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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 29, 2016 |Policy Vote: HEALTH 7 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 27, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- 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 ? 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. -- END --