BILL ANALYSIS �
AB 1877
Page 1
GOVERNOR'S VETO
AB 1877 (Cooley)
As Amended August 19, 2014
2/3 vote
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|ASSEMBLY: |77-0 |(May 28, 2014) |SENATE: |36-0 |(August 21, |
| | | | | |2014) |
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|ASSEMBLY: |78-0 |(August 25, | | | |
| | |2014) | | | |
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Original Committee Reference: HEALTH
SUMMARY : Creates in state government the California Vision Care
Access Council (Council), governed by the Board of the
California Health Benefit Exchange (Exchange), to create a
Website to inform consumers about individual and employer-based
vision plans offered by participating carriers. Contains an
urgency clause in order to become effective immediately upon
enactment. Specifically, this bill :
1)Gives the Council the following duties:
a) Construct, manage, and maintain a Web site, separate
from the Exchange's Web site, to allow consumers to obtain
standardized comparative information on participating
vision plans. Establish an interagency agreement with the
Exchange allowing the Council to utilize certain resources
of the Exchange, including staff and information technology
infrastructure. This bill prohibits the use of federal
Exchange funds from being used for purposes of this bill;
b) Determine minimum requirements for plans participating
in the Web site;
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c) Work cooperatively with the Exchange to establish a
direct link from the Exchange Web site to the Council Web
site. Refer consumers to the Exchange and licensed agents
if they have questions about Medi-Cal or Exchange plan
enrollment and eligibility;
d) Provide information in a culturally and linguistically
appropriate manner using the services of licensed agents;
and,
e) Assess a charge on participating vision plans that is
reasonable and necessary to support the development,
operations, and prudent cash management of the Council.
2)Gives the Council the authority to enter into contracts; adopt
an official seal; sue and be sued; adopt rules and
regulations; and receive and accept gifts, grants, or
donations from government agencies and from individuals,
associations, private foundations, or corporations, in
compliance with conflict of interest provisions adopted by the
Board at a public meeting.
3)Prohibits the use of state General Fund moneys for the
purposes of this bill. Creates the California Vision Care
Access Trust Fund (Fund) in the State Treasury, with funds
available upon appropriation by the Legislature, to fund the
activities of the Council, and requires any costs associated
with the implementation of this bill to be paid from the fund.
Makes this bill's implementation contingent on the existence
of sufficient moneys in the fund.
The Senate amendments make the Council subject to governance by
the Exchange Board, rather than a newly-created board, narrow
the duties of the Council to only create a Web site, rather than
a marketplace for vision coverage, eliminate continuous
appropriation of moneys from the Fund, and make numerous other
minor changes.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)One-time administrative costs in the hundreds of thousands to
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low millions for administrative tasks such as developing
policies regarding the new marketplace, adopting regulations,
conducting stakeholder outreach, and overseeing the management
of funds donated to the new Vision Care Access Council for
development of the marketplace (special fund).
2)One-time costs likely in the low millions to create a Web site
for comparing vision plans (special fund).
3)Ongoing administrative costs likely in the millions of dollars
per year for the Council to manage the new system, review
filings by participating vision plans, and oversee financial
transactions conducted through the new marketplace (special
fund).
4)One-time costs of about $160,000 over two years and ongoing
costs of about $100,000 for enforcement and consumer
assistance by the Department of Insurance (Insurance Fund).
COMMENTS : In 2012, the Exchange Board adopted a policy to offer
supplemental dental and vision benefits through the Exchange, on
the basis that stand-alone vision plans may increase the
likelihood of utilization and provide greater emphasis on
preventive care, and that offering stand-alone vision plans
would bolster the consumer friendliness of the Exchange.
However, subsequent federal guidance indicated that stand-alone
vision plans cannot be offered in or through an exchange.
VSP Global, the sponsor of this bill, notes that vision
coverage, particularly in California, is primarily provided
through stand-alone plans. VSP Global further asserts that eye
doctors are able to detect previously undetected chronic
conditions like diabetes, hypertension, and high cholesterol.
Moreover, VSP Global asserts that enrollees in stand-alone
vision plans are more likely to utilize their benefits than
enrollees with vision benefits bundled with other health care
services. This bill is intended to use federal guidance to
facilitate the purchase of affordable, quality vision care
coverage, thereby increasing access to vision care through
stand-alone vision plans.
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GOVERNOR'S VETO MESSAGE :
The bill would create the California Vision Care
Access Council as a new public entity charged with
operating a Web site that allows consumers to compare
information about vision plans that meet the Council's
requirements. The bill would also require Covered
California's board to run the Council's operations,
and use the board's staff and resources to conduct the
activities of the Council, if permitted by federal
law.
Creating a new state bureaucracy to inform consumers
about vision plans isn't necessary, nor is it
advisable to divert Covered California's focus with a
new scheme, the governance of which may be
impermissible under federal rules.
Analysis Prepared by : Ben Russell / HEALTH / (916) 319-2097
FN: 0005712