BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1759 (Blumenfield)
          
          Hearing Date:  8/9/2010         Amended: 8/2/2010
          Consultant: Katie Johnson       Policy Vote: Health 6-2
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          BILL SUMMARY:  AB 1759 would require health care service plans  
          and health insurers to provide a separate enhanced disclosure,  
          at the point of sale, to the subscribers of a group contract or  
          policy that is signed by the group contract/policyholder that  
          specifies the circumstances under which premium rates or  
          cost-sharing may change throughout the course of the contract or  
          policy.
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                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          DMHC filing reviews      $50 - $60  $0       $0Special*

          *Managed Care Fund
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          STAFF COMMENTS: 

          Existing law provides that no group health plan or insurer shall  
          change the premium rates or applicable copayments, coinsurances,  
          or deductibles for the length of the contract except when, 1)  
          authorized or required in the group contract or policy, 2) the  
          contract or policy was agreed to under a preliminary agreement  
          that states that it is subject to the execution of a definitive  
          agreement, or 3) the plan or insurer and the contractholder or  
          policyholder mutually agree in writing.

          This bill would further require that, "when [a rate change is]  
          authorized or required in the group contract or policy," a  
          health plan or insurer must provide, at the point of sale, a  
          separate, enhanced disclosure to the contract subscribers and  
          insureds, signed by the group contract/policyholder, that would  
          explain the circumstances under which a change in a premium or  
          copayments, coinsurances, or deductibles, may occur.











          Costs to review plan and insurer filings would be approximately  
          $50,000 - $60,000 in FY 2010-2011 for the Department of Managed  
          Health Care (DMHC) and would be minor and absorbable for the  
          California Department of Insurance (CDI).