BILL ANALYSIS Ó SB 125 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 125 (Hernandez) - As Amended May 21, 2015 ----------------------------------------------------------------- |Policy |Health |Vote:|19 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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), SB 125 Page 3 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