Bill Text: CA SB56 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Health plans: joint ventures.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2010-09-29 - In Senate. To unfinished business. (Veto) [SB56 Detail]

Download: California-2009-SB56-Amended.html

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BILL NUMBER: SB 56	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 3, 2010
	AMENDED IN SENATE  JANUARY 11, 2010
	AMENDED IN SENATE  MAY 5, 2009
	AMENDED IN SENATE  APRIL 2, 2009

INTRODUCED BY   Senator Alquist

                        JANUARY 20, 2009

   An act to add Article 2.82 (commencing with Section 14087.98) to
Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, relating to health plans.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 56, as amended, Alquist. Health plans: joint ventures.
   Existing law creates various health benefits programs administered
by the State Department of Health Care Services. Existing law, the
Knox-Keene Health Care Services Plan Act of 1975, administered by the
 Managed Risk Medical Insurance Board  
Department of Managed Health Care  , provides for the licensure
and regulation of health care service plans.
   This bill would authorize certain county-organized health plans
and various other health benefits programs to form joint ventures
 to create integrated networks of public health plans that
  that consist of contractual   relationships
to  pool risk  and   or  share
networks  ,  or  both, or  to provide for the joint
or coordinated offering of health plans to individuals and groups.
The bill would require all joint ventures  and health care
networks  established pursuant to the aforementioned
provisions to meet all of the requirements of the Knox-Keene Health
Care Service Plan Act of 1975.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares as follows:
   (1) Due to the economic downturn, hundreds of thousands of
Californians are joining the ranks of the uninsured or are looking to
publicly financed programs for their health care coverage.
   (2) Compared to persons with health care coverage, the uninsured
are less likely to have a regular source of care, are likely to delay
seeing a doctor, and are less likely to receive preventive health
care services.
   (3) Based on recent data collected by the Kaiser Family
Foundation, health care costs continue to rise at a faster rate than
general inflation and average wage growth.
   (4) President Obama and the Congress of the United States have
pledged to seek the adoption of major health care reforms at the
national level, which are likely to include, at a minimum, additional
funding for states as well as increased flexibility for states in
how they administer their health care systems.
   (5) There is a continuing need for affordable health coverage
options for California's uninsured population, particularly those
with limited incomes and those who do not receive health coverage
through their employment or the employment of a family member.
   (6) Due to their structure and design, county local initiative
health plans and county-organized health systems have the potential
to offer affordable health coverage in the individual and group
markets.
   (7) Joint ventures involving local initiative health plans and
county-organized health systems may be a particularly promising means
of providing affordable coverage in many regions of the state.
   (b) In light of these findings, it is the intent of the
Legislature that representatives of local initiative health plans,
county-organized health systems, and consumer, labor, and provider
groups hold stakeholder discussions for the purposes of facilitating
establishment of affordable health coverage options in the individual
and group markets.
  SEC. 2.  Article 2.82 (commencing with Section 14087.98) is added
to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 2.82.  Health Plan Joint Ventures


   14087.98.  (a)  Health plans   A health plan
 that  are   is  governed, owned, or
operated by a county board of supervisors, a county special
commission, a county-organized health system, or a county health
authority that  are   is  authorized by
Section 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, Article 2.8
(commencing with Section 14087.5), Article 2.81 (commencing with
Section 14087.96), or Chapter 3 (commencing with Section 101675) of
Part 4 of Division 101 of the Health and Safety Code, or the County
Medical Services Program, may form joint ventures  to create
integrated networks of public health plans that pool risk and share
networks or to provide  for the joint or coordinated
offering of health plans to individuals and groups.
   (b)  For purposes of this section, the joint ventures may
consist of either of the following:  
   (1) Contractual relationships entered into in  order to pool risk
or share networks, or both.  
   (2) Contractual relationships entered into in order to provide for
the joint offering or marketing of health plans to individuals and
groups. 
    (c)    In forming joint ventures, participating
health plans shall seek to contract with designated public
hospitals, county health clinics, community health centers, and other
traditional safety net providers. 
   (c) All joint ventures and health care networks established

    (d)     All joint ventures established
 pursuant to this section shall meet all the requirements of the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code).