BILL NUMBER: AB 792 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bonilla
FEBRUARY 17, 2011
An act to add Sections 2024.7 and 8613.7 to the Family Code, to
add Sections 1366.50 and 1366.51 to the Health and Safety Code, to
add Sections 10786 and 10787 to the Insurance Code, to amend Section
2800.2 of the Labor Code, and to add Sections 1342.5 and 2706.5 to
the Unemployment Insurance Code, relating to health care coverage.
LEGISLATIVE COUNSEL'S DIGEST
AB 792, as introduced, Bonilla. Health care coverage: California
Health Benefit Exchange.
Existing law, the federal Patient Protection and Affordable Care
Act, requires each state to, by January 1, 2014, establish an
American Health Benefit Exchange that makes available qualified
health plans to qualified individuals and employers. Existing state
law establishes the California Health Benefit Exchange within state
government, specifies the powers and duties of the board governing
the Exchange relative to determining eligibility for enrollment in
the Exchange and arranging for coverage under qualified health plans,
and requires the board to facilitate the purchase of qualified
health plans through the Exchange by qualified individuals and small
employers by January 1, 2014.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
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 for the regulation of health
insurers by the Department of Insurance. Existing law imposes
specified requirements on health care service plans and health
insurers that provide medical and hospital coverage under an
employer-sponsored group plan for an employer subject to COBRA or
Cal-COBRA, as defined. Existing law regulates the distribution of
unemployment compensation or disability benefits by the Employment
Development Department. Existing law, under the Family Code, sets
forth procedures related to a petition for dissolution of marriage,
nullity of marriage, or legal separation, or a petition for adoption.
This bill would require the disclosure of information on health
care coverage through the California Health Benefit Exchange, under
specified circumstances, by health care service plans, health
insurers, the Employment Development Department, upon an initial
claim for disability benefits, or by the court, upon the filing of a
petition for dissolution of marriage, nullity of marriage, legal
separation, or adoption. On and after January 1, 2014, the bill would
also require specified health care service plans and health insurers
to, upon a renewal in coverage of an enrollee or insured, as
specified, or with regard to COBRA or Cal-COBRA coverage under an
employer-sponsored group plan, and the Employment Development
Department with regard to an applicant for unemployment compensation,
provide specified information to the California Health Benefit
Exchange for purposes of enrolling those enrollees, insureds, or
applicants in the Exchange. The bill would allow an individual to opt
out of that coverage in writing to the Exchange.
Because a willful violation of the bill's provisions relative to
health care service plans would be a crime, the bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2024.7 is added to the Family Code, to read:
2024.7. Upon the filing of a petition for dissolution of
marriage, nullity of marriage, or legal separation, the court shall
provide to the petitioner and the respondent the following notice:
"If you do not have affordable health care coverage, effective
January 1, 2014, you may obtain health care coverage through the
California Health Benefit Exchange. What you pay for coverage through
the Exchange will depend on how much you make. If your income is
low, you may qualify for no-cost coverage through Medi-Cal. For more
information, check www.healthcare.ca.gov or call 1-888-Healthhelp
(insert telephone number)."
SEC. 2. Section 8613.7 is added to the Family Code, to read:
8613.7. Upon the filing of a petition for adoption pursuant to
this part, the court shall provide to the petitioner the following
notice:
"If you do not have affordable health care coverage, effective
January 1, 2014, you may obtain health care coverage through the
California Health Benefit Exchange. What you pay for coverage through
the Exchange will depend on how much you make. If your income is
low, you may qualify for no-cost coverage through Medi-Cal. For more
information, check www.healthcare.ca.gov or call 1-888-Healthhelp
(insert telephone number)."
