Section 54956.87 Of Chapter 9. Meetings From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 9.
54956.87
. (a) Notwithstanding any other provision of this chapter,
the records of a health plan that is licensed pursuant to the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code) and that is governed by a county board of supervisors, whether
paper records, records maintained in the management information
system, or records in any other form, that relate to provider rate or
payment determinations, allocation or distribution methodologies for
provider payments, formulas or calculations for these payments, and
contract negotiations with providers of health care for alternative
rates are exempt from disclosure for a period of three years after
the contract is fully executed. The transmission of the records, or
the information contained therein in an alternative form, to the
board of supervisors shall not constitute a waiver of exemption from
disclosure, and the records and information once transmitted to the
board of supervisors shall be subject to this same exemption.
(b) Notwithstanding any other provision of law, the governing
board of a health plan that is licensed pursuant to the Knox-Keene
Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with
Section 1340) of Division 2 of the Health and Safety Code) and that
is governed by a county board of supervisors may order that a meeting
held solely for the purpose of discussion or taking action on health
plan trade secrets, as defined in subdivision (f), shall be held in
closed session. The requirements of making a public report of action
taken in closed session, and the vote or abstention of every member
present, may be limited to a brief general description without the
information constituting the trade secret.
(c) Notwithstanding any other provision of law, the governing
board of a health plan may meet in closed session to consider and
take action on matters pertaining to contracts and contract
negotiations by the health plan with providers of health care
services concerning all matters related to rates of payment. The
governing board may delete the portion or portions containing trade
secrets from any documents that were finally approved in the closed
session held pursuant to subdivision (b) that are provided to persons
who have made the timely or standing request.
(d) Nothing in this section shall be construed as preventing the
governing board from meeting in closed session as otherwise provided
by law.
(e) The provisions of this section shall not prevent access to any
records by the Joint Legislative Audit Committee in the exercise of
its powers pursuant to Article 1 (commencing with Section 10500) of
Chapter 4 of Part 2 of Division 2 of Title 2. The provisions of this
section also shall not prevent access to any records by the
Department of Managed Health Care in the exercise of its powers
pursuant to Article 1 (commencing with Section 1340) of Chapter 2.2
of Division 2 of the Health and Safety Code.
(f) For purposes of this section, "health plan trade secret" means
a trade secret, as defined in subdivision (d) of Section 3426.1 of
the Civil Code, that also meets both of the following criteria:
(1) The secrecy of the information is necessary for the health
plan to initiate a new service, program, marketing strategy, business
plan, or technology, or to add a benefit or product.
(2) Premature disclosure of the trade secret would create a
substantial probability of depriving the health plan of a substantial
economic benefit or opportunity.