AB 2042 - An Act to Add Section 1374.255 to the Health and Safety Code, and to Add Section 10199.49 to the Insurance Code, Relating to Health Care Coverage.

Health care coverage: rate changes. 2009-2010 Legislature. View bill details
Author(s):
Summary:
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 also provides for the regulation of health insurers by the Department of Insurance. Under existing law, no change in premium rates or coverage in a health… More
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 also provides for the regulation of health insurers by the Department of Insurance. Under existing law, no change in premium rates or coverage in a health care service plan contract or a health insurance policy may become effective without prior written notification of the change to the contractholder or policyholder. Existing law prohibits a plan or insurer during the term of a group plan contract or policy from changing the rate of the premium, copayment, coinsurance, or deductible during specified time periods.

This bill would prohibit a health care service plan or health insurer from altering the rates, as defined, that apply to individual health care service plan contracts or individual health insurance policies, or altering any benefits included in individual contracts or policies, more than once each calendar year, except as specified. Among those exceptions, the bill would provide that, if a brand name drug becomes available as a generic drug, the application of a lower cost-sharing rate for the generic drug would not constitute an alteration of benefits. The bill’s provisions would apply to a new individual plan contract or policy issued to an enrollee or insured who transfers from another plan or policy, as specified, and would prohibit the issuance of new plan contracts or policies more often than annually.

Because a willful violation of these requirements by a health care service plan would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason. Hide
 
Status:
This bill was passed by both houses and vetoed by the Governor. It did not become law
Senate Vote: On Passage

PASSED on August 23, 2010.

voted YES: 22 voted NO: 13
4 voted present/not voting

An Act to Add Section 1374.255 to the Health and Safety Code, and to Add Section 10199.49 to the Insurance Code, Relating to Health Care Coverage.

AB 2042 — 2009-2010 Legislature

Summary
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 also provides for the regulation of health insurers by the Department of Insurance. Under existing law, no change in premium rates or coverage in a health care service plan contract or a health insurance policy may become effective without prior written notification of the change to the contractholder or policyholder. Existing law prohibits a plan or insurer during the term of a group plan contract or policy from changing the rate of the premium, copayment, coinsurance, or deductible during specified time periods.

This bill would prohibit a health care service plan or health insurer from altering the rates, as defined, that apply to individual health care service plan contracts or individual health insurance policies, or altering any benefits included in individual contracts or policies, more than once each calendar year, except as specified. Among those exceptions, the bill would provide that, if a brand name drug becomes… More
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 also provides for the regulation of health insurers by the Department of Insurance. Under existing law, no change in premium rates or coverage in a health care service plan contract or a health insurance policy may become effective without prior written notification of the change to the contractholder or policyholder. Existing law prohibits a plan or insurer during the term of a group plan contract or policy from changing the rate of the premium, copayment, coinsurance, or deductible during specified time periods.

This bill would prohibit a health care service plan or health insurer from altering the rates, as defined, that apply to individual health care service plan contracts or individual health insurance policies, or altering any benefits included in individual contracts or policies, more than once each calendar year, except as specified. Among those exceptions, the bill would provide that, if a brand name drug becomes available as a generic drug, the application of a lower cost-sharing rate for the generic drug would not constitute an alteration of benefits. The bill’s provisions would apply to a new individual plan contract or policy issued to an enrollee or insured who transfers from another plan or policy, as specified, and would prohibit the issuance of new plan contracts or policies more often than annually.