SEC. 3. Section 1366.50 is added to the Health and Safety Code, to
read:
1366.50. (a) Except for a specialized health care service plan,
every health care service plan contract that is issued, amended,
delivered, or renewed in this state on or after January 1, 2014, that
provides medical and hospital coverage under an employer-sponsored
group plan for an employer subject to COBRA, as defined in
subdivision (e) of Section 1373.621, or an employer group for which
the plan is required to offer Cal-COBRA coverage, as defined in
subdivision (f) of Section 1373.621, including a carrier providing
replacement coverage under Section 1399.63, shall further offer the
former employee or former dependent of an employee the opportunity to
continue benefits as required under subdivision (b), and shall
further offer the former employee or former dependent of an employee
the opportunity to continue benefits as required under subdivision
(b).
(b) (1) The health care service plan shall provide to the
California Health Benefit Exchange information regarding the former
employee and any dependents covered under the group coverage. The
information provided shall include the name or names, most recent
address, and any other information that is in the possession of the
plan and that the Exchange may require in a manner to be prescribed
by the Exchange.
(2) The information shall constitute an application for enrollment
in coverage within the meaning of Section 100503 of the Government
Code.
(c) (1) On and after January 1, 2014, notification provided to
employees, members, former employees, dependents, or former
dependents under subdivisions (a) and (b) shall also include the
following notification in 12-point type:
"Because you are no longer enrolled in coverage provided by your
employer or the employer of a family member, an application for
health care coverage through the California Health Benefit Exchange
has been made for you. You are not required to accept coverage from
the Exchange. Your payment for this coverage will be based on your
income last year. If you make significantly less or more this year
than you made last year, please tell the California Health Benefit
Exchange and your charges will be based on your current income. If
your income is low, you may qualify for no-cost coverage through
Medi-Cal. For more information, check www.healthcare.ca.gov or call
1-888-Healthhelp (insert telephone number)."
(2) To decline health care coverage pursuant to this section, the
individual shall elect to do so by notifying the Exchange in writing
within 63 calendar days of the date of termination of group coverage.
SEC. 4. Section 1366.51 is added to the Health and Safety Code, to
read:
1366.51. (a) Except for a specialized health care service plan,
every health care service plan contract that is issued, amended,
delivered, or renewed in this state on or after January 1, 2014, that
provides medical and hospital coverage to an individual shall
further offer notice 60 days in advance of renewal of the opportunity
to continue benefits as required under subdivision (b), and shall
further offer the individual or former dependent of an individual the
opportunity to continue benefits as required under subdivision (b).
(b) (1) The health care service plan shall provide to the
California Health Benefit Exchange information regarding the former
covered individual and any dependents that chose not to renew
individual coverage. The information provided shall include the name
or names, most recent address, and any other information that is in
the possession of the plan and that the Exchange may require in a
manner to be prescribed by the Exchange.
(2) The information shall constitute an application for enrollment
in coverage within the meaning of Section 100503 of the Government
Code.
(c) (1) On and after January 1, 2014, notification provided to
employees, members, former employees, dependents, or former
dependents under subdivisions (a) and (b) shall also include the
following notification in 12-point type:
"Because you are no longer enrolled in coverage purchased by you
as an individual or as the dependent of a family member, an
application for health care coverage through the California Health
Benefit Exchange has been made for you. You are not required to
accept coverage from the Exchange. Your payment for coverage will be
based on your income last year. If you make significantly less or
more this year than you made last year, please tell the California
Health Benefit Exchange and your charges will be based on your
current income. If your income is low, you may qualify for no-cost
coverage through Medi-Cal. For more information, check
www.healthcare.ca.gov or call 1-888-Healthhelp (insert telephone
number)."
(2) To decline health care coverage pursuant to this section, the
individual shall elect to do so by notifying the Exchange in writing
within 63 calendar days of the date of termination of individual
coverage.
SEC. 5. Section 10786 is added to the Insurance Code, to read:
10786. (a) Every health insurance policy that is issued, amended,
delivered, or renewed in this state on or after January 1, 2014,
that provides medical and hospital coverage under an
employer-sponsored group plan for an employer subject to COBRA, as
defined in subdivision (e) of Section 10116.5, or an employer group
for which the plan is required to offer Cal-COBRA coverage, as
defined in subdivision (f) of Section 10116.5, including a carrier
providing replacement coverage under Section 10128.3, shall further
offer the former employee or former dependent of an employee the
opportunity to continue benefits as required under subdivision (b),
and shall further offer the former employee or former dependent of an
employee the opportunity to continue benefits as required under
subdivision (b).
