AB 410

Generally, this bill clarifies the requirements regarding social and financial

impact reports that are required for bills and amendments containing health

insurance mandates. Current law requires the Legislative Reference Bureau to

submit a copy of a bill or amendment that requires a social and financial impact

report to the Office of the Commissioner of Insurance when the bill or amendment

is introduced. The bill clarifies, for amendments, that the LRB must submit a copy

of an offered amendment to OCI if the amendment creates or alters a health

insurance mandate.

Current law requires the commissioner of insurance to submit a report on the

social and financial impact of any health insurance mandate contained in a bill or

amendment, or, if the office decides not to submit the report, a written statement

explaining the reason for not preparing the report. Currently, the commissioner

must submit the report or written statement to the presiding officer of the house of

the legislature in which the bill or amendment is introduced. The bill requires OCI

to submit the report or written statement to the chief clerk of the house in which the

bill or amendment is introduced or offered within ten working days after receiving

a copy of the bill or amendment from the LRB. OCI is not required, however, to

prepare or submit a report or statement for an amendment that has failed adoption

or failed to be reported out of committee by the end of the next business day after

receiving a copy of the amendment.

The bill requires the chief clerk in the house in which the bill or amendment is

introduced or offered to ensure, by the end of the next business day after receiving

the report or written statement from OCI, that 1) the report or written statement is

printed as an appendix to the bill and distributed in the same manner as

amendments and 2) the report or written statement is made available to the public.

Current law similarly requires the report or written statement to be printed as an

appendix, distributed in the same manner as amendments, and made available to

the public.

Currently, a statute that requires a particular benefit design under an

insurance policy, plan, or contract for the treatment of a particular disease, condition,

or other health care need, for a particular type of health care treatment or service,

or for the provision of equipment, supplies, or drugs used in connection with a health

care treatment or service is a health insurance mandate for which a social and

financial impact report must be submitted. The bill clarifies that a statute that

imposes conditions on cost sharing under a policy, plan, or contract is also a health

insurance mandate for which a social and financial impact report must be submitted.