SB 599: Public Employees’ Medical and Hospital Care Act: Peace Officers Research Association of California Insurance and Benefits Trust.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-09-07
The Public Employees Medical and Hospital Care Act, which is administered by the Board of Administration of the Public Employees Retirement System, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their beneficiaries. Existing law requires the board to approve an employee association health benefit plan previously approved by the board in the 198788 contract year or prior, if the plan continues to meet the minimum standards prescribed by the board. Existing law authorizes the California Correctional Peace Officer Association Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill would require the board to approve an employee association health benefit plan offered by the California Association of Highway Patrolmen Health Benefits Trust, the Peace Officers Research Association of California Health Benefits Trust, or the California Correctional Peace Officer Association Health Benefits Trust if the plan meets minimum standards prescribed by the board. The bill would authorize the trustees of these organizations to offer one or more health benefit plans approved by the board on a regional basis with a regional premium subject to specified limitations.
The Public Employees Medical and Hospital Care Act (PEMHCA), Act, which is administered by the Board of Administration of the Public Employees Retirement System, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their beneficiaries. Existing law requires the board to approve an employee association health benefit plan previously approved by the board in the 198788 contract year or prior, if the plan continues to meet the minimum standards prescribed by the board. Existing law authorizes the California Correctional Peace Officer Association Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill would authorize the Peace Officers Research Association of California Insurance and Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state. The bill would also authorize require the board to approve an employee association health benefit plan offered by the California Association of Highway Patrolmen Health Benefits Trust, the Peace Officers Research Association of California Health Benefits Trust, or the California Correctional Peace Officer Association Health Benefits Trust and the California Insurance and Benefits Trust of the Peace Officers Research Association of California to each offer one or more different health benefit plan options with varying premiums to their respective members in different areas of the state. if the plan meets minimum standards prescribed by the board. The bill would authorize the trustees of these organizations to offer one or more health benefit plans approved by the board on a regional basis with a regional premium subject to specified limitations.
The Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees Retirement System, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their beneficiaries. Existing law requires the board to approve an employee association health benefit plan previously approved by the board in the 198788 contract year or prior, if the plan continues to meet the minimum standards prescribed by the board. Existing law authorizes the California Correctional Peace Officer Association Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill would authorize the Peace Officers Research Association of California Insurance and Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state. The bill would also authorize the California Correctional Peace Officer Association Health Benefits Trust and the California Insurance and Benefits Trust of the Peace Officers Research Association of California to each offer one or more different health benefit plan options with varying premiums to their respective members in different areas of the state.
The Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees Retirement System, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their beneficiaries. Existing law requires the board to approve an employee association health benefit plan previously approved by the board in the 198788 contract year or prior, if the plan continues to meet the minimum standards prescribed by the board. Existing law authorizes the California Correctional Peace Officer Association Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill would authorize the Peace Officers Research Association of California Insurance and Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
Existing law, the Public Employees Retirement Law (PERL), establishes the Public Employees Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL defines various member categories for the purposes of PERS, including state safety member, which includes members of a state college police department, with specified exceptions, including parking officers.This bill would make nonsubstantive changes to the definition of state safety member, as described above.Existing law, the Public Employees Retirement Law (PERL), establishes the Public Employees Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL defines various member categories for the purposes of PERS, including state safety member, which includes members of a state college police department, with specified exceptions, including parking officers.
This bill would make nonsubstantive changes to the definition of state safety member, as described above.
(a)The board may, without compliance with any provision of law relating to competitive bidding, enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
(b)The board may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical care fields prior to the contracting for or approval thereof. The plans may include hospital benefits, surgical benefits, inpatient medical benefits, outpatient benefits, obstetrical benefits, and benefits offered by a bona fide church, sect, denomination, or organization whose principles include healing entirely by prayer or spiritual means.
(c)Notwithstanding any other provision of this part, the board may contract with health benefit plans offering unique or specialized health services.
(d)The board may administer self-funded or minimum premium health benefit plans.
(e)The board may contract for or implement employee cost containment and cost reduction incentive programs that involve the employee, the annuitant, and family members as active participants, along with the carrier and the provider, in a joint effort toward containing and reducing the cost of providing medical and hospital health care services to public employees. In developing these plans, the board, in cooperation with the Department of Human Resources, may request proposals from carriers and certified public employee representatives.
(f)Notwithstanding any other provision of this part, the board may do any of the following:
(1)Contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
(2)Contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans. The board may provide health benefit plans exclusively for employees and annuitants of contracting agencies in addition to or in lieu of other health benefit plans offered under this part pursuant to Section 22922.
