Section 22934 Of Article 10. Contracting With Public Agencies From California Government Code >> Division 5. >> Title 2. >> Part 5. >> Chapter 1. >> Article 10.
22934
. (a) A contracting agency that has elected to be subject to
this part may not maintain any other health benefit plan or program
offering hospital and medical care for its employees.
(b) Notwithstanding subdivision (a), a plan operating on July 1,
2002, shall be permitted to continue as long as it meets the
requirements of subdivision (e). A material change in the plan,
including a change in carriers, shall be permitted. Notwithstanding
any other provision of this part, a contracting agency may include a
dependent of an employee or retiree who is not eligible for coverage
as a family member or a domestic partner, as provided in this part,
if the employee or retiree is also enrolled in the alternative plan.
(c) Notwithstanding subdivision (a), a self-insured plan operating
on January 1, 2003, shall be permitted to continue as long as it
meets the requirements of subdivision (e). The board may extend the
deadline contained in this subdivision for good cause.
(d) Notwithstanding subdivision (a), an alternative plan
established by a contracting agency and approved by the board after
July 1, 2002, shall be permitted to continue until December 31, 2004.
The plan may only be offered in an area in which there is no
board-approved health maintenance organization or exclusive provider
organization plan available for enrollment, or there is only one
board-approved health maintenance organization plan available for
enrollment, and that plan has less than 55 percent of the primary
care physicians in its provider network available for new patients.
The contracting agency shall reimburse the board for reasonable
administrative expenses incurred as a result of enrollment activities
outside of the system's open enrollment period caused by the
creation or termination of a plan offered pursuant to this
subdivision. A contracting agency providing a plan pursuant to this
subdivision shall notify the board by June 1, 2004, of its intent to
either terminate that plan or to terminate its participation under
this part as of January 1, 2005. On or after June 1, 2004, the board
may extend the termination date contained in this subdivision for a
contracting agency at its discretion, based on compelling
circumstances in the region in which the contracting agency is
located.
(e) A plan maintained pursuant to this section shall meet and
maintain the minimum standards for approved health benefit plans
prescribed by the board pursuant to the requirements of this part.
(f) An election of a contracting agency to be subject to this part
is not effective prior to the termination of any health benefit plan
maintained in violation of this section. The establishment of any
plan thereafter in violation of this section shall terminate
participation of the agency and all of its employees under this part
as of the end of the contract year.
(g) Nothing in this part may be construed to prohibit a
contracting agency from offering health plans, including collectively
bargained union health and welfare trust plans, to employees and
annuitants of employee groups, including collective bargaining units,
if the contracting agency has not elected to provide coverage for
that group under this part.