BILL NUMBER: SB 1320	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 28, 2012

INTRODUCED BY   Senator Harman

                        FEBRUARY 23, 2012

   An act  to add Chapter 2.23 (commencing with Section 1399.875)
to Division 2 of the Health and Safety Code, and to add Section
106.5 to the Insurance Code,   relating to health care.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1320, as amended, Harman.  Direct primary care
  Retainer  practices.
   Existing law provides for the licensure and regulation of various
 healings  healing  arts practitioners.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans. Existing law also provides for the regulation of health
insurers by the Department of Insurance.
   This bill would state various findings with respect to the use of
 direct primary care   retainer  practices
in which a patient enters into a direct relationship with a physician
and pays the physician a fixed amount for primary care services. The
bill  would state the intent of the Legislature to enact
legislation that  would define a  direct primary
care   retainer  practice and specify that such a
practice is not  subject to regulation as  a health care
service plan or a health insurer.
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

  SECTION 1.   (a)    The
Legislature hereby finds and declares that California needs a
multipronged approach to make health care services more readily
available and affordable to the many residents of the state who lack
adequate access to those services.  Direct primary care
  Retainer  practices, in which a patient enters
into a direct relationship with a physician and pays a fixed amount
directly to the physician for primary care services, represent an
innovative, affordable option that could improve access to medical
care, reduce the number of people who lack this access, reduce
emergency room use for primary care purposes, and make emergency
rooms more available to treat actual emergencies. 
   (b) It 
    It  is the intent of the Legislature to  enact
legislation that would do both of the following: 
    (1)     Define
  define  the term  "direct primary care
  "retainer  practice" in a manner that ensures
patient safety and allows this innovative model to operate
efficiently and unencumbered by unnecessary state government
regulation. 
   (2) Specify that a direct primary care practice is not a health
care service plan subject to regulation under the Knox-Keene Health
Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code) or a health
insurer subject to regulation by the Insurance Commissioner under the
Insurance Code. 
   SEC. 2.    Chapter 2.23 (commencing with Section
1399.875) is a   dded to Division 2 of the   Health
and Safety Code   , to read:  
      CHAPTER 2.23.  RETAINER PRACTICES


   1399.875.  Notwithstanding any other law, a retainer practice is
not a health care service plan subject to regulation under the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340)).
   1399.876.  (a) For purposes of this chapter, a "retainer practice"
means any person who meets both of the following requirements:
   (1) Licensed to practice medicine by the Medical Board of
California pursuant to Chapter 5 (commencing with Section 2000) of
Division 2 of the Business and Professions Code.
   (2) Contracts with patients to provide primary care services, in
whole or in part, based on a periodic fee.
   (b) For purposes of this section, "primary care services" means
medical services for which no specialty is commonly required, and
specifically excludes all of the following services:
   (1) Acupuncture.
   (2) Chiropractic.
   (3) Dental.
   (4) Emergency.
   (5) Hospital.
   (6) Vision. 
   SEC. 3.   Section 106.5 is added to the  
Insurance Code   , to read:  
   106.5.  (a) Notwithstanding any other law, a retainer practice is
not subject to regulation as a health insurer by the Insurance
Commissioner.
   (b) For purposes of this section, a "retainer practice" means any
person who meets both of the following requirements:
   (1) Licensed to practice medicine by the Medical Board of
California pursuant to Chapter 5 (commencing with Section 2000) of
Division 2 of the Business and Professions Code.
   (2) Contracts with patients to provide primary care services, in
whole or in part, based on a periodic fee.
   (b) For purposes of this section, "primary care services" means
medical services for which no specialty is commonly required, and
specifically excludes all of the following services:
   (1) Acupuncture.
   (2) Chiropractic.
   (3) Dental.
   (4) Emergency.
   (5) Hospital.
   (6) Vision.