BILL NUMBER: SBX1 3 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 15, 2013
AMENDED IN ASSEMBLY MAY 28, 2013
AMENDED IN SENATE MARCH 6, 2013
INTRODUCED BY Senator Hernandez
FEBRUARY 5, 2013
An act to amend , repeal, and add Sections 100501 and
100503 of, and to add and repeal Sections 100504.5 and
100504.6 to of , the Government Code,
to amend , repeal, and add Section 1366.6 of, and to add
and repeal Section 1399.864 to of
, the Health and Safety Code, to amend , repeal, and add
Section 10112.3 of, and to add and repeal Section
10961 to of , the Insurance Code, and
to add and repeal Section 14005.70 to
of the Welfare and Institutions Code, relating to health
care coverage.
LEGISLATIVE COUNSEL'S DIGEST
SB 3, as amended, Hernandez. Health care coverage: bridge plan.
Existing law, the federal Patient Protection and Affordable Care
Act, 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.
Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Care Services and
under which qualified low-income persons receive health care
benefits. 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
also provides for the regulation of health insurers by the Department
of Insurance.
Under existing law, carriers that sell any products outside the
California Health Benefit Exchange (Exchange) are required to fairly
and affirmatively offer, market, and sell all products made available
to individuals or small employers in the Exchange to individuals or
small employers, respectively, purchasing coverage outside the
Exchange.
Existing law also requires carriers that participate in the
Exchange to fairly and affirmatively offer, market, and sell in the
Exchange at least one product within 5 levels of specified coverage.
This bill would exempt a bridge plan product, as defined, from
that latter requirement.
This bill would, among other things, also require the Exchange to
enter into contracts with and certify as a qualified health plan
bridge plan products that meet specified requirements, including
being a Medi-Cal managed care plan. The bill would also require the
Exchange to make available bridge plan products to eligible
individuals. The bill would authorize the Exchange, after consulting
with stakeholders, to adopt regulations to implement those
provisions, and until January 1, 2016, exempt the adoption,
amendment, or repeal of those regulations from the Administrative
Procedure Act.
The bill would require the Exchange to annually prepare a
specified written report on the implementation and performance of the
Exchange functions during the preceding fiscal year, and to prepare,
or contract for the preparation of, an evaluation of the bridge plan
program using the first 3 years of experience with the program, as
specified.
The bill would authorize a health care service plan or insurance
carrier offering a bridge plan product in the Exchange to limit the
products it offers in the Exchange to the bridge plan product, except
as required by federal law. The bill would define "bridge plan
product" as an individual health benefit plan offered by a licensed
health care service plan or health insurer that contracts with the
Exchange, as specified.
The bill would also require the State Department of Health Care
Services to impose specified requirements in its contracts with a
health care service plan or health insurer to provide Medi-Cal
managed care coverage but would authorize the department to contract
with the Exchange to delegate the implementation of those provisions.
The bill would require the Exchange to seek federal approval to
allow specified individuals the option to enroll in a different
bridge plan product if the individual's primary care provider is
included in the contracted network of the different bridge plan
product and either the bridge plan product for which the individual
is eligible is not offered in that individual's service area or is
not selected as a bridge plan product by the Exchange.
The bill would provide that its provisions would become
inoperative on the October 1 that is 5 years after the date that
federal approval of the bridge plan option occurs.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) It is the intent of the Legislature that the
Exchange provide a more affordable coverage option for low-income
individuals, improve continuity of care for individuals moving from
Medi-Cal to the Exchange, and reduce the need for individuals
previously enrolled in the Medi-Cal program to change health plans
due to changes in their household income.
(b) In addition to other plan choices, it is the intent of the
Legislature that the Exchange offer quality, affordable health plan
choices that, to the extent possible, will be the lowest cost silver
plan offered in the individual's geographic region through Medi-Cal
managed care plans that bridge Medicaid coverage and private
commercial health insurance for eligible lower income individuals.
(c) It is the intent of the Legislature that the
Exchange encourage Medi-Cal managed care plans to seek to contract to
offer bridge plan products.
SEC. 2. Section 100501 of the Government Code is amended to read:
100501. For purposes of this title, the following definitions
shall apply:
(a) "Board" means the board described in subdivision (a) of
Section 100500.
(b) "Bridge plan product" means an individual health benefit plan
as defined in subdivision (f) of Section 1399.845 of the Health and
Safety Code that is offered by a health care service plan licensed
under the Knox-Keene Health Care Service Plan Act of 1975 (Chapter
2.2 (commencing with Section 1340) of Division 2 of the Health and
Safety Code) or as defined in subdivision (a) of Section 10198.6 of
the Insurance Code that is offered by a health insurer licensed under
the Insurance Code that contracts with the Exchange pursuant to this
title.
(c) "Carrier" means either a private health insurer holding a
valid outstanding certificate of authority from the Insurance
Commissioner or a health care service plan, as defined under
subdivision (f) of Section 1345 of the Health and Safety Code,
licensed by the Department of Managed Health Care.
(d) "Exchange" means the California Health Benefit Exchange
established by Section 100500.
(e) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(f) "Fund" means the California Health Trust Fund established by
Section 100520.
(g) "Health plan" and "qualified health plan" have the same
meanings as those terms are defined in Section 1301 of the federal
act.
(h) "Healthy Families coverage" means coverage under the Healthy
Families Program pursuant to Part 6.2 (commencing with Section 12693)
of Division 2 of the Insurance Code.
(i) "Medi-Cal coverage" means coverage under the Medi-Cal program
pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of
Division 9 of the Welfare and Institutions Code.
(j) "Modified adjusted gross income" shall have the same meaning
as the term is used in Section 1401(d)(2)(B) (26 U.S.C. Sec. 36B) of
the federal act.
(k) "Members of the modified adjusted gross income household"
shall mean any individual who would be included in the calculation
for modified adjusted gross income pursuant to Section 1401(a) (26
U.S.C. Sec. 36B(d)) of the federal act and as otherwise determined by
the Exchange as permitted by the federal act and this title.
