Bill Text: CA AB931 | 2013-2014 | Regular Session | Amended

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Bill Title: Public Employees' Retirement System: Board of

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB931 Detail]

Download: California-2013-AB931-Amended.html

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BILL NUMBER: AB 931	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member  Conway   Beth
Gaines 

                        FEBRUARY 22, 2013

   An act to  amend Section 1200 of the Health and Safety
Code, relating to clinics.   add Sections 22799,
22869.5, and 22917 to the Government Code, relating to employee
health benefits, and making an appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 931, as amended,  Conway   Beth Gaines
 .  Clinics.   Public Employees' Retirement
System: Board of Administration: health benefits.  
   Existing law creates the Public Employees' Medical and Hospital
Care Act, which is administered by the Board of Administration of the
Public Employees' Retirement System, which is granted all powers
reasonably necessary to carry its responsibilities granted pursuant
to the act. Existing law authorizes the board to contract with
carriers for health benefit plans or with entities that provide
services relating to the administration of these plans. Existing
state and federal income tax laws allow a deduction for contributions
to a qualifying medical savings account by a taxpayer who is covered
under a high deductible health plan, as defined. Money within this
type of account may be used to pay for qualified medical expenses, as
defined.  
   This bill would require the board to establish a wellness program
for state employees and annuitants that is consistent with the
requirements of the federal Patient Protection and Affordable Care
Act. The bill would require the program to provide financial
incentives for participation. The bill would require the program to
include both provisions that require an individual to meet a standard
related to a health factor to receive an incentive and provisions
that only require participation.  
   This bill would also, on and after January 1, 2014, require the
Board of Administration of the Public Employees' Retirement System to
offer a high deductible health plan, as defined in the federal tax
law, and a health savings account option to public employees and
annuitants, as specified. The bill would establish the Public
Employees' Health Savings Fund, a continuously appropriated fund
within the State Treasury, for payment of qualified medical expenses
of employees and annuitants who elect to enroll in the high
deductible health plan and participate in the health savings account
option, and would require those employees and annuitants, and their
employers, to make specified contributions to that fund, thereby
making an appropriation.  
   Under existing law, the State Department of Public Health is
responsible for the licensing and regulation of clinics, defined as
an organized outpatient health facility that provides direct
specified advice, services, or treatment to patients who remain less
than 24 hours, and that may also provide diagnostic or therapeutic
services to patients in the home, as specified.  
   This bill would make a technical, nonsubstantive change to that
provision. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) The Board of Administration of the Public Employees'
Retirement System administers health benefits for employees and
annuitants, and their family members, from state and local public
agencies.  
   (b) Health savings accounts have been viewed as an alternative to
the traditional health insurance market and give patients more
control over their health care options and expenses.  
   (c) Health savings accounts are tax-exempt accounts that allow
individuals to pay for health care expenses in conjunction with
high-deductible catastrophic coverage.  
   (d) The benefits to patients who receive health insurance coverage
through a health savings account include increased treatment
options, access to specialty care, and strengthening of the
patient-physician relationship. 
   SEC. 2.    Section 22799 is added to the  
Government Code   , to read:  
   22799.  The board shall establish a wellness program for state
employees and annuitants that is consistent with the requirements of
the federal Patient Protection and Affordable Care Act (Public Law
111-148) and provides financial incentives for participation. The
wellness program shall include provisions that require an individual
to meet a standard related to a health factor to receive a reward,
and provisions that require only participation and do not require an
individual to meet a health-related standard to receive a reward. Not
all provisions of the wellness program shall be required to provide
financial incentives. 
   SEC. 3.    Section 22869.5 is added to the  
Government Code   , to read:  
   22869.5.  (a) The board shall offer a health savings account
option to all employees and annuitants beginning January 1, 2014. In
addition to the basic health benefit plans described in Sections
22830 and 22850, and notwithstanding any other provision of this
part, the board shall approve at least one high deductible health
plan, as defined in Section 223(c)(2) of the Internal Revenue Code.
   (b) The design and administration of the health savings account
option shall comply with the standards provided in Section 223 of the
Internal Revenue Code and any other applicable revenue procedures or
provisions of the Internal Revenue Code and the Revenue and Taxation
Code.
   (c) (1) An employee or annuitant who qualifies as an eligible
individual as defined in Section 223(c)(1)(A) of the Internal Revenue
