BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 959
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  SB 959 (Hernandez) - As Amended:  August 4, 2014 

          Policy Committee:                             HealthVote:19-0

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

           SUMMARY  

          This bill makes numerous minor changes to law applying to health  
          plans and insurers.  Key provisions of this bill:

          1)Require health plans and insurers to deliver notice of rate  
            changes at least 15 days in advance of the annual open  
            enrollment period. 

          2)Includes participation fees paid by health plans and insurers  
            that sell products through the Exchange in the calculation  
            (under current law) of the index rate upon which premium rates  
            are based.

          3)Delete requirements rendered obsolete by other recent changes  
            in law.

          4)Update requirements to notify consumers about their coverage  
            options.

          5)Correct and update code section references and makes other  
            minor, technical, and clarifying changes.

           FISCAL EFFECT  

          Negligible state fiscal effect. 

           COMMENTS  

           Purpose  .  The author asserts this is an omnibus health insurance  
          clean-up bill, necessary to make sure there are not ambiguities  
          or uncertainty about California's health insurance laws.  One of  
          the most substantive provisions ensures that individuals  








                                                                  SB 959
                                                                  Page  2

          purchasing in the individual market are notified of rate changes  
          15 days prior to the start of open enrollment.  The author  
          argues it is important that an individual subject to a rate  
          increase is informed so that he or she can shop for other  
          coverage during open enrollment, if so desired.  In addition,  
          this bill conforms state law to federal regulations that state  
          the index rate plans and insurers use to set premiums should be  
          adjusted to include participation fees the plans pay to offer  
          products through the Exchange.  

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