(l) "SHOP Program" means the Small Business Health Options Program
established by subdivision (m) of Section 100502.
(m) "Supplemental coverage" means coverage through a specialized
health care service plan contract, as defined in subdivision (o) of
Section 1345 of the Health and Safety Code, or a specialized health
insurance policy, as defined in Section 106 of the Insurance Code.
(n) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 3. Section 100501 is added to the
Government Code , to read:
100501. For purposes of this title, the following definitions
shall apply:
(a) "Board" means the board described in subdivision (a) of
Section 100500.
(b) "Carrier" means either a private health insurer holding a
valid outstanding certificate of authority from the Insurance
Commissioner or a health care service plan, as defined under
subdivision (f) of Section 1345 of the Health and Safety Code,
licensed by the Department of Managed Health Care.
(c) "Exchange" means the California Health Benefit Exchange
established by Section 100500.
(d) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(e) "Fund" means the California Health Trust Fund established by
Section 100520.
(f) "Health plan" and "qualified health plan" have the same
meanings as those terms are defined in Section 1301 of the federal
act.
(g) "SHOP Program" means the Small Business Health Options Program
established by subdivision (m) of Section 100502.
(h) "Supplemental coverage" means coverage through a specialized
health care service plan contract, as defined in subdivision (o) of
Section 1345 of the Health and Safety Code, or a specialized health
insurance policy, as defined in Section 106 of the Insurance Code.
(i) This section shall become operative only if Section 2 of the
act that added this section becomes inoperative pursuant to
subdivision (n) of that Section 2.
SEC. 3. SEC. 4. Section 100503 of the
Government Code is amended to read:
100503. In addition to meeting the minimum requirements of
Section 1311 of the federal act, the board shall do all of the
following:
(a) Determine the criteria and process for eligibility,
enrollment, and disenrollment of enrollees and potential enrollees in
the Exchange and coordinate that process with the state and local
government entities administering other health care coverage
programs, including the State Department of Health Care Services, the
Managed Risk Medical Insurance Board, and California counties, in
order to ensure consistent eligibility and enrollment processes and
seamless transitions between coverage.
(b) Develop processes to coordinate with the county entities that
administer eligibility for the Medi-Cal program and the entity that
determines eligibility for the Healthy Families Program, including,
but not limited to, processes for case transfer, referral, and
enrollment in the Exchange of individuals applying for assistance to
those entities, if allowed or required by federal law.
(c) Determine the minimum requirements a carrier must meet to be
considered for participation in the Exchange, and the standards and
criteria for selecting qualified health plans to be offered through
the Exchange that are in the best interests of qualified individuals
and qualified small employers. The board shall consistently and
uniformly apply these requirements, standards, and criteria to all
carriers. In the course of selectively contracting for health care
coverage offered to qualified individuals and qualified small
employers through the Exchange, the board shall seek to contract with
carriers so as to provide health care coverage choices that offer
the optimal combination of choice, value, quality, and service.
(d) Provide, in each region of the state, a choice of qualified
health plans at each of the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act.
(e) Require, as a condition of participation in the Exchange,
carriers to fairly and affirmatively offer, market, and sell in the
Exchange at least one product within each of the five levels of
coverage contained in subsections (d) and (e) of Section 1302 of the
federal act. The board may require carriers to offer additional
products within each of those five levels of coverage. This
subdivision shall not apply to a carrier that solely offers
supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504.
(f) (1) Except as otherwise provided in this section and Section
100504.5, require, as a condition of participation in the Exchange,
carriers that sell any products outside the Exchange to do both of
the following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 of the Insurance Code between the Managed Risk
Medical Insurance Board and carriers for enrolled Healthy Families
beneficiaries or contracts entered into pursuant to Chapter 7
(commencing with Section 14000) of, or Chapter 8 (commencing with
Section 14200) of, Part 3 of Division 9 of the Welfare and
Institutions Code between the State Department of Health Care
Services and carriers for enrolled Medi-Cal beneficiaries. "Product"
also does not include a bridge plan product offered pursuant to
Section 100504.5.
(3) Except as required by Section 1301(a)(1)(C)(ii) of the federal
act, a carrier offering a bridge plan product in the Exchange may
limit the products it offers in the Exchange solely to a bridge plan
product contract.
(g) Determine when an enrollee's coverage commences and the extent
and scope of coverage.
(h) Provide for the processing of applications and the enrollment
and disenrollment of enrollees.
(i) Determine and approve cost-sharing provisions for qualified
health plans.
(j) Establish uniform billing and payment policies for qualified
health plans offered in the Exchange to ensure consistent enrollment
and disenrollment activities for individuals enrolled in the
Exchange.
(k) Undertake activities necessary to market and publicize the
availability of health care coverage and federal subsidies through
the Exchange. The board shall also undertake outreach and enrollment
activities that seek to assist enrollees and potential enrollees with
enrolling and reenrolling in the Exchange in the least burdensome
manner, including populations that may experience barriers to
enrollment, such as the disabled and those with limited English
language proficiency.
(l) Select and set performance standards and compensation for
navigators selected under subdivision (l) of Section 100502.
(m) Employ necessary staff.
(1) The board shall hire a chief fiscal officer, a chief
operations officer, a director for the SHOP Exchange, a director of
Health Plan Contracting, a chief technology and information officer,
a general counsel, and other key executive positions, as determined
by the board, who shall be exempt from civil service.
(2) (A) The board shall set the salaries for the exempt positions
described in paragraph (1) and subdivision (i) of Section 100500 in
amounts that are reasonably necessary to attract and retain
individuals of superior qualifications. The salaries shall be
published by the board in the board's annual budget. The board's
annual budget shall be posted on the Internet Web site of the
Exchange. To determine the compensation for these positions, the
board shall cause to be conducted, through the use of independent
outside advisors, salary surveys of both of the following:
(i) Other state and federal health insurance exchanges that are
most comparable to the Exchange.
(ii) Other relevant labor pools.
(B) The salaries established by the board under subparagraph (A)
shall not exceed the highest comparable salary for a position of that
type, as determined by the surveys conducted pursuant to
subparagraph (A).
(C) The Department of Human Resources shall review the methodology
used in the surveys conducted pursuant to subparagraph (A).
(3) The positions described in paragraph (1) and subdivision (i)
of Section 100500 shall not be subject to otherwise applicable
provisions of the Government Code or the Public Contract Code and,
for those purposes, the Exchange shall not be considered a state
agency or public entity.
(n) Assess a charge on the qualified health plans offered by
carriers that is reasonable and necessary to support the development,
operations, and prudent cash management of the Exchange. This charge
shall not affect the requirement under Section 1301 of the federal
act that carriers charge the same premium rate for each qualified
health plan whether offered inside or outside the Exchange.
(o) Authorize expenditures, as necessary, from the California
Health Trust Fund to pay program expenses to administer the Exchange.
(p) Keep an accurate accounting of all activities, receipts, and
expenditures, and annually submit to the United States Secretary of
Health and Human Services a report concerning that accounting.
Commencing January 1, 2016, the board shall conduct an annual audit.
(q) (1) Annually prepare a written report on the implementation
and performance of the Exchange functions during the preceding fiscal
year, including, at a minimum, the manner in which funds were
expended and the progress toward, and the achievement of, the
requirements of this title. The report shall also include data
provided by health care service plans and health insurers offering
bridge plan products regarding the extent of health care provider and
health facility overlap in their Medi-Cal networks as compared to
the health care provider and health facility networks contracting
with the plan or insurer in their bridge plan contracts. This report
shall be transmitted to the Legislature and the Governor and shall be
made available to the public on the Internet Web site of the
Exchange. A report made to the Legislature pursuant to this
subdivision shall be submitted pursuant to Section 9795.
(2) The Exchange shall prepare, or contract for the preparation
of, an evaluation of the bridge plan program using the first three
years of experience with the program. The evaluation shall be
provided to the health policy and fiscal committees of the
Legislature in the fourth year following federal approval of the
bridge plan option. The evaluation shall include, but not be limited
to, all of the following:
(A) The number of individuals eligible to participate in the
bridge plan program each year by category of eligibility.
(B) The number of eligible individuals who elect a bridge plan
option each year by category of eligibility.
(C) The average length of time, by region and statewide, that
individuals remain in the bridge plan option each year by category of
eligibility.
(D) The regions of the state with a bridge plan option, and the
carriers in each region that offer a bridge plan, by year.
(E) The premium difference each year, by region, between the
bridge plan and the first and second lowest cost plan for individuals
in the Exchange who are not eligible for the bridge plan.
(F) The effect of the bridge plan on the premium subsidy amount
for bridge plan eligible individuals each year by each region.
(G) Based on a survey of individuals enrolled in the bridge plan:
(i) Whether individuals enrolling in the bridge plan product are
able to keep their existing health care providers.
(ii) Whether individuals would want to retain their bridge plan
product, buy a different Exchange product, or decline to purchase
health insurance if there was no bridge plan product available. The
Exchange may include questions designed to elicit the information in
this subparagraph as part of an existing survey of individuals
receiving coverage in the Exchange.
(3) In addition to the evaluation required by paragraph (2), the
Exchange shall post the items in subparagraphs (A) to (F), inclusive,
on its Internet Web site each year.
(2)
(4) In addition to the report described in paragraph
(1), the board shall be responsive to requests for additional
information from the Legislature, including providing testimony and
commenting on proposed state legislation or policy issues. The
Legislature finds and declares that activities including, but not
limited to, responding to legislative or executive inquiries,
tracking and commenting on legislation and regulatory activities, and
preparing reports on the implementation of this title and the
performance of the Exchange, are necessary state requirements and are
distinct from the promotion of legislative or regulatory
modifications referred to in subdivision (d) of Section 100520.
(r) Maintain enrollment and expenditures to ensure that
expenditures do not exceed the amount of revenue in the fund, and if
sufficient revenue is not available to pay estimated expenditures,
institute appropriate measures to ensure fiscal solvency.
(s) Exercise all powers reasonably necessary to carry out and
comply with the duties, responsibilities, and requirements of this
act and the federal act.
(t) Consult with stakeholders relevant to carrying out the
activities under this title, including, but not limited to, all of
the following:
(1) Health care consumers who are enrolled in health plans.
(2) Individuals and entities with experience in facilitating
enrollment in health plans.
(3) Representatives of small businesses and self-employed
individuals.
(4) The State Medi-Cal Director.
(5) Advocates for enrolling hard-to-reach populations.
(u) Facilitate the purchase of qualified health plans in the
Exchange by qualified individuals and qualified small employers no
later than January 1, 2014.
(v) Report, or contract with an independent entity to report, to
the Legislature by December 1, 2018, on whether to adopt the option
in Section 1312(c)(3) of the federal act to merge the individual and
small employer markets. In its report, the board shall provide
information, based on at least two years of data from the Exchange,
on the potential impact on rates paid by individuals and by small
employers in a merged individual and small employer market, as
compared to the rates paid by individuals and small employers if a
separate individual and small employer market is maintained. A report
made pursuant to this subdivision shall be submitted pursuant to
Section 9795.
(w) With respect to the SHOP Program, collect premiums and
administer all other necessary and related tasks, including, but not
limited to, enrollment and plan payment, in order to make the
offering of employee plan choice as simple as possible for qualified
small employers.
(x) Require carriers participating in the Exchange to immediately
notify the Exchange, under the terms and conditions established by
the board when an individual is or will be enrolled in or disenrolled
from any qualified health plan offered by the carrier.
(y) Ensure that the Exchange provides oral interpretation services
in any language for individuals seeking coverage through the
Exchange and makes available a toll-free telephone number for the
hearing and speech impaired. The board shall ensure that written
information made available by the Exchange is presented in a plainly
worded, easily understandable format and made available in prevalent
languages.
