Health and Safety Code

Part 35 of 87 · provisions 6,801–7,000

This section says the act is to be known as the Health and Safety Code.

Jurisdiction: United States — California
Instrument: Code
Citation: HSC
Version: Undated source snapshot
Language: en
Official source: View official record ↗
Complete work: View statute overview

911 call processing AED access AED compliance AED maintenance AI in healthcare review AIDS AIDS clinical trials AIDS disclosure AIDS prevention AIDS program administration AIDS research AIDS services AIDS treatment subsidy API access APIs Alzheimer’s care Alzheimer’s disease programs American Indian mortality CAQH CBD CEQA compliance COBRA COVID-19 COVID-19 public health orders +15,819 more

Statute overview

About this statute

The Legislature states findings supporting a unified, single-payer-style health care financing system for all Californians. The State Department of Health Services is renamed the State Department of Health Care Services, and its retained functions continue with the renamed department. The Director of Health Care Services is appointed by the Governor with Senate confirmation, the director receives a salary set by law, and the Governor may appoint up to two chief deputies on the director’s recommendation. The director has the powers of a department head under the cited Government Code chapter. The Department of Health Services has a Division of Rural Health, and that division must administer specified chapters and sections.

Read the provisions Ask with citations

Search within this statute

Search all stored provisions in this version.

Legal text

Provisions of Health and Safety Code

Showing 200 of 17,333

1367.08.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must make an annual compensation disclosure to a public agency’s governing board for group contracts.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.08. A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or commissions related to the public agency’s group contract. As part of this disclosure, the health care service plan shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. (Added by Stats. 2008, Ch. 331, Sec. 1. Effective January 1, 2009.)
1367.09.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plans must reimburse the facility at the agreed rate, and certain facilities may not collect the same reimbursement from the enrollee.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.09. (a) An enrollee with coverage for Medicare benefits who is discharged from an acute care hospital shall be allowed to return to a skilled nursing facility in which the enrollee resided prior to hospitalization, or the skilled nursing unit of a continuing care retirement community or multilevel facility in which the enrollee is a resident for continuing treatment related to the acute care hospital stay, if all of the following conditions are met: (1) The enrollee is a resident of a continuing care retirement community, as defined in paragraph (10) of subdivision (a) of Section 1771, or is a resident of a multilevel facility, as defined in paragraph (9) of subdivision (d) of Section 15432 of the Government Code, or has resided for at least 60 days in a skilled nursing facility, as defined in Section 1250, that serves the needs of special populations, including religious and cultural groups. (2) The primary care physician, and the treating physician if appropriate, in consultation with the patient, determines that the medical care needs of the enrollee, including continuity of care, can be met in the skilled nursing facility, or the skilled nursing unit of the continuing care retirement community, or multilevel facility. If a determination not to return the patient to the facility is made, the physician shall document reasons in the patient’s medical record and share that written explanation with the patient. (3) The skilled nursing facility, continuing care retirement facility, or multilevel facility is within the service area and agrees to abide by the plan’s standards and terms and conditions related to the following: (A) Utilization review, quality assurance, peer review, and access to health care services. (B) Management and administrative procedures, including data and financial reporting that may be required by the plan. (C) Licensing and certification as required by Section 1367. (D) Appropriate certification of the facility by the Health Care Financing Administration or other federal and state agencies. (4) (A) The skilled nursing facility, multilevel facility, or continuing care retirement community agrees to accept reimbursement from the health care service plan for covered services at either of the following rates: (i) The rate applicable to similar skilled nursing coverage for facilities participating in the plan. (ii) Upon mutual agreement, at a rate negotiated in good faith by the health care service plan or designated agent on an individual, per enrollee, contractual basis. (B) Reimbursement shall not necessarily be based on actual costs and may be comparable to similar skilled nursing facility reimbursement methods available for other plan contracted facilities available to the individual member. (b) The health care service plan, or designated agent, shall be required to reimburse the skilled nursing facility, continuing care retirement facility, or multilevel facility at the rate agreed to in paragraph (4) of subdivision (a). (c) No skilled nursing facility, multilevel facility, or continuing care retirement community shall collect, or attempt to collect, or maintain any action of law, against a subscriber or enrollee to collect reimbursement owed by the health care service plan for health care services provided pursuant to this section, or for any amount in excess of the payment amount that the facility has agreed to accept in its agreement with the health care service plan. (d) Reimbursement by the health care service plan or designated agent shall be for those services included in the Medicare risk contract between the health care service plan and enrollee. (e) Nothing in this section requires a skilled nursing facility, continuing care retirement facility, or multilevel facility to accept as a skilled nursing unit patient anyone other than a resident of the facility. (f) This section shall apply to a health care service plan contract that is issued, amended, or renewed on or after January 1, 1999. (Added by Stats. 1998, Ch. 124, Sec. 2. Effective January 1, 1999.)
1367.1.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Section 1367.1 limits when subdivision (i) of Section 1367 applies to transitionally licensed plans.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.1. Subdivision (i) of Section 1367 shall apply to transitionally licensed plans only insofar as it relates to contracts entered into, amended, delivered, or renewed in this state on or after October 1, 1977. (Added by Stats. 1977, Ch. 818.)
1367.10.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must disclose how participation may affect provider choice, reimbursement, and incentives, and must give additional written information on request in some cases.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.10. (a) Every health care service plan shall include within its disclosure form and within its evidence of coverage a statement clearly describing how participation in the plan may affect the choice of physician, hospital, or other health care providers, the basic method of reimbursement, including the scope and general methods of payment made to its contracting providers of health care services, and whether financial bonuses or any other incentives are used. The disclosure form and evidence of coverage shall indicate that if an enrollee wishes to know more about these issues, the enrollee may request additional information from the health care service plan, the enrollee’s provider, or the provider’s medical group or independent practice association regarding the information required pursuant to subdivision (b). (b) If a plan, medical group, independent practice association, or participating health care provider uses or receives financial bonuses or any other incentives, the plan, medical group, independent practice association, or health care provider shall provide a written summary to any person who requests it that includes all of the following: (1) A general description of the bonus and any other incentive arrangements used in its compensation agreements. Nothing in this section shall be construed to require disclosure of trade secrets or commercial or financial information that is privileged or confidential, such as payment rates, as determined by the director, pursuant to state law. (2) A description regarding whether, and in what manner, the bonuses and any other incentives are related to a provider’s use of referral services. (c) The statements and written information provided pursuant to subdivisions (a) and (b) shall be communicated in clear and simple language that enables consumers to evaluate and compare health care service plans. (d) The plan shall clearly inform prospective enrollees that participation in that plan will affect the person’s choice of provider by placing the following statement in a conspicuous place on all material required to be given to prospective enrollees including promotional and descriptive material, disclosure forms, and certificates and evidences of coverage: ## PLEASE READ THE FOLLOWING INFORMATION SO YOU WILL KNOW FROM WHOM OR WHAT GROUP OF PROVIDERS HEALTH CARE MAY BE OBTAINED It is not the intent of this section to require that the names of individual health care providers be enumerated to prospective enrollees. If the health care service plan provides a list of providers to patients or contracting providers, the plan shall include within the provider listing a notification that enrollees may contact the plan in order to obtain a list of the facilities with which the health care service plan is contracting for subacute care and/or transitional inpatient care. (Amended by Stats. 1999, Ch. 525, Sec. 99. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1367.12.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan covering Medicare and federal employee programs cannot require more than one form per claim to get paid or reimbursed.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.12. No health care service plan that administers Medicare coverage and federal employee programs may require that more than one form be submitted per claim in order to receive payment or reimbursement under any or all of those policies or programs. (Added by Stats. 1987, Ch. 1191, Sec. 1.)
