SB 1321

Bill Subjects

Abstract

Commencing January 1, 2014, existing law, the federal Patient Protection and Affordable Care Act (PPACA) , requires a health insurance issuer that offers coverage in the small group or individual market to ensure that such coverage includes the essential health benefits package, as defined. PPACA requires each state to, by January 1, 2014, establish an American Health Benefit Exchange that facilitates the purchase of qualified health plans by qualified individuals and qualified small employers. PPACA defines a qualified health plan as a plan that, among other requirements, provides the essential health benefits package. Existing state law creates the California Health Benefit Exchange, governed by an executive board, to facilitate the purchase of qualified health plans by qualified individuals and qualified small employers by January 1, 2014. This bill would require the board of the California Health Benefit Exchange, if any part of PPACA is amended, invalidated, or repealed, to report to the Legislature regarding the impact on the Exchange of the PPACA sections amended, invalidated, or repealed and to provide the Legislature with a plan, to be included with the report, on how the Exchange will operate given the PPACA sections amended, invalidated, or repealed. The bill would require the board to halt all work related to implementing the Exchange if the board does not provide the Legislature with the report within a specified period of time. The bill would prohibit state moneys from being used to fund any Exchange operations or related functions, or to replace or supplant federal funds currently or previously dedicated to Exchange operations or related functions. This bill would declare that it is to take effect immediately as an urgency statute.