California 2021-2022 Regular Session

California Assembly Bill AB1082 Latest Draft

Bill / Chaptered Version Filed 10/06/2021

                            Assembly Bill No. 1082 CHAPTER 592 An act to amend Sections 127662 and 127665 of, and to repeal Section 127664 of, the Health and Safety Code, relating to the California Health Benefits Review Program.  [ Approved by  Governor  October 06, 2021.  Filed with  Secretary of State  October 06, 2021. ] LEGISLATIVE COUNSEL'S DIGESTAB 1082, Waldron. California Health Benefits Review Program: extension.Existing law establishes the Health Care Benefits Fund to support the University of Californias implementation of the California Health Benefit Review Program. Existing law imposes an annual charge on health care service plans and health insurers for the 201718 to 202122 fiscal years, inclusive, as specified, to be deposited into the fund. Existing law prohibits the total annual assessment on health care service plans and health insurers from exceeding $2,000,000. Under existing law, the fund and the program became inoperative on July 1, 2020, and are repealed as of January 1, 2021.This bill would extend the operation of the program and the fund through July 1, 2027, and would authorize the continued assessment of the annual charge on health care service plans and health insurers for that purpose for the 202223 to 202627 fiscal years, inclusive. The bill would increase the allowable total annual assessment on health care service plans and health insurers to $2,200,000. The bill would also make a technical and conforming change.This bill would make these provisions inoperative on July 1, 2027, and would repeal it as of January 1, 2028.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.Digest Key Vote: 2/3  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 127662 of the Health and Safety Code is amended to read:127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.SEC. 2. Section 127664 of the Health and Safety Code is repealed.SEC. 3. Section 127665 of the Health and Safety Code is amended to read:127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

 Assembly Bill No. 1082 CHAPTER 592 An act to amend Sections 127662 and 127665 of, and to repeal Section 127664 of, the Health and Safety Code, relating to the California Health Benefits Review Program.  [ Approved by  Governor  October 06, 2021.  Filed with  Secretary of State  October 06, 2021. ] LEGISLATIVE COUNSEL'S DIGESTAB 1082, Waldron. California Health Benefits Review Program: extension.Existing law establishes the Health Care Benefits Fund to support the University of Californias implementation of the California Health Benefit Review Program. Existing law imposes an annual charge on health care service plans and health insurers for the 201718 to 202122 fiscal years, inclusive, as specified, to be deposited into the fund. Existing law prohibits the total annual assessment on health care service plans and health insurers from exceeding $2,000,000. Under existing law, the fund and the program became inoperative on July 1, 2020, and are repealed as of January 1, 2021.This bill would extend the operation of the program and the fund through July 1, 2027, and would authorize the continued assessment of the annual charge on health care service plans and health insurers for that purpose for the 202223 to 202627 fiscal years, inclusive. The bill would increase the allowable total annual assessment on health care service plans and health insurers to $2,200,000. The bill would also make a technical and conforming change.This bill would make these provisions inoperative on July 1, 2027, and would repeal it as of January 1, 2028.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.Digest Key Vote: 2/3  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Assembly Bill No. 1082 CHAPTER 592

 Assembly Bill No. 1082

 CHAPTER 592

 An act to amend Sections 127662 and 127665 of, and to repeal Section 127664 of, the Health and Safety Code, relating to the California Health Benefits Review Program. 

 [ Approved by  Governor  October 06, 2021.  Filed with  Secretary of State  October 06, 2021. ] 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1082, Waldron. California Health Benefits Review Program: extension.

Existing law establishes the Health Care Benefits Fund to support the University of Californias implementation of the California Health Benefit Review Program. Existing law imposes an annual charge on health care service plans and health insurers for the 201718 to 202122 fiscal years, inclusive, as specified, to be deposited into the fund. Existing law prohibits the total annual assessment on health care service plans and health insurers from exceeding $2,000,000. Under existing law, the fund and the program became inoperative on July 1, 2020, and are repealed as of January 1, 2021.This bill would extend the operation of the program and the fund through July 1, 2027, and would authorize the continued assessment of the annual charge on health care service plans and health insurers for that purpose for the 202223 to 202627 fiscal years, inclusive. The bill would increase the allowable total annual assessment on health care service plans and health insurers to $2,200,000. The bill would also make a technical and conforming change.This bill would make these provisions inoperative on July 1, 2027, and would repeal it as of January 1, 2028.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.

Existing law establishes the Health Care Benefits Fund to support the University of Californias implementation of the California Health Benefit Review Program. Existing law imposes an annual charge on health care service plans and health insurers for the 201718 to 202122 fiscal years, inclusive, as specified, to be deposited into the fund. Existing law prohibits the total annual assessment on health care service plans and health insurers from exceeding $2,000,000. Under existing law, the fund and the program became inoperative on July 1, 2020, and are repealed as of January 1, 2021.

This bill would extend the operation of the program and the fund through July 1, 2027, and would authorize the continued assessment of the annual charge on health care service plans and health insurers for that purpose for the 202223 to 202627 fiscal years, inclusive. The bill would increase the allowable total annual assessment on health care service plans and health insurers to $2,200,000. The bill would also make a technical and conforming change.

This bill would make these provisions inoperative on July 1, 2027, and would repeal it as of January 1, 2028.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 127662 of the Health and Safety Code is amended to read:127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.SEC. 2. Section 127664 of the Health and Safety Code is repealed.SEC. 3. Section 127665 of the Health and Safety Code is amended to read:127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

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 127662 of the Health and Safety Code is amended to read:127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.

SECTION 1. Section 127662 of the Health and Safety Code is amended to read:

### SECTION 1.

127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.

127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.

127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.



127662. (a) In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The universitys work in providing the bill analyses shall be supported from the fund.

(b) For the 202223 to 202627 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed two million two hundred thousand dollars ($2,200,000).

(c) The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the universitys activities pursuant to subdivision (b).

(1) Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.

(2) Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.

(3) The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.

(4) Health insurance, as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.

SEC. 2. Section 127664 of the Health and Safety Code is repealed.

SEC. 2. Section 127664 of the Health and Safety Code is repealed.

### SEC. 2.



SEC. 3. Section 127665 of the Health and Safety Code is amended to read:127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 3. Section 127665 of the Health and Safety Code is amended to read:

### SEC. 3.

127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.



127665. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.