BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 20
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 20 (Hernández) - As Amended:  May 8, 2014 

          Policy Committee:                             HealthVote:14-4

          Urgency:     Yes                  State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY
           
          This bill, which contains an urgency clause, changes the 2015  
          open enrollment period for individual market health plans and  
          insurance policies to November 15, 2014 through February 15,  
          2015 and makes other minor technical changes.   
           
          FISCAL EFFECT  

          Negligible state fiscal effect. 

           COMMENTS  

           1)Purpose  .  The author states this bill is intended to modify  
            the individual market open enrollment period for the 2015  
            policy year to comply with the dates announced by the U.S.  
            Department of Health and Human Services (HHS).  

          2)Background  .  Under the federal Patient Protection and  
            Affordable Care Act (ACA), individuals are required to have  
            health insurance, and must purchase it during specified open  
            enrollment or special enrollment periods.  An annual open  
            enrollment period serves as a safeguard against people waiting  
            to become sick to enroll.  
                
            A March 2014 federal rule changed the open enrollment period  
            for health plans sold through exchanges for the 2015 benefit  
            year.  HHS, in its explanation of the rule, asserts that  
            extending the open enrollment period to February 15 is  
            beneficial for consumers because it provides additional time  
            to select a plan, and provides time for plans to collect  
            additional rating data.  
                 








                                                                 SB 20
                                                                  Page  2

            3)Related Legislation.   AB 2 X1 (Pan), Chapter 1, Statutes of  
            2013-14 First Extraordinary Session, and SB 2 X1 (Ed  
            Hernandez), Chapter 2, Statutes of 2013-14 First Extraordinary  
            Session, conform California law to the ACA as it relates to  
            the ability to sell and purchase individual health insurance  
            by establishing open enrollment periods, among other  
            provisions.  

          4)Urgency  . The author states immediate enactment is required to  
            provide health plans and insurers adequate preparation time to  
            develop rates and offerings for the 2015 plan year.  Coverage  
            and cost provisions of plans effective January of a given year  
            are developed months in advance. 
             
          Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081