1366.6
. (a) For purposes of this section, the following definitions
shall apply:
(1) "Exchange" means the California Health Benefit Exchange
established in Title 22 (commencing with Section 100500) of the
Government Code.
(2) "Federal act" means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152), and any amendments to, or regulations or guidance issued
under, those acts.
(3) "Qualified health plan" has the same meaning as that term is
defined in Section 1301 of the federal act.
(4) "Small employer" has the same meaning as that term is defined
in Section 1357.500.
(b) (1) Health care service plans participating in the individual
market of the Exchange shall fairly and affirmatively offer, market,
and sell in the individual market of the Exchange at least one
product within each of the five levels of coverage contained in
subsections (d) and (e) of Section 1302 of the federal act. Health
care service plans participating in the Small Business Health Options
Program (SHOP Program) of the Exchange, established pursuant to
subdivision (m) of Section 100504 of the Government Code, shall
fairly and affirmatively offer, market, and sell in the SHOP Program
at least one product within each of the four levels of coverage
contained in subsection (d) of Section 1302 of the federal act.
(2) The board established under Section 100500 of the Government
Code may require plans to sell additional products within each of the
levels of coverage identified in paragraph (1).
(3) This subdivision shall not apply to a plan that solely offers
supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504 of the Government Code.
(4) This subdivision shall not apply to a bridge plan product that
meets the requirements of Section 100504.5 of the Government Code to
the extent approved by the appropriate federal agency.
(c) (1) Health care service plans participating in the Exchange
that sell any products outside the Exchange shall do both of the
following:
(A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
(B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
(2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 of the Insurance Code between the Managed Risk
Medical Insurance Board and health care service plans for enrolled
Healthy Families beneficiaries or to contracts entered into pursuant
to Chapter 7 (commencing with Section 14000) of, or Chapter 8
(commencing with Section 14200) of, Part 3 of Division 9 of the
Welfare and Institutions Code between the State Department of Health
Care Services and health care service plans for enrolled Medi-Cal
beneficiaries, or for contracts with bridge plan products that meet
the requirements of Section 100504.5 of the Government Code.
(d) (1) Commencing January 1, 2014, a health care service plan
shall, with respect to individual plan contracts that cover hospital,
medical, or surgical benefits, only sell the five levels of coverage
contained in subsections (d) and (e) of Section 1302 of the federal
act, except that a health care service plan that does not participate
in the Exchange shall, with respect to individual plan contracts
that cover hospital, medical, or surgical benefits, only sell the
four levels of coverage contained in subsection (d) of Section 1302
of the federal act.
(2) Commencing January 1, 2014, a health care service plan shall,
with respect to small employer plan contracts that cover hospital,
medical, or surgical expenses, only sell the four levels of coverage
contained in subsection (d) of Section 1302 of the federal act.
(e) Commencing January 1, 2014, a health care service plan that
does not participate in the Exchange shall, with respect to
individual or small employer plan contracts that cover hospital,
medical, or surgical benefits, offer at least one standardized
product that has been designated by the Exchange in each of the four
levels of coverage contained in subsection (d) of Section 1302 of the
federal act. This subdivision shall only apply if the board of the
Exchange exercises its authority under subdivision (c) of Section
100504 of the Government Code. Nothing in this subdivision shall
require a plan that does not participate in the Exchange to offer
standardized products in the small employer market if the plan only
sells products in the individual market. Nothing in this subdivision
shall require a plan that does not participate in the Exchange to
offer standardized products in the individual market if the plan only
sells products in the small employer market. This subdivision shall
not be construed to prohibit the plan from offering other products
provided that it complies with subdivision (d).
(f) For purposes of this section, a bridge plan product shall mean
an individual health benefit plan, as defined in subdivision (f) of
Section 1399.845, that is offered by a health care service plan
licensed under this chapter that contracts with the Exchange pursuant
to Title 22 (commencing with Section 100500) of the Government Code.
(g) This section shall become inoperative on the October 1 that is
five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative and
is repealed.