BILL NUMBER: AB 778	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Atkins

                        FEBRUARY 17, 2011

   An act relating to health care service plans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 778, as introduced, Atkins. Health care service plans.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975
(Knox-Keene Act), provides for the regulation of health care service
plans by the Department of Managed Health Care and makes a willful
violation of the act a crime. Existing law provides that health care
service plans shall not be deemed to be engaged in the practice of a
profession, and may employ, or contract with, any licensed health
care professional to deliver professional services, and may directly
own, and may directly operate through its professional employees or
contracted licensed professionals, offices and subsidiary
corporations.
   This bill would declare the intent of the Legislature to enact
legislation related to health care service plans under the Knox-Keene
Act and the entities with which a health care service plan may
transact business.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation to clarify existing law with regard to health care
service plans that are regulated under the Knox-Keene Health Care
Service Plan Act of 1975 (Chapter 2.2 (commencing with Section 1340)
of Division 2 of the Health and Safety Code) and the entities with
which a health care service plan may transact business.