BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2350
                                                                  Page  1

          Date of Hearing:   April 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2350 (Monning) - As Amended:  April 11, 2012 

          Policy Committee:                              HealthVote:13-5

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          Requires all health plans to report periodic financial 
          disclosures and information regarding enrollment, denied claims, 
          specified policies and practices, and other information to the 
          California Department of Insurance (CDI) and the Department of 
          Managed Health Care (DMHC).  

           FISCAL EFFECT  

          1)One-time costs to DMHC and CDI in the range of $200,000 
            (Managed Care Fund and Insurance Fund) to specify the form and 
            manner of reporting.  

          2)Annual costs to DMHC and CDI may be minor and absorbable as 
            the bill does not specify requirements, but the collection of 
            additional data will create cost pressure to analyze the data, 
            potentially exceeding $50,000 special fund annually.  

           COMMENTS  

           1)Rationale  . With this bill, the author intends to standardize 
            reporting requirements for health care service plans and 
            health insurers.  The author believes baseline and annually 
            reported data will ensure greater transparency with respect to 
            health care coverage design and enrollment, and allow 
            regulators to better monitor changes in the health insurance 
            marketplace as the federal Patient Protection and Affordable 
            Care Act (ACA) is implemented. 

           2)Background  .  Pursuant to the ACA, federal regulations require 
            qualified health plans offered through the state-based 
            Exchanges to report a variety of information to the Exchanges, 








                                                                  AB 2350
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            to the federal Department of Health and Human Services (HHS) 
            and to the State insurance commissioner.  This would extend 
            the reporting requirement to all plans, and include DMHC as an 
            entity receiving reports.  Health plans are not opposed to 
            this bill, but want to ensure these reporting requirements 
            will not be duplicative of current requirements.  

           3)Related Legislation . AB 2152 (Eng) is sponsored by the 
            Insurance Commissioner to conform enrollee disclosure 
            requirements for health insurance plans with those that apply 
            to DMHC-regulated plans.  AB 2152 is pending in this 
            committee.


           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081