AB 29

Bill Subjects

Abstract

Existing law, the Knox-Keene Health Care Service Plan Act of 1975 (Knox-Keene Act) , 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. Existing law requires that every health care service plan contract or group health insurance policy that provides for termination of coverage of a dependent child upon attainment of the limiting age for dependent children shall also provide that attainment of the limiting age shall not terminate the coverage of a child under certain conditions. This bill would prohibit, with a specified exception, the limiting age for dependent children covered by these health care service plan contracts and group health insurance policies from being less than 27 years of age. The bill would also provide that no employer is required to pay the cost of coverage for dependents who are at least 23 years of age, but less than 27 years of age. The bill instead would authorize subscribers and insureds to elect to provide coverage to those dependents by contributing the premium for that coverage. Because this bill would specify additional requirements under the Knox-Keene Act, the willful violation of which would be a crime, this 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.