(b) (1) The health insurer shall provide to the California Health
Benefit Exchange information regarding the former employee and any
dependents covered under the group coverage. The information provided
shall include the name or names, most recent address, and any other
information that is in the possession of the insurer and that the
Exchange may require in a manner to be prescribed by the Exchange.
(2) The information shall constitute an application for enrollment
in coverage within the meaning of Section 100503 of the Government
Code.
(c) (1) On and after January 1, 2014, notification provided to
employees, members, former employees, dependents, or former
dependents under subdivisions (a) and (b) shall also include the
following notification in 12-point type:
"Because you are no longer enrolled in coverage provided by your
employer or the employer of a family member, an application for
health care coverage through the California Health Benefit Exchange
has been made for you. You are not required to accept coverage from
the Exchange. Your payment for this coverage will be based on your
income last year. If you make significantly less or more this year
than you made last year, please tell the California Health Benefit
Exchange and your charges will be based on your current income. If
your income is low, you may qualify for no-cost coverage through
Medi-Cal. For more information, check www.healthcare.ca.gov or call
1-888-Healthhelp (insert telephone number)."
(2) To decline health care coverage pursuant to this section, the
individual shall elect to do so by notifying the Exchange in writing
within 63 calendar days of the date of termination of group coverage.
SEC. 6. Section 10787 is added to the Insurance Code, to read:
10787. (a) Every health insurance policy that is issued, amended,
delivered, or renewed in this state on or after January 1, 2014,
that provides medical and hospital coverage to an individual shall
further offer notice 60 days in advance of renewal of the opportunity
to continue benefits as required under subdivision (b), and shall
further offer the individual or former dependent of an individual the
opportunity to continue benefits as required under subdivision (b).
(b) (1) The health insurer shall provide to the California Health
Benefit Exchange information regarding the former covered individual
and any dependents that chose not to renew individual coverage. The
information provided shall include the name or names, most recent
address, and any other information that is in the possession of the
insurer and that the Exchange may require in a manner to be
prescribed by the Exchange.
(2) The information shall constitute an application for enrollment
in coverage within the meaning of Section 100503 of the Government
Code.
(c) (1) On and after January 1, 2014, notification provided to
employees, members, former employees, dependents, or former
dependents under subdivisions (a) and (b) shall also include the
following notification in 12-point type:
"Because you are no longer enrolled in coverage purchased by you
as an individual or as the dependent of a family member, an
application for health care coverage through the California Health
Benefit Exchange has been made for you. You are not required to
accept coverage from the Exchange. Your payment for coverage will be
based on your income last year. If you make significantly less or
more this year than you made last year, please tell the California
Health Benefit Exchange and your charges will be based on your
current income. If your income is low, you may qualify for no-cost
coverage through Medi-Cal. For more information, check
www.healthcare.ca.gov or call 1-888-Healthhelp (insert telephone
number)."
(2) To decline health care coverage pursuant to this section, the
individual shall elect to do so by notifying the Exchange in writing
within 63 calendar days of the date of termination of individual
coverage.
SEC. 7. Section 2800.2 of the Labor Code is amended to read:
2800.2. (a) Any employer, employee association, or other entity
otherwise providing hospital, surgical, or major medical benefits to
its employees or members is solely responsible for notification of
its employees or members of the conversion coverage made available
pursuant to Part 6.1 (commencing with Section 12670) of Division 2 of
the Insurance Code or Section 1373.6 of the Health and Safety Code.
