SB 727

Bill Subjects

Abstract

Existing law provides for licensing and regulation of health care service plans by the Department of Managed Health Care. Existing law provides for regulation of health insurers by the Insurance Commissioner. A willful violation of provisions governing health care service plans is a crime. Existing law, the California Continuation Benefits Replacement Act (Cal-COBRA) , requires a health care service plan and health insurer providing group coverage to employers of 2 to 19 eligible employees to offer continuation of that coverage for a specified period of time to certain qualified beneficiaries, as specified. This bill would also require that health care service plan and health insurer to offer continuation coverage to a person covered under the group benefit plan if the employer terminates the plan and does not provide a successor group benefit plan to its employees and the covered employee is an active employee at the time the employer terminates the plan. The bill would require the offered coverage to be for not less than 18 months from the termination date, except as specified, and to be offered under the same terms, conditions, and rates as the former group plan, but subject to the rules governing Cal-COBRA coverage, to the extent relevant, applicable, and not in conflict with the bill's provisions. By modifying the requirements applicable to health care service plans, the willful violation of which 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. This bill would declare that it is to take effect immediately as an urgency statute.