Amended in Senate February 14, 2013

Senate Bill No. 20

Introduced by Senator Hernandez

December 3, 2012

An act begin delete relating to health care coverage. end delete begin insert to amend Section 1341.45 of the Health and Safety Code, relating to health. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 20, as amended, Hernandez. begin delete Health care coverage: basic health program. end delete begin insert Health care: workforce training. end insert

begin insert

Existing law provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and imposes certain requirements on health care service plans. Existing law imposes, for certain violations of these provisions, various fines and administrative penalties, which are deposited in the Managed Care Administrative Fines and Penalties Fund. Existing law requires the first $1,000,000 in the fund to be transferred each year to the Medically Underserved Account for Physicians in the Health Professions Education Fund for purposes of the Steven M. Thompson Physician Corps Loan Repayment Program. Existing law requires all remaining funds to be transferred each year to the Major Risk Medical Insurance Fund for purposes of the Major Risk Medical Insurance Program.

end insert begin insert

This bill, beginning on the date that the Major Risk Medical Insurance Program becomes inoperative, would instead require all the funds in the Managed Care Administrative Fines and Penalties Fund to be transferred each year to the Medically Underserved Account for Physicians in the Health Professions Education Fund for purposes of the Steven M. Thompson Physician Corps Loan Repayment Program. The bill would require the Director of Finance to notify the Joint Legislative Budget Committee in that regard.

end insert begin delete

Existing law, the federal Patient Protection and Affordable Care Act (PPACA), requires each state to, by January 1, 2014, establish an American Health Benefit Exchange that makes available qualified health plans to qualified individuals and small employers. PPACA also authorizes the establishment of a basic health program under which a state may, if specified criteria are met, enter into contracts to offer one or more standard health plans providing a minimum level of essential health benefits to eligible individuals instead of offering those individuals coverage through an exchange.

end delete begin delete

This bill would state the intent of the Legislature to enact legislation that would establish a basic health program in California as described in PPACA.

end delete

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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1341.45 of the end insert begin insert Health and Safety Code end insert
begin insert is amended to read: end insert

1341.45.  

(a) There is hereby created in the State Treasury the
Managed Care Administrative Fines and Penalties Fund.

(b) The fines and administrative penalties collected pursuant to
this chapter, on and after the operative date of this section, shall
be deposited into the Managed Care Administrative Fines and
Penalties Fund.

(c)  begin insert (1) end insert begin insert   end insert The fines and administrative penalties deposited into
the Managed Care Administrative Fines and Penalties Fund shall
be transferred by the department, beginning September 1, 2009,
and annually thereafter, as follows:

begin delete

(1)

end delete

begin insert (A) end insert  The first one million dollars ($1,000,000) shall be transferred
to the Medically Underserved Account for Physicians within the
Health Professions Education Fund and shall, upon appropriation
by the Legislature, be used for the purposes of the Steven M.
Thompson Physician Corps Loan Repayment Program, as specified
in Article 5 (commencing with Section 128550) begin delete or end delete begin insert of end insert Chapter 5
of Part 3 of Division 107 and, notwithstanding Section 128555,
shall not be used to provide funding for the Physician Volunteer
Program.

begin delete

(2)

end delete

begin insert (B) end insert  Any amount over the first one million dollars ($1,000,000),
including accrued interest, in the fund shall be transferred to the
Major Risk Medical Insurance Fund created pursuant to Section
12739 of the Insurance Code and shall, upon appropriation by the
Legislature, be used for the Major Risk Medical Insurance Program
for the purposes specified in Section 12739.1 of the Insurance
Code.

begin insert

(C) Transfers under this paragraph shall cease on the date the
Managed Risk Medical Insurance Program becomes inoperative.
The Director of Finance shall notify the Joint Legislative Budget
Committee at the time the program becomes inoperative.

end insert begin insert

(2) Commencing on the date transfers under paragraph (1)
cease, and annually thereafter, the fines and administrative
penalties deposited into the Managed Care Administrative Fines
and Penalties Fund shall be transferred by the department to the
Medically Underserved Account for Physicians within the Health
Professions Education Fund and shall, upon appropriation by the
Legislature, be used for the purposes of the Steven M. Thompson
Physician Corps Loan Repayment Program, as specified in Article
5 (commencing with Section 128550) of Chapter 5 of Part 3 of
Division 107 and, notwithstanding Section 128555, shall not be
used to provide funding for the Physician Volunteer Program.

end insert

(d) Notwithstanding subdivision (b) of Section 1356 and Section
1356.1, the fines and administrative penalties authorized pursuant
to this chapter shall not be used to reduce the assessments imposed
on health care service plans pursuant to Section 1356.

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation that would establish the basic health program described
in Section 1331 of the federal Patient Protection and Affordable
Care Act (42 U.S.C. Sec. 18051).

end delete