BILL ANALYSIS
AB 98
Page 1
GOVERNOR'S VETO
AB 98 (De La Torre)
As Amended September 4, 2009
2/3 vote
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|ASSEMBLY: |50-27|(June 2, 2009) |SENATE: |23-11|(September 9, |
| | | | | |2009) |
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|ASSEMBLY: |51-27|(September 10, | | | |
| | |2009) | | | |
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Original Committee Reference: HEALTH
SUMMARY : Requires individual or group health insurance policies
on file with the California Department of Insurance (CDI) as of
January 1, 2010, to cover maternity services, as defined, by
March 1, 2010, and requires new policies submitted to CDI after
January 1, 2010, to cover maternity services.
The Senate amendments :
1)Require existing individual or group health insurers to submit
to CDI, on or before March 1, 2010, a revised policy form that
covers maternity services.
2)Require, pursuant to 1) above, the corresponding policy to
take effect 30 days after CDI approves the revised form.
3)Specify that new individual or group health insurance policies
submitted to CDI after January 1, 2010, must include a
maternity services benefit.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version approved by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
AB 98
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Committee, CDI would incur costs of approximately $216,000 in
fiscal years 2009-10 and 2010-2011 to fund staff counsel to
implement this bill. Ongoing costs to CDI would be absorbable.
COMMENTS : The Senate version differs from the Assembly-approved
version in that the Senate amendments specify an implementation
date for revision of existing policies and provide that all
future new policies include a maternity services benefit.
GOVERNOR'S VETO MESSAGE :
I have vetoed similar bills twice before. The
addition of this mandate must be considered in the
larger context of how it will increase the overall
cost of health care. This, like other mandates, only
increases premiums in an environment in which health
coverage is increasingly expensive.
Maternity coverage is offered and available in today's
individual insurance market. Consumers can choose
whether they want to purchase this type of coverage,
and the pricing is reflective of that choice. While
the perfect world would allow for all health
conditions to be covered, including maternity, I
cannot allow the perfect to become the enemy of the
good. There is a reason the individual insurance
market regulated by the Department of Insurance is
growing consumers are choosing policies they can
afford.
Essentially, I am faced with choosing between covering
fewer people, but with better coverage or allowing
more people to buy a policy that offers reduced
benefits at a lower cost. It is not an easy choice.
However, because I continue to have serious concerns
about the rising costs of healthcare and believe the
potential benefits of a mandate of this magnitude will
translate to fewer individuals being able to afford
coverage, I cannot support this bill.
AB 98
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Analysis Prepared by: Cassie Rafanan / HEALTH / (916)
319-2097
FN: 0003416