Amended in Assembly September 3, 2013

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 Section 14005.277 to the Welfare and Institutions Code, relating tobegin delete health, and declaring the urgency thereof, to take effect immediately.end deletebegin insert health.end insert

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 programbegin delete pursuant toend deletebegin insert as a part ofend insert 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 informationbegin delete ofend deletebegin insert forend insert 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-Calbegin delete program due to a transition from the Healthy Families Program,end deletebegin insert program,end insert as specified,begin delete for purposes of assistingend deletebegin insert in order to assistend insert the Exchangebegin delete to conductend deletebegin insert in conductingend insert outreach to individuals potentially eligible for an insurance affordability program, as defined.

This bill would transfer to the Exchangebegin delete anyend delete civil servicebegin delete employeeend deletebegin insert employeesend insert of the boardbegin insert who wereend insert assigned to the Federal Temporary High Risk Pool and wouldbegin delete provideend deletebegin insert requireend insert that each transferred employeebegin delete shallend delete retain his or her status, position, and rights.

The bill would alsobegin delete provideend deletebegin insert requireend insert that, if the board is dissolved or terminated, all employees assigned to the other programs administered by the boardbegin delete shallend delete be transferred to the State Department of Health Care Services andbegin insert thatend insert each transferred employeebegin delete shallend delete 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.begin insert The bill would require the department, if employees of the board are transferred to the department, to prepare a report, as specified, and to submit that report to the fiscal and relevant policy committees of the Legislature by February 1 of the year following the year in which the employees are transferred, and to update that report, as specified. end insert

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

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Vote: begin delete23 end deletebegin insertmajorityend insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P3    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
5contract between the board and the United States Department of
6Health and Human Services, and at that time shall cease to operate
7the program except as required to complete payments to, or
8payment reconciliations with, participating health plans or other
9contractors, process appeals, or conduct other necessary termination
10activities.

11(b) Any permanent or probationary civil service employee who
12is employed by the board and assigned to the program and whose
13function ceases due to this section shall immediately be transferred
14to the California Health Benefit Exchange and shall retain his or
15her status, position, and rights pursuant to Section 19050.9 of the
16 Government Code and the State Civil Service Act (Part 2
17(commencing with Section 18500) and Part 2.6 (commencing with
18Section 19815) of Division 5 of Title 2 of the Government Code).

19

SEC. 2.  

Part 6.8 (commencing with Section 12739.77) is added
20to Division 2 of the Insurance Code, to read:

21 

22PART 6.8.  Program Transfers

23

 

24

12739.77.  

For the purposes of this part, the following terms
25have the following meanings:

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

27(b) “Employee” means permanent or probationary civil service
28employee.

29

12739.78.  

(a) begin insert(1)end insertbegin insertend insert If any statute dissolves or terminates the
30board, any employee of the board who, immediately prior to the
31effective date of the dissolution or termination of the board, was
32assigned to the Healthy Families Program (Part 6.2 (commencing
33with Section 12693)), the Access for Infants and Mothers Program
34(Part 6.3 (commencing with Section 12695)), the County Health
35Initiative Matching Fund (Part 6.4 (commencing with Section
3612699.50)), or the Major Risk Medical Insurance Program (Part
376.5 (commencing with Section 12700)) shall be transferred to the
38State Department of Health Care Services and shall retain his or
P4    1her status, position, and rights pursuant to Section 19050.9 of the
2Government Code and the State Civil Service Act (Part 2
3(commencing with Section 18500) and Part 2.6 (commencing with
4Section 19815) of Division 5 of Title 2 of the Government Code).

begin insert

5(2) If employees are transferred to the State Department of
6Health Care Services pursuant to this subdivision, the department
7shall prepare a report on the transfer of employees, and, if
8applicable, any functions transferred to the department upon
9dissolution or termination of the board. The report shall, at a
10minimum, describe any assignment of new activities to transferred
11employees and provide workload justification for the position
12authority transferred pursuant to this subdivision. The department
13shall submit the report to the fiscal and relevant policy committees
14of the Legislature by February 1 of the year following the year in
15which employees are transferred, and shall update the report, if
16necessary, by February 1 of each of the two years following
17submission of the report. The report may be included with any
18budget information submitted by the department to those
19committees.

end insert

20(b) (1) If any statute dissolves or terminates the board, any
21employee of the board who, immediately prior to the effective date
22of the dissolution or termination of the board, was assigned to the
23Federal Temporary High Risk Pool (Part 6.6 (commencing with
24Section 12739.5) and Part 6.7 (commencing with Section
2512739.70)) shall be transferred to the California Health Benefit
26Exchange and shall retain his or her status, position, and rights
27pursuant to Section 19050.9 of the Government Code and the State
28Civil Service Act (Part 2 (commencing with Section 18500) and
29Part 2.6 (commencing with Section 19815) of Division 5 of Title
302 of the Government Code).

31(2) This subdivision shall not apply to any employee who has
32transferred to the California Health Benefit Exchange pursuant to
33subdivision (b) of Section 12739.61.

34(c) If any statute dissolves or terminates the board, an
35employee’s applicable reinstatement rights that would have applied
36to the board shall instead apply to the State Department of Health
37Care Services.

38

SEC. 3.  

Section 14005.277 is added to the Welfare and
39Institutions Code
, to read:

P5    1

14005.277.  

In order to assist the California Health Benefit
2Exchange, established pursuant to Title 22 (commencing with
3Section 100500) of the Government Code, to conduct outreach to
4individuals potentially eligible for an insurance affordability
5program, as defined in Section 15926, the department shall provide
6the California Health Benefit Exchange, or its designee, with the
7names, addresses, email addresses, telephone numbers, or other
8contact information, and written and spoken languages of
9individuals who are not enrolled in Medi-Cal but are the parents
10or caretakers of children enrolled in the Healthy Families Program
11or the Medi-Cal program pursuant to Section 14005.27.

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12

SEC. 4.  

This act is an urgency statute necessary for the
13immediate preservation of the public peace, health, or safety within
14the meaning of Article IV of the Constitution and shall go into
15immediate effect. The facts constituting the necessity are:

16To ensure the smooth and timely transition of public employees
17and individuals who are eligible for insurance affordability
18programs before the California Health Benefit Exchange will begin
19making health care coverage available in January 2014, it is
20necessary that this act take effect immediately.

end delete


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