Because a willful violation of these requirements by a health care service plan would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason. Hide
Learn More
At LegInfo.ca.gov
Title
An Act to Add Section 1374.255 to the Health and Safety Code, and to Add Section 10199.49 to the Insurance Code, Relating to Health Care Coverage.
Author(s)
Mike Feuer
Co-Authors
    Subjects
    • Health care coverage: rate changes
    Major Actions
    Introduced2/17/2010
    Referred to Committee
    Passed Assembly Committee on Health4/13/2010
    Passed Assembly Committee on Appropriations5/05/2010
    Passed Assembly5/13/2010
    Passed Senate Committee on Health6/23/2010
    Passed Senate8/23/2010
    Passed Assembly8/25/2010
    Presented to the governor (enrolled)9/03/2010
    Vetoed by Governor9/29/2010
    Vetoed by Governor9/29/2010
    Bill History
    Chamber/CommitteeMotionDateResult
    select this voteAssembly Committee on HealthDo pass as amended and be re-referred to the Committee on Appropriations.4/13/2010This motion PASSED the Assembly Committee on Health
    13 voted YES 6 voted NO 0 voted present/not voting
    select this voteAssembly Committee on AppropriationsDo pass.5/05/2010This motion PASSED the Assembly Committee on Appropriations
    12 voted YES 5 voted NO 0 voted present/not voting
    select this voteAssemblyAB 2042 FEUER Assembly Third Reading5/13/2010This bill PASSED the Assembly
    48 voted YES 27 voted NO 4 voted present/not voting
    select this voteSenate Committee on HealthDo pass as amended, and re-refer to the Committee on Appropriations.6/23/2010This motion PASSED the Senate Committee on Health
    6 voted YES 0 voted NO 3 voted present/not voting
    currently selectedSenateAssembly 3rd Reading AB2042 Feuer By Leno8/23/2010This bill PASSED the Senate
    22 voted YES 13 voted NO 4 voted present/not voting
    select this voteAssemblyAB 2042 FEUER Concurrence in Senate Amendments8/25/2010This bill PASSED the Assembly
    50 voted YES 26 voted NO 2 voted present/not voting
    ActionDateDescription
    Introduced2/17/2010
    2/17/2010Read first time. To print.
    2/18/2010From printer. May be heard in committee March 20.
    3/04/2010Referred to Com. on HEALTH.
    3/22/2010From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
    3/23/2010Re-referred to Com. on HEALTH.
    4/06/2010In committee: Set, first hearing. Hearing canceled at the request of author. From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
    4/07/2010Re-referred to Com. on HEALTH.
    select this voteVote4/13/2010Do pass as amended and be re-referred to the Committee on Appropriations.
    4/19/2010From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 13. Noes 6.) (April 13).
    4/20/2010Read second time and amended.
    4/21/2010Re-referred to Com. on APPR.
    select this voteVote5/05/2010Do pass.
    5/06/2010From committee: Do pass. (Ayes 12. Noes 5.) (May 5).
    5/10/2010Read second time. To third reading.
    5/13/2010Read third time, passed, and to Senate. (Ayes 48. Noes 27. Page 5142.)
    5/13/2010In Senate. Read first time. To Com. on RLS. for assignment.
    select this voteAssembly Vote on Passage5/13/2010AB 2042 FEUER Assembly Third Reading
    5/27/2010Referred to Com. on HEALTH.
    6/10/2010From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HEALTH.
    6/16/2010Testimony taken. Hearing postponed by Committee.
    select this voteVote6/23/2010Do pass as amended, and re-refer to the Committee on Appropriations.
    6/28/2010From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 23).
    6/29/2010Read second time and amended. Re-referred to Com. on APPR.
    7/15/2010From committee: Be placed on second reading file pursuant to Senate Rule 28.8.
    8/02/2010Read second time. To third reading.
    8/12/2010Read third time, amended. To second reading.
    8/16/2010Read second time. To third reading.
    8/23/2010Read third time, passed, and to Assembly. (Ayes 22. Noes 13. Page 4770.)
    8/23/2010In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.
    currently selectedSenate Vote on Passage8/23/2010Assembly 3rd Reading AB2042 Feuer By Leno
    8/24/2010Assembly Rule 77 suspended. (Ayes 49. Noes 27. Page 6562.)
    8/24/2010Passed on file.
    8/25/2010Senate amendments concurred in. To enrollment. (Ayes 50. Noes 26. Page 6632.)
    select this voteAssembly Vote on Passage8/25/2010AB 2042 FEUER Concurrence in Senate Amendments
    9/03/2010Enrolled and to the Governor at 3 p.m.
    Vetoed9/29/2010Vetoed by Governor.