1367.15.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section restricts how a health care service plan may close a block of business, and requires notice, disclosures, record retention, and compliance updates.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.15. (a) This section shall apply to individual health care service plan contracts and plan contracts sold to employer groups with fewer than two eligible employees as defined in subdivision (b) of Section 1357 covering hospital, medical, or surgical expenses, which is issued, amended, delivered, or renewed on or after January 1, 1994. (b) As used in this section, “block of business” means individual plan contracts or plan contracts sold to employer groups with fewer than two eligible employees as defined in subdivision (b) of Section 1357, with distinct benefits, services, and terms. A “closed block of business” means a block of business for which a health care service plan ceases to actively offer or sell new plan contracts. (c) No block of business shall be closed by a health care service plan unless (1) the plan permits an enrollee to receive health care services from any block of business that is not closed and that provides comparable benefits, services, and terms, with no additional underwriting requirement, or (2) the plan pools the experience of the closed block of business with all appropriate blocks of business that are not closed for the purpose of determining the premium rate of any plan contract within the closed block, with no rate penalty or surcharge beyond that which reflects the experience of the combined pool. (d) A block of business shall be presumed closed if either of the following is applicable: (1) There has been an overall reduction in that block of 12 percent in the number of in force plan contracts for a period of 12 months. (2) That block has less than 1,000 enrollees in this state. This presumption shall not apply to a block of business initiated within the previous 24 months, but notification of that block shall be provided to the director pursuant to subdivision (e). The fact that a block of business does not meet one of the presumptions set forth in this subdivision shall not preclude a determination that it is closed as defined in subdivision (b). (e) A health care service plan shall notify the director in writing within 30 days of its decision to close a block of business or, in the absence of an actual decision to close a block of business, within 30 days of its determination that a block of business is within the presumption set forth in subdivision (d). When the plan decides to close a block, the written notice shall fully disclose all information necessary to demonstrate compliance with the requirements of subdivision (c). When the plan determines that a block is within the presumption, the written notice shall fully disclose all information necessary to demonstrate that the presumption is applicable. In the case of either notice, the plan shall provide additional information within 15 days after any request of the director. (f) A health care service plan shall preserve for a period of not less than five years in an identified location and readily accessible for review by the director all books and records relating to any action taken by a plan pursuant to subdivision (c). (g) No health care service plan shall offer or sell any contract, or provide misleading information about the active or closed status of a block of business, for the purpose of evading this section. (h) A health care service plan shall bring any blocks of business closed prior to the effective date of this section into compliance with the terms of this section no later than December 31, 1994. (i) This section shall not apply to health care service plan contracts providing small employer health coverage to individuals or employer groups with fewer than two eligible employees if that coverage is provided pursuant to Article 3.1 (commencing with Section 1357) and, with specific reference to coverage for individuals or employer groups with fewer than two eligible employees, is approved by the director pursuant to Section 1357.15, provided a plan electing to sell coverage pursuant to this subdivision shall do so until such time as the plan ceases to market coverage to small employers and complies with paragraph (5) of subdivision (a) of Section 1365. (j) This section shall not apply to coverage of Medicare services pursuant to contracts with the United States government, Medicare supplement, dental, vision, or conversion coverage. (Amended by Stats. 2010, Ch. 658, Sec. 6. (AB 2470) Effective January 1, 2011.)
1367.18.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain group health care service plans must offer orthotic and prosthetic coverage and tell group contractholders it is available.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.18. (a) Every health care service plan, except a specialized health care service plan, that covers hospital, medical, or surgical expenses on a group basis shall offer coverage for orthotic and prosthetic devices and services under the terms and conditions that may be agreed upon between the group subscriber and the plan. Every plan shall communicate the availability of that coverage to all group contractholders and to all prospective group contractholders with whom they are negotiating. Any coverage for prosthetic devices shall include original and replacement devices, as prescribed by a physician and surgeon or doctor of podiatric medicine acting within the scope of his or her license. Any coverage for orthotic devices shall provide for coverage when the device, including original and replacement devices, is prescribed by a physician and surgeon or doctor of podiatric medicine acting within the scope of his or her license, or is ordered by a licensed health care provider acting within the scope of his or her license. Every plan shall have the right to conduct a utilization review to determine medical necessity prior to authorizing these services. (b) Notwithstanding subdivision (a), on and after July 1, 2007, the amount of the benefit for orthotic and prosthetic devices and services shall be no less than the annual and lifetime benefit maximums applicable to the basic health care services required to be provided under Section 1367. If the contract does not include any annual or lifetime benefit maximums applicable to basic health care services, the amount of the benefit for orthotic and prosthetic devices and services shall not be subject to an annual or lifetime maximum benefit level. Any copayment, coinsurance, deductible, and maximum out-of-pocket amount applied to the benefit for orthotic and prosthetic devices and services shall be no more than the most common amounts applied to the basic health care services required to be provided under Section 1367. (Amended by Stats. 2006, Ch. 756, Sec. 1. Effective January 1, 2007.)
1367.19.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must offer coverage as an option for special footwear for people with foot disfigurement, unless the plan is a specialized health care service plan.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.19. On and after January 1, 1991, every health care service plan, except a specialized health care service plan, that covers hospital, medical, or surgical expenses on a group basis shall offer coverage as an option for special footwear needed by persons who suffer from foot disfigurement under such terms and conditions as may be agreed upon between the group contract holder and the plan. As used in this section, foot disfigurement shall include, but not be limited to, disfigurement from cerebral palsy, arthritis, polio, spinabifida, diabetes, and foot disfigurement caused by accident or developmental disability. (Added by Stats. 1990, Ch. 1680, Sec. 1.)
1367.2.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans offering group hospital, medical, or surgical coverage must offer alcoholism treatment coverage and tell group subscribers and prospective group subscribers that the coverage is available.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.2. (a) On and after January 1, 1990, every health care service plan that covers hospital, medical, or surgical expenses on a group basis shall offer coverage for the treatment of alcoholism under such terms and conditions as may be agreed upon between the group subscriber and the health care service plan. Every plan shall communicate the availability of such coverage to all group subscribers and to all prospective group subscribers with whom they are negotiating. (b) If the group subscriber or policyholder agrees to such coverage or to coverage for treatment of chemical dependency, or nicotine use, the treatment may take place in facilities licensed to provide alcoholism or chemical dependency services under Chapter 2 (commencing with Section 1250) of Division 2. (Amended by Stats. 1989, Ch. 688, Sec. 1.)
1367.20.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plans must give the public, on request, the current prescription drug formulary list and mark whether drugs are preferred; if there is more than one formulary, they must tell the requester that choice is available.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.20. Every health care service plan that provides prescription drug benefits and maintains one or more drug formularies shall provide to members of the public, upon request, a copy of the most current list of prescription drugs on the formulary of the plan by major therapeutic category, with an indication of whether any drugs on the list are preferred over other listed drugs. If the health care service plan maintains more than one formulary, the plan shall notify the requester that a choice of formulary lists is available. (Added by Stats. 1998, Ch. 69, Sec. 1. Effective January 1, 1999.)
