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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
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<ns0:ActionText>CHAPTERED</ns0:ActionText>
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<ns0:ActionText>APPROVED</ns0:ActionText>
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<ns0:ActionText>FILED</ns0:ActionText>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>439</ns0:MeasureNum>
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<ns0:ChapterYear>2025</ns0:ChapterYear>
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<ns0:ChapterNum>318</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Weber Pierson</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Weber Pierson</ns0:Name>
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<ns0:Title>An act to amend Sections 127660, 127662, and 127665 of the Health and Safety Code, relating to the California Health Benefit Review Program. </ns0:Title>
<ns0:RelatingClause>the California Health Benefit Review Program</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>California Health Benefit Review Program: extension.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law establishes the Health Care Benefits Fund to support the University of California’s implementation of the California Health Benefit Review Program. Under the program, the University of California assesses legislation proposing to repeal or mandate a benefit or service requirement on health care insurance plans or health insurers. Under the program, the University of California provides a written analysis that includes, among other data, financial impacts of legislation on publicly funded state health insurance programs, including the Medi-Cal program and the Healthy Families Program. Existing law imposes an annual charge on health care service plans and health insurers for the 2022–23 to 2026–27 fiscal years, inclusive, as specified, to be deposited into the fund. Existing law prohibits the total annual assessment on health care service plans and health insurers from
exceeding $2,200,000. Under existing law, the fund and the program become inoperative on July 1, 2027, and are repealed as of January 1, 2028.</html:p>
<html:p>This bill would extend the operation of the California Health Benefit Review Program and the Health Care Benefits Fund through July 1, 2033, and would authorize the continued assessment of the annual charge on health care service plans and health insurers for that purpose for the 2026–27 to 2032–33 fiscal years, inclusive. The bill would increase the allowable total annual assessment on health care service plans and health insurers to $3,200,000. The bill would remove the Healthy Families Program as an example of the publicly funded state health insurance programs within an analysis of financial impacts of legislation.</html:p>
<html:p>This bill would make these provisions inoperative on July 1, 2033, and would repeal it as of January 1, 2034.</html:p>
<html:p>
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII
<html:span class="ThinSpace"/>
A of the California Constitution, and thus would require for passage the approval of
<ns0:Fraction>
<ns0:Numerator>2</ns0:Numerator>
<ns0:Denominator>3</ns0:Denominator>
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of the membership of each house of the Legislature.
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<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:Urgency>NO</ns0:Urgency>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 127660 of the
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is amended to read:
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<ns0:Num>127660.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature hereby requests the University of California to establish the California Health Benefit Review Program to assess legislation proposing to mandate a benefit or service, as defined in subdivision (d), and legislation proposing to repeal a mandated benefit or service, as defined in subdivision (e), and to prepare a written analysis with relevant data on the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Public health impacts, including, but not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The impact on the health of the community, including the reduction of communicable disease and the benefits of prevention such as those provided by childhood
immunizations and prenatal care.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The impact on the health of the community, including diseases and conditions where disparities in outcomes associated with the social determinants of health as well as gender, race, sexual orientation, or gender identity are established in peer-reviewed scientific and medical literature.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The extent to which the benefit or service reduces premature death and the economic loss associated with disease.
</html:p>
<html:p>
(2)
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Medical impacts, including, but not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The extent to which the benefit or service is generally recognized by the medical community as being effective in the screening,
diagnosis, or treatment of a condition or disease, as demonstrated by a review of scientific and peer-reviewed medical literature.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The extent to which the benefit or service is generally available and utilized by treating physicians.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The contribution of the benefit or service to the health status of the population, including the results of any research demonstrating the efficacy of the benefit or service compared to alternatives, including not providing the benefit or service.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The extent to which mandating or repealing the benefits or services would not diminish or eliminate access to currently available health care benefits or services.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Financial
impacts, including, but not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The extent to which the coverage or repeal of coverage will increase or decrease the benefit or cost of the benefit or service.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The extent to which the coverage or repeal of coverage will increase the utilization of the benefit or service, or will be a substitute for, or affect the cost of, alternative benefits or services.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The extent to which the coverage or repeal of coverage will increase or decrease the administrative expenses of health care service plans and health insurers and the premium and expenses of subscribers, enrollees, and policyholders.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The impact of this coverage or repeal
of coverage on the total cost of health care.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The impact of this coverage or repeal of coverage on anticipated costs or savings estimated upon implementation for one subsequent calendar year, or, if applicable, two subsequent calendar years through a long-range estimate.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The potential cost or savings to the private sector, including the impact on small employers as defined in paragraph (1) of subdivision (l) of Section 1357, the Public Employees’ Retirement System, other retirement systems funded by the state or by a local government, individuals purchasing individual health insurance, and publicly funded state health insurance programs, including the Medi-Cal program.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
The extent to which costs
resulting from lack of coverage or repeal of coverage are or would be shifted to other payers, including both public and private entities.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
The extent to which mandating or repealing the proposed benefit or service would not diminish or eliminate access to currently available health care benefits or services.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
The extent to which the benefit or service is generally utilized by a significant portion of the population.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
The extent to which health care coverage for the benefit or service is already generally available.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
The level of public demand for health care coverage for the benefit or service, including the level of interest of collective bargaining
agents in negotiating privately for inclusion of this coverage in group contracts, and the extent to which the mandated benefit or service is covered by self-funded employer groups.