(3)Implement and administer risk adjustment procedures consistent with Section 22864 that require health benefit plans to adjust premiums and authorize the system to redistribute premiums based on rules and regulations established by the board for this purpose.
(g)The board shall approve any employee association health benefit plan offered by the California Association of Highway Patrolmen Health Benefits Trust, the Peace Officers Research Association of California Health Benefits Trust, or the California Correctional Peace Officer Association Health Benefits Trust provided that the plan meets the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees. Notwithstanding any other provision of this part, the trustees of an employee association health benefit plan authorized under this subdivision may offer one or more health benefit plans that have been approved by the board on a regional basis with a regional premium. The trustees of these employee association health benefit plans shall not use geographic regions that are different from the geographic regions established by the board for contracting agency regional premiums as authorized under paragraph (1) of subdivision (f), except that the trustees may use a north and south geographic region of the state different from the regions established by the board.
(h)Irrespective of any other provision of law, the sponsors of a health benefit plan approved under this section may reinsure the operation of the plan with an admitted insurer authorized to write disability insurance, if the premium includes the entire prepayment fee.
(a)The board may, without compliance with any provision of law relating to competitive bidding, enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
(b)The board may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical care fields prior to the contracting for or approval thereof. The plans may include hospital benefits, surgical benefits, inpatient medical benefits, outpatient benefits, obstetrical benefits, and benefits offered by a bona fide church, sect, denomination, or organization whose principles include healing entirely by prayer or spiritual means.
(c)Notwithstanding any other provision of this part, the board may contract with health benefit plans offering unique or specialized health services.
(d)The board may administer self-funded or minimum premium health benefit plans.
(e)The board may contract for or implement employee cost containment and cost reduction incentive programs that involve the employee, the annuitant, and family members as active participants, along with the carrier and the provider, in a joint effort toward containing and reducing the cost of providing medical and hospital health care services to public employees. In developing these plans, the board, in cooperation with the Department of Human Resources, may request proposals from carriers and certified public employee representatives.
(f)Notwithstanding any other provision of this part, the board may do any of the following:
(1)Contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
(2)Contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans. The board may provide health benefit plans exclusively for employees and annuitants of contracting agencies in addition to or in lieu of other health benefit plans offered under this part pursuant to Section 22922.
(3)Implement and administer risk adjustment procedures consistent with Section 22864 that require health benefit plans to adjust premiums and authorize the system to redistribute premiums based on rules and regulations established by the board for this purpose.
(g)The board shall approve any employee association health benefit plan that was approved by the board in the 198788 contract year or prior, provided the plan continues to meet offered by the California Association of Highway Patrolmen Health Benefits Trust, the Peace Officers Research Association of California Health Benefits Trust, or the California Correctional Peace Officer Association Health Benefits Trust provided that the plan meets the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees. Notwithstanding any other provision of this part, the California Correctional Peace Officer Association Health Benefits Trust and the Peace Officers Research Association of California Insurance and Benefits Trust may offer different health benefit plan designs with varying premiums in different areas of the state. In addition, the California Correctional Peace Officer Association Health Benefits Trust and the California Insurance and Benefits Trust of the Peace Officers Research Association of California may each offer one or more different health benefit plan options with varying premiums to their respective members in different areas of the state. the trustees of an employee association health benefit plan authorized under this subdivision may offer one or more health benefit plans that have been approved by the board on a regional basis with a regional premium. The trustees of these employee association health benefit plans shall not use geographic regions that are different from the geographic regions established by the board for contracting agency regional premiums as authorized under paragraph (1) of subdivision (f), except that the trustees may use a north and south geographic region of the state different from the regions established by the board.
(h)Irrespective of any other provision of law, the sponsors of a health benefit plan approved under this section may reinsure the operation of the plan with an admitted insurer authorized to write disability insurance, if the premium includes the entire prepayment fee.
(a)The board may, without compliance with any provision of law relating to competitive bidding, enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
(b)The board may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical care fields prior to the contracting for or approval thereof. The plans may include hospital benefits, surgical benefits, inpatient medical benefits, outpatient benefits, obstetrical benefits, and benefits offered by a bona fide church, sect, denomination, or organization whose principles include healing entirely by prayer or spiritual means.
(c)Notwithstanding any other provision of this part, the board may contract with health benefit plans offering unique or specialized health services.
(d)The board may administer self-funded or minimum premium health benefit plans.
(e)The board may contract for or implement employee cost containment and cost reduction incentive programs that involve the employee, the annuitant, and family members as active participants, along with the carrier and the provider, in a joint effort toward containing and reducing the cost of providing medical and hospital health care services to public employees. In developing these plans, the board, in cooperation with the Department of Human Resources, may request proposals from carriers and certified public employee representatives.
