BILL NUMBER: SB 727	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Cox

                        FEBRUARY 27, 2009

   An act to add Section 1366.30 to the Health and Safety Code, and
to add Section 10128.60 to the Insurance Code, relating to health
care coverage, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 727, as introduced, Cox. Cal-COBRA.
   Existing law provides for licensing and regulation of health care
service plans by the Department of Managed Health Care. Existing law
provides for regulation of health insurers by the Insurance
Commissioner. A willful violation of provisions governing health care
service plans is a crime.
   Existing law requires health care service plans and health
insurers to offer continuation of group coverage for a specified
period of time to persons who become ineligible for group coverage,
otherwise known as COBRA or Cal-COBRA.
   This bill would also require health care service plans and health
insurers to offer continuation coverage if the person is covered by
an employer group plan that is terminated by the employer and the
employer does not provide a successor group benefit plan to its
employees. The bill would require the offered coverage to be for not
less than 18 months from the termination date and to be offered under
the same terms and conditions as the former group plan, but subject
to the rules governing COBRA coverage, to the extent relevant and
applicable. By modifying the requirements applicable to health care
service plans, the willful violation of which would be a crime, the
bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 1366.30 is added to the Health and Safety Code,
to read:
   1366.30.  Notwithstanding any other provision of this article, a
health care service plan shall also offer an enrollee continuation
coverage if the enrollee is covered by an employer group benefit plan
that is terminated by the employer and the employer does not provide
a successor group benefit plan to its employees. The offered
coverage shall be for not less than 18 months from the termination
date and shall be offered under the same terms and conditions as the
former group plan, but subject to the rules governing COBRA coverage
to the extent those rules are relevant and applicable. "COBRA" has
the meaning as defined in subdivision (b) of Section 1366.29.
  SEC. 2.  Section 10128.60 is added to the Insurance Code, to read:
   10128.60.  Notwithstanding any other provision of this article, a
health insurer shall also offer an insured continuation coverage if
the insured is covered by an employer group benefit plan that is
terminated by the employer and the employer does not provide a
successor group benefit plan to its employees. The offered coverage
shall be for not less than 18 months from the termination date and
shall be offered under the same terms and conditions as the former
group benefit plan, but subject to the rules governing COBRA coverage
to the extent those rules are relevant and applicable. "COBRA" has
the meaning as defined in subdivision (c) of Section 10128.59.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to provide for the extension of health care coverage to
affected individuals as quickly as possible, it is necessary that
this act take effect immediately.