1395
. (a) Notwithstanding Article 6 (commencing with Section 650)
of Chapter 1 of Division 2 of the Business and Professions Code, any
health care service plan or specialized health care service plan may,
except as limited by this subdivision, solicit or advertise with
regard to the cost of subscription or enrollment, facilities and
services rendered, provided, however, Article 5 (commencing with
Section 600) of Chapter 1 of Division 2 of the Business and
Professions Code remains in effect. Any price advertisement shall be
exact, without the use of such phrases as "as low as," "and up,"
"lowest prices" or words or phrases of similar import. Any
advertisement that refers to services, or costs for the services, and
that uses words of comparison must be based on verifiable data
substantiating the comparison. Any health care service plan or
specialized health care service plan so advertising shall be prepared
to provide information sufficient to establish the accuracy of the
comparison. Price advertising shall not be fraudulent, deceitful, or
misleading, nor contain any offers of discounts, premiums, gifts, or
bait of similar nature. In connection with price advertising, the
price for each product or service shall be clearly identifiable. The
price advertised for products shall include charges for any related
professional services, including dispensing and fitting services,
unless the advertisement specifically and clearly indicates
otherwise.
(b) Plans licensed under this chapter shall not be deemed to be
engaged in the practice of a profession, and may employ, or contract
with, any professional licensed pursuant to Division 2 (commencing
with Section 500) of the Business and Professions Code to deliver
professional services. Employment by or a contract with a plan as a
provider of professional services shall not constitute a ground for
disciplinary action against a health professional licensed pursuant
to Division 2 (commencing with Section 500) of the Business and
Professions Code by a licensing agency regulating a particular health
care profession.
(c) A health care service plan licensed under this chapter may
directly own, and may directly operate through its professional
employees or contracted licensed professionals, offices and
subsidiary corporations, including pharmacies that satisfy the
requirements of subdivision (d) of Section 4080.5 of the Business and
Professions Code, as are necessary to provide health care services
to the plan's subscribers and enrollees.
(d) A professional licensed pursuant to the provisions of Division
2 (commencing with Section 500) of the Business and Professions Code
who is employed by, or under contract to, a plan may not own or
control offices or branch offices beyond those expressly permitted by
the provisions of the Business and Professions Code.
(e) Nothing in this chapter shall be construed to repeal, abolish,
or diminish the effect of Section 129450 of the Health and Safety
Code.
(f) Except as specifically provided in this chapter, nothing in
this chapter shall be construed to limit the effect of the laws
governing professional corporations, as they appear in applicable
provisions of the Business and Professions Code, upon specialized
health care service plans.
(g) No representative of a participating health, dental, or vision
plan or its subcontractor representative shall in any manner use
false or misleading claims to misrepresent itself, the plan, the
subcontractor, or the Healthy Families or Medi-Cal program while
engaging in application assistance activities that are subject to
this section. Notwithstanding any other provision of this chapter,
any representative of the health, dental, or vision care plan or of
the health, dental, or vision care plan's subcontractor who violates
any of the provisions of Section 12693.325 of the Insurance Code
shall only be subject to a fine of five hundred dollars ($500) for
each of those violations.
(h) A health care service plan shall comply with Section 12693.325
of the Insurance Code and Section 14409 of the Welfare and
Institutions Code. In addition to any other disciplinary powers
provided by this chapter, if a health care service plan violates any
of the provisions of Section 12693.325 of the Insurance Code, the
department may prohibit the health care service plan from providing
application assistance and contacting applicants pursuant to Section
12693.325 of the Insurance Code.