(b) Any employer, employee association, or other entity, whether
private or public, that provides hospital, medical, or surgical
expense coverage that a former employee may continue under Section
4980B of Title 26 of the United States Code, Section 1161 et seq. of
Title 29 of the United States Code, or Section 300bb of Title 42 of
the United States Code, as added by the Consolidated Omnibus Budget
Reconciliation Act of 1985 (Public Law 99-272), and as may be later
amended (hereafter "COBRA"), shall, in conjunction with the
notification required by COBRA that COBRA continuation coverage will
cease and conversion coverage is available, and as a part of the
notification required by subdivision (a), also notify the former
employee, spouse, or former spouse of the availability of the
continuation coverage under Section 1373.621 of the Health and Safety
Code, and Sections 10116.5 and 11512.03 of the Insurance Code.
(c) (1) On or after July 1, 2006, until
January 1, 2012, notification provided to employees, members,
former employees, spouses, or former spouses under subdivisions (a)
and (b) shall also include the following notification:
"Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied coverage
entirely."
(2) On and after January 1, 2012, until December 31, 2013,
notification provided to employees, members, former employees,
spouses, or former spouses under subdivisions (a) and (b) shall also
include the following notification:
"Please examine your options carefully before declining this
coverage. Until January 1, 2014, you should be aware that companies
selling individual health insurance to adults who are 19 years of age
or older typically require a review of your medical history that
could result in a higher premium or you could be denied coverage
entirely. Effective January 1, 2010, children under 19 years of age
cannot be denied individual coverage based on medical history but may
pay a higher premium depending on medical history."
(3) On and after January 1, 2014, notification provided to
employees, members, former employees, spouses, or former spouses
under subdivisions (a) and (b) shall also include the following
notification:
"Because you are no longer enrolled in coverage purchased by you
as an individual or as the dependent of a family member, an
application for health care coverage through the California Health
Benefit Exchange has been made for you. You are not required to
accept coverage from the Exchange. You will be charged for Exchange
coverage based on your income last year. If you make significantly
less or more this year than you made last year, please tell the
California Health Benefit Exchange and your charges will be based on
your current income. If your income is low, you may qualify for
no-cost coverage through Medi-Cal. For more information, check
www.healthcare.ca.gov or call 1-888-Healthhelp (insert telephone
number)."
(d) To decline health care coverage pursuant to this section, the
individual shall elect to do so by notifying the Exchange in writing
within 63 calendar days of the date of termination of individual
coverage.
SEC. 8. Section 1342.5 is added to the Unemployment Insurance
Code, to read:
1342.5. (a) On and after January 1, 2014, when an individual
files a new claim for unemployment compensation under this chapter,
the department shall do all of the following:
(1) (A) Provide to the California Health Benefit Exchange the
name, address, and any other identifying information that is in the
possession of the department as the Exchange may require in a manner
to be prescribed by the Exchange.
(B) The information shall constitute an application for enrollment
in coverage within the meaning of Section 100503 of the Government
Code.
(b) Provide the following notice to the individual:
"Because you have applied for unemployment compensation, an
application for health care coverage through the California Health
Benefit Exchange has been made for you. You are not required to
accept coverage from the Exchange. You will be charged for Exchange
coverage based on your income last year. If you make significantly
less or more this year than you made last year, please tell the
California Health Benefit Exchange and your charges will be based on
your current income. If your income is low, you may qualify for
no-cost coverage through Medi-Cal. For more information, check
www.healthcare.ca.gov or call 1-888-Healthhelp (insert telephone
number)."
(c) To decline health care coverage pursuant to this section, the
individual shall elect to do so by notifying the Exchange in writing.
SEC. 9. Section 2706.5 is added to the Unemployment Insurance
Code, to read:
2706.5. (a) When an individual files a new claim for disability
benefits under this part, the department shall provide the following
notice to the individual:
"If you do not have affordable health care coverage, effective
January 1, 2014, you may obtain health care coverage through the
California Health Benefit Exchange. What you pay for coverage through
the Exchange will depend on how much you make. If your income is
low, you may qualify for no-cost coverage through Medi-Cal. For more
information, check www.healthcare.ca.gov or call 1-888-Healthhelp
(insert telephone number)."
(b) This notice shall be provided upon initial application whether
or not the individual is eligible for disability benefits.
SEC. 10. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.