Amended in Assembly August 19, 2013

Amended in Assembly August 6, 2013

Amended in Senate May 28, 2013

Amended in Senate April 24, 2013

Senate BillNo. 800


Introduced by Senator Lara

February 22, 2013


An act to amend Section 12739.61 of, and to add Part 6.8 (commencing with Section 12739.77) to Division 2 of, the Insurance Code, and to add Sectionbegin delete 14005.275end deletebegin insert 14005.277end insert to the Welfare and Institutions Code, relating to health, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 800, as amended, Lara. Health care coverage programs: transition.

Existing law creates various programs to provide health care services to persons who meet various eligibility requirements. These programs include the Healthy Families Program, the Access for Infants and Mothers Program, the County Health Initiative Matching Fund, the Major Risk Medical Insurance Program, and the Federal Temporary High Risk Pool, all administered by the Managed Risk Medical Insurance Board, and the Medi-Cal program administered by the State Department of Health Care Services. Existing law provides for the transition of specified enrollees of the Healthy Families Program to the Medi-Cal program, to the extent that those individuals are otherwise eligible. Existing law also provides that employees of the board whose functions are transferred to the Medi-Cal program pursuant to that transition retain their positions, status, and rights. Existing law requires the board, beginning July 1, 2013, to cease the provision of health coverage through the Federal Temporary High Risk Pool, except as specified.

Existing law establishes the California Health Benefit Exchange (Exchange), and requires the Exchange to facilitate the purchase of qualified health plans through the Exchange by qualified individuals and small employers by January 1, 2014. Existing law also requires the Exchange to undertake activities necessary to market and publicize the availability of health care coverage and federal subsidies through the Exchange and to undertake outreach and enrollment activities.

This bill would require the State Department of Health Care Services to provide the Exchange with specified contact information of individuals who are not enrolled in Medi-Cal but who are the parents or caretakers of children enrolled in the Healthy Families Program or the Medi-Cal program due to a transition from the Healthy Families Program, as specified, for purposes of assisting the Exchange to conduct outreach to individuals potentially eligible forbegin delete a state health subsidyend deletebegin insert an insurance affordabilityend insert program, as defined.

This bill would transfer to the Exchange any civil service employee of the board assigned to the Federal Temporary High Risk Pool and would provide that each transferred employee shall retain his or her status, position, and rights.

The bill would also provide that, if the board is dissolved or terminated, all employees assigned to the other programs administered by the board shall be transferred to the State Department of Health Care Services and each transferred employee shall retain his or her status, position, and rights. The bill would provide that any employee’s reinstatement rights that would have applied to the board shall instead apply to the department.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 12739.61 of the Insurance Code is
2amended to read:

3

12739.61.  

(a) The board shall cease to provide coverage
4through the program on July 1, 2013, except as required by the
P3    1contract between the board and the United States Department of
2Health and Human Services, and at that time shall cease to operate
3the program except as required to complete payments to, or
4payment reconciliations with, participating health plans or other
5contractors, process appeals, or conduct other necessary termination
6activities.

7(b) Any permanent or probationary civil service employee who
8is employed by the board and assigned to the program and whose
9function ceases due to this section shall immediately be transferred
10to the California Health Benefit Exchange and shall retain his or
11her status, position, and rights pursuant to Section 19050.9 of the
12Government Code and the State Civil Service Act (Part 2
13(commencing with Section 18500) and Part 2.6 (commencing with
14Section 19815) of Division 5 of Title 2 of the Government Code).

15

SEC. 2.  

Part 6.8 (commencing with Section 12739.77) is added
16to Division 2 of the Insurance Code, to read:

17 

18PART 6.8.  Program Transfers

19

 

20

12739.77.  

For the purposes of this part, the following terms
21have the following meanings:

22(a) “Board” means the Managed Risk Medical Insurance Board.

23(b) “Employee” means permanent or probationary civil service
24employee.

25

12739.78.  

(a) If any statute dissolves or terminates the board,
26any employee of the board who, immediately prior to the effective
27date of the dissolution or termination of the board, was assigned
28to the Healthy Families Program (Part 6.2 (commencing with
29Section 12693)), the Access for Infants and Mothers Program (Part
306.3 (commencing with Section 12695)), the County Health
31Initiative Matching Fund (Part 6.4 (commencing with Section
3212699.50)), or the Major Risk Medical Insurance Program (Part
336.5 (commencing with Section 12700)) shall be transferred to the
34State Department of Health Care Services and shall retain his or
35her status, position, and rights pursuant to Section 19050.9 of the
36Government Code and the State Civil Service Act (Part 2
37(commencing with Section 18500) and Part 2.6 (commencing with
38Section 19815) of Division 5 of Title 2 of the Government Code).

39(b) (1) If any statute dissolves or terminates the board, any
40employee of the board who, immediately prior to the effective date
P4    1of the dissolution or termination of the board, was assigned to the
2Federal Temporary High Risk Pool (Part 6.6 (commencing with
3Section 12739.5) and Part 6.7 (commencing with Section
412739.70)) shall be transferred to the California Health Benefit
5Exchange and shall retain his or her status, position, and rights
6pursuant to Section 19050.9 of the Government Code and the State
7Civil Service Act (Part 2 (commencing with Section 18500) and
8Part 2.6 (commencing with Section 19815) of Division 5 of Title
92 of the Government Code).

10(2) This subdivision shall not apply to any employee who has
11transferred to the California Health Benefit Exchange pursuant to
12subdivision (b) of Section 12739.61.

13(c) If any statute dissolves or terminates the board, an
14employee’s applicable reinstatement rights that would have applied
15to the board shall instead apply to the State Department of Health
16Care Services.

begin delete17

SEC. 3.  

Section 14005.275 is added to the Welfare and
18Institutions Code
, immediately following Section 14005.27, to
19read:

20

14005.275.  

In order to assist the California Health Benefit
21Exchange, established pursuant to Title 22 (commencing with
22Section 100500) of the Government Code, to conduct outreach to
23individuals potentially eligible for a state health subsidy program,
24as defined in Section 15926, the department shall provide the
25California Health Benefit Exchange, or its designee, with the
26names, addresses, email addresses, telephone numbers, or other
27contact information, and written and spoken languages of
28individuals who are not enrolled in Medi-Cal but are the parents
29or caretakers of children enrolled in the Healthy Families Program
30or the Medi-Cal program pursuant to Section 14005.27.

end delete
31begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 14005.277 is added to the end insertbegin insertWelfare and
32Institutions Code
end insert
begin insert, to read:end insert

begin insert
33

begin insert14005.277.end insert  

In order to assist the California Health Benefit
34Exchange, established pursuant to Title 22 (commencing with
35Section 100500) of the Government Code, to conduct outreach to
36individuals potentially eligible for an insurance affordability
37program, as defined in Section 15926, the department shall provide
38the California Health Benefit Exchange, or its designee, with the
39names, addresses, e-mail addresses, telephone numbers, or other
40contact information, and written and spoken languages of
P5    1individuals who are not enrolled in Medi-Cal but are the parents
2or caretakers of children enrolled in the Healthy Families Program
3or the Medi-Cal program pursuant to Section 14005.27.

end insert
4

SEC. 4.  

This act is an urgency statute necessary for the
5immediate preservation of the public peace, health, or safety within
6the meaning of Article IV of the Constitution and shall go into
7immediate effect. The facts constituting the necessity are:

8To ensure the smooth and timely transition of public employees
9and individuals who are eligible forbegin delete state health subsidyend deletebegin insert insurance
10affordabilityend insert
programs before the California Health Benefit
11Exchange will begin making health care coverage available in
12January 2014, it is necessary that this act take effect immediately.



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