1367.205.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans with prescription drug benefits and formularies must post and update formularies online, and later use a standard template once developed.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.205. (a) In addition to the list required to be provided under Section 1367.20, a health care service plan that provides prescription drug benefits and maintains one or more drug formularies shall do all of the following: (1) Post the formulary or formularies for each product offered by the plan on the plan’s Internet Web site in a manner that is accessible and searchable by potential enrollees, enrollees, providers, the general public, the department, and federal agencies as required by federal law or regulations. (2) Update the formularies posted pursuant to paragraph (1) with any change to those formularies on a monthly basis. (3) No later than six months after the date that a standard formulary template is developed under subdivision (b), use that template to display the formulary or formularies for each product offered by the plan. (b) (1) By January 1, 2017, the department and the Department of Insurance shall jointly, and with input from interested parties from at least one public meeting, develop a standard formulary template for purposes of paragraph (3) of subdivision (a). In developing the template, the department and Department of Insurance shall take into consideration existing requirements for reporting of formulary information established by the federal Centers for Medicare and Medicaid Services. To the extent feasible, in developing the template, the department and the Department of Insurance shall evaluate a way to include on the template, in addition to the information required to be included under paragraph (2), cost-sharing information for drugs subject to coinsurance. (2) The standard formulary template shall include the notification described in subdivision (c) of Section 1363.01, and as applied to a particular formulary for a product offered by a plan, shall do all of the following: (A) Include information on cost-sharing tiers and utilization controls, including prior authorization or step therapy requirements, for each drug covered by the product. (B) Indicate any drugs on the formulary that are preferred over other drugs on the formulary. (C) Include information to educate enrollees about the differences between drugs administered or provided under a health care service plan’s medical benefit and drugs prescribed under a health care service plan’s prescription drug benefit and about how to obtain coverage information regarding drugs that are not covered under the plan’s prescription drug benefit. (D) Include information to educate enrollees that health care service plans that provide prescription drug benefits are required to have a method for enrollees to obtain prescription drugs not listed in the health plan drug formulary if the drugs are deemed medically necessary by a clinician pursuant to Section 1367.24. (E) Include information on which medications are covered, including both generic and brand name. (F) Include information on what tier of the plan’s drug formulary each medication is in. (c) For purposes of this section, “formulary” means the complete list of drugs preferred for use and eligible for coverage under a health care service plan product and includes the drugs covered under the pharmacy benefit of the product. (Amended by Stats. 2015, Ch. 619, Sec. 5. (AB 339) Effective January 1, 2016.)
1367.206.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may use step therapy when more than one clinically appropriate drug exists, but it must promptly grant a step-therapy exception request when the required documentation and justification are provided.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.206. (a) If there is more than one drug that is clinically appropriate for the treatment of a medical condition, a health care service plan that provides coverage for prescription drugs may require step therapy. (b) A health care service plan shall expeditiously grant a request for a step therapy exception within the applicable time limit required by Section 1367.241 if a prescribing provider submits necessary justification and supporting clinical documentation supporting the provider’s determination that the required prescription drug is inconsistent with good professional practice for provision of medically necessary covered services to the enrollee, taking into consideration the enrollee’s needs and medical history, along with the professional judgment of the enrollee’s provider. The basis of the provider’s determination may include, but is not limited to, any of the following criteria: (1) The required prescription drug is contraindicated or is likely, or expected, to cause an adverse reaction or physical or mental harm to the enrollee in comparison to the requested prescription drug, based on the known clinical characteristics of the enrollee and the known characteristics and history of the enrollee’s prescription drug regimen. (2) The required prescription drug is expected to be ineffective based on the known clinical characteristics of the enrollee and the known characteristics and history of the enrollee’s prescription drug regimen. (3) The enrollee has tried the required prescription drug while covered by their current or previous health coverage or Medicaid, and that prescription drug was discontinued due to lack of efficacy or effectiveness, diminished effect, or an adverse reaction. The health care service plan may require the submission of documentation demonstrating that the enrollee tried the required prescription drug before it was discontinued. (4) The required prescription drug is not clinically appropriate for the enrollee because the required drug is expected to do any of the following, as determined by the enrollee’s prescribing provider: (A) Worsen a comorbid condition. (B) Decrease the capacity to maintain a reasonable functional ability in performing daily activities. (C) Pose a significant barrier to adherence to, or compliance with, the enrollee’s drug regimen or plan of care. (5) The enrollee is stable on a prescription drug selected by the enrollee’s prescribing provider for the medical condition under consideration while covered by their current or previous health coverage or Medicaid. (c) A health care provider or prescribing provider may appeal a denial of an exception request for coverage of a nonformulary drug, prior authorization request, or step therapy exception request consistent with the health care service plan’s current utilization management processes. (d) An enrollee or the enrollee’s designee or guardian may appeal a denial of an exception request for coverage of a nonformulary drug, prior authorization request, or step therapy exception request by filing a grievance under Section 1368. (e) (1) This section does not prohibit a health care provider from prescribing a prescription drug that is clinically appropriate. (2) This section does not prohibit a health care service plan or utilization review organization from requiring an enrollee to try an AB-rated generic equivalent, biosimilar, as defined in Section 262(i)(2) of Title 42 of the United States Code, or interchangeable biological product, as defined in Section 262(i)(3) of Title 42 of the United States Code, before providing coverage for the equivalent branded prescription drug. (3) Paragraph (2) does not prohibit or supersede a step therapy exception request as described in subdivision (b). (f) This section does not require or authorize a health care service plan that contracts with the State Department of Health Care Services to provide services to Medi-Cal beneficiaries to provide coverage for prescription drugs that are not required pursuant to those programs or contracts, or to limit or exclude any prescription drugs that are required by those programs or contracts. (g) For purposes of this section, “step therapy exception” means a decision to override a generally applicable step therapy protocol in favor of coverage of the prescription drug prescribed by a health care provider for an individual enrollee. (h) Commencing January 1, 2022, a health care service plan contract with a utilization review organization, medical group, or other contracted entity that performs utilization review or utilization management functions on a health care service plan’s behalf shall include terms that require the contracted entity to comply with this section and Section 1367.241. (Amended by Stats. 2023, Ch. 495, Sec. 1. (SB 621) Effective January 1, 2024.)