(f)Notwithstanding any other provision of this part, the board may do any of the following:
(1)Contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
(2)Contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans. The board may provide health benefit plans exclusively for employees and annuitants of contracting agencies in addition to or in lieu of other health benefit plans offered under this part pursuant to Section 22922.
(3)Implement and administer risk adjustment procedures consistent with Section 22864 that require health benefit plans to adjust premiums and authorize the system to redistribute premiums based on rules and regulations established by the board for this purpose.
(g)The board shall approve any employee association health benefit plan that was approved by the board in the 198788 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees. Notwithstanding any other provision of this part, the California Correctional Peace Officer Association Health Benefits Trust and the Peace Officers Research Association of California Insurance and Benefits Trust may offer different health benefit plan designs with varying premiums in different areas of the state. In addition, the California Correctional Peace Officer Association Health Benefits Trust and the California Insurance and Benefits Trust of the Peace Officers Research Association of California may each offer one or more different health benefit plan options with varying premiums to their respective members in different areas of the state.
(h)Irrespective of any other provision of law, the sponsors of a health benefit plan approved under this section may reinsure the operation of the plan with an admitted insurer authorized to write disability insurance, if the premium includes the entire prepayment fee.
(a)The board may, without compliance with any provision of law relating to competitive bidding, enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
(b)The board may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical care fields prior to the contracting for or approval thereof. The plans may include hospital benefits, surgical benefits, inpatient medical benefits, outpatient benefits, obstetrical benefits, and benefits offered by a bona fide church, sect, denomination, or organization whose principles include healing entirely by prayer or spiritual means.
(c)Notwithstanding any other provision of this part, the board may contract with health benefit plans offering unique or specialized health services.
(d)The board may administer self-funded or minimum premium health benefit plans.
(e)The board may contract for or implement employee cost containment and cost reduction incentive programs that involve the employee, the annuitant, and family members as active participants, along with the carrier and the provider, in a joint effort toward containing and reducing the cost of providing medical and hospital health care services to public employees. In developing these plans, the board, in cooperation with the Department of Human Resources, may request proposals from carriers and certified public employee representatives.
(f)Notwithstanding any other provision of this part, the board may do any of the following:
(1)Contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
(2)Contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans. The board may provide health benefit plans exclusively for employees and annuitants of contracting agencies in addition to or in lieu of other health benefit plans offered under this part pursuant to Section 22922.
(3)Implement and administer risk adjustment procedures consistent with Section 22864 that require health benefit plans to adjust premiums and authorize the system to redistribute premiums based on rules and regulations established by the board for this purpose.
(g)The board shall approve any employee association health benefit plan that was approved by the board in the 198788 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees. Notwithstanding any other provision of this part, the California Correctional Peace Officer Association Health Benefits Trust and the Peace Officers Research Association of California Insurance and Benefits Trust may offer different health benefit plan designs with varying premiums in different areas of the state.
(h)Irrespective of any other provision of law, the sponsors of a health benefit plan approved under this section may reinsure the operation of the plan with an admitted insurer authorized to write disability insurance, if the premium includes the entire prepayment fee.
SECTION 1.Section 20404 of the Government Code is amended to read:20404.State safety member also includes persons employed as members of a state college police department who meet the minimum standards of competence established by the Commission on Peace Officer Standards and Training, pursuant to Chapter 1 (commencing with Section 13500) of Title 4 of Part 4 of the Penal Code, except those members employed under class titles of Parking Officer and Campus Guard.Notwithstanding Section 20401 state State safety member shall include also includes persons employed as members of a state college police department who meet the minimum standards of competence established by the Commission on Peace Officer Standards and Training, pursuant to Chapter 1 (commencing with Section 13500) of Title 4 of Part 4 of the Penal Code, except those members employed under class titles of Parking Officer and Campus Guard.
