BILL NUMBER: SB 1124	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hernandez

                        FEBRUARY 19, 2014

   An act to amend Section 1367.23 of the Health and Safety Code,
relating to health care service plans.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1124, as introduced, Hernandez. Health care service plans.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans by the Department of Managed Health Care and makes a willful
violation of the act a crime. Existing law requires that every group
health care service plan contract, issued, amended, or renewed,
include a provision requiring the health care service plan to notify
the group contractholders in writing of the cancellation of the plan
contract and shall include in their contract with group
contractholders a provision requiring the group contractholder to
mail promptly to each subscriber a legible, true copy of any notice
of cancellation of the plan contract that may be received from the
plan and to provide promptly to the plan proof of that mailing and
the date of that mailing.
   This bill would authorize those contract provisions to allow those
mailings to be made by email.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1367.23 of the Health and Safety Code is
amended to read:
   1367.23.  (a)   On and after January 1, 1994, every
  Every  group health care service plan contract,
which is issued, amended, or renewed, shall include a provision
requiring the health care service plan to notify the group
contractholders in writing of the cancellation of the plan contract
and shall include in their contract with group contractholders a
provision requiring the group contractholder to mail promptly  or
email  to each subscriber a legible, true copy of any notice of
cancellation of the plan contract which may be received from the
plan and to provide promptly to the plan proof of that mailing 
or emailing  and the date  thereof   of
that mailing or emailing  .
   (b)  The notice of cancellation from the group contractholder to
the subscriber required by subdivision (a) shall include information
regarding the conversion rights of persons covered under the plan
contract upon termination of the plan contract. This information
shall be in clear and easily understandable language.