BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1578 (Pan) - Health: The California Health Benefits Review  
          Program.
          
          Amended: August 19, 2014        Policy Vote: Health: 6-0
          Urgency: Yes                    Mandate: No
          Hearing Date: August 30, 2014                           
          Consultant: Brendan McCarthy    
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 1578 would extend the sunset on the California  
          Health Benefits Review Program for one year and would extend the  
          assessment on health plans and health insurers to support the  
          program.

          Fiscal Impact: 
              One-time costs of $2 million to support the California  
              Health Benefits Review Program (within the University of  
              California), supported by the assessment on health plans and  
              health insurers (Health Care Benefits Fund).

          Background: Under the current law, the Legislature requests the  
          University of California to establish the California Health  
          Benefits Review Program. Under current law, the Program is  
          established to provide assistance to the Legislature in its  
          review of proposed laws that would mandate benefits or services  
          to be covered by health plans and health insurers. The Program  
          provides information on the medical effectiveness and projected  
          costs of new proposed benefit mandates. Current law requests the  
          Program to provide a requested  analysis within 60 days of  
          receiving a request from the Legislature.

          Under current law, health plans and health insurers pay an  
          annual assessment, not to exceed $2 million, to support the  
          operations of the Program.

          Proposed Law: AB 1578 would extend the sunset on the California  
          Health Benefits Review Program for one year to June 30, 2016.  
          The bill would expand the requested activities of the Program to  
          include analyses of the impact of proposed benefit mandates on  
          the California Health Benefit Exchange and analyses of proposed  








          AB 1578 (Pan)
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          laws that impact health care coverage benefit design, cost  
          sharing, and other topics. The bill would also specify that the  
          Program shall complete its analyses within 60 days or in a  
          manner and timeline agreed to with the Legislature.

          The bill would extend the assessment on health plans and health  
          insurers to support the program until June 30, 2016.

          Staff Comments: Under the California Constitution, the  
          Legislature has limited authority over the University of  
          California. The Legislature generally cannot mandate the  
          University to conduct specific program activities. Therefore,  
          current law and this bill request the University to operate the  
          California Health Benefits Review Program.