BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 908 (Hernandez) - Health care coverage: premium rate change:
notice: other health coverage
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|Version: March 29, 2016 |Policy Vote: HEALTH 7 - 2 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: May 27, 2016 |Consultant: Brendan McCarthy |
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Bill
Summary: SB 908 would require health plans and health insurers
to notify contract holders if a proposed premium rate increase
has been found to be unreasonable by the appropriate regulatory
agency. In those cases, the bill would give contract holders the
ability to continue coverage at the prior rate for 60 days and
to choose other health coverage.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal
Impact:
No significant enforcement costs are anticipated for the
Department of Managed Health Care.
No significant enforcement costs are anticipated for the
SB 908 (Hernandez) Page 1 of
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Department of Insurance.
No significant costs are anticipated for system changes at
Covered California. The proposed amendments would delete the
requirement for a new special enrollment period in the small
group market.
Author
Amendments: Delete the requirement for a special enrollment
period in the small group market when there is an unreasonable
rate increase.
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