SB 1124, as introduced, Hernandez. Health care service plans.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law requires that every group health care service plan contract, issued, amended, or renewed, include a provision requiring the health care service plan to notify the group contractholders in writing of the cancellation of the plan contract and shall include in their contract with group contractholders a provision requiring the group contractholder to mail promptly to each subscriber a legible, true copy of any notice of cancellation of the plan contract that may be received from the plan and to provide promptly to the plan proof of that mailing and the date of that mailing.
This bill would authorize those contract provisions to allow those mailings to be made by email.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1367.23 of the Health and Safety Code
2 is amended to read:
(a) begin deleteOn and after January 1, 1994, every end deletebegin insertEvery end insertgroup
2health care service plan contract, which is issued, amended, or
3renewed, shall include a provision requiring the health care service
4plan to notify the group contractholders in writing of the
5cancellation of the plan contract and shall include in their contract
6with group contractholders a provision requiring the group
7contractholder to mail promptlybegin insert or emailend insert to each subscriber a
8legible, true copy of any notice of cancellation of the plan
contract
9which may be received from the plan and to provide promptly to
10the plan proof of that mailingbegin insert or emailingend insert and the datebegin delete thereofend deletebegin insert of
11that mailing or emailingend insert.
12(b) The notice of cancellation from the group contractholder
13to the subscriber required by subdivision (a) shall include
14information regarding the conversion rights of persons covered
15under the plan contract upon termination of the plan contract. This
16information shall be in clear and easily understandable language.
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