BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2400
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 2400 (Ridley-Thomas) - As Amended:  May 6, 2014 

          Policy Committee:                              HealthVote:17-1

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

           SUMMARY  

          This bill amends the Health Care Providers' Bill of Rights as  
          follows:

          1)Allows 90 instead of 45 days to provide specified notice of  
            changes to providers.

          2)Prohibits a provision that terminates the health care  
            provider's contract or participation status in the contract,  
            or the provider's eligibility to participate in other product  
            networks, when the provider exercises the right to negotiate,  
            accept, or refuse a material change to the contract pursuant  
            to this section.

          3)Prohibits a requirement that a health care provider agree to  
            accept or participate in other products or product networks,  
            including future products that have not yet been developed or  
            adopted by the plan, without disclosing the reimbursement  
            rate, method of payment, and any other materially different  
            contract terms for those products from the underlying  
            agreement.
           
          FISCAL EFFECT  

          1)$30,000 annually to the California Department of Insurance  
            (CDI) (Insurance Fund) associated with complaints and  
            enforcement.  

          2)$30,000 one-time and approximately $150,000 annually to the  
            Department of Managed Health Care (DMHC) (Managed Care Fund)  
            associated with complaints and enforcement.  









                                                                  AB 2400
                                                                  Page  2

           COMMENTS  

           Purpose  . This bill intends to create more transparency with  
          respect to provider contracts.  This bill addresses physician  
          concerns that they were not given the opportunity to fully  
          review and agree to new products in their contracts with health  
          plans and insurers with the rollout of new Covered California  
          products and the expansion of Medi-Cal managed care, leading to  
          inaccurate provider networks and confusion for consumers.  This  
          bill is sponsored by the California Medical Association. 
            
           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081