California Assembly Bill AB792 Amended / Bill

 BILL NUMBER: AB 792AMENDED BILL TEXT AMENDED IN SENATE AUGUST 17, 2011 AMENDED IN SENATE JUNE 30, 2011 AMENDED IN ASSEMBLY MAY 27, 2011 AMENDED IN ASSEMBLY MAY 10, 2011 AMENDED IN ASSEMBLY APRIL 14, 2011 INTRODUCED BY Assembly Member Bonilla (Coauthor: Assembly Member Huffman) FEBRUARY 17, 2011 An act to add Sections 2024.7 and 8613.7 to the Family Code, to add Sections 1366.50 and 1366.51 to the Health and Safety Code, to add Sections 10786 and 10787 to the Insurance Code,  and  to amend Section 2800.2 of the Labor Code,  and to add Sections 1342.5 and 2706.5 to the Unemployment Insurance Code,  relating to health care coverage. LEGISLATIVE COUNSEL'S DIGEST AB 792, as amended, Bonilla. Health care coverage: California Health Benefit Exchange. Existing law, the federal Patient Protection and Affordable Care Act, requires each state to, by January 1, 2014, establish an American Health Benefit Exchange that makes available qualified health plans to qualified individuals and  small  employers. Existing state law establishes the California Health Benefit Exchange within state government, specifies the powers and duties of the board governing the Exchange relative to determining eligibility for enrollment in the Exchange and arranging for coverage under qualified health plans, and requires the board to facilitate the purchase of qualified health plans through the Exchange by qualified individuals and small employers by January 1, 2014. Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the 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 provides for the regulation of health insurers by the Department of Insurance. Existing law imposes specified requirements on health care service plans and health insurers that provide medical and hospital coverage under an employer-sponsored group plan for an employer, employee association, or other entity subject to requirements under COBRA or Cal-COBRA, as defined, and imposes specified requirements on those employers, employee associations, or other entities to notify its current and former employees or members and dependents of continuation coverage and conversion coverage options upon specified events.  Existing law regulates the distribution of unemployment compensation or disability benefits by the Employment Development Department.  Existing law sets forth procedures related to a petition for dissolution of marriage, nullity of marriage, or legal separation, or a petition for adoption. This bill would require the disclosure of information on health care coverage through the California Health Benefit Exchange, under specified circumstances, by health care service plans, health insurers, employers, employee associations or other entities,  the Employment Development Department, upon an initial claim for disability benefits,  or, on and after January 1, 2013, by the court, upon the filing of a petition for dissolution of marriage, nullity of marriage, legal separation, or adoption. On and after January 1, 2014, this bill would also require specified health care service plans and health insurers to, upon the failure of an enrollee or insured to renew his or her health coverage, as specified, or upon termination of coverage under an employer-sponsored group plan,  and the Employment Development Department with regard to an applicant for unemployment compensation,  transfer specified information to the California Health Benefit Exchange for purposes of enrolling those individuals  or applicants  in the Exchange. The bill would make the automatic enrollment of those individuals in the Exchange subject to the plan or insurer, or employer, employee association, or other entity, obtaining the written consent of the individual at the time the individual or employer-sponsored group plan contract or policy is issued, amended, delivered, or renewed, as specified, or upon a qualifying event, as defined.  The bill would make the automatic enrollment of those individuals by the Employment Development Department subject to the Exchange receiving approval from the United States Department of Health and Human Services to transfer the minimum information necessary to initiate an application for enrollment, as specified, and provide that enrollment by the department is only operative to the extent that it is funded out of non-General Fund moneys. The bill would require the Employment Development Department to maintain a link on its Internet Web site to the Internet Web site of the Exchange and information on the Exchange.  The bill would allow an individual whose information has been transferred to the Exchange under those provisions to discontinue his or her application for enrollment with the Exchange, as specified. Because a willful violation of the bill's provisions relative to health care service plans 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2024.7 is added to the Family Code, to read: 2024.7. On and after January 1, 2013, upon the filing of a petition for dissolution of marriage, nullity of marriage, or legal separation, the court shall provide to the petitioner and the respondent the following notice: "In March of 2010, the federal government passed national health care reform. Because of this, effective January 1, 2014, you may become eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. To learn more, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." SEC. 2. Section 8613.7 is added to the Family Code, to read: 8613.7. On and after January 1, 2013, upon the filing of a petition for adoption pursuant to this part, the court shall provide to the petitioner the following notice: "In March of 2010, the federal government passed national health care reform. Because of this, effective January 1, 2014, you may become eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. To learn more, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." SEC. 