California 2019 2019-2020 Regular Session

California Assembly Bill AB1246 Amended / Bill

Filed 05/16/2019

                    Amended IN  Assembly  May 16, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1246Introduced by Assembly Member LimnFebruary 21, 2019 An act to add Section 10112.285 to the Insurance Code, relating to healthcare health care coverage. LEGISLATIVE COUNSEL'S DIGESTAB 1246, as amended, Limn. Healthcare Health care coverage: basic health care services.Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law also provides for the regulation of health insurers by the Department of Insurance.Existing law requires all health care service plan contracts, and, if applicable, specialized health care service plan contracts, to provide subscribers and enrollees with certain basic health care services, as defined, including physician services and hospital inpatient services, except as specified. Existing law affirms the authority of the Department of Managed Health Care to regulate the provision of medically necessary prescription drug benefits by a health care service plan to the extent the plan provides coverage for those benefits.Existing law requires individual or small group health insurance policies issued, amended, or renewed on or after January 1, 2017, to include coverage for essential health benefits, as defined, including medically necessary basic health care services.This bill would require large group health insurance policies, except certain specialized health insurance policies, issued, amended, or renewed on or after January July 1, 2020, to include coverage for medically necessary basic health care services and, to the extent the policy covers prescription drugs, coverage for medically necessary prescription drugs.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 10112.285 is added to the Insurance Code, immediately following Section 10112.28, to read:10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.(c) This section does not prohibit a large group health insurance policy from covering additional benefits.(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services. 

 Amended IN  Assembly  May 16, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1246Introduced by Assembly Member LimnFebruary 21, 2019 An act to add Section 10112.285 to the Insurance Code, relating to healthcare health care coverage. LEGISLATIVE COUNSEL'S DIGESTAB 1246, as amended, Limn. Healthcare Health care coverage: basic health care services.Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law also provides for the regulation of health insurers by the Department of Insurance.Existing law requires all health care service plan contracts, and, if applicable, specialized health care service plan contracts, to provide subscribers and enrollees with certain basic health care services, as defined, including physician services and hospital inpatient services, except as specified. Existing law affirms the authority of the Department of Managed Health Care to regulate the provision of medically necessary prescription drug benefits by a health care service plan to the extent the plan provides coverage for those benefits.Existing law requires individual or small group health insurance policies issued, amended, or renewed on or after January 1, 2017, to include coverage for essential health benefits, as defined, including medically necessary basic health care services.This bill would require large group health insurance policies, except certain specialized health insurance policies, issued, amended, or renewed on or after January July 1, 2020, to include coverage for medically necessary basic health care services and, to the extent the policy covers prescription drugs, coverage for medically necessary prescription drugs.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Assembly  May 16, 2019

Amended IN  Assembly  May 16, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 1246

Introduced by Assembly Member LimnFebruary 21, 2019

Introduced by Assembly Member Limn
February 21, 2019

 An act to add Section 10112.285 to the Insurance Code, relating to healthcare health care coverage. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1246, as amended, Limn. Healthcare Health care coverage: basic health care services.

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law also provides for the regulation of health insurers by the Department of Insurance.Existing law requires all health care service plan contracts, and, if applicable, specialized health care service plan contracts, to provide subscribers and enrollees with certain basic health care services, as defined, including physician services and hospital inpatient services, except as specified. Existing law affirms the authority of the Department of Managed Health Care to regulate the provision of medically necessary prescription drug benefits by a health care service plan to the extent the plan provides coverage for those benefits.Existing law requires individual or small group health insurance policies issued, amended, or renewed on or after January 1, 2017, to include coverage for essential health benefits, as defined, including medically necessary basic health care services.This bill would require large group health insurance policies, except certain specialized health insurance policies, issued, amended, or renewed on or after January July 1, 2020, to include coverage for medically necessary basic health care services and, to the extent the policy covers prescription drugs, coverage for medically necessary prescription drugs.

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law also provides for the regulation of health insurers by the Department of Insurance.

Existing law requires all health care service plan contracts, and, if applicable, specialized health care service plan contracts, to provide subscribers and enrollees with certain basic health care services, as defined, including physician services and hospital inpatient services, except as specified. Existing law affirms the authority of the Department of Managed Health Care to regulate the provision of medically necessary prescription drug benefits by a health care service plan to the extent the plan provides coverage for those benefits.

Existing law requires individual or small group health insurance policies issued, amended, or renewed on or after January 1, 2017, to include coverage for essential health benefits, as defined, including medically necessary basic health care services.

This bill would require large group health insurance policies, except certain specialized health insurance policies, issued, amended, or renewed on or after January July 1, 2020, to include coverage for medically necessary basic health care services and, to the extent the policy covers prescription drugs, coverage for medically necessary prescription drugs.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 10112.285 is added to the Insurance Code, immediately following Section 10112.28, to read:10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.(c) This section does not prohibit a large group health insurance policy from covering additional benefits.(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services. 

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 10112.285 is added to the Insurance Code, immediately following Section 10112.28, to read:10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.(c) This section does not prohibit a large group health insurance policy from covering additional benefits.(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services. 

SECTION 1. Section 10112.285 is added to the Insurance Code, immediately following Section 10112.28, to read:

### SECTION 1.

10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.(c) This section does not prohibit a large group health insurance policy from covering additional benefits.(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services. 

10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.(c) This section does not prohibit a large group health insurance policy from covering additional benefits.(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services. 

10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.(c) This section does not prohibit a large group health insurance policy from covering additional benefits.(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services. 



10112.285. (a) A large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall include coverage for medically necessary basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code and Section 1300.67 of Title 28 of the California Code of Regulations.

(b) To the extent a large group health insurance policy covers prescription drugs, a large group health insurance policy issued, amended, or renewed on or after January July 1, 2020, shall cover medically necessary prescription drugs, as described in Section 1342.7 of the Health and Safety Code.

(c) This section does not prohibit a large group health insurance policy from covering additional benefits.

(d) This section does not apply to a specialized health insurance policy that covers only dental or vision services.