Section 1374.21 Of Article 5.5. Health Care Service Plan Coverage Contract Changes From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 5.5.

. (a) (1) A change in premium rates or changes in coverage stated in a group health care service plan contract shall not become effective unless the plan has delivered in writing a notice indicating the change or changes at least 60 days prior to the contract renewal effective date.
  (2) The notice delivered pursuant to paragraph (1) for large group health plans shall also include the following information:
  (A) Whether the rate proposed to be in effect is greater than the average rate increase for individual market products negotiated by the California Health Benefit Exchange for the most recent calendar year for which the rates are final.
  (B) Whether the rate proposed to be in effect is greater than the average rate increase negotiated by the Board of Administration of the Public Employees' Retirement System for the most recent calendar year for which the rates are final.
  (C) Whether the rate change includes any portion of the excise tax paid by the health plan.
  (b) A health care service plan that declines to offer coverage to or denies enrollment for a large group applying for coverage shall, at the time of the denial of coverage, provide the applicant with the specific reason or reasons for the decision in writing, in clear, easily understandable language.