3. Section 1366.50 is added to the Health and Safety Code, to read: 1366.50. (a) (1) Except for a specialized health care service plan, every health care service plan contract that is issued, amended, delivered, or renewed in this state on or after January 1, 2014, that provides medical and hospital coverage under an employer-sponsored group plan for an employer subject to COBRA, as defined in subdivision (e) of Section 1373.621, or an employer group for which the plan is required to offer Cal-COBRA coverage, as defined in subdivision (f) of Section 1373.621, including a carrier providing replacement coverage under Section 1399.63, shall, consistent with this section  and to the extent permitted under the federal Patient Protection and   Affordable Care Act (Public Law 111-148)  , transfer information to the Exchange in order to initiate an application for enrollment for a qualified beneficiary upon a qualifying event. (2) Prior to the transfer of the information to the Exchange, the health care service plan shall obtain the written consent of the enrollee to provide the minimum necessary information to the Exchange. If the individual does not provide his or her consent, the health care service plan shall not transfer any information regarding that individual to the Exchange. Consent may be obtained at the time of the qualifying event. (b) (1) The health care service plan shall provide to the California Health Benefit Exchange information regarding the former employee and any dependents covered under the group coverage. The information provided shall include the name or names, most recent address, and any other information that is in the possession of the plan and that the Exchange may require in order to determine eligibility, facilitate enrollment in coverage, and maximize continuity of care, and shall be provided in a manner to be prescribed by the Exchange. The information shall be provided in a manner consistent with Section 1411 of the federal Patient Protection and Affordable Care Act (Public Law 111-148) and consistent with other state and federal medical privacy laws. (2) The provision of this information shall initiate an application for enrollment in coverage within the meaning of Section 100503 of the Government Code. Nothing in this section shall be construed to alter the responsibility of the Exchange or other state and local government entities with respect to the criteria and process for eligibility and enrollment in the Exchange and other public health care coverage programs. (c) (1) On and after January 1, 2012, until December 31, 2013, the health care service plan shall provide the following notification to qualified beneficiaries upon a qualifying event: "Please examine your options carefully before declining this coverage. Until January 1, 2014, you should be aware that companies selling individual health insurance to adults who are 19 years of age or older typically require a review of your medical history that could result in a higher premium or you could be denied coverage entirely. Effective January 1, 2010, children under 19 years of age cannot be denied individual coverage based on medical history, but may pay a higher premium depending on medical history." (2) On and after January 1, 2014, notification provided to qualified beneficiaries upon a qualifying event shall also include the following notification in 12-point type: "In March of 2010, the federal government passed national health care reform. Because of this, you may be eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. Because you are losing your coverage from your employer or the employer of a family member, an application will be sent to the California Health Benefit Exchange to make it easier for you to get health care coverage. Eligibility for reduced-cost coverage through the California Health Benefit Exchange or no-cost coverage through Medi-Cal is based on your income. You will be contacted by the Exchange to complete the application. You are not required to accept coverage from the Exchange. To learn more, or to contact the Exchange, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (3) A person for whom an application for enrollment in the Exchange has been initiated by the transfer of information under this section shall be given the opportunity to provide informed consent to use the transferred information to commence eligibility determination and complete enrollment as well as the opportunity to correct any transferred information or provide additional information before a final eligibility determination is made. If the individual fails to consent or fails to respond to the opportunity to consent within a reasonable period of time, that failure to consent or to respond timely shall be construed as discontinuing the application. (d) For purposes of this section: (1) "Qualified beneficiary" means any individual who, on the day before the qualifying event, is an enrollee in a group benefit plan offered by a health care service plan and who has a qualifying event. (2) "Qualifying event" means any of the following events that would result in a loss of coverage under the group benefit plan to a qualified beneficiary: (A) The death of the covered employee. (B) The termination of employment or reduction in hours of the covered employee's employment. (C) The divorce or legal separation of the covered employee from the covered employee's spouse. (D) The loss of dependent status by a dependent enrolled in the group benefit plan. (E) With respect to a covered dependent only, the covered employee' s entitlement to benefits under Title XVIII of the federal Social Security Act. SEC. 4. Section 1366.51 is added to the Health and Safety Code, to read: 1366.51. (a) (1) On or after January 1, 2014, except for a specialized health care service plan, every health care service plan contract in the individual market shall, consistent with this section, transfer