California Senate Bill SB368

California 2021-2022 Regular Session

• Introduced: 2/10/21
• Refer: 2/17/21
• Report Pass: 3/18/21
• Refer: 3/22/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/10/21
• Report Pass: 7/14/21
• Refer: 7/15/21
• Report Pass: 8/26/21
• Enrolled: 9/8/21
• Chaptered: 10/6/21
• Passed: 10/6/21

Caption

Health care coverage: deductibles and out-of-pocket expenses.

Impact

The bill introduces specific obligations for health insurers and service plans, compelling them to provide monthly updates to enrollees about their accrued amounts applicable towards deductibles and out-of-pocket maxima. Insurers must also establish mechanisms for enrollees to easily request and access their current accrual balances. This regulation is expected to simplify the financial management of health care costs for individuals, ultimately improving consumer experiences in navigating their insurance plans.

Summary

Senate Bill 368, enacted in California as Chapter 602, addresses the monitoring and notification processes related to health care deductibles and out-of-pocket maximums for health insurance policies. It mandates health care service plans and health insurers to maintain a system for tracking and reporting enrollees' accrual balances toward their annual deductibles and out-of-pocket limits. This requirement is applicable to contracts issued, amended, or renewed after July 1, 2022, and aims to enhance transparency and consumer awareness regarding financial responsibilities in health care services.

Sentiment

The sentiment surrounding SB 368 appears largely positive, as it fosters greater transparency and consumer rights within the health care system. Supporters argue that the bill empowers consumers by ensuring they have timely and accurate information regarding their financial responsibilities. By making this information more accessible, the bill is likely to lead to a more informed consumer base, which could enhance overall confidence in health care transactions.

Contention

Notably, while there seems to be general support for the bill, concerns were raised regarding the impact on insurance companies and their ability to adapt to these new requirements. Some stakeholders worry that the additional regulatory burden could lead to increased operational costs for insurers, which may eventually translate into higher premiums for consumers. However, the overarching goal of improving consumer awareness and rights in health care is a compelling counter-argument to these concerns.