1367.207.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans with prescription drug formularies must provide requested drug coverage and cost-sharing information, respond in real time through a standard API, and keep the information current; they also may not block, hinder, or penalize disclosure and sharing by prescribing providers.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.207. (a) A health care service plan contract issued, amended, delivered, or renewed on or after July 1, 2023, that provides prescription drug benefits and maintains one or more drug formularies shall do all of the following: (1) Upon request of an enrollee or an enrollee’s prescribing provider, furnish all of the following information regarding a prescription drug to the enrollee or the enrollee’s prescribing health care provider: (A) The enrollee’s eligibility for the prescription drug. (B) The most current formulary or formularies. (C) Cost-sharing information for the prescription drug and other formulary alternatives, consistent with cost-sharing requirements as set forth in the contract and accurate at the time it is provided, including any variance in cost sharing based on the patient’s preferred dispensing pharmacy, whether retail or mail order, or the health care provider. (D) Applicable utilization management requirements for the prescription drug and other formulary alternatives. (2) Respond in real time to a request made pursuant to paragraph (1) through a standard API. (3) Allow the use of an interoperability element to provide the information required pursuant to paragraph (1). (4) Ensure that the information provided pursuant to paragraph (1) is current no later than one business day after a change is made and is provided in real time. (5) Provide the information pursuant to paragraph (1) if the request is made using the drug’s unique billing code and National Drug Code. (b) A health care service plan shall not do any of the following: (1) Deny or delay a response to a request for the purpose of blocking the release of information pursuant to subdivision (a). (2) Restrict, prohibit, or otherwise hinder a prescribing provider from communicating or sharing to an enrollee any of the following: (A) The information provided pursuant to subdivision (a). (B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollee’s health care service plan contract. (C) Information about the cash price of the drug. (3) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a). “Interfere with, prevent, or materially discourage access, exchange, or use of the information” includes charging fees for access to the information, not responding to a request at the time made consistent with this section, or instituting enrollee consent requirements. (4) Penalize a prescribing provider for disclosing the information provided pursuant to subdivision (a). For purposes of this paragraph, “penalize” includes an action intended to punish a provider for disclosing the information set forth in subdivision (a) or intended to discourage a provider from disclosing this information in the future. (5) Penalize a prescribing provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug. For purposes of this paragraph, “penalize” includes an action intended to punish a provider who has prescribed, administered, or ordered a lower cost or clinically appropriate alternative drug, or intended to discourage a provider from prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug in the future. (c) For purposes of this section: (1) “Cost sharing” includes applicable copayments, coinsurances, or deductibles. (2) “Cost-sharing information” means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or prescribing provider for a prescription drug under the terms of the enrollee’s health care service plan contract. (3) “Formulary” has the same meaning as in Section 1367.205. (4) “Interoperability element” means integrated technologies or services necessary to provide a response to an enrollee or an enrollee’s prescribing provider. (5) “Prescribing provider” is a health care provider authorized to write a prescription to treat a medical condition, including prescriptions to treat mental health and substance use disorders, for a health plan enrollee. (6) “Standard API” means an application interface that is standardized for vendors to conform to in order to access the information pursuant to Section 170.215 of Title 45 of the Code of Federal Regulations. (d) (1) This section does not authorize further disclosure inconsistent with the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (Public Law 104-191) and the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code). (2) This section does not alter or interfere with requirements that a health care service plan cover prescription drugs consistent with this chapter and regulations promulgated thereunder. (3) This section does not alter or interfere with a health care service plan’s other obligations under this chapter, including requirements to disclose or explain its prescription drug benefit. (Added by Stats. 2022, Ch. 590, Sec. 1. (AB 2352) Effective January 1, 2023.)
1367.2075.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts with prescription drug coverage cannot make an enrollee pay cost sharing above the plan’s actual drug cost, and certain post-2025 contracts cannot authorize spread pricing.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.2075. (a) A health care service plan contract issued, amended, or renewed on or after January 1, 2026, that provides prescription drug coverage shall not calculate an enrollee’s cost sharing at an amount that exceeds the actual rate paid by the plan for the prescription drug, and shall include cost-sharing provisions consistent with Section 4079 of the Business and Professions Code. Cost sharing shall include deductibles and copayments. (b) To the extent that a health care service plan contract with a pharmacy benefit manager issued, amended, or renewed on or after January 1, 2026, includes disclosure on the net price paid by the pharmacy benefit manager or group purchasing organization, then an enrollee’s cost share shall not be calculated at an amount that exceeds that net price paid. (c) (1) Commencing January 1, 2026, if a preexisting contract between a pharmacy benefit manager licensed pursuant to Article 6.1 (commencing with Section 1385.001) and a health care service plan authorizes spread pricing, as that term is defined by Section 1385.001, any subsequent amendment or renewal of that contract shall not authorize spread pricing. (2) A contract that is executed on or after January 1, 2026, between a pharmacy benefit manager licensed pursuant to Article 6.1 (commencing with Section 1385.001) and a health care service plan shall not authorize spread pricing, as that term is defined by Section 1385.001. (Added by Stats. 2025, Ch. 605, Sec. 2. (SB 41) Effective January 1, 2026.)
1367.21.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans covering prescription drug benefits may not deny, limit, issue, amend, deliver, or renew coverage based on off-label prescribing, and they must cover mifepristone in specified situations.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.21. (a) A health care service plan contract that covers prescription drug benefits shall not be issued, amended, delivered, or renewed in this state if the plan limits or excludes coverage for a drug on the basis that the drug is prescribed for a use that is different from the use for which that drug has been approved for marketing by the United States Food and Drug Administration (FDA), provided that all of the following conditions have been met: (1) The drug is approved by the FDA. (2) (A) The drug is prescribed by a participating licensed health care professional for the treatment of a life-threatening condition; or (B) The drug is prescribed by a participating licensed health care professional for the treatment of a chronic and seriously debilitating condition, the drug is medically necessary to treat that condition, and the drug is on the plan formulary. If the drug is not on the plan formulary, the participating subscriber’s request shall be considered pursuant to the process required by Section 1367.24. (3) The drug has been recognized for treatment of that condition by any of the following: (A) The American Hospital Formulary Service’s Drug Information. (B) One of the following compendia, if recognized by the federal Centers for Medicare and Medicaid Services as part of an anticancer chemotherapeutic regimen: (i) The Elsevier Gold Standard’s Clinical Pharmacology. (ii) The National Comprehensive Cancer Network Drug and Biologics Compendium. (iii) The Thomson Micromedex DrugDex. (C) Two articles from major peer reviewed medical journals that present data supporting the proposed off-label use or uses as generally safe and effective unless there is clear and convincing contradictory evidence presented in a major peer reviewed medical journal. (b) (1) A health care service plan contract that covers prescription drug benefits shall not be issued, amended, delivered, or renewed in this state if the contract limits or excludes coverage for brand name or generic mifepristone solely on the basis that the drug is prescribed for a use that is different from the use for which that drug has been approved for marketing by the FDA or that varies from an approved risk evaluation and mitigation strategy pursuant to Section 355-1 of Title 21 of the United States Code, except if the state deems it necessary to address an imminent health or safety concern regarding brand name or generic mifepristone. (2) A health care service plan contract that covers prescription drug benefits shall include coverage for brand name or generic mifepristone, even if the drug has not been approved by the FDA for abortion if the requirements of paragraph (3) have been met, except if the state deems it necessary to address an imminent health or safety concern regarding brand name or generic mifepristone. (3) If name brand or generic mifepristone has not been approved by the FDA for abortion, coverage is required pursuant to paragraph (2) if the drug is a recognized medication for abortion by the World Health Organization (WHO) Model List of Essential Medicines, the WHO abortion care guideline, or the National Academies of Science, Engineering, and Medicine Consensus Study Report, or if the state approves its use based on peer-reviewed studies and prior approval of the drug that is no longer in effect. (c) It shall be the responsibility of the participating prescriber to submit to the plan documentation supporting compliance with the requirements of subdivision (a), if requested by the plan. (d) Any coverage required by this section shall also include medically necessary services associated with the administration of a drug, subject to the conditions of the contract. (e) For purposes of this section, “life-threatening” means either or both of the following: (1) Diseases or conditions where the likelihood of death is high unless the course of the disease is interrupted. (2) Diseases or conditions with potentially fatal outcomes, where the end point of clinical intervention is survival. (f) For purposes of this section, “chronic and seriously debilitating” means diseases or conditions that require ongoing treatment to maintain remission or prevent deterioration and cause significant long-term morbidity. (g) The provision of drugs and services when required by this section shall not, in itself, give rise to liability on the part of the plan. (h) This section does not prohibit the use of a formulary, copayment, technology assessment panel, or similar mechanism as a means for appropriately controlling the utilization of a drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the FDA. (i) If a plan denies coverage pursuant to this section on the basis that its use is experimental or investigational, that decision is subject to review under Section 1370.4. (j) Health care service plan contracts for the delivery of Medi-Cal services under the Waxman-Duffy Prepaid Health Plan Act (Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code) are exempt from the requirements of this section. (Amended by Stats. 2025, Ch. 136, Sec. 15. (AB 260) Effective September 26, 2025.)