Code, and who elects to participate in the health savings account
option shall enroll in a high deductible health plan offered by the
board and shall contribute the total cost per month of the benefit
coverage afforded him or her under that plan less the portion thereof
to be contributed by the employer.
   (2) The employee or annuitant shall also designate an additional
amount to be deducted from his or her salary or retirement allowance
for qualified medical expenses, which amount shall be deposited into
the Public Employees' Health Savings Fund and shall be credited to a
nominal account in the name of the employee or annuitant.
   (3) For purposes of this section, "qualified medical expenses"
means those expenses as defined in Section 223(d)(2) of the Internal
Revenue Code.
   (d) (1) The employer of an employee or annuitant who elects to
participate in the health savings account option shall contribute a
portion, pursuant to Article 7 (commencing with Section 22870) or
Article 8 (commencing with Section 22890), of the cost of providing
the benefit coverage under the high deductible health plan.
   (2) The employer shall also contribute an amount equal to the
difference between the amount contributed pursuant to paragraph (1)
and the weighted average of the health benefit plan premiums the
employer would have paid if the employee or annuitant had enrolled in
a plan other than the high deductible health plan, which amount
shall be deposited into the Public Employees' Health Savings Fund and
shall be credited to a nominal account in the name of the employee
or annuitant.
   (e) Moneys credited to the employee's or annuitant's nominal
account in the Public Employees' Health Savings Fund shall be
disbursed to pay qualified medical expenses incurred by the employee
or annuitant, in accordance with Section 223 of the Internal Revenue
Code.
   (f) The board shall adopt regulations necessary to implement this
section. 
   SEC. 4.    Section 22917 is added to the  
Government Code   , to read:  
   22917.  (a) There is in the State Treasury a Public Employees'
Health Savings Fund, the purpose of which is to pay the qualified
medical expenses of health savings accountholders pursuant to Section
22869.5 and pursuant to Section 223 of the Internal Revenue Code.
The board shall have the exclusive control of the administration and
investment of the fund.
   (b) The Public Employees' Health Savings Fund shall consist of
moneys deducted from the salary or retirement allowance of an
employee or annuitant, and moneys contributed by the employee's or
annuitant's employer, for qualified medical expenses pursuant to
Section 22869.5.
   (c) The board may invest funds in the Public Employees' Health
Savings Fund pursuant to the law governing its investment of the
retirement fund, subject to the limitations contained in Section 223
of the Internal Revenue Code. Income, of whatever nature, earned on
the fund during any fiscal year shall be credited to the fund.
   (d) Notwithstanding Section 13340, the Public Employees' Health
Savings Fund is continuously appropriated, without regard to fiscal
years, to reimburse qualified medical expenses of health savings
accountholders.
   (e) The Legislature finds and declares that the Public Employees'
Health Savings Fund is a trust fund held for the exclusive benefit of
employees and annuitants who elect the health savings account option
pursuant to Section 22869.5.  
  SECTION 1.    Section 1200 of the Health and
Safety Code is amended to read:
   1200.  (a) As used in this chapter, "clinic" means an organized
outpatient health facility that provides direct medical, surgical,
dental, optometric, or podiatric advice, services, or treatment to
patients who remain less than 24 hours, and that may also provide
diagnostic or therapeutic services to patients in the home as an
incident to care provided at the clinic facility. This section does
not prohibit the provision of nursing services in a clinic licensed
pursuant to this chapter. In no case shall a clinic be deemed to be a
health facility subject to the provisions of Chapter 2 (commencing
with Section 1250). A place, establishment, or institution that
solely provides advice, counseling, information, or referrals on the
maintenance of health or on the means and measures to prevent or
avoid sickness, disease, or injury, where that advice, counseling,
information, or referral does not constitute the practice of
medicine, surgery, dentistry, optometry, or podiatry, shall not be
deemed a clinic for purposes of this chapter.
   (b) For purposes of this chapter:
   (1) "Primary care clinics" means all the types of clinics
specified in subdivision (a) of Section 1204, including community
clinics and free clinics.
   (2) "Specialty clinics" means all the types of clinics specified
in subdivision (b) of Section 1204, including surgical clinics,
chronic dialysis clinics, and rehabilitation clinics.
   (3) "Clinic corporation" means a nonprofit organization that
operates one or more primary care clinics, as defined in paragraph
(1) of subdivision (a) of Section 1204, that are required to be
licensed under Section 1205, one or more mobile health care units
required to be licensed or approved pursuant to the Mobile Health
Care Services Act (Chapter 9 (commencing with Section 1765.101)) and
operated as primary care clinics, or one or more primary care clinics
and one or more mobile health care units.
   (4) "Department" means the Licensing and Certification Division of
the State Department of Public Health, or its successor.
   (5) "Centralized applications unit" means the centralized
applications unit in the Licensing and Certification Division of the
department, or a successor entity.