BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 235
                                                                  Page  1

          Date of Hearing:   August 22, 2007

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                SB 235 (Negrete McLeod) - As Amended:  July 19, 2007 

          Policy Committee:                              P.E.R. &  
          S.SVote:4-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes retirees of the California State University  
          (CSU) to participate in the California State University  
          Annuitant Vision Care Program, thereby extending self-funded  
          vision care coverage to CSU retirees. 
           
          FISCAL EFFECT  

          All costs, including start-up and ongoing expenses associated  
          with administering the program, would be included in premiums  
          paid by participating annuitants. 

           COMMENTS  

           1)Background.  Prior to enactment of Chapter 611, Statutes of  
            2006 (AB 2242, P.E.R. & S.S), vision coverage was provided to  
            active state employees and their dependents, but not retirees.  
            AB 2242 created a self-funded vision care program for state  
            retirees and their dependents, administered by the Department  
            of Personnel Administration. Under the program, the full  
            premium cost is paid for by the participant.  To date, over  
            30,000 retirees have enrolled in the retiree program. The  
            carrier is Vision Service Plan, and the rates are estimated to  
            be $8.78 per month per single participant, $17.12 per month  
            for two participants, and $18.43 per month for three-or-more  
            participants. Under the provisions of AB 2242, retirees of the  
            CSU and University of California are prohibited from  
            participating in the annuitant program.

           2)Rationale  . This bill is intended to extend the self-funded  
            vision care coverage to CSU retirees. Supporters indicate that  








                                                                  SB 235
                                                                  Page  2

            comprehensive vision care can lead to earlier diagnoses of  
            physical ailments and diseases, which can save eyesight of  
            retirees and can save money by reducing high-cost  
            complications and irrevocable vision loss.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081