1367.215.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans that cover prescription drug benefits must cover medically necessary pain management medications for terminally ill patients, and respond to authorization requests within set time limits.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.215. (a) Every health care service plan contract that covers prescription drug benefits shall provide coverage for appropriately prescribed pain management medications for terminally ill patients when medically necessary. The plan shall approve or deny the request by the provider for authorization of coverage for an enrollee who has been determined to be terminally ill in a timely fashion, appropriate for the nature of the enrollee’s condition, not to exceed 72 hours of the plan’s receipt of the information requested by the plan to make the decision. If the request is denied or if additional information is required, the plan shall contact the provider within one working day of the determination, with an explanation of the reason for the denial or the need for additional information. The requested treatment shall be deemed authorized as of the expiration of the applicable timeframe. The provider shall contact the plan within one business day of proceeding with the deemed authorized treatment, to do all of the following: (1) Confirm that the timeframe has expired. (2) Provide enrollee identification. (3) Notify the plan of the provider or providers performing the treatment. (4) Notify the plan of the facility or location where the treatment was rendered. (b) This section does not apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the federal Food and Drug Administration. Coverage for different-use drugs is subject to Section 1367.21. (c) Nothing in this section shall be construed to deny or restrict in any way the department’s authority to ensure plan compliance with this chapter when a plan provides coverage for prescription drugs. (Amended by Stats. 2002, Ch. 791, Sec. 2. Effective January 1, 2003.)
1367.22.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan contract covering prescription drug benefits generally cannot limit or exclude coverage for a previously approved drug if it is still prescribed, appropriately prescribed, and safe and effective.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.22. (a) A health care service plan contract, issued, amended, or renewed on or after July 1, 1999, that covers prescription drug benefits shall not limit or exclude coverage for a drug for an enrollee if the drug previously had been approved for coverage by the plan for a medical condition of the enrollee and the plan’s prescribing provider continues to prescribe the drug for the medical condition, provided that the drug is appropriately prescribed and is considered safe and effective for treating the enrollee’s medical condition. Nothing in this section shall preclude the prescribing provider from prescribing another drug covered by the plan that is medically appropriate for the enrollee, nor shall anything in this section be construed to prohibit generic drug substitutions as authorized by Section 4073 of the Business and Professions Code. For purposes of this section, a prescribing provider shall include a provider authorized to write a prescription, pursuant to subdivision (a) of Section 4059 of the Business and Professions Code, to treat a medical condition of an enrollee. (b) This section does not apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the federal Food and Drug Administration. Coverage for different-use drugs is subject to Section 1367.21. (c) This section shall not be construed to restrict or impair the application of any other provision of this chapter, including, but not limited to, Section 1367, which includes among its requirements that plans furnish services in a manner providing continuity of care and demonstrate that medical decisions are rendered by qualified medical providers unhindered by fiscal and administrative management. (d) This section does not prohibit a health care service plan from charging a subscriber or enrollee a copayment or a deductible for prescription drug benefits or from setting forth, by contract, limitations on maximum coverage of prescription drug benefits, provided that the copayments, deductibles, or limitations are reported to, and held unobjectionable by, the director and set forth to the subscriber or enrollee pursuant to the disclosure provisions of Section 1363. (Amended by Stats. 2002, Ch. 760, Sec. 2. Effective January 1, 2003.)
1367.23.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Group health care service plan contracts must require cancellation notice to contractholders, and contractholders must promptly send subscribers a true copy of any cancellation notice and proof of mailing. The cancellation notice must also explain conversion rights in clear, easy-to-understand language.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.23. (a) On and after January 1, 1994, every group health care service plan contract, which is issued, amended, or renewed, shall include a provision requiring the health care service plan to notify the group contractholders in writing of the cancellation of the plan contract and shall include in their contract with group contractholders a provision requiring the group contractholder to mail promptly to each subscriber a legible, true copy of any notice of cancellation of the plan contract which may be received from the plan and to provide promptly to the plan proof of that mailing and the date thereof. (b) The notice of cancellation from the group contractholder to the subscriber required by subdivision (a) shall include information regarding the conversion rights of persons covered under the plan contract upon termination of the plan contract. This information shall be in clear and easily understandable language. (Added by Stats. 1993, Ch. 1154, Sec. 1. Effective January 1, 1994.)
1367.24.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans with prescription drug benefits must keep an expedited process for nonformulary drug authorization and provide required notices, filings, records, and disclosures.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.24. (a) Every health care service plan that provides prescription drug benefits shall maintain an expeditious process by which prescribing providers may obtain authorization for a medically necessary nonformulary prescription drug. On or before July 1, 1999, every health care service plan that provides prescription drug benefits shall file with the department a description of its process, including timelines, for responding to authorization requests for nonformulary drugs. Any changes to this process shall be filed with the department pursuant to Section 1352. Each plan shall provide a written description of its most current process, including timelines, to its prescribing providers. For purposes of this section, a prescribing provider shall include a provider authorized to write a prescription, pursuant to subdivision (a) of Section 4040 of the Business and Professions Code, to treat a medical condition of an enrollee. (b) Any plan that disapproves a request made pursuant to subdivision (a) by a prescribing provider to obtain authorization for a nonformulary drug shall provide the reasons for the disapproval in a notice provided to the enrollee. The notice shall indicate that the enrollee may file a grievance with the plan if the enrollee objects to the disapproval, including any alternative drug or treatment offered by the plan. The notice shall comply with subdivision (b) of Section 1368.02. Any health plan that is required to maintain an external exception request review process pursuant to subdivision (k) shall indicate in the notice required under this subdivision that the enrollee may file a grievance seeking an external exception request review. (c) The process described in subdivision (a) by which prescribing providers may obtain authorization for medically necessary nonformulary drugs shall not apply to a nonformulary drug that has been prescribed for an enrollee in conformance with the provisions of Section 1367.22. (d) The process described in subdivision (a) by which enrollees may obtain medically necessary nonformulary drugs, including specified timelines for responding to prescribing provider authorization requests, shall be described in evidence of coverage and disclosure forms, as required by subdivisions (a) and (b) of Section 1363, issued on or after July 1, 1999. (e) Every health care service plan that provides prescription drug benefits shall maintain, as part of its books and records under Section 1381, all of the following information, which shall be made available to the director upon request: (1) The complete drug formulary or formularies of the plan, if the plan maintains a formulary, including a list of the prescription drugs on the formulary of the plan by major therapeutic category with an indication of whether any drugs are preferred over other drugs. (2) Records developed by the pharmacy and therapeutic committee of the plan, or by others responsible for developing, modifying, and overseeing formularies, including medical groups, individual practice associations, and contracting pharmaceutical benefit management companies, used to guide the drugs prescribed for the enrollees of the plan, that fully describe the reasoning behind formulary decisions. (3) Any plan arrangements with prescribing providers, medical groups, individual practice associations, pharmacists, contracting pharmaceutical benefit management companies, or other entities that are associated with activities of the plan to encourage formulary compliance or otherwise manage prescription drug benefits. (f) If a plan provides prescription drug benefits, the department shall, as part of its periodic onsite medical survey of each plan undertaken pursuant to Section 1380, review the performance of the plan in providing those benefits, including, but not limited to, a review of the procedures and information maintained pursuant to this section, and describe the performance of the plan as part of its report issued pursuant to Section 1380. (g) The director shall not publicly disclose any information reviewed pursuant to this section that is determined by the director to be confidential pursuant to state law. (h) For purposes of this section, “authorization” means approval by the health care service plan to provide payment for the prescription drug. (i) Nonformulary prescription drugs shall include any drug for which an enrollee’s copayment or out-of-pocket costs are different than the copayment for a formulary prescription drug, except as otherwise provided by law or regulation or in cases in which the drug has been excluded in the plan contract pursuant to Section 1342.7. (j) Nothing in this section shall be construed to restrict or impair the application of any other provision of this chapter, including, but not limited to, Section 1367, which includes among its requirements that a health care service plan furnish services in a manner providing continuity of care and demonstrate that medical decisions are rendered by qualified medical providers unhindered by fiscal and administrative management. (k) For any individual, small group, or large health plan contracts, a health care service plan’s process described in subdivision (a) shall comply with the request for exception and external exception request review processes described in subdivision (c) of Section 156.122 of Title 45 of the Code of Federal Regulations. This subdivision shall not apply to Medi-Cal managed care health care service plan contracts as described in subdivision (l). (l) “Medi-Cal managed care health care service plan contract” means any entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (m) Nothing in this section shall be construed to affect an enrollee’s or subscriber’s eligibility to submit a grievance to the department for review under Section 1368 or to apply to the department for an independent medical review under Section 1370.4, or Article 5.55 (commencing with Section 1374.30) of this chapter. (Amended by Stats. 2023, Ch. 42, Sec. 16. (AB 118) Effective July 10, 2023.)