information to the Exchange in order to initiate an application for enrollment for an individual at such time as the individual ceases to be enrolled in coverage. (2) On or after January 1, 2012, the health care service plan shall obtain the written consent of the enrollee to provide the minimum necessary information to the Exchange in the event that the individual or dependent ceases to be enrolled in individual coverage. If the individual does not provide his or her consent, the health care service plan shall not transfer any information regarding that individual to the Exchange. Consent may be obtained at the time of the qualifying event. (b) (1) The health care service plan shall provide to the California Health Benefit Exchange information regarding the former covered individual and any dependents that chose not to renew individual coverage. The information provided shall include the name or names, most recent address, and any other information that is in the possession of the plan and that the Exchange may require in order to determine eligibility, facilitate enrollment in coverage, and maximize continuity of care, and shall be provided in a manner to be prescribed by the Exchange. The information shall be provided in a manner consistent with Section 1411 of the federal Patient Protection and Affordable Care Act (Public Law 111-148) and consistent with other state and federal medical privacy laws. (2) The provision of this information shall initiate an application for enrollment in coverage within the meaning of Section 100503 of the Government Code. (c) (1) On and after January 1, 2014, the health care service plan shall provide the following notification to individuals, dependents, or former dependents who cease to be enrolled in individual coverage in 12-point type: "In March of 2010, the federal government passed national health care reform. Because of this, you may be eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. Because you are losing your coverage as an individual, an application will be sent to the California Health Benefit Exchange to make it easier for you to get health care coverage. Eligibility for reduced-cost coverage through the California Health Benefit Exchange or no-cost coverage through Medi-Cal is based on your income. You will be contacted by the Exchange to complete the application. You are not required to accept coverage from the Exchange. To learn more, or to contact the Exchange, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (2) A person for whom an application for enrollment in the Exchange has been initiated by the transfer of information under this section shall be given the opportunity to provide informed consent to use the transferred information to commence eligibility determination and complete enrollment as well as the opportunity to correct any transferred information or provide additional information before a final eligibility determination is made. If the individual fails to consent or fails to respond to the opportunity to consent within a reasonable period of time, that failure to consent or to respond timely shall be construed as discontinuing the application. (d) Effective July 1, 2013, until July 1, 2020, the health care service plan shall provide to individuals, dependents, or former dependents with coverage in the individual market the following notification in 12-point type and prominently displayed in the evidence of coverage: "In March of 2010, the federal government passed national health care reform. Because of this, as an individual buying your own health insurance, in January 2014, you may become eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. To learn more, please visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." SEC. 5. Section 10786 is added to the Insurance Code, to read: 10786. (a) (1) Every health insurance policy that is issued, amended, delivered, or renewed in this state on or after January 1, 2014, that provides medical and hospital coverage under an employer-sponsored group plan for an employer subject to COBRA, as defined in subdivision (e) of Section 10116.5, or an employer group for which the plan is required to offer Cal-COBRA coverage, as defined in subdivision (f) of Section 10116.5, including a carrier providing replacement coverage under Section 10128.3, shall, consistent with this section  and to the extent permitted under the federal Patient Protection and Affordable Care Act (Public Law 111-148)  , transfer information to the Exchange in order to initiate an application for enrollment for a qualified beneficiary upon a qualifying event. (2) Prior to the transfer of the information to the Exchange, the health insurer shall obtain the written consent of the insured to provide the minimum necessary information to the Exchange. If the individual does not provide his or her consent, the health insurer shall not transfer any information regarding that individual to the Exchange. Consent may be obtained at the time of the qualifying event. (b) (1) The health insurer shall provide to the California Health Benefit Exchange information regarding the former employee and any dependents covered under the group coverage. The information provided shall include the name or names, most recent address, and any other information that is in the possession of the insurer and that the Exchange may require in order to determine eligibility, facilitate enrollment in coverage, and maximize continuity of care, and shall be provided in a manner to be prescribed by the Exchange. The information shall be provided in a manner consistent with Section 1411 of the federal Patient Protection and Affordable Care Act (Public Law 111-148) and consistent with other state and federal medical privacy laws. (2) The provision of this information shall initiate an application for enrollment in coverage within the meaning of Section 100503 of the Government Code. Nothing