LEGISLATIVE COUNSEL'S DIGEST


SB 1088, as introduced, Price. Health care coverage.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975
(Knox-Keene Act), 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 also
provides for the regulation of health insurers by the Department of
Insurance. Existing law requires that every health care service plan
contract or group health insurance policy that provides for
termination of coverage of a dependent child upon attainment of the
limiting age for dependent children shall also provide that
attainment of the limiting age shall not terminate the coverage of a
child under certain conditions.
This bill would prohibit, with a specified exception, the limiting
age for dependent children covered by these health care service plan
contracts and group health insurance policies from being less than
27 years of age. The bill would also provide that no employer is
required to pay the cost of coverage for dependents who are at least
23 years of age, but less than 27 years of age. The bill instead
would authorize subscribers and insureds to elect to provide coverage
to those dependents by contributing the premium for that coverage.
Because this bill would specify additional requirements under the
Knox-Keene Act, the willful violation of which 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.