(z) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 5. Section 100503 is added to the
Government Code , to read:
100503. In addition to meeting the minimum requirements of
Section 1311 of the federal act, the board shall do all of the
following:
(a) Determine the criteria and process for eligibility,
enrollment, and disenrollment of enrollees and potential enrollees in
the Exchange and coordinate that process with the state and local
government entities administering other health care coverage
programs, including the State Department of Health Care Services, the
Managed Risk Medical Insurance Board, and California counties, in
order to ensure consistent eligibility and enrollment processes and
seamless transitions between coverage.
(b) Develop processes to coordinate with the county entities that
administer eligibility for the Medi-Cal program and the entity that
determines eligibility for the Healthy Families Program, including,
but not limited to, processes for case transfer, referral, and
enrollment in the Exchange of individuals applying for assistance to
those entities, if allowed or required by federal law.
(c) Determine the minimum requirements a carrier must meet to be
considered for participation in the Exchange, and the standards and
criteria for selecting qualified health plans to be offered through
the Exchange that are in the best interests of qualified individuals
and qualified small employers. The board shall consistently and
uniformly apply these requirements, standards, and criteria to all
carriers. In the course of selectively contracting for health care
coverage offered to qualified individuals and qualified small
employers through the Exchange, the board shall seek to contract with
carriers so as to provide health care coverage choices that offer
the optimal combination of choice, value, quality, and service.
(d) Provide, in each region of the state, a choice of qualified
health plans at each of the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act.
(e) Require, as a condition of participation in the Exchange,
carriers to fairly and affirmatively offer, market, and sell in the
Exchange at least one product within each of the five levels of
coverage contained in subsections (d) and (e) of Section 1302 of the
federal act. The board may require carriers to offer additional
products within each of those five levels of coverage. This
subdivision shall not apply to a carrier that solely offers
supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504.
(f) (1) Require, as a condition of participation in the Exchange,
carriers that sell any products outside the Exchange to do both of
the following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 of the Insurance Code between the Managed Risk
Medical Insurance Board and carriers for enrolled Healthy Families
beneficiaries or contracts entered into pursuant to Chapter 7
(commencing with Section 14000) of, or Chapter 8 (commencing with
Section 14200) of, Part 3 of Division 9 of the Welfare and
Institutions Code between the State Department of Health Care
Services and carriers for enrolled Medi-Cal beneficiaries.
(g) Determine when an enrollee's coverage commences and the extent
and scope of coverage.
(h) Provide for the processing of applications and the enrollment
and disenrollment of enrollees.
(i) Determine and approve cost-sharing provisions for qualified
health plans.
(j) Establish uniform billing and payment policies for qualified
health plans offered in the Exchange to ensure consistent enrollment
and disenrollment activities for individuals enrolled in the
Exchange.
(k) Undertake activities necessary to market and publicize the
availability of health care coverage and federal subsidies through
the Exchange. The board shall also undertake outreach and enrollment
activities that seek to assist enrollees and potential enrollees with
enrolling and reenrolling in the Exchange in the least burdensome
manner, including populations that may experience barriers to
enrollment, such as the disabled and those with limited English
language proficiency.
(l) Select and set performance standards and compensation for
navigators selected under subdivision (l) of Section 100502.
(m) Employ necessary staff.
(1) The board shall hire a chief fiscal officer, a chief
operations officer, a director for the SHOP Exchange, a director of
Health Plan Contracting, a chief technology and information officer,
a general counsel, and other key executive positions, as determined
by the board, who shall be exempt from civil service.
(2) (A) The board shall set the salaries for the exempt positions
described in paragraph (1) and subdivision (i) of Section 100500 in
amounts that are
reasonably necessary to attract and retain individuals of superior
qualifications. The salaries shall be published by the board in the
board's annual budget. The board's annual budget shall be posted on
the Internet Web site of the Exchange. To determine the compensation
for these positions, the board shall cause to be conducted, through
the use of independent outside advisors, salary surveys of both of
the following:
(i) Other state and federal health insurance exchanges that are
most comparable to the Exchange.
(ii) Other relevant labor pools.
(B) The salaries established by the board under subparagraph (A)
shall not exceed the highest comparable salary for a position of that
type, as determined by the surveys conducted pursuant to
subparagraph (A).
(C) The Department of Human Resources shall review the methodology
used in the surveys conducted pursuant to subparagraph (A).
(3) The positions described in paragraph (1) and subdivision (i)
of Section 100500 shall not be subject to otherwise applicable
provisions of the Government Code or the Public Contract Code and,
for those purposes, the Exchange shall not be considered a state
agency or public entity.
(n) Assess a charge on the qualified health plans offered by
carriers that is reasonable and necessary to support the development,
operations, and prudent cash management of the Exchange. This charge
shall not affect the requirement under Section 1301 of the federal
act that carriers charge the same premium rate for each qualified
health plan whether offered inside or outside the Exchange.
(o) Authorize expenditures, as necessary, from the California
Health Trust Fund to pay program expenses to administer the Exchange.
(p) Keep an accurate accounting of all activities, receipts, and
expenditures, and annually submit to the United States Secretary of
Health and Human Services a report concerning that accounting.
Commencing January 1, 2016, the board shall conduct an annual audit.
(q) (1) Annually prepare a written report on the implementation
and performance of the Exchange functions during the preceding fiscal
year, including, at a minimum, the manner in which funds were
expended and the progress toward, and the achievement of, the
requirements of this title. This report shall be transmitted to the
Legislature and the Governor and shall be made available to the
public on the Internet Web site of the Exchange. A report made to the
Legislature pursuant to this subdivision shall be submitted pursuant
to Section 9795.
(2) In addition to the report described in paragraph (1), the
board shall be responsive to requests for additional information from
the Legislature, including providing testimony and commenting on
proposed state legislation or policy issues. The Legislature finds
and declares that activities including, but not limited to,
responding to legislative or executive inquiries, tracking and
commenting on legislation and regulatory activities, and preparing
reports on the implementation of this title and the performance of
the Exchange, are necessary state requirements and are distinct from
the promotion of legislative or regulatory modifications referred to
in subdivision (d) of Section 100520.