|
Date
|
Status
|
|---|---|
| Mar 3, 2018 | Last day to consider Governor’s veto pursuant to Joint Rule 58.5. |
| Oct 15, 2017 | In Senate. Consideration of Governor's veto pending. |
| Oct 15, 2017 | Vetoed by the Governor. |
| Sep 11, 2017 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 5, 2017 | Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling. |
| Sep 1, 2017 | Ordered to special consent calendar. |
| Aug 31, 2017 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 31, 2017 | Read third time. Passed. Ordered to the Senate. |
| Aug 24, 2017 | Read third time and amended. |
| Aug 21, 2017 | From consent calendar on motion of Assembly Member Calderon. |
| Jul 20, 2017 | Read second time. Ordered to consent calendar. |
| Jul 19, 2017 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 19). |
| Jul 6, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 6). Re-referred to Com. on APPR. |
| Jun 27, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E., R., & S.S. |
| Jun 1, 2017 | Referred to Com. on P.E., R., & S.S. |
| May 16, 2017 | In Assembly. Read first time. Held at Desk. |
| May 15, 2017 | Read third time. Passed. (Ayes 39. Noes 0. Page 1073.) Ordered to the Assembly. |
| May 9, 2017 | Read second time. Ordered to consent calendar. |
| May 8, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| May 4, 2017 | Set for hearing May 15. |
| May 3, 2017 | May 8 hearing postponed by committee. |
| May 1, 2017 | Set for hearing May 8. |
| Apr 25, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0. Page 830.) (April 24). Re-referred to Com. on APPR. |
| Mar 31, 2017 | Set for hearing April 24. |
| Mar 29, 2017 | Re-referred to Com. on P.E. & R. |
| Mar 23, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 2, 2017 | Referred to Com. on RLS. |
| Feb 21, 2017 | From printer. May be acted upon on or after March 23. |
| Feb 17, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 5, 2017 | Special Consent SB599 | Senate Floor |
Passed |
|
| Aug 31, 2017 | SB 599 Portantino Senate Third Reading By RODRIGUEZ | Assembly Floor |
Passed |
|
| Jul 19, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 6, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Public Employees, Retirement, and Social Security |
Passed |
|
| May 15, 2017 | Consent Calendar 2nd SB599 | Senate Floor |
Passed |
|
| Apr 24, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Public Employment and Retirement |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Correctional Peace Officers Association Benefit Trust Fund | ** Support | Jul 5, 2017 |
| Peace Officers Research Association Of California | ** Support | Jan 2, 2018 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
VETO
Bill No: SB 599
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 4/24/17
AYES: Pan, Morrell, Leyva, Moorlach, Portantino
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 39-0, 5/15/17 (Consent)
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Vidak
SENATE FLOOR: 40-0, 9/5/17
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
ASSEMBLY FLOOR: 73-0, 8/31/17 - See last page for vote
SOURCE: Peace Officers Research Association of California
DIGEST:
This bill authorizes the California Association of Highway Patrolman Benefits Trust (CAHP), the Peace Officers Research Association of California Insurance and Benefit Trust (PORAC), and the California Correctional Peace Officer Association Health Benefits Trust (CCPOA) to implement regional ratings (i.e., regional premium pricing), as specified, for their respective association Basic health plans, which are offered through the Public Employees’ Medical and Hospital Care Act (PEMHCA).
ANALYSIS:
Existing law:
- Establishes PEMHCA which charges the California Public Employees' Retirement System (CalPERS) with responsibility to administer health benefits for state employees and annuitants.
- Authorizes CalPERS to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans.
- Authorizes CalPERS to enter into contracts with health insurances carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
- Provides that CalPERS may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, as specified.
- Allows CalPERS to contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
- Requires CalPERS to approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees.
- Permits the CCPOA to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill:
- Requires CalPERS to approve any employee association health benefit plan offered by CAHP, PORAC, and CCPOA provided that their plans meet the minimum standards prescribed by the CalPERS board.
- Authorizes CAHP, PORAC, or CCPOA to offer one or more health benefit plans approved by CalPERS on a regional basis with a regional premium. The plans must not use geographic regions that are different from those established by CalPERS for contracting agency regional premiums, but may use a North and South geographic region of the state different from those established by CalPERS.
Background
CalPERS provides health benefit coverage to local contracting agency employees through contracted Health Maintenance Organizations and self-funded plans. Additionally, three employee associations - CAHP, PORAC, CCPOA - offer association designed health benefit plans through PEMHCA exclusively to their respective members.
As required by PEMHCA, CalPERS annually reviews the rate and benefits proposals for the three association plans.
CalPERS incorporates regional rates in establishing rates for the CalPERS designed plans offered to contracting agencies. Under existing statutory construction, some of the association plans can only offer a plan structure that utilizes a statewide rate when determining what costs they can charge to the member. Since there are regional costs differences in the state for provider services, association plans in lower cost regions may be not be competitive with other plans that use regional costs. This bill allows CAHP, PORAC, and CCPOA to incorporate regional rates in their plan design and thus, offer lower premiums to their members in lower cost regions. Additionally, CAHP, PORAC, and CCPOA could use more regions than just the current North and South regions available to CCPOA. However, the association plans would be limited to using the same regions used by CalPERS except that the North and South regions could be different.
