BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2345
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2345 (De La Torre)
          As Amended August 18, 2010
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |52-11|(June 2, 2010)  |SENATE: |22-14|(August 23,    |
          |           |     |                |        |     |2010)          |
           ----------------------------------------------------------------- 
            
          Original Committee Reference:    HEALTH  

           SUMMARY  :  Requires health care service plan contracts and health  
          insurance policies issued amended, renewed or delivered on or  
          after Sept 23, 2010 to comply with coverage and cost sharing for  
          preventative services pursuant to the federal the Patient  
          Protection and Affordable Care Act (PPACA) and any federal rules  
          or regulations subsequently issued.

           The Senate amendments  , delete the Assembly version of this bill,  
          and instead, require health care service plan contracts and  
          health insurance policies issued amended, renewed or delivered on  
          or after Sept 23, 2010 to comply with coverage and cost sharing  
          for preventative services pursuant to the federal PPACA and any  
          federal rules or regulations subsequently issued.

           EXISTING FEDERAL LAW  requires, under PPACA, health plans and  
          issuers, subject to the minimum interval established by the  
          United States Secretary of the Department of Health and Human  
          Services, to provide coverage, and not impose cost-sharing  
          requirements, for the following preventive services with respect  
          to plan years beginning on and after September 23, 2010.

           EXISTING STATE LAW  provides for the licensure and regulation of  
          health care service plans by the Department of Managed Health  
          Care and of health insurers by the Department of Insurance.

           AS PASSED BY THE ASSEMBLY  , this bill required health insurers to  
          annually post specified information used for rating and  
          underwriting decisions related to individual health insurance  
          policies on their Web sites.

          FISCAL EFFECT  :  This bill as amended has not been analyzed by an  
          Assembly fiscal committee.









                                                                  AB 2345
                                                                  Page  2

           COMMENTS  :  On March 23, 2010, President Obama signed the PPACA  
          (Public Law 111-148), as amended by the Health Care and Education  
          Reconciliation Act of 2010 (Public Law 111-152).  Among other  
          provisions, the new law makes statutory changes affecting the  
          regulation of and payment for certain types of private health  
          insurance.  A key provision of PPACA, related to preventative  
          health, requires group health plans or individual health  
          insurance coverage, without imposing any cost-sharing  
          requirements.  The recently passed PPACA requires state  
          implementation of some important reforms by September 23, 2010.   
          According to the author, this is one of the important reforms  
          needed to ensure Californians receive quality preventive care  
          that is desperately needed.
          This bill was substantially amended in the Senate and the  
          Assembly-approved version of this bill was deleted.  This bill,  
          as amended in the Senate, is inconsistent with Assembly actions.


           Analysis Prepared by  :    Melanie Moreno / HEALTH / (916) 319-2097  
                                                       FN: 0006563