    Total contributions given to Senators from interest groups that…

    3% more
    $942,015
    $69,475
    $175
    $373,485
    $0
    $1,385,150
    $765,163
    $217,097
    $357,340
    $1,339,600
    7 Organizations Supported and 6 Opposed; See Which Ones

    Organizations that took a position on
    An Act to Add Section 1374.255 to the Health and Safety Code, and to Add Section 10199.49 to the Insurance Code, Relating to Health Care Coverage.: Assembly 3rd Reading AB2042 Feuer By Leno

    7 organizations supported this bill

    American Federation of State, County and Municipal Employees
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    California Chiropractic Association
    (2010, June 23). AB 2042 Bill Analysis. Retrieved August 24, 2010, from .
    California School Employees Association
    (2010, June 23). AB 2042 Bill Analysis. Retrieved August 24, 2010, from .
    Congress of California Seniors
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    Consumers Union
    (2010, June 23). AB 2042 Bill Analysis. Retrieved August 24, 2010, from .
    Health Access
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    National Education Association
    (2010, June 23). AB 2042 Bill Analysis. Retrieved August 24, 2010, from .

    6 organizations opposed this bill

    Association of California Life and Health Insurance Companies
    (2010, June 23). AB 2042 Bill Analysis. Retrieved August 24, 2010, from .
    Blue Shield of California
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    California Association of Health Plans
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    Health Net
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    National Association of Health Underwriters
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.
    WellPoint
    Assembly Committee on Health (2010, April 6). Bill Analysis. Retrieved August 24, 2010, from California Senate.

    Need proof?

    View citations of support and opposition

    Includes reported contributions to campaigns of Senators in office on day of vote, from interest groups invested in the vote according to MapLight, January 1, 2007 – December 31, 2010.
    Contributions data source: FollowTheMoney.org

    Contributions by Legislator

    Namesort iconPartyDistrict$ From Interest Groups
    That Supported
    $ From Interest Groups
    That Opposed
    Vote
    Sam AanestadRCA-4$2,000$37,900No
    Elaine AlquistDCA-13$51,750$19,030Yes
    Roy AshburnRCA-18$0$0No
    Sam BlakesleeRCA-15$13,800$25,800No
    Ron CalderonDCA-30$20,800$84,000Yes
    Gilbert CedilloDCA-22$31,400$13,400Yes
    Dave CogdillRCA-14$6,850$56,600No
    Ellen CorbettDCA-10$53,800$11,500Yes
    Lou CorreaDCA-34$53,600$79,000No
    Mark DeSaulnierDCA-7$80,825$16,500Yes
    Jeff DenhamRCA-12$1,000$33,550No
    Denise DuchenyDCA-40$0$0Yes
    Bob DuttonRCA-31$11,210$53,150No
    Bill EmmersonRCA-37$11,400$34,200No
    Dean FlorezDCA-16$0$2,500Yes
    Loni HancockDCA-9$83,550$0Yes
    Tom HarmanRCA-35$13,500$73,250Not Voting
    Dennis HollingsworthRCA-36$1,000$16,000No
    Bob HuffRCA-29$4,100$62,312No
    Christine KehoeDCA-39$65,450$9,800Yes
    Mark LenoDCA-3$91,875$6,600Yes
    Carol LiuDCA-21$43,500$6,800Yes
    Alan LowenthalDCA-27$64,550$14,800Yes
    Gloria Negrete McLeodDCA-32$30,921$71,815Yes
    Jenny OropezaDCA-28$20,900$4,000Not Voting
    Alex PadillaDCA-20$63,850$60,643Yes
    Fran PavleyDCA-23$61,300$5,350Yes
    Curren PriceDCA-26$46,414$23,700Yes
    Gloria RomeroDCA-24$13,350$4,000Yes
    George RunnerRCA-17$11,520$59,300Not Voting
    Joe SimitianDCA-11$70,200$18,000Yes
    Darrell SteinbergDCA-6$93,050$65,200Yes
    Tony StricklandRCA-19$15,100$108,050No
    Mimi WaltersRCA-33$5,600$80,950No
    Pat WigginsDCA-2$24,500$14,000Not Voting
    Lois WolkDCA-5$85,375$20,350Yes
    Rod WrightDCA-25$46,700$34,050Yes
    Mark WylandRCA-38$710$50,000No
    Leland YeeDCA-8$89,700$63,500Yes