A possible consequence of permitting the association plans to use regional rates may be that members in higher cost regions could see their premiums rise to reflect those higher costs. However, this impact should be relatively minor since under the current plan design members in lower cost regions likely already opt for less expensive, non-association plans that use regional rating and thus, probably are not in the association pool of covered lives used by carriers when determining the premium structure.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, this bill will result in no new state costs.
Peace Officers Research Association of California (source)
None received
ARGUMENTS IN SUPPORT: According to the sponsor, PORAC is considering offering regional rates for fiscal year 2019 to its members and would need to be added to the statute that authorizes CCPOA to offer regional rates in order to implement such a change. “SB 599 will simply add PORAC’s Health Benefits Trust to the code section allowing them to offer regional rates to their members, should they choose to do so in the future. Again, this change only affects PORAC’s Trust and PORAC’s own members and only if they choose in the future to offer regional rates.”
GOVERNOR'S VETO MESSAGE:
I am returning Senate Bill 599 without my signature.
This bill allows specified public safety employee associations to offer multiple statewide and regional health benefit plans to their members.
Existing association health benefit plans are currently afforded very little oversight by the California Public Employees' Retirement System. By allowing these employee associations to offer additional health plans to their members, CalPERS would be left with major unanticipated costs should any of the plans fail.
The state now faces over $240 billion in unfunded pension and health liabilities. Since 2011, the annual costs for all this have increased significantly as the state takes steps to pay down the long-term obligation faster.
In light of these enormous fiscal commitments, I am unable to sign this bill.
ASSEMBLY FLOOR: 73-0, 8/31/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Burke, Eggman, Eduardo Garcia, Jones-Sawyer, Quirk-Silva, Ridley-Thomas
1/2/18 9:45:04
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 599
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 4/24/17
AYES: Pan, Morrell, Leyva, Moorlach, Portantino
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 39-0, 5/15/17 (Consent)
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Vidak
ASSEMBLY FLOOR: 73-0, 8/31/17 - See last page for vote
SOURCE: Peace Officers Research Association of California
DIGEST:
This bill authorizes the California Association of Highway Patrolman Benefits Trust (CAHP), the Peace Officers Research Association of California Insurance and Benefit Trust (PORAC), and the California Correctional Peace Officer Association Health Benefits Trust (CCPOA) to implement regional ratings (i.e., regional premium pricing), as specified, for their respective association Basic health plans, which are offered through the Public Employees’ Medical and Hospital Care Act (PEMHCA).
Assembly Amendments provide that CAHP, PORAC, and CCPOA may offer employee association plans on a regional basis, with a regional premium approved by the California Public Employees' Retirement System (CalPERS), using geographical regions that are not different from those used by CalPERS except that the North and South region may be different.
ANALYSIS:
Existing law:
- Establishes PEMHCA which charges the California Public Employees' Retirement System (CalPERS) with responsibility to administer health benefits for state employees and annuitants.
- Authorizes CalPERS to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans.
- Authorizes CalPERS to enter into contracts with health insurances carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
- Provides that CalPERS may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, as specified.
- Allows CalPERS to contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
- Requires CalPERS to approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees.
- Permits the CCPOA to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill:
- Requires CalPERS to approve any employee association health benefit plan offered by CAHP, PORAC, and CCPOA provided that their plans meet the minimum standards prescribed by the CalPERS board.
- Authorizes CAHP, PORAC, or CCPOA to offer one or more health benefit plans approved by CalPERS on a regional basis with a regional premium. The plans must not use geographic regions that are different from those established by CalPERS for contracting agency regional premiums, but may use a North and South geographic region of the state different from those established by CalPERS.
Background
CalPERS provides health benefit coverage to local contracting agency employees through contracted Health Maintenance Organizations and self-funded plans. Additionally, three employee associations - CAHP, PORAC, CCPOA - offer association designed health benefit plans through PEMHCA exclusively to their respective members.
As required by PEMHCA, CalPERS annually reviews the rate and benefits proposals for the three association plans.
CalPERS incorporates regional rates in establishing rates for the CalPERS designed plans offered to contracting agencies. Under existing statutory construction, some of the association plans can only offer a plan structure that utilizes a statewide rate when determining what costs they can charge to the member. Since there are regional costs differences in the state for provider services, association plans in lower cost regions may be not be competitive with other plans that use regional costs. This bill allows CAHP, PORAC, and CCPOA to incorporate regional rates in their plan design and thus, offer lower premiums to their members in lower cost regions. Additionally, CAHP, PORAC, and CCPOA could use more regions than just the current North and South regions available to CCPOA. However, the association plans would be limited to using the same regions used by CalPERS except that the North and South regions could be different.
