Bill Text: CA AB2767 | 2023-2024 | Regular Session | Amended
Bill Title: Financial Solvency Standards Board: membership.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-30 - Re-referred to Com. on APPR. [AB2767 Detail]
Download: California-2023-AB2767-Amended.html
|
Amended
IN
Assembly
April 29, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2767
| Introduced by Assembly Member Santiago |
February 15, 2024 |
An act to amend Section 1347.15 of the Health and Safety Code, relating to health care coverage.
LEGISLATIVE COUNSEL'S DIGEST
AB 2767, as amended, Santiago.
Financial Solvency Standards Board: membership.
Existing law establishes the Department of Managed Health Care, which, among other duties, ensures the financial stability of managed care plans. Existing law establishes within the department the Financial Solvency Standards Board for the purpose of, among other things, developing and recommending to the director of the department financial solvency requirements and standards relating to health care service plan operations. Existing law requires the board to be composed of the director, or their designee, and 7 members appointed by the director, and authorizes the director to appoint individuals with training and experience in specified subject areas or fields.
This bill would instead require the director to appoint 10 members to the board, and would additionally authorize the director to appoint health care consumer advocates, representatives of
organized labor unions representing health care workers, advocates and individuals with training and experience in large group health insurance purchasing.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1347.15 of the Health and Safety Code is amended to read:1347.15.
(a) There is hereby established in the Department of Managed Health Care the Financial Solvency Standards Board composed of 11 members. The members shall consist of the director, or the director’s designee, and 10 members appointed by the director. The 10 members appointed by the director may be, but are not necessarily limited to, health care consumer(b) The purpose of the board is to do all of the following:
(1) Advise the director on matters of financial solvency affecting the delivery of health care services.
(2) Develop and recommend to the director financial solvency requirements and standards relating to plan operations, plan-affiliate operations and transactions, plan-provider contractual relationships, and provider-affiliate operations and transactions.
(3) Periodically monitor and report on the implementation and results of the financial solvency requirements and standards.
(c) Financial solvency requirements and standards recommended to the director by the board may, after a period of review and comment not to exceed 45 days, be noticed for adoption as regulations as proposed or modified under the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). During the director’s 45-day review and comment period, the director, in consultation with the board, may postpone the adoption of the requirements and standards pending further review and comment. Nothing in this subdivision prohibits the director from adopting
regulations, including emergency regulations, under the rulemaking provisions of the Administrative Procedure Act.
(d) The board shall meet at least quarterly and at the call of the chair. In order to preserve the independence of the board, the director shall not serve as chair. The members of the board may establish their own rules and procedures. All members shall serve without compensation, but shall be reimbursed from department funds for expenses actually and necessarily incurred in the performance of their duties.
(e) For purposes of this section, “board” means the Financial Solvency Standards Board.
