BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 332
                                                                  Page  1

          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 332 (Emmerson) - As Amended:  May 16, 2013 

          Policy Committee:                             JudiciaryVote:10-0
                       Health                           Vote: 19-0

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

           SUMMARY  

          This bill narrows exemptions from the California Public Records  
          Act (PRA) for the California Health Benefits Exchange  
          (Exchange).

           FISCAL EFFECT  

          Negligible state fiscal effect.  

           COMMENTS  

           1)Rationale  . This bill seeks to ensure that the Exchange is  
            properly subject to the PRA, in response to concerns about  
            adequate transparency.

           2)Background  .  The Exchange was established to provide a  
            marketplace for health insurance coverage for individuals and  
            small businesses, pursuant to the federal Patient Protection  
            and Affordable Care Act (ACA).  The Exchange was authorized to  
            selectively contract and negotiate with health plans on price  
            and quality, which it has chosen to do.  The PRA exemptions  
            for the Exchange appear to have been intended to strike a  
            balance between the need for such confidential rate  
            negotiations and the need for transparency and public  
            accountability.  The exemptions provided were broader than  
            that provided to the Managed Risk Medical Insurance Board  
            (MRMIB), which until recently administered the Healthy  
            Families Program.  This bill more closely aligns the  
            exemptions with those granted MRMIB.  

           3)Related and Prior Legislation  . SB 900 (Alquist), Chapter 659,  








                                                                  SB 332
                                                                  Page  2

            Statutes of 2010 creates and establishes the governance of  
            California Health Benefits Exchange. 

            AB 1602 (John A. Perez), Chapter 655, Statutes of 2010  
          specifies its powers and duties. 

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081