Section 1374.12 Of Article 5. Standards From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 5.
1374.12
. No health care service plan contract issued, entered into,
or renewed on or after July 1, 1984, shall be deemed to contain any
provision restricting the liability of the plan with respect to
expenses solely because the expenses were incurred while the member
was in a state hospital, if the policy, contract, or agreement would
have paid for the services but for the fact that they were provided
in a state hospital. Nothing in this section shall be deemed to
require a plan to pay a state hospital for covered expenses incurred
by a member at a rate or charge higher than the plan would pay for
such services to a hospital with which the plan has entered a
contract providing for alternative rates of payment or limiting
payments for services secured by members.