Pregnancy Discrimination Act (PDA) requires employers who provide health insurance to cover expenses for pregnancy-related conditions. In addition, PDA requires employers who provide benefits to workers on leave to provide the same benefits for those who are on leave for pregnancy-related conditions. A 2008 report on women and health insurance by the American College of Obstetricians and Gynecologists (ACOG) found that women who lack health insurance also lack adequate access to care and have poorer health outcomes than insured women. ACOG notes that uninsured pregnant women are less likely to seek SB 299 Page 3 prenatal care and are 31% more likely than their insured counterparts to experience adverse health outcomes after giving birth - including higher rates of infant and maternal mortality. In a letter expressing co-sponsorship of this bill, the California Commission on the Status of Women (CCSW) writes that the current gap in state law puts the health and well-being of women and their infants at risk. CCSW notes that access to health care is absolutely crucial for pregnant women and the lack of protection in the current law discourages and prevents women from taking pregnancy leave despite their health needs and the needs of their babies. CCSW states that it is extremely important for pregnant women and new mothers to have access to both leave from work and continued health care coverage. Writing in support, the California Nurses Association asserts that pregnant women have a stronger connection to the workforce than ever before and health care benefits for women who are pregnant or have just given birth should not be terminated at a time when they are needed most. Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091 FN: 0002417