AB 1929: 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 plans 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 plans investments, 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 departments 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 plans or insurers 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.