in this section shall be construed to alter the responsibility of the Exchange or other state and local government entities with respect to the criteria and process for eligibility and enrollment in the Exchange and other public health care coverage programs. (c) (1) On and after January 1, 2012, until December 31, 2013, the health insurer shall provide the following notification to qualified beneficiaries upon a qualifying event: "Please examine your options carefully before declining this coverage. Until January 1, 2014, you should be aware that companies selling individual health insurance to adults who are 19 years of age or older typically require a review of your medical history that could result in a higher premium or you could be denied coverage entirely. Effective January 1, 2010, children under 19 years of age cannot be denied individual coverage based on medical history, but may pay a higher premium depending on medical history." (2) On and after January 1, 2014, the health insurer shall provide the following notification to qualified beneficiaries upon a qualifying event in 12-point type: "In March of 2010, the federal government passed national health care reform. Because of this, you may be eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. Because you are losing your coverage from your employer or the employer of a family member, an application will be sent to the California Health Benefit Exchange to make it easier for you to get health care coverage. Eligibility for reduced-cost coverage through the California Health Benefit Exchange or no-cost coverage through Medi-Cal is based on your income. You will be contacted by the Exchange to complete the application. You are not required to accept coverage from the Exchange. To learn more, or to contact the Exchange, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (3) A person for whom an application for enrollment in the Exchange has been initiated by the transfer of information under this section shall be given the opportunity to provide informed consent to use the transferred information to commence eligibility determination and complete enrollment as well as the opportunity to correct any transferred information or provide additional information before a final eligibility determination is made. If the individual fails to consent or fails to respond to the opportunity to consent within a reasonable period of time, that failure to consent or to respond timely shall be construed as discontinuing the application. (d) For purposes of this section: (1) "Qualified beneficiary" means any individual who, on the day before the qualifying event, is an enrollee in a group benefit plan offered by a health insurer and who has a qualifying event. (2) "Qualifying event" means any of the following events that would result in a loss of coverage under the group benefit plan to a qualified beneficiary: (A) The death of the covered employee. (B) The termination of employment or reduction in hours of the covered employee's employment. (C) The divorce or legal separation of the covered employee from the covered employee's spouse. (D) The loss of dependent status by a dependent enrolled in the group benefit plan. (E) With respect to a covered dependent only, the covered employee' s entitlement to benefits under Title XVIII of the federal Social Security Act. SEC. 6. Section 10787 is added to the Insurance Code, to read: 10787. (a) (1) On or after January 1, 2014, every health insurance policy in the individual market shall, consistent with this section, transfer information to the Exchange in order to initiate an application for enrollment for the individual at such time as the individual ceases to be enrolled in coverage. (2) On or after January 1, 2012, the health insurer shall obtain the written consent of the insured to provide the minimum necessary information to the Exchange in the event that the individual or dependent ceases to be enrolled in individual coverage. If the individual does not provide his or her consent, the health insurer shall not transfer any information regarding that individual to the Exchange. Consent may be obtained at the time of the qualifying event. (b) (1) The health insurer shall provide to the California Health Benefit Exchange information regarding the former covered individual and any dependents that chose not to renew individual coverage. The information provided shall include the name or names, most recent address, and any other information that is in the possession of the insurer and that the Exchange may require in order to determine eligibility, facilitate enrollment in coverage, and maximize continuity of care, and shall be provided in a manner to be prescribed by the Exchange. The information shall be provided in a manner consistent with Section 1411 of the federal Patient Protection and Affordable Care Act (Public Law 111-148) and consistent with other state and federal medical privacy laws. (2) The provision of this information shall initiate an application for enrollment in coverage within the meaning of Section 100503 of the Government Code. (c) (1) On and after January 1, 2014, the health insurer shall provide the following notification to individuals, dependents, or former dependents who cease to be enrolled in individual coverage in 12-point type: "In March of 2010, the federal government passed national health care reform. Because of this, you may be eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. Because you are losing your coverage as an individual, an application will be sent to the California Health Benefit Exchange to make it easier for you to get health care coverage. Eligibility for reduced-cost coverage through the California Health Benefit Exchange or no-cost coverage through Medi-Cal is based on your income. You will be contacted by the Exchange to complete the application. You are not required to accept coverage from