1367.241.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans covering prescription drugs must use the prescribed prior-authorization form or approved electronic process, and must meet specific notice and approval timing rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.241. (a) Notwithstanding any other law, on and after January 1, 2013, a health care service plan that provides coverage for prescription drugs shall accept only the prior authorization form developed pursuant to subdivision (c), or an electronic prior authorization process described in subdivision (e), when requiring prior authorization for prescription drugs. This section does not apply in the event that a physician or physician group has been delegated the financial risk for prescription drugs by a health care service plan and does not use a prior authorization process. This section does not apply to a health care service plan, or to its affiliated providers, if the health care service plan owns and operates its pharmacies and does not use a prior authorization process for prescription drugs. (b) (1) (A) If a health care service plan, contracted physician group, or utilization review organization fails to notify a prescribing provider of its coverage determination within 72 hours for nonurgent requests, or within 24 hours if exigent circumstances exist, upon receipt of a completed prior authorization or step therapy exception request, the prior authorization or step therapy exception request shall be deemed approved for the duration of the prescription, including refills. The requirements of this subdivision shall not apply to contracts entered into pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. Medi-Cal managed care health care service plans that contract under those chapters shall not be required to maintain an external exception request review as provided in Section 156.122 of Title 45 of the Code of Federal Regulations. (B) The external exception request review process shall apply to a denial of a prior authorization or step therapy exception request. An independent review organization’s reversal of a health care service plan’s denial of a request for an exception, prior authorization, or a step therapy exception shall be binding on the health care service plan and shall apply for the duration of the prescription, including refills. A health care service plan shall notify the enrollee and prescribing provider of the independent review organization’s coverage determination, or request for additional or clinically relevant material information necessary to make a coverage determination, within the time limits required by paragraph (2). This subparagraph shall not affect or limit an enrollee’s eligibility for independent medical review under Section 1374.30 or to file an internal appeal with the health care service plan. (2) If a request for prior authorization or a step therapy exception is incomplete or clinically relevant material information necessary to make a coverage determination is not included, the health care service plan, contracted physician group, or utilization review organization shall notify the prescribing provider within 72 hours of receipt, or within 24 hours of receipt if exigent circumstances exist, what additional or clinically relevant material information is needed to approve or deny the prior authorization or step therapy exception request, or to appeal the denial thereof. Once the requested information is received, the applicable time period to approve or deny a prior authorization or step therapy exception request, or to appeal, shall begin to elapse. If a coverage determination or request for additional or clinically relevant material information by a health care service plan, contracted physician group, or utilization review organization is not received by the prescribing provider within the time allotted, the prior authorization or step therapy exception request, or appeal of a denial thereof, shall be deemed approved for the duration of the prescription, including refills. In the event of a denial, the health care service plan, contracted physician group, or utilization review organization shall inform the prescribing provider and enrollee of the external appeal process under subparagraph (B) of paragraph (1), which shall also apply to a denial of a prior authorization or step therapy exception request. (3) A health care service plan, contracted physician group, utilization review organization, or external independent review organization shall approve a step therapy exception request, or internal or external appeal of a denial thereof, if any of the criteria in subdivision (b) of Section 1367.206 are satisfied. (c) On or before January 1, 2017, the department and the Department of Insurance shall jointly develop a uniform prior authorization form. Notwithstanding any other law, on and after July 1, 2017, or six months after the form is completed pursuant to this section, whichever is later, every prescribing provider shall use that uniform prior authorization form, or an electronic prior authorization process described in subdivision (e), to request prior authorization for coverage of prescription drugs and every health care service plan shall accept that form or electronic process as sufficient to request prior authorization for prescription drugs. (d) The prior authorization form developed pursuant to subdivision (c) shall meet the following criteria: (1) The form shall not exceed two pages. (2) The form shall be made electronically available by the department and the health care service plan. (3) The completed form may also be electronically submitted from the prescribing provider to the health care service plan. (4) The department and the Department of Insurance shall develop the form with input from interested parties from at least one public meeting. (5) The department and the Department of Insurance, in development of the standardized form, shall take into consideration the following: (A) Existing prior authorization forms established by the federal Centers for Medicare and Medicaid Services and the State Department of Health Care Services. (B) National standards pertaining to electronic prior authorization. (e) A prescribing provider may use an electronic prior authorization system utilizing the standardized form described in subdivision (c) or an electronic process developed specifically for transmitting prior authorization information that meets the National Council for Prescription Drug Programs’ SCRIPT standard for electronic prior authorization transactions. (f) Subdivision (a) does not apply if any of the following occurs: (1) A contracted physician group is delegated the financial risk for prescription drugs by a health care service plan. (2) A contracted physician group uses its own internal prior authorization process rather than the health care service plan’s prior authorization process for plan enrollees. (3) A contracted physician group is delegated a utilization management function by the health care service plan concerning any prescription drug, regardless of the delegation of financial risk. (g) For prescription drugs, prior authorization requirements described in subdivisions (c) and (e) apply regardless of how that benefit is classified under the terms of the health plan’s group or individual contract. (h) For purposes of this section: (1) “Prescribing provider” shall include a provider authorized to write a prescription, pursuant to subdivision (a) of Section 4040 of the Business and Professions Code, to treat a medical condition of an enrollee. (2) “Exigent circumstances” exist when an enrollee is suffering from a health condition that may seriously jeopardize the enrollee’s life, health, or ability to regain maximum function or when an enrollee is undergoing a current course of treatment using a nonformulary drug. (3) “Completed prior authorization request” means a completed uniform prior authorization form developed pursuant to subdivision (c), or a completed request submitted using an electronic prior authorization system described in subdivision (e), or, for contracted physician groups described in subdivision (f), the process used by the contracted physician group. (4) “Step therapy exception” means a decision to override a generally applicable step therapy protocol in favor of coverage of the prescription drug prescribed by a health care provider for an individual enrollee. (Amended by Stats. 2021, Ch. 742, Sec. 2. (AB 347) Effective January 1, 2022.)