(r) Maintain enrollment and expenditures to ensure that
expenditures do not exceed the amount of revenue in the fund, and if
sufficient revenue is not available to pay estimated expenditures,
institute appropriate measures to ensure fiscal solvency.
(s) Exercise all powers reasonably necessary to carry out and
comply with the duties, responsibilities, and requirements of this
act and the federal act.
(t) Consult with stakeholders relevant to carrying out the
activities under this title, including, but not limited to, all of
the following:
(1) Health care consumers who are enrolled in health plans.
(2) Individuals and entities with experience in facilitating
enrollment in health plans.
(3) Representatives of small businesses and self-employed
individuals.
(4) The State Medi-Cal Director.
(5) Advocates for enrolling hard-to-reach populations.
(u) Facilitate the purchase of qualified health plans in the
Exchange by qualified individuals and qualified small employers no
later than January 1, 2014.
(v) Report, or contract with an independent entity to report, to
the Legislature by December 1, 2018, on whether to adopt the option
in Section 1312(c)(3) of the federal act to merge the individual and
small employer markets. In its report, the board shall provide
information, based on at least two years of data from the Exchange,
on the potential impact on rates paid by individuals and by small
employers in a merged individual and small employer market, as
compared to the rates paid by individuals and small employers if a
separate individual and small employer market is maintained. A report
made pursuant to this subdivision shall be submitted pursuant to
Section 9795.
(w) With respect to the SHOP Program, collect premiums and
administer all other necessary and related tasks, including, but not
limited to, enrollment and plan payment, in order to make the
offering of employee plan choice as simple as possible for qualified
small employers.
(x) Require carriers participating in the Exchange to immediately
notify the Exchange, under the terms and conditions established by
the board when an individual is or will be enrolled in or disenrolled
from any qualified health plan offered by the carrier.
(y) Ensure that the Exchange provides oral interpretation services
in any language for individuals seeking coverage through the
Exchange and makes available a toll-free telephone number for the
hearing and speech impaired. The board shall ensure that written
information made available by the Exchange is presented in a plainly
worded, easily understandable format and made available in prevalent
languages.
(z) This section shall become operative only if Section 4 of the
act that added this section becomes inoperative pursuant to
subdivision (z) of that Section 4.
SEC. 4. SEC. 6. Section 100504.5 is
added to the Government Code, to read:
100504.5. (a) To the extent approved by the appropriate federal
agency, for the purpose of implementing the option in paragraph (7)
of subdivision (a) of Section 100504, the Exchange shall make
available bridge plan products to individuals specified in Section
14005.70 of the Welfare and Institutions Code. In implementing this
requirement, the Exchange, using the selective contracting authority
described in subdivision (c) of Section 100503, shall contract with,
and certify as a qualified health plan, a bridge plan product that
is, at a minimum, certified by the Exchange as a qualified bridge
plan product. For purposes of this section, in order to be a
qualified bridge plan product, the plan shall do all of the
following:
(1) Be a health care service plan or health insurer that contracts
with the State Department of Health Care Services to provide
Medi-Cal managed care plan services pursuant to
Section 14005.70 of the Welfare and Institutions Code .
(2) Meet minimum requirements to contract with the Exchange as a
qualified health plan pursuant to Section 1301 of the federal Patient
Protection and Affordable Care Act (Public Law 111-148) and Sections
100502, 100503, and 100507 of this code.
(3) Enroll in the bridge plan product only individuals who meet
the requirements of Section 14005.70 of the Welfare and Institutions
Code.
(4) Comply with the medical loss ratio requirements of Section
1399.864 of the Health and Safety Code or Section 10961 of the
Insurance Code.
(5) Demonstrate the bridge plan product has, at minimum, a
substantially similar provider network as the Medi-Cal managed care
plan offered by the health care service plan or health insurer.
(b) The Exchange shall provide information on all of the available
Exchange-qualified health plans in the area, including, but not
limited to, bridge plan product options for selection by individuals
eligible to enroll in a bridge plan product.
(c) Nothing in this section shall be implemented in a manner that
conflicts with a requirement of the federal act.
(d) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 5. SEC. 7. Section 100504.6 is
added to the Government Code, to read:
100504.6. (a) The Exchange shall have the
authority to adopt regulations to implement the provisions of Section
100504.5. Prior to the adoption of regulations, the board and its
staff shall meet the requirement of subdivision (t) of Section 100503
in implementing the bridge plan option. Until January 1, 2016, the
adoption, amendment, or repeal of a regulation authorized by this
section shall be exempted from the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2).
(b) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 6. SEC. 8. Section 1366.6 of
the Health and Safety Code is amended to read:
1366.6. (a) For purposes of this section, the following
definitions shall apply:
(1) "Exchange" means the California Health Benefit Exchange
established in Title 22 (commencing with Section 100500) of the
Government Code.
(2) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(3) "Qualified health plan" has the same meaning as that term is
defined in Section 1301 of the federal act.
(4) "Small employer" has the same meaning as that term is defined
in Section 1357.
(b) (1) Health care service plans participating in the Exchange
shall fairly and affirmatively offer, market, and sell in the
Exchange at least one product within each of the five levels of
coverage contained in subsections (d) and (e) of Section 1302 of the
federal act.
(2) The board established under Section 100500 of the Government
Code may require plans to sell additional products within each of
those levels of coverage.
(3) This subdivision shall not apply to a plan that solely offers
supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504 of the Government Code.
(4) This subdivision shall not apply to a bridge plan product that
meets the requirements of Section 100504.5 of the Government Code to
the extent approved by the appropriate federal agency.
(c) (1) Health care service plans participating in the Exchange
that sell any products outside the Exchange shall do both of the
following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 of the Insurance Code between the Managed Risk
Medical Insurance Board and health care service plans for enrolled
Healthy Families beneficiaries or to contracts entered into pursuant
to Chapter 7 (commencing with Section 14000) of, or Chapter 8
(commencing with Section 14200) of, Part 3 of Division 9 of the
Welfare and Institutions Code between the State Department of Health
Care Services and health care service plans for enrolled Medi-Cal
beneficiaries, or for contracts with bridge plan products that meet
the requirements of Section 100504.5 of the Government Code.
