BILL ANALYSIS Ó
SB 20
Page 1
SENATE THIRD READING
SB 20 (Ed Hernandez)
As Amended May 8, 2014
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
HEALTH 14-4 APPROPRIATIONS 12-5
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|Ayes:|Pan, Maienschein, |Ayes:|Gatto, Bocanegra, |
| |Ammiano, Gordon, Bonilla, | |Bradford, |
| |Bonta, Chesbro, Gomez, | |Ian Calderon, Campos, |
| |Gonzalez, Roger | |Eggman, Gomez, Holden, |
| |Hernández, Lowenthal, | |Pan, Quirk, |
| |Nazarian, | |Ridley-Thomas, Weber |
| |Ridley-Thomas, Wieckowski | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Chávez, Nestande, |Nays:|Bigelow, Donnelly, Jones, |
| |Patterson, Wagner | |Linder, Wagner |
| | | | |
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SUMMARY : Changes the 2015 open enrollment period for individual
market health plans and insurance policies from October 15,
2014, through December 7, 2014, to November 15, 2014, through
February 15, 2015, and contains an urgency clause to ensure that
the provisions of this bill to take immediate effect upon
enactment.
EXISTING LAW :
1)Restricts the purchase of guaranteed individual coverage to an
initial open enrollment period from October 1, 2013, through
March 31, 2014, subsequent annual enrollment periods from
October 15, 2014, through December 7, 2014, and in special
enrollment circumstances such as marriage, divorce, or loss of
coverage, as defined in state and federal law.
2)Requires, under federal regulations, annual open enrollment
for coverage sold through the California Health Benefit
Exchange (Exchange, now called Covered California) to begin on
November 15, 2014, and extend through February 15, 2015, for
the benefit year beginning on January 1, 2015.
SB 20
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3)Requires, under federal regulations, all health plans and
insurers in the individual market to allow an individual to
purchase health insurance coverage during the open enrollment
periods established for exchanges.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill would have negligible state fiscal effect.
COMMENTS : The author states that this bill is intended to
modify the individual market open enrollment period for the 2015
policy year in order to comply with the dates announced by the
United States Department of Health and Human Services (HHS).
The federal Patient Protection and Affordable Care Act (ACA)
requires the Secretary of HHS to establish open enrollment
periods for health plans sold through state exchanges and
requires individual market plans sold outside an exchange to be
offered during this open enrollment period as well. Open
enrollment serves as a safeguard against people waiting to
become sick to enroll. People will generally be unable to
enroll in individual coverage outside of the open enrollment
period unless they experience a qualifying life event, which
triggers a special enrollment opportunity. Such events include
loss of eligibility for other coverage, gaining a dependent,
divorce, or a large change in income.
A final HHS rule published March 11, 2014, changed the open
enrollment period for health plans sold through exchanges for
the 2015 benefit year. According to the new rule, the annual
open enrollment period will begin on November 15, 2014, and
extend through February 15, 2015. HHS, in its explanation of
the rule, asserts that extending the open enrollment period to
February 15, 2015, is beneficial for consumers because it
provides additional time to select a plan. HHS indicates that
it intends to propose open enrollment dates for the 2016 plan
year at a later date, allowing an additional year's experience
to inform the finalization of realistic enrollment dates for
2016.
Health Access California, in support, states California has
successfully implemented many elements of the ACA, but there are
still many things to improve before the next open enrollment
period. These include revising the single application,
improving information technology, changing rules for enrollment
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assistance and many other operational, implementation issues to
make reform work for Californians. Health Access states that,
given the challenges ahead, delaying and extending the next open
enrollment period makes sense. The California Association of
Health Plans, also in support, argues that this bill will
provide clarity for health plans, consumers and state regulators
and ensure that the open enrollment period in Covered California
remains compatible with open enrollment in the non-Exchange
market.
This bill has no opposition.
Analysis Prepared by : Ben Russell / HEALTH / (916) 319-2097
FN: 0003442