AB 578, as amended, Dickinson. Health care.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law requires each application for licensure as a health care service plan or specialized health care service plan under these provisions to be accompanied by specified information. Existing law requires the Director of the Department of Managed Care to issue a license to an individual filing an application if the director determines that the applicant has satisfied certain requirements. Existing law also provides for the regulation of health insurers by the Department of Insurance and authorizes the Insurance Commissioner to issue a certificate of authority to transact insurance, as specified.
This bill would require that the director or commissioner publish a notice, upon receiving an application from a first time health care service plan applicant or health insurer applicant, that would include information regarding the applicant and nature of the application, as specified. The bill would also require the departments to allow comments to be submitted through the departments’ Internet Web sites. The bill would require the director or commissioner to require the applicant to publish a written notice concerning the application pursuant to conditions imposed by the director or commissioner. The bill would require the director or commissioner to solicit, review, and consider public comments, as specified, and hold at least one public hearing if comments are received, prior to approving an application.begin insert The bill would authorize a consolidated public hearing that considers each application independently whenever comments regarding 2 or more pending applications are received.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1353 of the Health and Safety Code is
2amended to read:
(a) The director shall issue a license to any person filing
4an application pursuant to this article, if the director, upon due
5consideration of the application and of the information obtained
6in any investigation, including, if necessary, an onsite inspection,
7determines that the applicant has satisfied the provisions of this
8chapter and that, in the judgment of the director, a disciplinary
9action pursuant to Section 1386 would not be warranted against
10the applicant. Otherwise, the director shall deny the application.
11(b) For a first time health care service plan applicant, the director
12shall publish a notice, upon receiving the application, in one or
13more
newspapers of general circulation in the proposed plan’s
14service area, describing the name of the applicant, the nature of
15the application, and the date of receipt of the application. The
16notice shall indicate that the director is soliciting public comments
17and may hold a public hearing on the application. The department
18shall allow comments to be submitted through its Internet Web
19site. The director shall require the applicant to publish a written
20notice concerning the application pursuant to conditions imposed
21by the director.
22(c) Prior to approving the application, the director shall solicit,
23
review, and consider public comments in written form and shall
24hold at least one public hearing if comments are received
25concerning the application.begin insert Whenever the director receives
P3 1comments regarding two or more pending applications, the director
2may hold one consolidated hearing that considers each application
3independently.end insert
Section 717.7 is added to the Insurance Code, to read:
(a) For a first time applicant for a certificate of authority
6to transact health insurance, the commissioner shall publish a
7notice, upon receiving the application, in one or more newspapers
8of general circulation, describing the name of the applicant, the
9nature of the application, and the date of receipt of the application.
10The notice shall indicate that the commissioner is soliciting public
11comments and may hold a public hearing on the application. The
12department shall allow comments to be submitted through its
13Internet Web site. The commissioner shall require the applicant
14to publish a written notice concerning the application pursuant to
15conditions imposed by the commissioner.
16(b) Prior to approving the application, the commissioner shall
17solicit, review, and consider public comments in written form and
18shall hold at least one public hearing if comments are received
19concerning the application.begin insert Whenever the commissioner receives
20comments regarding two or more pending applications, the
21commissionerend insertbegin insert may hold one consolidated hearing that considers
22each application independently.end insert
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