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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