the Exchange. To learn more, or to contact the Exchange, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (2) A person for whom an application for enrollment in the Exchange has been initiated by the transfer of information under this section shall be given the opportunity to provide informed consent to use the transferred information to commence eligibility determination and complete enrollment as well as the opportunity to correct any transferred information or provide additional information before a final eligibility determination is made. If the individual fails to consent or fails to respond to the opportunity to consent within a reasonable period of time, that failure to consent or to respond timely shall be construed as discontinuing the application. (d) Effective July 1, 2013, until July 1, 2020, the health insurer shall provide the following notification to individuals, dependents, or former dependents with coverage in the individual market, the following notification in 12-point type and prominently displayed in the evidence of coverage: "In March of 2010, the federal government passed national health care reform. Because of this, as an individual buying your own health insurance, in January 2014, you may become eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. To learn more, please visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." SEC. 7. Section 2800.2 of the Labor Code is amended to read: 2800.2. (a) Any employer, employee association, or other entity otherwise providing hospital, surgical, or major medical benefits to its employees or members is solely responsible for notification of its employees or members of the conversion coverage made available pursuant to Part 6.1 (commencing with Section 12670) of Division 2 of the Insurance Code or Section 1373.6 of the Health and Safety Code. At the time that the health care service plan contract or health insurance policy is issued, amended, delivered, or renewed on or after January 1, 2012, the employer, employee association, or other entity shall obtain the written consent of the enrollee or insured to provide the minimum necessary information to the Exchange in the event that the individual or dependent ceases to be enrolled in coverage under this section. If the individual does not provide his or her consent, the employer, employee association, or other entity shall not transfer any information regarding that individual to the Exchange. (1) The employer, employee association, or other entity otherwise providing hospital, surgical, or major medical benefits to its employees or members shall provide to the California Health Benefit Exchange information regarding the former employee and any dependents covered under the group coverage. The information provided shall include the name or names, most recent address, and any other information that is in the possession of the employer, employee association, or other entity and that the Exchange may require in a manner to be prescribed by the Exchange. The information shall be provided in a manner consistent with Section 1411 of the federal Patient Protection and Affordable Care Act (Public Law 111-148) and consistent with other state and federal medical privacy laws. (2) The provision of this information shall initiate an application for enrollment in coverage within the meaning of Section 100503 of the Government Code. (b) Any employer, employee association, or other entity, whether private or public, that provides hospital, medical, or surgical expense coverage that a former employee may continue under Section 4980B of Title 26 of the United States Code, Section 1161 et seq. of Title 29 of the United States Code, or Section 300bb of Title 42 of the United States Code, as added by the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), and as may be later amended (hereafter "COBRA"), shall, in conjunction with the notification required by COBRA that COBRA continuation coverage will cease and conversion coverage is available, and as a part of the notification required by subdivision (a), also notify the former employee, spouse, or former spouse of the availability of the continuation coverage under Section 1373.621 of the Health and Safety Code and Sections 10116.5 and 11512.03 of the Insurance Code. (c) (1) On or after July 1, 2006, until January 1, 2012, notification provided to employees, members, former employees, spouses, or former spouses under subdivisions (a) and (b) shall also include the following notification: "Please examine your options carefully before declining this coverage. You should be aware that companies selling individual health insurance typically require a review of your medical history that could result in a higher premium or you could be denied coverage entirely." (2) On and after January 1, 2012, until December 31, 2013, the employer, employee association, or other entity shall provide the following notification to employees, members, former employees, spouses, or former spouses under subdivisions (a) and (b): "Please examine your options carefully before declining this coverage. In March of 2010, the federal government enacted national health care reform. Until January 1, 2014, you should be aware that companies selling individual health insurance to adults who are 19 years of age or older typically require a review of your medical history that could result in a higher premium or you could be denied coverage entirely. Effective January 1, 2010, children under 19 years of age cannot be denied individual coverage based on medical history but may pay a higher premium depending on medical history." (3) On and after January 1, 2014, the employer, employee association, or other entity shall provide the following notification to employees, members, former employees, spouses, or former spouses under subdivisions (a) and (b): "In March of 2010, the federal government passed national health care