BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 912
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 912 (Quirk-Silva)
          As Amended September 3, 2013
          Majority vote
           
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          |ASSEMBLY:  |52-26|(May 29, 2013)  |SENATE: |24-12|(September 6,  |
          |           |     |                |        |     |2013)          |
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          Original Committee Reference:    HEALTH  

           SUMMARY  :  Mandates that every large group health care service  
          plan contract and health insurance policy that is issued,  
          amended, or renewed, on and after January 1, 2014, provide  
          coverage for medically necessary expenses for standard fertility  
          preservation services when a  necessary medical treatment may  
          directly or indirectly cause iatrogenic infertility to an  
          enrollee or insured.

           The Senate amendments  :  

          1)Apply this bill's provisions to the large group health  
            insurance market.

          2)Define "Standard fertility preservation services" as  
            procedures consistent with established medical practices and  
            professional guidelines published by the American Society for  
            Reproductive Medicine, the American Society of Clinical  
            Oncology, or other reputable professional medical  
            organizations. 

          3)Define "May directly or indirectly cause" as treatment with a  
            likely side effect of infertility as established by the  
            American Society for Reproductive Medicine, the American  
            Society of Clinical Oncology, or other reputable professional  
            organizations.

          4)Authorize the Department of Health Care (DMHC) and the  
            California Department of Insurance (CDI) to adopt regulations  
            to implement this bill.

           EXISTING LAW  establishes the Knox-Keene Health Care Service Plan  
          Act of 1975 to regulate and license health plans and specialized  
          health plans by DMHC, mandates coverage for basic health care  








                                                                  AB 912
                                                                  Page  2

          services, and provides for the regulation of health insurers by  
          the CDI.  Requires health plan contracts and health insurance  
          policies to offer group coverage for the treatment of  
          infertility, as defined.

           AS PASSED BY THE ASSEMBLY  , this bill mandated that every group  
          or individual health care service plan contract and health  
          insurance policy that is issued, amended, or renewed, on and  
          after January 1, 2014, provide coverage for medically necessary  
          expenses for standard fertility preservation services when a  
          necessary medical treatment may cause iatrogenic infertility to  
          an enrollee or insured.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, increased health care costs to California Public  
          Employees' Retirement System (CalPERS) of about $70,000 per year  
          (various funds) based on an analysis by the California Health  
          Benefits Review Program.  However, CalPERS indicates that their  
          costs from this bill could be higher, depending on the demand  
          for fertility preservation services related to infertility  
          caused by medications and procedures other than those used to  
          treat cancer.  No anticipated costs to the Medi-Cal program.   
          Under existing law, Medi-Cal managed care plans are not  
          considered "large group" plans and thus are not impacted by this  
          benefit mandate.  No anticipated costs to the state to pay for  
          the cost of subsidizing benefits in the California Health  
          Benefit Exchange.   One-time costs of about $20,000 for the  
          review of plan filings by the DMHC (Managed Care Fund).  Ongoing  
          costs of about $10,000 per year for review of insurance policy  
          filings by the CDI (Insurance Fund).

           
          Analysis Prepared by :    Teri Boughton / HEALTH / (916) 319-2097  



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