Section 1389.7 Of Article 7.5. Underwriting Practices From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 7.5.
1389.7
. (a) Every health care service plan that offers, issues, or
renews individual plan contracts shall offer to any individual, who
was covered by the plan under an individual plan contract that was
rescinded, a new individual plan contract that provides the most
equivalent benefits.
(b) A health care service plan that offers, issues, or renews
individual plan contracts inside or outside the California Health
Benefit Exchange may also permit an individual, who was covered by
the plan under an individual plan contract that was rescinded, to
remain covered under that individual plan contract, with a revised
premium rate that reflects the number of persons remaining on the
individual plan contract consistent with Section 1399.855.
(c) The plan shall notify in writing all enrollees of the right to
coverage under an individual plan contract pursuant to this section,
at a minimum, when the plan rescinds the individual plan contract.
The notice shall adequately inform enrollees of the right to coverage
provided under this section.
(d) The plan shall provide 60 days for enrollees to accept the
offered new individual plan contract under subdivision (a), and this
contract shall be effective as of the effective date of the original
plan contract and there shall be no lapse in coverage.
(e) This section does not apply to any individual whose
information in the application for coverage and related
communications led to the rescission.
(f) This section applies notwithstanding subdivision (a) or (d) of
Section 1399.849.
(g) (1) This section shall become operative on January 1, 2014, or
the 91st calendar day following the adjournment of the 2013-14 First
Extraordinary Session, whichever date is later.
(2) If Section 5000A of the Internal Revenue Code, as added by
Section 1501 of PPACA, is repealed or amended to no longer apply to
the individual market, as defined in Section 2791 of the federal
Public Health Service Act (42 U.S.C. Sec. 300gg-91), this section
shall become inoperative 12 months after the date of that repeal or
amendment.