BILL ANALYSIS Ó
SB 503
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 503
(Hernandez) - As Amended July 16, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill modifies an obsolete notification requirement about
continuation of group health insurance, and adds a new
notification requirement providing information to consumers
SB 503
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about the availability of health care coverage through Covered
California, Medi-Cal, or through an insured spouse.
FISCAL EFFECT:
1)Minor and absorbable costs to the Department of Managed Health
Care (Managed Care Fund) and the California Department of
Insurance (Insurance Fund) to verify health plan and insurer
compliance.
2)Unknown, potentially significant state costs for increased
Medi-Cal enrollment. Modifying the notice to suggest
individuals losing coverage apply for Medi-Cal or through
Covered California will likely lead to a greater number of
people enrolled in Medi-Cal, at a cost exceeding $150,000 per
year (GF/federal). Even a very small overall increase in
Medi-Cal enrollment would have a significant fiscal impact.
Increased utilization due to the receipt of this notice is
likely to be less and less a factor as time goes on, as
individuals grow more accustomed to visiting Covered
California to assess their coverage options outside of
job-based coverage.
COMMENTS:
Purpose. This bill modernizes notices that are no longer
relevant with the health insurance market reforms brought about
by the federal Patient Protection and Affordable Care Act (ACA).
The author states that information about options for health
coverage through Medi-Cal and Covered California is more
relevant to individuals losing group coverage. This bill is
supported by Health Access California and Western Center on Law
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and Poverty, and has no opposition.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081