1367.243.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plans must report specified drug-cost information to the department each year, and the department must publish an aggregated public report while keeping the underlying submitted information confidential.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.243. (a) (1) A health care service plan that reports rate information pursuant to Section 1385.03 or 1385.045 shall report the information described in paragraph (2) to the department no later than October 1 of each year, beginning October 1, 2018. (2) For all covered prescription drugs, including generic drugs, brand name drugs, and specialty drugs dispensed at a plan pharmacy, network pharmacy, or mail order pharmacy for outpatient use, all of the following shall be reported: (A) The 25 most frequently prescribed drugs. (B) The 25 most costly drugs by total annual plan spending. (C) The 25 drugs with the highest year-over-year increase in total annual plan spending. (b) The department shall compile the information reported pursuant to subdivision (a) into a report for the public and legislators that demonstrates the overall impact of drug costs on health care premiums. The data in the report shall be aggregated and shall not reveal information specific to individual health care service plans. (c) For the purposes of this section, a “specialty drug” is one that exceeds the threshold for a specialty drug under the Medicare Part D program (Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108-173)). (d) By January 1 of each year, beginning January 1, 2019, the department shall publish on its Internet Web site the report required pursuant to subdivision (b). (e) After the report required in subdivision (b) is released, the department shall include the report as part of the public meeting required pursuant to subdivision (b) of Section 1385.045. (f) Except for the report required pursuant to subdivision (b), the department shall keep confidential all of the information provided to the department pursuant to this section, and the information shall be protected from public disclosure. (Added by Stats. 2017, Ch. 603, Sec. 1. (SB 17) Effective January 1, 2018.)
1367.244.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Requests for a step therapy exception for prescription drugs may be submitted and must be handled like prior authorization requests.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.244. (a) A request for an exception to a health care service plan’s step therapy process for prescription drugs may be submitted in the same manner as a request for prior authorization for prescription drugs pursuant to Section 1367.241, and shall be treated in the same manner, and shall be responded to by the health care service plan in the same manner, as a request for prior authorization for prescription drugs. (b) The department and the Department of Insurance shall include a provision for step therapy exception requests in the uniform prior authorization form developed pursuant to subdivision (c) of Section 1367.241. (c) “Step therapy exception” means a decision to override a generally applicable step therapy protocol in favor of coverage of the prescription drug prescribed by a health care provider for an individual enrollee. (Amended by Stats. 2021, Ch. 742, Sec. 3. (AB 347) Effective January 1, 2022.)
1367.25.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must cover specified contraceptive services and products, and generally cannot impose cost sharing, restrictions, or delays, with limited religious-employer and other stated exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.25. (a) A group health care service plan contract, except for a specialized health care service plan contract, that is issued, amended, renewed, or delivered on or after January 1, 2000, to December 31, 2015, inclusive, and an individual health care service plan contract that is amended, renewed, or delivered on or after January 1, 2000, to December 31, 2015, inclusive, except for a specialized health care service plan contract, shall provide coverage for the following, under general terms and conditions applicable to all benefits: (1) A health care service plan contract that provides coverage for outpatient prescription drug benefits shall include coverage for a variety of federal Food and Drug Administration (FDA)-approved prescription contraceptive methods designated by the plan. In the event the patient’s participating provider, acting within the provider’s scope of practice, determines that none of the methods designated by the plan is medically appropriate for the patient’s medical or personal history, the plan shall also provide coverage for another FDA-approved, medically appropriate prescription contraceptive method prescribed by the patient’s provider. (2) Benefits for an enrollee under this subdivision shall be the same for an enrollee’s covered spouse and covered nonspouse dependents. (b) (1) A health care service plan contract, except for a specialized health care service plan contract, that is issued, amended, renewed, or delivered on or after January 1, 2016, shall provide coverage for all of the following services and contraceptive methods for all subscribers and enrollees: (A) (i) Except as provided in clause (ii) and in subparagraphs (B) and (C) of paragraph (2), all FDA-approved contraceptive drugs, devices, and other products, including all FDA-approved contraceptive drugs, devices, and products available over the counter, as prescribed by the enrollee’s provider. (ii) For any health care service plan contract described in paragraph (1) that is issued, amended, renewed, or delivered on or after January 1, 2024, both of the following conditions shall apply: (I) A prescription shall not be required to trigger coverage of over-the-counter FDA-approved contraceptive drugs, devices, and products. (II) Point-of-sale coverage for over-the-counter FDA-approved contraceptive drugs, devices, and products shall be provided at in-network pharmacies without cost sharing or medical management restrictions. (B) Voluntary tubal ligation and other similar sterilization procedures. (C) Clinical services related to the provision or use of contraception, including consultations, examinations, procedures, device insertion, ultrasound, anesthesia, patient education, referrals, and counseling. (D) Followup services related to the drugs, devices, products, and procedures covered under this subdivision, including, but not limited to, management of side effects, counseling for continued adherence, and device removal. (2) (A) Except for a grandfathered health plan, a health care service plan subject to this subdivision shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided pursuant to this subdivision. Cost sharing shall not be imposed on any Medi-Cal beneficiary. (B) If the FDA has approved one or more therapeutic equivalents, as that term is defined by the FDA, of a contraceptive drug, device, or product, a health care service plan is not required to cover all of those therapeutically equivalent versions in accordance with this subdivision, as long as at least one is covered without cost sharing in accordance with this subdivision. If there is no therapeutic equivalent generic substitute available in the market, a health care service plan shall provide coverage without cost sharing for the original, brand name contraceptive. (C) If a covered therapeutic equivalent of a drug, device, or product is deemed medically inadvisable by the enrollee’s provider, a health care service plan shall defer to the determination and judgment of the provider and provide coverage for the alternative prescribed contraceptive drug, device, product, or service without imposing any cost-sharing requirements. Medical inadvisability may include considerations such as severity of side effects, differences in permanence or reversibility of contraceptives, and ability to adhere to the appropriate use of the drug or item, as determined by the provider. The department may promulgate regulations establishing an easily accessible, transparent, and sufficiently expedient process that is not unduly burdensome, including timeframes, for an enrollee, an enrollee’s designee, or an enrollee’s provider to request coverage of an alternative prescribed contraceptive. A request for coverage under this subparagraph that is submitted by an enrollee, an enrollee’s designee, or provider shall be approved by the health care service plan in compliance with the time limits in Section 1367.241 and, as applicable, with the plan’s Medi-Cal managed care contract. (3) Except as otherwise authorized under this section, a health care service plan shall not infringe upon an enrollee’s choice of contraceptive drug, device, or product and shall not impose any restrictions or delays on the coverage required under this subdivision, including prior authorization, step therapy, or other utilization control techniques. (4) Benefits for an enrollee under this subdivision shall be the same for an enrollee’s covered spouse and covered nonspouse dependents. (5) For purposes of this subdivision, “health care service plan” shall include Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) and Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, to the extent that the benefits described in this subdivision are made the financial responsibility of the Medi-Cal managed care plan under its comprehensive risk contract with the State Department of Health Care Services. If some or all of the benefits described in this subdivision are not the financial responsibility of the Medi-Cal managed care plan, as determined by the State Department of Health Care Services, those benefits shall be available to Medi-Cal beneficiaries on a fee-for-service basis pursuant to subdivision (n) of Section 14132 of the Welfare and Institutions Code. (c) (1) Notwithstanding any other provision of this section, a religious employer may request a health care service plan contract without coverage for FDA-approved contraceptive methods that are contrary to the religious employer’s religious tenets. If so requested, a health care service plan contract shall be provided without coverage for contraceptive methods. The exclusion from