Signed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to pass a bill that would establish the California Health Benefits Exchange.

Highlights:

• Establishes the California Health Benefits Exchange in the California Heath and Human Services Agency in order to implement specified functions imposed by the federal Patient Protection and Affordable Care Act in a consumer-friendly manner (Sec. 1).

• Specifies that the Exchange shall do the following (Sec. 1):
• Provide for the operation of a toll-free telephone hotline, and maintain an Internet Website;
• Assign a rating to each qualified health plan;
• Use a standard format for presenting health benefits plan options;
• Inform individuals of eligibility requirements of various programs and if eligible enroll those individuals;
• Establish an electric calculator to determine the cost of coverage and grant a certificate exempting people from the individual responsibility requirement.

• Establishes that the Exchange may issue rules and regulations as necessary, receive funds from private foundations, and provide a single exchange to both qualified individuals and qualified small employers (Sec. 1).

• Requires the Exchange be governed by a board of eight members serving four-year terms; four are to be appointed by the Governor, two by the Senate Committee on Rules, and two by the Speaker of the Assembly (Sec. 1).

• Specifies that the Exchange shall not be subject to licensure or regulation by the Department of Insurance or the Department of Managed Health Care (Sec. 1).

• Authorizes the Exchange to include within the premiums charged to enrollees or employers purchasing coverage through the Exchange an amount sufficient to pay the actual, reasonable, and necessary administrative costs of the Exchange (Sec. 1).

• Specifies that the California Health and Human Services Agency must apply for and receive federal funds for establishing the Exchange (Sec. 1).

• Establishes a means for an individual or employer to appeal to the board if they are dissatisfied with any action that has occurred in connection with enrollment in or eligibility for the Exchange (Sec. 1).

Full Bill Text