A possible consequence of permitting the association plans to use regional rates may be that members in higher cost regions could see their premiums rise to reflect those higher costs. However, this impact should be relatively minor since under the current plan design members in lower cost regions likely already opt for less expensive, non-association plans that use regional rating and thus, probably are not in the association pool of covered lives used by carriers when determining the premium structure.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, this bill will result in no new state costs.
Peace Officers Research Association of California (source)
None received
ARGUMENTS IN SUPPORT: According to the sponsor, PORAC is considering offering regional rates for fiscal year 2019 to its members and would need to be added to the statute that authorizes CCPOA to offer regional rates in order to implement such a change. “SB 599 will simply add PORAC’s Health Benefits Trust to the code section allowing them to offer regional rates to their members, should they choose to do so in the future. Again, this change only affects PORAC’s Trust and PORAC’s own members and only if they choose in the future to offer regional rates.”
ASSEMBLY FLOOR: 73-0, 8/31/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Burke, Eggman, Eduardo Garcia, Jones-Sawyer, Quirk-Silva, Ridley-Thomas
8/31/17 19:09:56
SENATE THIRD READING
STR Bill Id:SB 599
Author:(Portantino)
As Amended Ver:August 24, 2017
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Public Employees | 7-0 | Rodriguez, Travis Allen, Brough, Cervantes, Cooley, Cooper, O'Donnell |
|
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes |
|
SUMMARY: Makes changes to Public Employees' Medical and Hospital Care Act (PEMHCA) administered by the California Public Employees' Retirement System (CalPERS). Specifically, this bill:
- Requires CalPERS to approve any employee association health benefit plan offered by the California Association of Highway Patrolmen (CAHP), the Peace Officers Research Association of California (PORAC) Health Benefits Trust, or the California Correctional Peace Officer Association (CCPOA) Health Benefits Trust.
- Specifies that approval by CalPERS is contingent on these plans meeting the minimum standards prescribed by the CalPERS board.
- Authorizes the trustees of an employee association health benefit plan to offer one or more health benefit plans approved by CalPERS on a regional basis with a regional premium, subject to the following limitation:
- The trustees of these employee association health benefit plans must not use geographic regions that are different from those established by CalPERS for contracting agency regional premiums authorized, but may use a north and south geographic region of the state different from those established by CalPERS.
EXISTING LAW:
- Establishes the PEMHCA, which charges the California Public Employees' Retirement System (CalPERS) with responsibility to administer health benefits for state employees and annuitants.
- Permits the CCPOA Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
- Requires CalPERS to approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees.
- Authorizes CalPERS to contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical fields prior to contracting or approval.
- Authorizes CalPERS to contract for, or approve health benefit plans that charge a contracting agency and its employees and annuitants, rates based on regional variations in the costs of health care services.
- Authorizes CalPERS to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will result in no new state costs.
COMMENTS: Three employee associations – CAHP, PORAC, and CCPOA – offer association-designed health benefit plans through PEMHCA exclusively to their respective members. As required by PEMHCA, CalPERS annually reviews the rate and benefits proposals for the three association plans, and incorporates regional rates in establishing rates for the CalPERS designed plans offered to contracting agencies.
While the health plans offered to members of these three employee associations is meant to be better tailored to meet their respective members' needs, existing law allows limited flexibility in their design and premiums. This bill would provide these employee association health benefit plans a level of flexibility to better meet the needs of their respective members.
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957 FN: 0001331
SENATE THIRD READING
STR Bill Id:SB 599
Author:(Portantino)
As Amended Ver:June 27, 2017
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Public Employees | 7-0 | Rodriguez, Travis Allen, Brough, Cervantes, Cooley, Cooper, O'Donnell | |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes |
SUMMARY: Makes changes to Public Employees' Medical and Hospital Care Act (PEMHCA) administered by the California Public Employees' Retirement System (CalPERS). Specifically, this bill:
- Requires CalPERS to approve any employee association health benefit plan offered by the California Association of Highway Patrolmen (CAHP), the Peace Officers Research Association of California (PORAC) Health Benefits Trust, or, the California Correctional Peace Officer Association (CCPOA) Health Benefits Trust.
- Specifies that approval by CalPERS is contingent on these plans meeting the minimum standards prescribed by the CalPERS board.