(d) Commencing January 1, 2014, a health care service plan shall,
with respect to plan contracts that cover hospital, medical, or
surgical benefits, only sell the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act, except
that a health care service plan that does not participate in the
Exchange shall, with respect to plan contracts that cover hospital,
medical, or surgical benefits, only sell the four levels of coverage
contained in Section 1302(d) of the federal act.
(e) Commencing January 1, 2014, a health care service plan that
does not participate in the Exchange shall, with respect to plan
contracts that cover hospital, medical, or surgical benefits, offer
at least one standardized product that has been designated by the
Exchange in each of the four levels of coverage contained in Section
1302(d) of the federal act. This subdivision shall only apply if the
board of the Exchange exercises its authority under subdivision (c)
of Section 100504 of the Government Code. Nothing in this subdivision
shall require a plan that does not participate in the Exchange to
offer standardized products in the small employer market if the plan
only sells products in the individual market. Nothing in this
subdivision shall require a plan that does not participate in the
Exchange to offer standardized products in the individual market if
the plan only sells products in the small employer market. This
subdivision shall not be construed to prohibit the plan from offering
other products provided that it complies with subdivision (d).
(f) For purposes of this section, a bridge plan product shall mean
an individual health benefit plan, as defined in subdivision (f) of
Section 1399.845, that is offered by a health care service plan
licensed under this chapter that contracts with the Exchange pursuant
to Title 22 (commencing with Section 100500) of the Government Code.
(g) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 9. Section 1366.6 is added to the
Health and Safety Code , to read:
1366.6. (a) For purposes of this section, the following
definitions shall apply:
(1) "Exchange" means the California Health Benefit Exchange
established in Title 22 (commencing with Section 100500) of the
Government Code.
(2) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(3) "Qualified health plan" has the same meaning as that term is
defined in Section 1301 of the federal act.
(4) "Small employer" has the same meaning as that term is defined
in Section 1357.
(b) Health care service plans participating in the Exchange shall
fairly and affirmatively offer, market, and sell in the Exchange at
least one product within each of the five levels of coverage
contained in subsections (d) and (e) of Section 1302 of the federal
act. The board established under Section 100500 of the Government
Code may require plans to sell additional products within each of
those levels of coverage. This subdivision shall not apply to a plan
that solely offers supplemental coverage in the Exchange under
paragraph (10) of subdivision (a) of Section 100504 of the Government
Code.
(c) (1) Health care service plans participating in the Exchange
that sell any products outside the Exchange shall do both of the
following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 of the Insurance Code between the Managed Risk
Medical Insurance Board and health care service plans for enrolled
Healthy Families beneficiaries or to contracts entered into pursuant
to Chapter 7 (commencing with Section 14000) of, or Chapter 8
(commencing with Section 14200) of, Part 3 of Division 9 of the
Welfare and Institutions Code between the State Department of Health
Care Services and health care service plans for enrolled Medi-Cal
beneficiaries.
(d) Commencing January 1, 2014, a health care service plan shall,
with respect to plan contracts that cover hospital, medical, or
surgical benefits, only sell the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act, except
that a health care service plan that does not participate in the
Exchange shall, with respect to plan contracts that cover hospital,
medical, or surgical benefits, only sell the four levels of coverage
contained in Section 1302(d) of the federal act.
(e) Commencing January 1, 2014, a health care service plan that
does not participate in the Exchange shall, with respect to plan
contracts that cover hospital, medical, or surgical benefits, offer
at least one standardized product that has been designated by the
Exchange in each of the four levels of coverage contained in Section
1302(d) of the federal act. This subdivision shall only apply if the
board of the Exchange exercises its authority under subdivision (c)
of Section 100504 of the Government Code. Nothing in this subdivision
shall require a plan that does not participate in the Exchange to
offer standardized products in the small employer market if the plan
only sells products in the individual market. Nothing in this
subdivision shall require a plan that does not participate in the
Exchange to offer standardized products in the individual market if
the plan only sells products in the small employer market. This
subdivision shall not be construed to prohibit the plan from offering
other products provided that it complies with subdivision (d).
(f) This section shall become operative only if Section 8 of the
act that added this section becomes inoperative pursuant to
subdivision (g) of that Section 8.
SEC. 7. SEC. 10. Section 1399.864 is
added to the Health and Safety Code, to read:
1399.864. (a) For purposes of this article, a bridge plan product
shall mean an individual health benefit plan, as defined in
subdivision (f) of Section 1399.845, that is offered by a health care
service plan licensed under this chapter that contracts with the
Exchange pursuant to Title 22 (commencing with Section 100500) of the
Government Code.
(b) Until December 31, 2014, a health care service plan that
contracts with the California Health Benefit Exchange to offer a
qualified bridge plan product pursuant to Section 100504 of the
Government Code shall do all of the following:
(1) As of the effective date of this section, if the health care
service plan has not been approved by the director to offer
individual health benefit plans pursuant to this chapter, the plan
shall file a material modification pursuant to Section 1352 to expand
its license to include individual health benefit plans.
(2) As of the effective date of this section, if the health care
service plan has been approved by the director to offer individual
health benefit plans pursuant to this chapter, the plan shall,
pursuant to Section 1352, file an amendment to expand its license to
include a bridge plan product as an individual health benefit plan.
(3)
(c) During the time the health care service plan's
material modification or amendment is pending approval by the
director, the health care service plan shall be deemed to comply with
subdivision (b) of Section 100507 of the Government Code.
(4) Maintain a
(d) A health care service plan shall
maintain a medical loss ratio of 85 percent for the bridge plan
product. A health care service plan shall utilize, to the extent
possible, the same methodology for calculating the medical loss ratio
for the bridge plan product that is used for calculating the health
care service plan medical loss ratio pursuant to Section 1367.003 and
shall report its medical loss ratio for the bridge plan product to
the department as provided in Section 1367.003.
