BILL ANALYSIS
Appropriations Committee Fiscal Summary
1600 (Keeley)
Hearing Date: 8/30/01 Amended: 8/20/01 &
LCR#?????
Consultant: George Cate Policy Vote: JUD 5-2
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BILL SUMMARY:
AB 1600 allows any enrollee, subscriber, patient, health
care provider or their representatives to file an action
for equitable relief from any licensee of the Knox-Keene
Health Care Service Plan Act, as to any violation or
threatened violation of the Act.
In addition, this measure establishes a voluntary dispute
resolution process that the court may ask the parties to
consider, as an alternative to pursuing litigation if both
parties agree. The bill requires the Department of Managed
Health Care (DMHC) to accredit at least three dispute
resolution organizations to handle these disputes.
Fiscal Impact (in thousands)
Major Provisions 2001-02 2002-03 2003-04
Fund
Dispute resolution Unknown Special*
Legal intervention Unknown Special*
* Managed Health Care Fund
STAFF COMMENTS:
This bill meets the criteria to be placed on the Suspense
file.
Although DMHC does not have any specific estimates for the
costs of this bill, it has estimated that there would be
some costs associated with accreditation of the dispute
resolution organizations that would probably be in excess
of $150,000. Furthermore, DMHC believes that there could
be even more significant costs associated with the costs of
litigation in those instances where the Department is
compelled to intervene as the enforcer of the Knox-Keene
Act.
DMHC support costs are entirely offset by license fee
revenue from the health care service plans.