BILL ANALYSIS Ó
SB 972
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SENATE THIRD READING
SB 972 (Torres)
As Amended May 6, 2014
Majority vote
SENATE VOTE :33-0
HEALTH 16-0
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|Ayes:|Pan, Maienschein, | | |
| |Bonilla, Bonta, Chesbro, | | |
| |Gomez, Gonzalez, | | |
| |Roger Hernández, | | |
| |Lowenthal, Nazarian, | | |
| |Nestande, Patterson, | | |
| |Ridley-Thomas, Rodriguez, | | |
| |Wagner, Wieckowski | | |
| | | | |
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SUMMARY : Adds new areas of expertise that qualify a potential
member to serve on the California Health Benefit Exchange
(Exchange, also known as Covered California) Board. These areas
of expertise include: 1) marketing of health insurance
products; 2) information technology system management; 3)
management information systems; and 4) enrollment counseling
assistance, with priority to cultural and linguistic competency.
EXISTING LAW :
1)Requires the Exchange to be governed by an executive board,
consisting of five members who are residents of California.
Of the members of the board, two are appointed by the
Governor, one by the Senate Rules Committee, and one by the
Speaker of the Assembly. Requires the Secretary of the
California Health and Human Services Agency or his or her
designee to serve as a voting member.
2)Requires each person appointed to the Exchange Board to have
demonstrated and acknowledged expertise in at least two of the
following areas:
a) Individual health care coverage;
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b) Small employer health care coverage;
c) Health benefits plan administration;
d) Health care finance;
e) Administering a public or private health care delivery
system; and,
f) Purchasing health plan coverage.
3)Requires appointing authorities to consider the expertise of
other members of the Exchange Board and attempt to make
appointments so that the Exchange Board's composition reflects
a diversity of expertise.
4)Requires appointing authorities to take into consideration the
cultural, ethnic, and geographical diversity of the state so
that the Exchange Board's composition reflects the communities
of California.
FISCAL EFFECT : None
COMMENTS : According to the author, as Covered California works
to improve its customer service, Web site, marketing, and
outreach to consumers, additional expertise on the Exchange
Board will be helpful. The author indicates that Covered
California is working on several problems, including: 1) long
wait time for callers into the hotline; 2) frequently abandoned
calls to the hotline; 3) confusing presentation of materials to
consumers on the Web site; and 4) underrepresented Latino
enrollment. The author writes that the purpose of this bill is
to help diversify the expertise of the Exchange Board so that as
improvements are worked on, individuals with expertise in these
areas will be eligible to serve on the Exchange Board.
Covered California's first open enrollment period ran from
October 1, 2013, through March 31, 2014. The pace of enrollment
gradually increased over the six months of open enrollment.
After the first three months' experience showed an
underrepresentation of Latinos in the enrollment numbers,
Covered California increased Latino-targeted and Spanish
language marketing efforts by $4.5 million. A targeted
on-the-ground strategy was developed in collaboration with
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Covered California's community partners to create face-to-face
opportunities for enrollment, particularly in Latino communities
in Los Angeles, the Inland Empire, and the Central and San
Joaquin Valleys. The number of certified enrollment counselors,
which was only 772 at the start of open enrollment, increased to
5,598 by the end of open enrollment. Final enrollment figures
show that certified enrollment counselors were especially
effective for Latinos: 20% of Latinos signed up through a
certified enrollment counselor, compared with 9% of total
enrollees.
The Latino Coalition for a Healthy California (LCHC), in support
of this bill, writes that it is concerned about
underrepresentation of Latinos in Covered California plans.
LCHC argues that this bill offers an appropriate solution to
help increase Covered California's leadership to better
interpret the nuances of enrolling Latinos and other populations
that may initially show reluctance to sign up for coverage. The
Western Center on Law and Poverty, also in support, writes that
this bill will help Covered California have a board with the
needed expertise to reach limited English proficient
communities.
The California Association of Health Underwriters (CAHU), also
in support, writes that technology challenges presented enormous
barriers during the open enrollment process and that some
technology issues remain unresolved. CAHU states that having a
future appointee with technology experience will likely prove
invaluable to smoothing Exchange operations. CAHU also states
having an appointee who understands the challenges of servicing
California's multi-cultural population will benefit Exchange
operations and the certified agents that serve as trusted
avenues to affordable coverage in those communities.
There is no opposition on file.
Analysis Prepared by : Ben Russell / HEALTH / (916) 319-2097
FN: 0003945
SB 972
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