BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           1600 (Keeley)
          
          Hearing Date:  9/6/01           Amended: 8/31/01       
          Consultant:  George Cate            Policy Vote: JUD 5-2
          ____________________________________________________________ 
          ___
          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.


                              Fiscal Impact (in thousands)
           
          Major Provisions        2001-02             2002-03               2003-04   
           Fund  
          
          Legal intervention               Unknown     Special*
          CalPERS, Medi-Cal       Unknown              Various
            & Healthy Families

                * Managed Health Care Fund

          
          STAFF COMMENTS:  SUSPENSE FILE
          
          Although DMHC does not have any specific estimates for the  
          costs of this bill, it believes that there could be  
          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.

          There could also be some increased costs for health care  
          plan capitated rates under the CalPERS, Medi-Cal and  
          Healthy Families programs, if there is a significant  
          increase in the costs of litigation to the plans.  On the  
          other hand, there may be a significant deterrent effect  
          resulting in less litigation.