</html:p>
<html:p>
(L)
<html:span class="EnSpace"/>
In assessing and preparing a written analysis of the financial impact of legislation proposing to mandate a benefit or service and legislation proposing to repeal a mandated benefit or service pursuant to this paragraph, the Legislature requests the University of California to use a certified actuary or other person with relevant knowledge and expertise to determine the financial impact.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The impact on essential health benefits, as defined in Section 1367.005 of this code and Section 10112.27 of the Insurance Code, and the impact on the California Health Benefit Exchange.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Legislature further requests that the California Health Benefit Review Program assess legislation that impacts health insurance benefit design, cost sharing, premiums, and other health insurance topics.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The Legislature requests that the University of California provide every analysis to the appropriate policy and fiscal committees of the Legislature not later than 60 days, or in a manner and pursuant to a timeline agreed to by the Legislature and the California Health Benefit Review Program, after receiving a request made pursuant to Section 127661. In addition, the Legislature requests that the university post every analysis on the Internet and make every analysis available to the public upon request.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
As used in this section, “legislation proposing to mandate a benefit or service” means a proposed statute that requires a health care service plan or a health insurer, or both, to do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Permit a person insured or covered under the policy or contract to obtain health care treatment or services from a particular type of health care provider.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Offer or provide coverage for the screening, diagnosis, or treatment of a particular disease or condition.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Offer or provide coverage of a particular type of health care treatment or service, or of medical equipment, medical supplies, or drugs used in connection with a health care treatment or service.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
As used in this section, “legislation proposing to repeal a mandated benefit or service” means a proposed statute that would repeal an existing requirement that a health care service plan or a health insurer, or both, do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Permit a person insured or covered under the policy or contract to obtain health care treatment or services from a particular type of health care provider.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Offer or provide coverage for the screening, diagnosis, or treatment of a particular disease or condition.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Offer or provide coverage of a particular type of health care treatment or service, or of medical equipment, medical supplies, or drugs used in connection with a health care treatment or
service.
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<ns0:BillSection id="id_7049F2FB-C28E-4970-AF22-8B52485E9F22">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 127662 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:Num>127662.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
In order to effectively support the University of California and its work in implementing this chapter, there is hereby established in the State Treasury, the Health Care Benefits Fund. The university’s work in providing the bill analyses shall be supported from the fund.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For the 2026–27 to 2032–33 fiscal years, inclusive, each health care service plan, except a specialized health care service plan, and each health insurer offering health insurance, as defined in Section 106 of the Insurance Code, shall be assessed an annual fee in an amount determined through regulation. The amount of the fee shall be determined by the Department of Managed Health Care and the Department
of Insurance in consultation with the university and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing this chapter. The total annual assessment on health care service plans and health insurers shall not exceed three million two hundred thousand dollars ($3,200,000).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The Department of Managed Health Care and the Department of Insurance, in coordination with the university, shall assess the health care service plans and health insurers, respectively, for the costs required to fund the university’s activities pursuant to subdivision (b).
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Health care service plans shall be notified of the assessment on or before June 15 of each year with the annual assessment notice issued pursuant
to Section 1356. The assessment pursuant to this section is separate and independent of the assessments in Section 1356.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Health insurers shall be noticed of the assessment in accordance with the notice for the annual assessment or quarterly premium tax revenues.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The assessed fees required pursuant to subdivision (b) shall be paid on an annual basis no later than August 1 of each year. The Department of Managed Health Care and the Department of Insurance shall forward the assessed fees to the Controller for deposit in the Health Care Benefits Fund immediately following their receipt.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Health insurance,” as used in this subdivision, does not include Medicare supplement, vision-only, dental-only, or CHAMPUS
supplement insurance, or hospital indemnity, accident-only, or specified disease insurance that does not pay benefits on a fixed benefit, cash payment only basis.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 127665 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:Num>127665.</ns0:Num>
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<html:p>This chapter shall become inoperative on July 1, 2033, and, as of January 1, 2034, is repealed.</html:p>
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