- Authorizes the trustees of an employee association health benefit plan to offer one or more health benefit plans approved by CalPERS on a regional basis with a regional premium, subject to the following limitation:
- The trustees of these employee association health benefit plans must not use geographic regions that are different from those established by CalPERS for contracting agency regional premiums authorized, but may use a north and south geographic region of the state different from those established by CalPERS.
EXISTING LAW:
- Establishes the PEMHCA, which charges the California Public Employees' Retirement System (CalPERS) with responsibility to administer health benefits for state employees and annuitants.
- Permits the CCPOA Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
- Requires CalPERS to approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees.
- Authorizes CalPERS to contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical fields prior to contracting or approval.
- Authorizes CalPERS to contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants, rates based on regional variations in the costs of health care services.
- Authorizes CalPERS to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will result in no new state costs.
COMMENTS: Three employee associations – CAHP, PORAC, and CCPOA – offer association-designed health benefit plans through PEMHCA exclusively to their respective members. As required by PEMHCA, CalPERS annually reviews the rate and benefits proposals for the three association plans, and incorporates regional rates in establishing rates for the CalPERS designed plans offered to contracting agencies.
While the health plans offered to members of these three employee associations is meant to be better tailored to meet their respective members' needs, existing law allows limited flexibility in their design and premiums. This bill would provide these employee association health benefit plans a level of flexibility to better meet the needs of their respective members.
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957 FN: 0001336
Date of Hearing: July 19, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 599
Author:(Portantino) – As Amended Ver:June 27, 2017
Policy Committee: | Public Employees, Retirement/Soc Sec | Vote: | 7 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill allows for different health insurance options offered through certain state employee associations. Specifically, this bill:
- Authorizes the Peace Officers Research Association of California (PORAC) Insurance and Benefits Trust to offer different health plan designs with varying premiums for its basic health plan in different areas of the state.
- Authorizes the California Correctional Peace Officer Association (CCPOA) Health Benefits Trust and PORAC Insurance and Benefits Trust to offer one or more regional health benefit plan options with varying premiums to their respective members in different areas of the state.
FISCAL EFFECT:
No new state costs.
COMMENTS:
- Background. Three state employee associations – the California Association of Highway Patrolmen, CCPOA, and PORAC – offer their members association-designed health benefit plans managed by each organization’s trustees. These plans are authorized by the Public Employees’ Medical and Hospital Care Act (PEMHCA), which also requires the California Public Employees Retirement System (CalPERS) to annually review the rates and benefits of these plans. These plans are generally only available to dues-paying members of that organization and their families.
- Regional rates. While the health plans offered to members of these three employee associations is meant to be better tailored to members’ needs, existing law allows limited flexibility in their design. For example, while CalPERS incorporates regional rates in establishing rates for CalPERS-designed plans offered to contracting agencies, this option is not available to PORAC. Therefore, despite significant regional cost differences for provider services, PORAC can only offer a plan structure that utilizes a statewide rate.
- Purpose. According to supporters, PORAC, SB 599 will update current law to allow PORAC and CCPOA to offer more options to members. Specifically, under this bill PORAC will be able to offer regional rates to their members, and PORAC and CCPOA will be able to offer a range of health plan types, such as HMO, PPO, and EPO, depending on a participant’s needs.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
CONSENT
Bill No: SB 599
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 4/24/17
AYES: Pan, Morrell, Leyva, Moorlach, Portantino
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SOURCE: Peace Officers Research Association of California
DIGEST:
This bill authorizes the Peace Officers Research Association of California Insurance and Benefit Trust (PORAC) to implement regional rating for its association Basic health plan, which is offered through the Public Employees’ Medical and Hospital Care Act (PEMHCA).
ANALYSIS:
Existing law:
- Establishes PEMHCA which charges the California Public Employees' Retirement System (CalPERS) with responsibility to administer health benefits for state employees and annuitants.
- Authorizes CalPERS to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans.
- Authorizes CalPERS to enter into contracts with health insurances carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
- Provides that CalPERS may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, as specified.
- Allows CalPERS to contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
- Requires CalPERS to approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees.
- Permits the California Correctional Peace Officer Association Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill permits PORAC to offer different health benefit plan designs with varying premiums in different areas of the state.
Background
CalPERS provides health benefit coverage to local contracting agency employees through contracted Health Maintenance Organizations and self-funded plans. Additionally, three employee associations - the California Association of Highway Patrolmen (CAHP), the California Correctional Peace Officers Association (CCPOA), and PORAC - offer association designed health benefit plans through PEMHCA exclusively to their respective members.
As required by PEMHCA, CalPERS annually reviews the rate and benefits proposals for the three association plans.
