Jul 20, 2018
Below is an update of bills that are moving through the California legislature:
Association Health Plans
SB 1375 (Hernandez D) passed the Senate and was referred to the Assembly Appropriations Committee in June. Under this bill, self-employed individuals would not be able to proclaim themselves as employees just to join an association health plan. Sole proprietors, partners of a partnership, and their spouses would no longer be considered “eligible employees.” According to CAHU, the bill would also revise the definition of “small employer” to include any small employer purchasing coverage for employees through any arrangement, rather than through a guaranteed association. Proponents of the bill say it would help to maintain a healthy risk mix as well as stable, competitive, individual and small group insurance markets.
Prescription Cost-Sharing
AB 2863 (Nazarian D) passed the Assembly and was approved by the Senate Health Committee in June. CAHU supports this bill, which would limit the amount a health carrier can require a beneficiary to pay for a covered prescription at the point-of sale. It would have to be the lowest available cost whether it’s the applicable cost sharing amount or the retail price. If the beneficiary pays the cash price for a prescription, it would be applied to their deductible and out-of-pocket maximum.
Short-Term Health Plans
SB 910 (Hernandez D) was passed by the Senate and approved by the Assembly Appropriations Committee in June. It would prohibit health insurers from issuing, selling, renewing, or offering a short-term limited duration health insurance policy. Health care coverage market reforms do not apply to short-term limited duration health insurance policies in the individual market. CAHU is opposed to this bill unless amended because it could leave consumers without any other coverage options.
Dental Plan Transparency
SB 1008 (Skinner D) passed the Senate and was approved by the Assembly Health Committee in July. The bill would require a uniform benefits and coverage disclosure.
SB 1121 (Dodd D) passed the Senate and was approved by the Assembly Committee on Privacy and Consumer Protection in July. The bill would make it easier for consumers to sue companies that don’t have adequate safeguards for personal records. If there's a security breach, consumers could seek up to $1,000 per consumer per incident or actual damages, whichever is greater. CAHU opposes the bill, saying that it would drastically expand the civil liability of agencies in California.
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