Section 1399.857 Of Article 11.8. Individual Access To Health Care Coverage From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 11.8.
1399.857
. (a) A health care service plan shall not be required to
offer an individual health benefit plan or accept applications for
the plan pursuant to Section 1399.849 in the case of any of the
following:
(1) To an individual who does not live or reside within the plan's
approved service areas.
(2) (A) Within a specific service area or portion of a service
area, if the plan reasonably anticipates and demonstrates to the
satisfaction of the director both of the following:
(i) It will not have sufficient health care delivery resources to
ensure that health care services will be available and accessible to
the individual because of its obligations to existing enrollees.
(ii) It is applying this subparagraph uniformly to all individuals
without regard to the claims experience of those individuals or any
health status-related factor relating to those individuals.
(B) A health care service plan that cannot offer an individual
health benefit plan to individuals because it is lacking in
sufficient health care delivery resources within a service area or a
portion of a service area pursuant to subparagraph (A) shall not
offer a health benefit plan in that area to individuals until the
later of the following dates:
(i) The 181st day after the date coverage is denied pursuant to
this paragraph.
(ii) The date the plan notifies the director that it has the
ability to deliver services to individuals, and certifies to the
director that from the date of the notice it will enroll all
individuals requesting coverage in that area from the plan.
(C) Subparagraph (B) shall not limit the plan's ability to renew
coverage already in force or relieve the plan of the responsibility
to renew that coverage as described in Section 1365.
(D) Coverage offered within a service area after the period
specified in subparagraph (B) shall be subject to this section.
(b) (1) A health care service plan may decline to offer an
individual health benefit plan to an individual if the plan
demonstrates to the satisfaction of the director both of the
following:
(A) It does not have the financial reserves necessary to
underwrite additional coverage. In determining whether this
subparagraph has been satisfied, the director shall consider, but not
be limited to, the plan's compliance with the requirements of
Section 1367, Article 6 (commencing with Section 1375), and the rules
adopted thereunder.
(B) It is applying this subdivision uniformly to all individuals
without regard to the claims experience of those individuals or any
health status-related factor relating to those individuals.
(2) A plan that denies coverage to an individual under paragraph
(1) shall not offer coverage before the later of the following dates:
(A) The 181st day after the date that coverage is denied pursuant
to this subdivision.
(B) The date the plan demonstrates to the satisfaction of the
director that the plan has sufficient financial reserves necessary to
underwrite additional coverage.
(3) Paragraph (2) shall not limit the plan's ability to renew
coverage already in force or relieve the plan of the responsibility
to renew that coverage as described in Section 1365.
(4) Coverage offered within a service area after the period
specified in paragraph (2) shall be subject to this section.
(c) Nothing in this article shall be construed to limit the
director's authority to develop and implement a plan of
rehabilitation for a health care service plan whose financial
viability or organizational and administrative capacity has become
impaired, to the extent permitted by PPACA.
(d) This section shall not apply to an individual health benefit
plan that is a grandfathered health plan.