CalPERS incorporates regional rates in establishing rates for the CalPERS designed plans offered to contracting agencies. Under existing statutory construction, PORAC can only offer a plan structure that utilizes a statewide rate when determining what cost PORAC can charge to the member. Since there are regional costs differences in the state for provider services, PORAC plans in lower cost regions may be not be competitive with other plans that use regional costs. This bill would allow PORAC, like CCPOA and CalPERS, to incorporate regional rates in their plan design and offer lower premiums to their members in lower cost regions.
A possible consequence of permitting PORAC to use regional rates may be that members in higher cost regions could see their premiums rise to reflect those higher costs. However, this impact should be relatively minor since under the current plan design members in lower cost regions likely already opt for less expensive, non-PORAC plans that use regional rating and thus, probably are not in the PORAC pool of covered lives used by carriers when determining the premium structure.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Peace Officers Research Association of California (source)
None received
ARGUMENTS IN SUPPORT: According to the sponsor, PORAC is considering offering regional rates for fiscal year 2019 to its members and would need to be added to the statute that authorizes CCPOA to offer regional rates in order to implement such a change. “SB 599 will simply add PORAC’s Health Benefits Trust to the code section allowing them to offer regional rates to their members, should they choose to do so in the future. Again, this change only affects PORAC’s Trust and PORAC’s own members and only if they choose in the future to offer regional rates.”
5/10/17 10:07:41
**** END ****
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2017 - 2018 Regular
Bill No: SB 599 Hearing Date: 4/24/17
Author: | Portantino | ||
Version: | 3/23/17 As amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Glenn Miles | ||
Subject: Public Employees’ Medical and Hospital Care Act: Peace Officers Research Association of California Insurance and Benefits Trust
SOURCE: Peace Officers Research Association of California
DIGEST: This bill would authorize the Peace Officers Research Association of California Insurance and Benefit Trust (PORAC) to implement regional rating for its association Basic health plan, which is offered through the Public Employees’ Medical and Hospital Care Act (PEMHCA).
ANALYSIS:
Existing law:
- Establishes PEMHCA which charges the California Public Employees' Retirement System (CalPERS) with responsibility to administer health benefits for state employees and annuitants.
- Authorizes CalPERS to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans.
- Authorizes CalPERS to enter into contracts with health insurances carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans.
- Provides that CalPERS may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, as specified.
- Allows CalPERS to contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services.
- Requires CalPERS to approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees.
- Permits the California Correctional Peace Officer Association Health Benefits Trust to offer different health benefit plan designs with varying premiums in different areas of the state.
This bill: Permits PORAC to offer different health benefit plan designs with varying premiums in different areas of the state.
Background
CalPERS provides health benefit coverage to local contracting agency employees through contracted Health Maintenance Organizations and self-funded plans. Additionally, three employee associations - the California Association of Highway Patrolmen (CAHP), the California Correctional Peace Officers Association (CCPOA), and PORAC - offer association designed health benefit plans through PEMHCA exclusively to their respective members.
As required by PEMHCA, CalPERS annually reviews the rate and benefits proposals for the three association plans.
CalPERS incorporates regional rates in establishing rates for the CalPERS designed plans offered to contracting agencies. Under existing statutory construction, PORAC can only offer a plan structure that utilizes a statewide rate when determining what cost PORAC can charge to the member. Since there are regional costs differences in the state for provider services, PORAC plans in lower cost regions may be not be competitive with other plans that use regional costs. This bill would allow PORAC, like CCPOA and CalPERS, to incorporate regional rates in their plan design and offer lower premiums to their members in lower cost regions.
A possible consequence of permitting PORAC to use regional rates may be that members in higher cost regions could see their premiums rise to reflect those higher costs. However, this impact should be relatively minor since under the current plan design members in lower cost regions are likely to opt for less expensive, non-PORAC plans and thus, would probably not remain in the PORAC pool of covered lives used by carriers when determining the premium structure.
Related/Prior Legislation
None known.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
Peace Officers Research Association of California (source)
OPPOSITION:
None received.
ARGUMENTS IN SUPPORT: According to the sponsor, PORAC is considering offering regional rates for fiscal year 2019 to its members and would need to be added to the statute that authorizes CCPOA to offer regional rates in order to implement such a change. “SB 599 will simply add PORAC’s Health Benefits Trust to the code section allowing them to offer regional rates to their members, should they choose to do so in the future. Again, this change only affects PORAC’s Trust and PORAC’s own members and only if they choose in the future to offer regional rates.”
Discussed in Hearing
View Older Hearings
Bill Author
Bill Co-Author(s):