(5)
(e) Notwithstanding subdivision (a) of Section
1399.849, a health care service plan selling a bridge plan product
shall not be required to fairly and affirmatively offer, market, and
sell the health care service plan's bridge plan product except to
individuals eligible for the bridge plan product pursuant to the
State Department of Health Care Services and the Medi-Cal managed
care plan's contract entered into pursuant to Section 14005.70 of the
Welfare and Institutions Code , provided the health
care service plan meets the requirements of subdivision (b) of
Section 14005.70 of the Welfare and Institutions Code .
(6)
( f) Notwithstanding subdivision (c) of
Section 1399.849, a health care service plan selling a bridge plan
product shall provide an initial open enrollment period of six
months, and an annual enrollment period and a special enrollment
period consistent with the annual enrollment and special enrollment
periods of the Exchange.
(g) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 8. SEC. 11. Section 10112.3 of
the Insurance Code is amended to read:
10112.3. (a) For purposes of this section, the following
definitions shall apply:
(1) "Exchange" means the California Health Benefit Exchange
established in Title 22 (commencing with Section 100500) of the
Government Code.
(2) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(3) "Qualified health plan" has the same meaning as that term is
defined in Section 1301 of the federal act.
(4) "Small employer" has the same meaning as that term is defined
in Section 10700.
(b) Health insurers participating in the Exchange shall fairly and
affirmatively offer, market, and sell in the Exchange at least one
product within each of the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act. The board
established under Section 100500 of the Government Code may require
insurers to sell additional products within each of those levels of
coverage. This subdivision shall not apply to an insurer that solely
offers supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504 of the Government Code. This
subdivision shall not apply to a bridge plan product of a Medi-Cal
managed care plan that contracts with the State Department of Health
Care Services pursuant to Section 14005.70 of the Welfare and
Institutions Code and that meets the requirements of Section 100504.5
of the Government Code, to the extent approved by the appropriate
federal agency.
(c) (1) Health insurers participating in the Exchange that sell
any products outside the Exchange shall do both of the following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 between the Managed Risk Medical Insurance Board
and health insurers for enrolled Healthy Families beneficiaries or
to contracts entered into pursuant to Chapter 7 (commencing with
Section 14000) of, or Chapter 8 (commencing with Section 14200)
of, Part 3 of Division 9 of the
Welfare and Institutions Code between the State Department of Health
Care Services and health insurers for enrolled Medi-Cal beneficiaries
or for contracts with bridge plan products that meet the
requirements of Section 100504.5 of the Government Code.
(d) Commencing January 1, 2014, a health insurer, with respect to
policies that cover hospital, medical, or surgical benefits, may only
sell the five levels of coverage contained in subsections (d) and
(e) of Section 1302 of the federal act, except that a health insurer
that does not participate in the Exchange may, with respect to
policies that cover hospital, medical, or surgical benefits ,
only sell the four levels of coverage contained in Section 1302
(d) of the federal act.
(e) Commencing January 1, 2014, a health insurer that does not
participate in the Exchange shall, with respect to policies that
cover hospital, medical, or surgical expenses, offer at least one
standardized product that has been designated by the Exchange in each
of the four levels of coverage contained in Section 1302(d) of the
federal act. This subdivision shall only apply if the board of the
Exchange exercises its authority under subdivision (c) of Section
100504 of the Government Code. Nothing in this subdivision shall
require an insurer that does not participate in the Exchange to offer
standardized products in the small employer market if the insurer
only sells products in the individual market. Nothing in this
subdivision shall require an insurer that does not participate in the
Exchange to offer standardized products in the individual market if
the insurer only sells products in the small employer market. This
subdivision shall not be construed to prohibit the insurer from
offering other products provided that it complies with subdivision
(d).
(f) For purposes of this section, a bridge plan product shall mean
an individual health benefit plan, as defined in subdivision (a) of
Section 10198.6 that is offered by a health insurer that contracts
with the Exchange pursuant to Section 100504.5 of the Government
Code.
(g) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 12. Section 10112.3 is added to the
Insurance Code , to read:
10112.3. (a) For purposes of this section, the following
definitions shall apply:
(1) "Exchange" means the California Health Benefit Exchange
established in Title 22 (commencing with Section 100500) of the
Government Code.
(2) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(3) "Qualified health plan" has the same meaning as that term is
defined in Section 1301 of the federal act.
(4) "Small employer" has the same meaning as that term is defined
in Section 10700.
(b) Health insurers participating in the Exchange shall fairly and
affirmatively offer, market, and sell in the Exchange at least one
product within each of the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act. The board
established under Section 100500 of the Government Code may require
insurers to sell additional products within each of those levels of
coverage. This subdivision shall not apply to an insurer that solely
offers supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504 of the Government Code.
(c) (1) Health insurers participating in the Exchange that sell
any products outside the Exchange shall do both of the following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 between the Managed Risk Medical Insurance Board
and health insurers for enrolled Healthy Families beneficiaries or
to contracts entered into pursuant to Chapter 7 (commencing with
Section 14000) of, or Chapter 8 (commencing with Section 14200) of,
Part 3 of Division 9 of the Welfare and Institutions Code between the
State Department of Health Care Services and health insurers for
enrolled Medi-Cal beneficiaries.
(d) Commencing January 1, 2014, a health insurer, with respect to
policies that cover hospital, medical, or surgical benefits, may only
sell the five levels of coverage contained in subsections (d) and
(e) of Section 1302 of the federal act, except that a health insurer
that does not participate in the Exchange may, with respect to
policies that cover hospital, medical, or surgical benefits, only
sell the four levels of coverage contained in Section 1302(d) of the
federal act.
(e) Commencing January 1, 2014, a health insurer that does not
participate in the Exchange shall, with respect to policies that
cover hospital, medical, or surgical expenses, offer at least one
standardized product that has been designated by the Exchange in each
of the four levels of coverage contained in Section 1302(d) of the
federal act. This subdivision shall only apply if the board of the
Exchange exercises its authority under subdivision (c) of Section
100504 of the Government Code. Nothing in this subdivision shall
require an insurer that does not participate in the Exchange to offer
standardized products in the small employer market if the insurer
only sells products in the individual market. Nothing in this
subdivision shall require an insurer that does not participate in the
Exchange to offer standardized products in the individual market if
the insurer only sells products in the small employer market. This
subdivision shall not be construed to prohibit the insurer from
offering other products provided that it complies with subdivision
(d).
(f) This section shall become operative only if Section 11 of the
act that added this section becomes inoperative pursuant to
subdivision (g) of that Section 11.
SEC. 9. SEC. 13. Section 10961 is
added to the Insurance Code, to read:
10961. (a) For purposes of this article, a bridge plan product
shall mean an individual health benefit plan that is offered by a
health insurer licensed under this chapter that contracts with the
Exchange pursuant to Title 22 (commencing with Section 100500) of the
Government Code.
(b) On and after the effective date of this section, if a health
insurance policy has not been filed with the commissioner, a health
insurer that contracts with the California Health Benefit Exchange to
offer a qualified bridge plan product pursuant to Section 100504.5
of the Government Code shall file the policy form with the
commissioner pursuant to Section 10290.
(c) (1) Notwithstanding subdivision (a) of Section 10965.3, a
health insurer selling a bridge plan product shall not be required to
fairly and affirmatively offer, market, and sell the health insurer'
s bridge plan product except to individuals eligible for the bridge
plan product pursuant to the State Department of Health Care Services
and the Medi-Cal managed care plan's contract entered into pursuant
to Section 14005.70 of the Welfare and Institutions Code ,
provided the health care service plan meets the requirements of
subdivision (b) of Section 14005.70 of the Welfare and Institutions
Code .
(2) Notwithstanding subdivision (c) of Section 10965.3, a health
insurer selling a bridge plan product shall provide an initial open
enrollment period of six months, and an annual enrollment period and
a special enrollment period consistent with the annual enrollment and
special enrollment periods of the Exchange.
(d) A health insurer that contracts with the California Health
Benefit Exchange to offer a qualified bridge plan product pursuant to
Section 100504 of the Government Code shall maintain a medical loss
ratio of 85 percent for the bridge plan product. A health insurer
shall utilize, to the extent possible, the same
methodology for calculating the medical loss ratio for the bridge
plan product that is used for calculating the health insurer's
medical loss ratio pursuant to Section 10112.25 and shall report its
medical loss ratio for the bridge plan product to the department as
provided in Section 10112.25.
(e) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.
SEC. 10. SEC. 14. Section 14005.70
is added to the Welfare and Institutions Code, to read:
14005.70. (a) The State Department of Health Care Services shall
ensure that its contracts with a health care service plan or health
insurer to provide Medi-Cal managed care coverage meet all of the
following requirements:
(1) A health care service plan or health insurer shall provide
coverage in its bridge plan product to its Medi-Cal managed care
enrollees and other individuals that meet the requirements in
paragraph (2) if the Medi-Cal managed care plan offers a bridge plan
product pursuant to Section 100504.5 of the Government Code.
(2) Only the following individuals shall be eligible to enroll in
the Medi-Cal managed care plan's bridge plan product if the Medi-Cal
managed care plan offers a bridge plan product:
(A) An individual who is determined to be eligible for the
Exchange and who can demonstrate that his or her Medi-Cal coverage or
Healthy Families coverage was terminated. The Exchange shall
request approval from the federal government to limit enrollment
under this subparagraph to individuals with a family income at or
below 250 percent of the federal poverty level.
(B) Other members of the modified adjusted gross income household,
as defined in Section 100501 of the Government Code, in which there
are Medi-Cal or Healthy Families enrollees.
(C) An individual who is determined by the Exchange to be eligible
for the Exchange and who has a household income of not more than 200
percent of the federal poverty level. This subparagraph shall only
apply if approved by the appropriate federal agency and shall only be
implemented in a manner that does not conflict with a requirement of
the Patient Protection and Affordable Care Act (Public Law 111-148),
as amended by the federal Health Care and Education Reconciliation
Act of 2010 (Public Law 111-152), and any amendments to, or
regulations or guidance issued under those acts.
(3) Provide all of the following:
(A) Except as provided in subparagraph (C) of paragraph (2), an
individual who is eligible to enroll in a bridge plan product under
subparagraph (A) of paragraph (2) shall only be eligible to enroll in
a bridge plan product offered by the health care service plan or
health insurer through which the individual was enrolled prior to
eligibility for a bridge plan product as either a Medi-Cal
beneficiary or as a Healthy Families enrollee.
(B) An individual who is eligible to enroll in a bridge plan
product under subparagraph (B) of paragraph (2) shall only be
eligible to enroll in a bridge plan product offered by the health
care service plan or health insurer through which the member of the
household was enrolled as a Medi-Cal beneficiary or as a Healthy
Families enrollee.
(C) The Exchange shall seek federal approval to allow individuals
described in subparagraphs (A) and (B) the option to enroll in a
different bridge plan product if the individual's primary care
provider is included in the contracted network of the different
bridge plan product and either of the following applies to the bridge
plan product for which the individual is eligible:
(i) The product is not offered in that individual's service area.
(ii) The product is not selected as a bridge plan product by the
Exchange.
(4) The Medi-Cal managed care plan shall only offer a bridge plan
product if the bridge plan product premium contribution amount in the
silver category for the eligible individual is equal to, or less
than, the premium contribution amount for the lowest cost plan in the
silver category that would have been available to that individual
without the bridge plan product.
(b) The State Department of Health Care Services may enter into a
contract with the California Health Benefit Exchange to delegate the
implementation of any part of this section to the Exchange.
(c) Notwithstanding subdivision (a) of Section 1399.849 of the
Health and Safety Code and subdivision (a) of Section 10965.3 of the
Insurance Code, the State Department of Health Care Services may
allow a Medi-Cal managed care plan, pursuant to its contract under
this section, to limit enrollment into bridge plan products to
eligible individuals identified in paragraph (2) of subdivision (a)
of this section based on limitations in contracted network capacity
for bridge plan products as provided in Section 1399.857 of the
Health and Safety Code or Section 10753.12 of the Insurance Code.
(d) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.