BILL ANALYSIS Ó
AB 2115
Page 1
Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2115 (Wood) - As Amended April 5, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill requires health care service plans (health plans) and
health insurers, when providing a notice about coverage
continuation options to covered individuals under a group
AB 2115
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benefit plan, to also provide information about other coverage
for which they may be eligible.
FISCAL EFFECT:
Any impact to the Department of Managed Health Care (DMHC/
Managed Care Fund) and the California Department of Insurance
(CDI/Insurance Fund) is expected to be minor and absorbable.
COMMENTS:
1)Purpose. This bill is intended to update inaccurate
information included in notifications required under current
law, and add a notification about free or discounted
prescription medicines.
2)Background. Existing law requires health plans and insurers to
notify individuals terminating coverage of their options to
continue receiving coverage. Many disclosures have been
updated, but one required notification still states, "you
should be aware that companies selling individual health
insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely." This is no longer accurate pursuant to
the federal Affordable Care Act. This bill updates those
disclosure notices for insurance market changes and adds
information about patient assistance programs, which are
administered by drug manufacturers to help uninsured
individuals access prescription drugs.
3)Prior legislation. AB 792 (Bonilla), Chapter 851, Statutes of
2012, requires health plans and health insurers to provide a
notice informing individuals that they may be eligible for
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reduced-cost coverage through the Exchange or no-cost coverage
through Medi-Cal when an enrollee or subscriber ceases to be
enrolled in coverage.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081