reform. Because of this, you may be eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. Because you are losing your coverage from your employer or from the employer of a family member, an application will be sent to the California Health Benefit Exchange to make it easier for you to get health care coverage. Eligibility for low-cost coverage through the California Health Benefit Exchange or no-cost coverage through Medi-Cal is based on your income. You will be contacted by the Exchange to complete the application. You are not required to accept coverage from the Exchange. To learn more, or to contact the Exchange, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (d) A person for whom an application for enrollment in the Exchange has been initiated by the transfer of information under this section shall be given the opportunity to provide informed consent to use the transferred information to commence eligibility determination and complete enrollment as well as the opportunity to correct any transferred information or provide additional information before a final eligibility determination is made. If the individual fails to consent or fails to respond to the opportunity to consent within a reasonable period of time, that failure to consent or to respond timely shall be construed as discontinuing the application.  SEC. 8.   Section 1342.5 is added to the Unemployment Insurance Code, to read: 1342.5. (a) On and after January 1, 2014, when an individual files a new claim for unemployment compensation under this chapter, the department shall do all of the following: (1) (A) Provide to the California Health Benefit Exchange the name, address, and any other identifying information that is in the possession of the department as the Exchange may require in a manner to be prescribed by the Exchange. To maximize the number of individual Californians complying with the requirements of the federal Patient Protection and Affordable Care Act (Public Law 111-148) by obtaining coverage consistent with the provisions of federal law, the Exchange shall seek approval from the United States Department of Health and Human Services to transfer the minimum information necessary to initiate an application for enrollment under this section consistent with Section 100503 of the Government Code. (B) The provision of this information shall initiate an application for enrollment in coverage within the meaning of Section 100503 of the Government Code. (2) Provide the following notice to the individual: "In March of 2010, the federal government passed national health care reform. Because of this, you may be eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. Because you are no longer employed and may need health coverage, an application will be sent to the California Health Benefit Exchange to make it easier for you to get health care coverage. Eligibility for low-cost coverage through the California Health Benefit Exchange or no-cost coverage through Medi-Cal is based on your income. You will be contacted by the Exchange to complete the application. You are not required to accept coverage from the Exchange. To learn more, or to contact the Exchange, visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (b) A person for whom an application for enrollment in the Exchange has been initiated by the transfer of information under this section shall be given the opportunity to provide informed consent to use the transferred information to commence eligibility determination and complete enrollment as well as the opportunity to correct any transferred information or provide additional information before a final eligibility determination is made. If the individual fails to consent or fails to respond to the opportunity to consent within a reasonable period of time, that failure to consent or to respond timely shall be construed as discontinuing the application. (c) The department shall provide on its Internet Web site a link to the Internet Web site of the California Health Benefit Exchange and a notice that low-cost or no-cost health care coverage may be obtained through the Exchange for those who are unemployed or disabled. (d) The department may, by regulation, modify the wording of any notice required by this section for purposes of clarity, readability, and accuracy, except that a modification shall not change the substantive meaning of the notice. The addition or correction of a telephone number or Internet Web site may be implemented by guidance and shall not require the adoption of a regulation. (e) This section shall be implemented consistent with federal guidance and shall be operative only to the extent that it is funded out of non-General Fund moneys.   SEC. 9.   Section 2706.5 is added to the Unemployment Insurance Code, to read: 2706.5. (a) Effective January 1, 2013, when an individual files a new claim for disability benefits under this part, the department shall provide the following notice to the individual: "In March of 2010, the federal government passed national health care reform. Because of this, if you do not have other health coverage, in January 2014, you may become eligible for reduced-cost comprehensive health care coverage through the California Health Benefit Exchange. To learn more, please visit www.healthexchange.ca.gov or call 1-888-(insert telephone number)." (b) This notice shall be provided upon initial application whether or not the individual is eligible for disability benefits. (c) The department may, by regulation, modify the wording of any notice required by this section for purposes of clarity, readability, and accuracy, except that a modification shall not change the substantive meaning of the notice. The addition or correction of a telephone number or Internet Web site may be implemented by guidance and shall not require the adoption of a regulation.   SEC. 10.   SEC. 8.  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.