BILL ANALYSIS Ó
SB 125
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Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 125
(Hernandez) - As Amended May 21, 2015
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Urgency: Yes State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill extends the sunset of the California Health Benefits
Review Program (CHBRP) for two years to June 30, 2017, and
extends the existing assessment on health plans and health
SB 125
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insurers to support the program.
It also conforms to federal law for (1) annual open enrollment
period in the individual health insurance market, and (2) the
method of counting employees for the purposes of determining
whether an employer is in the small or large group health
insurance markets; and makes other technical and conforming
changes.
FISCAL EFFECT:
1)Annual costs of $2 million to support the California Health
Benefits Review Program (within the University of California),
supported by an assessment on health plans and health insurers
(Health Care Benefits Fund).
2)Minor administrative costs for the California Health Benefits
Exchange to revise existing regulations to conform to the
updated open enrollment period.
COMMENTS:
1)Purpose. According to the author, this bill updates California
statute to reflect the new health insurance environment by
reauthorizing CHBRP for two years and expanding the breadth of
CHBRP analyses by requesting the inclusion of impacts from
legislation on health insurance benefit design, cost sharing,
premiums, and other health insurance topics. The author
indicates this bill makes important technical changes to
comply with federal law.
2)CHBRP. Established in 2002, pursuant to AB 1996 (Thomson),
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Chapter 795, Statutes of 2002, CHBRP responds to requests from
the Legislature to provide independent analysis of the
medical, financial, and public health impacts of proposed
health insurance benefit mandates and repeals. CHBRP is
administered in the UC Office of the President, and has staff
that supports faculty from six UC campuses and three private
universities to complete each analysis. Health plans and
insurers are assessed an annual fee to fund CHBRP in an amount
not to exceed $2 million. Their current sunset on CHBRP's
funding authority is less than two months from today, July 1,
2015.
3)Prior legislation. AB 1578 (Pan) of 2014 extended CHBRP's
sunset date to June 30, 2016, and contained similar language
to this bill. AB 1578 died on the Assembly Floor without a
concurrence vote.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081