Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 373

Introduced by Assembly Member Mullin

February 14, 2013

An act to amend Section 21661 of the Government Code, relating to public employee health benefits.

LEGISLATIVE COUNSEL’S DIGEST

AB 373, as amended, Mullin. Public Employees’ begin delete Long Term end delete begin insert Long-Term end insert Care Act.

The Public Employees begin delete ’ Long Term end delete begin insert Long-Term end insert Care Act requires the Board of Administration of the Public Employees’ Retirement System to contract with carriers offering long-term care insurance plans for eligible employees and annuitants, as defined. Existing law requires that long-term care insurance plans be made available periodically during open enrollment periods determined by the board. begin insert Existing law prescribes the classes of people who are eligible to enroll in these plans. end insert

This bill would begin delete make technical, nonsubstantive changes to these provisions end delete begin insert provide that domestic partners and adult children are eligible to enroll in long-term care plans offered under the Public Employees’ Long- end insert begin insert Term Care Act. The bill would specify that eligibility to enroll in these plans is subject to limitations of federal law. The bill would authorize the board to expand eligibility for these plans to all classes of persons who meet relevant requirements under the act and federal law. The bill would prescribe certain definitions for these purposes end insert .

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 21661 of the Government Code is
amended to read:

21661.  

(a)  begin delete The end delete begin insert For purposes of this section: end insert

begin insert

(1) “Adult children” means children who are at least 18 years
of age.

end insert begin insert

(2) “Domestic partners” means adults in a domestic partnership
as defined in Section 22771.

end insert begin insert

(3) “Siblings” means siblings who are at least 18 years of age.

end insert begin insert

(4) “Spouses” means parties in a marital relationship
recognized under the Internal Revenue Code, including, but not
limited to, Section 7702B(f)(2) of Title 26 of the United States
Code, or any other applicable authority that governs eligibility
for a federally qualified state long-term care plan.

end insert

begin insert (b) end insert begin insert   end insert begin insert The end insert board shall contract with carriers offering long-term
care insurance plans.

The long-term care insurance plans shall be made available
periodically during open enrollment periods as determined by the
board.

begin delete

(b)

end delete

begin insert (c) end insert  The board shall award contracts to carriers who are qualified
to provide long-term care benefits, and may develop and administer
self-funded long-term care insurance plans. The board may offer
one or more long-term care insurance plans.

begin delete

(c)

end delete

begin insert (d) end insert  The long-term care insurance plans shall include home,
community, and institutional care and shall, to the extent
determined by the board, provide substantially equivalent coverage
to that required under Chapter 2.6 (commencing with Section
10231) of Part 2 of Division 2 of the Insurance Code, if the carrier
has been approved by the Department of Managed Health Care
pursuant to Chapter 2.2 (commencing with Section 1340) of
Division 2 of the Health and Safety Code.

begin delete

(d) The

end delete

begin insert (e) end insert begin insert   end insert begin insert Except as prohibited by the Internal Revenue Code,
including, but not limited to, Section 7702B(f)(2) of Title 26 of the
United States Code, or any other authority that governs eligibility
for a federally qualified state long-term care plan, the end insert classes of
persons who shall be eligible to enroll are:

(1) Active and retired members and annuitants of the Public
Employees’ Retirement System, and their spouses, begin insert domestic
partners, end insert parents, siblings, begin insert adult children, end insert and spouses’ parents.

(2) Active and retired members and annuitants of the State
Teachers’ Retirement Plan, and their spouses, begin insert domestic partners, end insert
parents, siblings, begin insert adult children, end insert and spouses’ parents.

(3) Active and retired members and annuitants of the Judges’
Retirement System, and their spouses, begin insert domestic partners, end insert parents,
siblings, begin insert adult children, end insert and spouses’ parents.

(4) Active and retired members and annuitants of the Judges’
Retirement System II, and their spouses, begin insert domestic partners, end insert parents,
siblings, begin insert adult children, end insert and spouses’ parents.

(5) Active and retired members and annuitants of the
Legislators’ Retirement System, and their spouses, begin insert domestic
partners, end insert parents, begin insert adult children, end insert siblings, and spouses’ parents.

(6) Members of the California Assembly and Senate and their
spouses, begin insert domestic partners, end insert parents, siblings, begin insert adult children, end insert and
spouses’ parents.

(7) Active and retired members and annuitants, and other classes
of employees of a public agency that is located in this state, and
their spouses, begin insert domestic partners, end insert parents, siblings, begin insert adult children, end insert
and spouses’ parents.

begin insert

(f) The board may expand eligibility to all classes of persons
who meet the requirements of this section, applicable provisions
of the Internal Revenue Code, or any other authority that governs
eligibility for a federally qualified state long-term care plan.

end insert begin delete

(e)

end delete

begin insert (g) end insert  An individual specified in begin delete paragraphs (1) to (7), inclusive,
of subdivision (d) end delete begin insert subdivision (e) or (f) end insert shall not be eligible unless
he or she resides in the United States, its territories and possessions,
or in a country in which a provider network can be established
comparable in quality and effectiveness to those established in the
United States.

begin delete

(f)

end delete

begin insert (h) end insert  Notwithstanding begin delete paragraphs (1) to (7), inclusive, of
subdivision (d) end delete begin insert subdivision (e) or (f) end insert , a person shall not be enrolled
unless he or she meets the eligibility and underwriting criteria
established by the board.

begin delete

(g)

end delete

begin insert (i) end insert  Notwithstanding begin delete paragraphs (1) to (7), inclusive, of
subdivision (d) end delete begin insert subdivision (e) or (f) end insert , enrollment of active
employees of the State of California shall be subject to Section
19867.

begin delete

(h)

end delete

begin insert (j) end insert  The board shall establish eligibility criteria for enrollment,
establish appropriate underwriting criteria for potential enrollees,
define the scope of covered benefits, define the criteria to receive
benefits, and set any other standards as needed. begin delete As used in this
section, “sibling” means a sibling who is at least 18 years of age. end delete

begin delete

(i)

end delete

begin insert (k) end insert  The long-term care insurance plans shall not become part
of, or subject to, the retirement or health benefits programs
administered by the system.

begin delete

(j)

end delete

begin insert (l) end insert  For any self-funded long-term care plan developed by the
board, the premiums shall be deposited in the Public Employees’
begin delete Long-term end delete begin insert Long-Term end insert Care Fund.