    Add Data Filters:

    Legislator Filters
    Legislator Filters
    Show All
    NamePartyDistrict$ From Interest Groups
    That Supported
    $ From Interest Groups
    That Opposed
    Vote
    Sam AanestadRCA-4$2,000$37,900No
    Elaine AlquistDCA-13$51,750$19,030Yes
    Roy AshburnRCA-18$0$0No
    Sam BlakesleeRCA-15$13,800$25,800No
    Ron CalderonDCA-30$20,800$84,000Yes
    Gilbert CedilloDCA-22$31,400$13,400Yes
    Dave CogdillRCA-14$6,850$56,600No
    Ellen CorbettDCA-10$53,800$11,500Yes
    Lou CorreaDCA-34$53,600$79,000No
    Mark DeSaulnierDCA-7$80,825$16,500Yes
    Jeff DenhamRCA-12$1,000$33,550No
    Denise DuchenyDCA-40$0$0Yes
    Bob DuttonRCA-31$11,210$53,150No
    Bill EmmersonRCA-37$11,400$34,200No
    Dean FlorezDCA-16$0$2,500Yes
    Loni HancockDCA-9$83,550$0Yes
    Tom HarmanRCA-35$13,500$73,250Not Voting
    Dennis HollingsworthRCA-36$1,000$16,000No
    Bob HuffRCA-29$4,100$62,312No
    Christine KehoeDCA-39$65,450$9,800Yes
    Mark LenoDCA-3$91,875$6,600Yes
    Carol LiuDCA-21$43,500$6,800Yes
    Alan LowenthalDCA-27$64,550$14,800Yes
    Gloria Negrete McLeodDCA-32$30,921$71,815Yes
    Jenny OropezaDCA-28$20,900$4,000Not Voting
    Alex PadillaDCA-20$63,850$60,643Yes
    Fran PavleyDCA-23$61,300$5,350Yes
    Curren PriceDCA-26$46,414$23,700Yes
    Gloria RomeroDCA-24$13,350$4,000Yes
    George RunnerRCA-17$11,520$59,300Not Voting
    Joe SimitianDCA-11$70,200$18,000Yes
    Darrell SteinbergDCA-6$93,050$65,200Yes
    Tony StricklandRCA-19$15,100$108,050No
    Mimi WaltersRCA-33$5,600$80,950No
    Pat WigginsDCA-2$24,500$14,000Not Voting
    Lois WolkDCA-5$85,375$20,350Yes
    Rod WrightDCA-25$46,700$34,050Yes
    Mark WylandRCA-38$710$50,000No
    Leland YeeDCA-8$89,700$63,500Yes

    Interest Groups that supported this bill

    $ Donated
    State & local government employee unions$942,015
    Teachers unions$373,485
    Chiropractors$69,475
    Elderly issues & Social Security$175
    Consumer groups$0

    Interest Groups that opposed this bill

    $ Donated
    Accident & health insurance$765,163
    Insurance agencies, brokers & agents$357,340
    Life insurance$217,097
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