BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 615 ()
Hearing Date: 5/26/2011 Amended: 5/10/2011
Consultant: Katie Johnson Policy Vote: Insurance 8-0,
Health 9-0
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BILL SUMMARY: SB 615 would require, on and after January 1,
2013, solicitors and solicitor firms, and principal persons
engaged in the supervision of solicitation for health care
service plan contracts to complete specified training. The bill
would require the Insurance Commissioner's curriculum board to
make recommendations to the commissioner to instruct accident
and health agents about the requirements imposed by the federal
Affordable Care Act.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
DMHC regulations and likely in the hundreds of thousands
fromSpecial*
curriculum development January 1, 2012, to January 1, 2013
Ongoing DMHC monitoringunknown, likely in the hundreds of
Special*
thousands to low millions of dollars
*Managed Care Fund
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STAFF COMMENTS: SUSPENSE FILE.
On and after January 1, 2013, solicitors and solicitor firms,
and principal persons engaged in the supervision of solicitation
for health care service plan contracts, which are regulated by
the Department of Managed Health Care (DMHC) to complete
specified training, including:
1) Knowledge of the Knox-Keene Act and any regulations
implemended under it;
2) Knowledge of the Patient Protection and Affordable Care
Act (Public Law 111-148), as amended by the Health Care
SB 615 (Calderon)
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Education and Reconciliation Act of 2010 (Public Law
111-152), (ACA) and any related federal regulations, rules,
or guidance;
3) Knowledge of all public coverage programs and the
California Health Benefit Exchange;
4) Ethics training, as specified.
The solicitor training described above would be required to be
at least as extensive as the training for an accident and health
agent as required by the California Department of Insurance
(CDI).
Navigators related to the California Health Benefit Exchange and
the current operations of the Healthy Families Program, Access
for Infants and Mothers Program, the Medi-Cal Program, and the
California Health Benefit Exchange would all be exempted from
these provisions.
This bill would also require CDI's curriculum board, in 2012, to
make recommendations to the commissioner to instruct accident
and health agents during prelicensing and continuing education
about the requirements of the ACA, public coverage programs, and
the California Health Benefit Exchange. Providers of the
curriculum would be required to submit it to CDI for approval.
Costs to CDI could be minor and absorbable to make
recommendations and to approve new curriculum.
Costs to the DMHC to promulgate regulations could be up to
approximately $100,000 in FY 2011-2012. Additionally, costs to
DMHC to develop a curriculum to train solicitors would be
potentially in the low hundreds of thousands of dollars in FY
2011-2012 and FY 2012-2013. Ongoing costs to DMHC to train and
monitor solicitors would be considerable, likely in the hundreds
of thousands to low millions of dollars. Each person who now
sells health care service plan coverage with an accident and
health license would need to be trained under these provisions,
with the possibility of an ethics course exemption. There are
approximately 200,000 individuals and businesses with a valid
accident and health license.
SB 615 (Calderon)
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