Health care coverage: investments: disclosure.

Plain English Breakdown

The bill summary text indicates that Covered California must prominently post noncompliance status on its website until compliance is achieved. This detail was removed from the candidate explanation and should be included.

Health Care Plans Must Share Investment Information

The bill requires health care service plans and insurance companies to disclose their major investments annually, with penalties for non-compliance.

What This Bill Does

• Requires health care service plans and insurance companies to disclose their material investment holdings annually by July 1st.
• Makes sure that this information is put on the internet for everyone to see.
• Imposes a civil penalty if these groups do not share their investment details as required.

Who It Names or Affects

• Health care service plans
• Insurance companies
• The public

Terms To Know

Nonprofit integrated health care service plan

A type of health insurance company that is not run for profit and provides a range of healthcare services.

Department of Managed Health Care

The government agency in California responsible for regulating health care plans to ensure they are fair and safe.

Limits and Unknowns

• Does not specify the exact amount or type of fine for non-compliance.
• It is unclear what specific investments will be considered 'material' until further regulations are made.

Official Summary Text

AB 1929, as amended, Ortega.
Nonprofit integrated health care service plans:
Health care coverage:
investments: disclosure.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law requires a health care service plan’s assets to be invested in a prudent manner and requires the
director of the department
Director of the Department of Managed Health Care
to determine the acceptability of a health care service plan’s investments, as specified.
Existing law provides for the regulation of health insurers by the
Department of Insurance. Existing law regulates the types and amounts of investments that insurers are authorized to make, as specified.
This bill would require a
nonprofit integrated health care service plan regulated by the department
health care service plan or health insurer
to annually disclose its material investment holdings to the
department
Department of Managed Health Care or Department of Insurance, as applicable,
on or before July 1 of each year, unless otherwise specified by regulation, beginning on July 1, 2027. The bill would require the
department
departments
to prominently display, and make accessible to the public, those disclosures on
the department’s internet website. If a nonprofit integrated health care service plan
their internet websites. If a health care service plan or health insurer
fails to comply with the disclosure requirements, the bill would require the
applicable
department to assess a civil penalty against the
plan,
plan or insurer,
as specified. The bill would require the
applicable
department and Covered California to prominently post the plan’s
or insurer’s
noncompliance status on their internet websites until compliance is achieved. Because a violation of these requirements by a health care service plan would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF