1399.805
. (a) (1) After the federally eligible defined individual
submits a completed application form for a plan contract, the plan
shall, within 30 days, notify the individual of the individual's
actual premium charges for that plan contract, unless the plan has
provided notice of the premium charge prior to the application being
filed. In no case shall the premium charged for any health care
service plan contract identified in subdivision (d) of Section
1366.35 exceed the following amounts:
(A) For health care service plan contracts that offer services
through a preferred provider arrangement, the average premium paid by
a subscriber of the Major Risk Medical Insurance Program who is of
the same age and resides in the same geographic area as the federally
eligible defined individual. However, for a federally eligible
defined individual who is between the ages of 60 and 64 years,
inclusive, the premium shall not exceed the average premium paid by a
subscriber of the Major Risk Medical Insurance Program who is 59
years of age and resides in the same geographic area as the federally
eligible defined individual.
(B) For health care service plan contracts identified in
subdivision (d) of Section 1366.35 that do not offer services through
a preferred provider arrangement, 170 percent of the standard
premium charged to an individual who is of the same age and resides
in the same geographic area as the federally eligible defined
individual. However, for a federally eligible defined individual who
is between the ages of 60 and 64 years, inclusive, the premium shall
not exceed 170 percent of the standard premium charged to an
individual who is 59 years of age and resides in the same geographic
area as the federally eligible defined individual. The individual
shall have 30 days in which to exercise the right to buy coverage at
the quoted premium rates.
(2) A plan may adjust the premium based on family size, not to
exceed the following amounts:
(A) For health care service plans that offer services through a
preferred provider arrangement, the average of the Major Risk Medical
Insurance Program rate for families of the same size that reside in
the same geographic area as the federally eligible defined
individual.
(B) For health care service plans identified in subdivision (d) of
Section 1366.35 that do not offer services through a preferred
provider arrangement, 170 percent of the standard premium charged to
a family that is of the same size and resides in the same geographic
area as the federally eligible defined individual.
(3) This subdivision shall become inoperative on January 1, 2014.
This subdivision shall become operative on January 1, 2020.
(b) (1) After the federally eligible defined individual submits a
completed application form for a plan contract, the plan shall,
within 30 days, notify the individual of the individual's actual
premium charges for that plan contract, unless the plan has provided
notice of the premium charge prior to the application being filed. In
no case shall the premium charged for any health care service plan
contract identified in subdivision (d) of Section 1366.35 exceed the
following amounts:
(A) With respect to the rate charged for coverage provided in
2014, the rate charged in 2013 for that coverage multiplied by 1.09.
(B) With respect to the rate charged for coverage provided in 2015
and each subsequent year, the rate charged in the prior year
multiplied by a factor of one plus the percentage change in the
statewide average premium for the second lowest cost silver plan
offered on the Exchange. The Exchange shall determine the percentage
change in the statewide average premium for the second lowest cost
silver plan by subtracting clause (i) from clause (ii) and dividing
the result by clause (i).
(i) The average of the premiums charged in the year prior to the
applicable year for the second lowest cost silver plan in all 19
rating regions, with the premium for each region weighted based on
the region's relative share of the Exchange's total individual
enrollment according to the latest data available to the Exchange.
(ii) The average of the premiums to be charged in the applicable
year for the second lowest cost silver plan in all 19 rating regions,
with the premium for each region weighted based on the region's
relative share of the Exchange's total individual enrollment
according to the latest data available to the Exchange.
(C) The Exchange shall determine the percentage change in the
statewide average premium no later than 30 days after the Exchange's
rates for individual coverage for the applicable year have been
finalized.
(2) For purposes of this subdivision, "Exchange" means the
California Health Benefit Exchange established pursuant to Section
100500 of the Government Code.
(3) This subdivision shall become operative on January 1, 2014.
This subdivision shall become inoperative on January 1, 2020.
(c) When a federally eligible defined individual submits a premium
payment, based on the quoted premium charges, and that payment is
delivered or postmarked, whichever occurs earlier, within the first
15 days of the month, coverage shall begin no later than the first
day of the following month. When that payment is neither delivered or
postmarked until after the 15th day of a month, coverage shall
become effective no later than the first day of the second month
following delivery or postmark of the payment.
(d) During the first 30 days after the effective date of the plan
contract, the individual shall have the option of changing coverage
to a different plan contract offered by the same health care service
plan. If the individual notified the plan of the change within the
first 15 days of a month, coverage under the new plan contract shall
become effective no later than the first day of the following month.
If an enrolled individual notified the plan of the change after the
15th day of a month, coverage under the new plan contract shall
become effective no later than the first day of the second month
following notification.
(e) (1) On and after January 1, 2014, and except as provided in
paragraph (2), this section shall apply only to individual
grandfathered health plan contracts previously issued pursuant to
this section to federally eligible defined individuals.
(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. Section 300gg-91), paragraph (1)
shall become inoperative on the date of that repeal or amendment and
this section shall apply to health care service plan contracts
issued, amended, or renewed on or after that date.
(3) For purposes of this subdivision, the following definitions
apply:
(A) "Grandfathered health plan" has the same meaning as that term
is defined in Section 1251 of PPACA.
(B) "PPACA" means the federal Patient Protection and Affordable
Care Act (Public Law 111-148), as amended by the federal Health Care
Education and Reconciliation Act of 2010 (Public Law 111-152), and
any rules, regulations, or guidance issued pursuant to that law.