coverage under this provision shall not apply to a contraceptive drug, device, procedure, or other product that is used for purposes other than contraception. (2) For purposes of this section, a “religious employer” is an entity for which each of the following is true: (A) The inculcation of religious values is the purpose of the entity. (B) The entity primarily employs persons who share the religious tenets of the entity. (C) The entity serves primarily persons who share the religious tenets of the entity. (D) The entity is a nonprofit organization as described in Section 6033(a)(3)(A)(i) or (iii) of the Internal Revenue Code of 1986, as amended. (d) (1) Every health care service plan contract that is issued, amended, renewed, or delivered on or after January 1, 2017, shall cover up to a 12-month supply of FDA-approved, self-administered hormonal contraceptives when dispensed or furnished at one time for an enrollee by a provider, pharmacist, or at a location licensed or otherwise authorized to dispense drugs or supplies. (2) This subdivision shall not be construed to require a health care service plan contract to cover contraceptives provided by an out-of-network provider, pharmacy, or location licensed or otherwise authorized to dispense drugs or supplies, except as may be otherwise authorized by state or federal law or by the plan’s policies governing out-of-network coverage. (3) This subdivision shall not be construed to require a provider to prescribe, furnish, or dispense 12 months of self-administered hormonal contraceptives at one time. (4) A health care service plan subject to this subdivision, shall not impose utilization controls or other forms of medical management limiting the supply of FDA-approved, self-administered hormonal contraceptives that may be dispensed or furnished by a provider or pharmacist, or at a location licensed or otherwise authorized to dispense drugs or supplies to an amount that is less than a 12-month supply, and shall not require an enrollee to make any formal request for such coverage other than a pharmacy claim. (e) This section shall not be construed to exclude coverage for contraceptive supplies as prescribed by a provider, acting within the provider’s scope of practice, for reasons other than contraceptive purposes, such as decreasing the risk of ovarian cancer or eliminating symptoms of menopause, or for contraception that is necessary to preserve the life or health of an enrollee. (f) This section shall not be construed to deny or restrict in any way the department’s authority to ensure plan compliance with this chapter when a plan provides coverage for contraceptive drugs, devices, and products. (g) This section shall not be construed to require an individual or group health care service plan contract to cover experimental or investigational treatments. (h) For purposes of this section, the following definitions apply: (1) “Grandfathered health plan” has the meaning set forth in Section 1251 of PPACA. (2) “PPACA” means the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any rules, regulations, or guidance issued thereunder. (3) With respect to health care service plan contracts issued, amended, or renewed on or after January 1, 2016, “provider” means an individual who is certified or licensed to furnish family planning services within their scope of practice pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code, including a pharmacist authorized pursuant to Section 4052 or 4052.3 of the Business and Professions Code, or an initiative act referred to in that division, or Division 2.5 (commencing with Section 1797) of this code. (4) For purposes of this section, “over-the-counter FDA-approved contraceptive drugs, devices, and products” and “over-the-counter birth control methods” are limited to those included as essential health benefits pursuant to Section 1367.005. (Amended by Stats. 2022, Ch. 630, Sec. 13. (SB 523) Effective January 1, 2023.)
1367.251.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans generally may not charge cost-sharing for abortion-related coverage or use utilization management on outpatient abortion services, with specific exceptions and implementation powers for state departments.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.251. (a) (1) A health care service plan, except for a specialized health care service plan contract, that is issued, amended, renewed, or delivered on or after January 1, 2023, shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on coverage for all abortion and abortion-related services, including preabortion and followup services. (2) Except as otherwise authorized by this section, a health care service plan shall not impose any utilization management or utilization review, including prior authorization and annual or lifetime limits consistent with Sections 1367.001 and 1367.005, on the coverage for outpatient abortion services. (3) Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) and Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code and their contracting providers, independent practice associations, preferred provider groups, and all delegated entities that provide physician services, utilization management, or utilization review shall be subject to this section. (4) If a health care service plan delegates responsibilities under this section to a contracted entity, including a medical group or independent practice association, the delegated entity shall comply with this section. (b) This section does not deny or restrict in any way the department's authority to ensure plan compliance with this chapter when a health care service plan provides coverage for abortion services. (c) This section does not require an individual or group health care service plan contract to cover an experimental or investigational treatment. (d) For purposes of this section, “abortion” means any medical treatment intended to induce the termination of a pregnancy except for the purpose of producing a live birth. (e) For a health care service plan contract that is a high deductible health plan, as defined in Section 223(c)(2) of Title 26 of the United States Code, the cost-sharing limits in paragraph (1) of subdivision (a) shall apply once an enrollee’s deductible has been satisfied for the benefit year. (f) (1) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may interpret and implement this section, in consultation with the State Department of Health Care Services and the Department of Insurance, by means of plan letters or similar guidance without taking any further regulatory action. The department shall adopt regulations on or before January 1, 2026, in accordance with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (2) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement this section, consistent with any guidance issued by the department pursuant to paragraph (1), to the extent that guidance does not exceed Medi-Cal program coverage of abortion and abortion-related services, by means of plan letters, plan or provider bulletins, or similar guidance issued to Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) and Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, without taking any further regulatory action. (Added by Stats. 2022, Ch. 11, Sec. 1. (SB 245) Effective January 1, 2023.)
1367.252.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plan contracts must cover medically necessary FDA-approved menopause treatments and, for later contracts, add menopause information, assessment, notice, provider, filing, and disclosure policies.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.252. (a) A health care service plan contract that provides outpatient prescription drug benefits and is issued, amended, or renewed on or after the operative date of this section shall include coverage for United States Food and Drug Administration-approved treatments used to treat menopausal symptoms, as medically necessary, including, but not limited to, all of the following: (1) Hormone therapy, including combination estrogen and hormone medicines, combination estrogen and progestin medicines, estrogen-only and progestin-only medicines, vaginal estrogen, and topical hormone therapy. This does not include glucagon-like peptide-1 or glucagon-like peptide-1 receptor agonists used solely for weight loss. (2) Low-dose antidepressants. (3) Anticonvulsants. (4) Medications to prevent or treat osteoporosis. (5) Nonhormonal medications for vasomotor-related symptoms. (b) A health care service plan contract that is issued, amended, or renewed on or after January 1, 2027, shall include a program to ensure enrollees have access to current menopause information and covered items and services. (c) For the program to satisfy subdivision (b), the plan shall do all of the following: (1) Provide, no later than July 1, 2027, and biannually thereafter, all contracted providers delivering primary care with information about current clinical care recommendations for menopause care, including hormone therapy, from the Menopause Society or other nationally recognized professional association. The plan shall encourage providers delivering primary care to review the information. (2) Establish and maintain a policy to reimburse providers for provision of services related to menopause care, including services integrated with primary care and obstetrician-gynecologist services. The policy shall identify the Current Procedural Terminology (CPT) codes for services commonly used to evaluate, diagnose, and treat symptoms resulting from menopause. (3) Establish and maintain a policy to provide enrollees who may experience menopause and who are 40 years of age and older with an annual menopause assessment during primary care and obstetrician-gynecologist appointments. Enrollees may opt out of receiving the assessments. The policy shall include a copy of the assessment tool and information on how it was developed or chosen. (4) Provide enrollees who may experience menopause and who are age 40 years of age and older with a notice that includes a definition of menopause and that lists the covered items and services used to evaluate and treat symptoms resulting from menopause. The first notice shall be sent within 60 days of the enrollee’s 40th birthday and shall be sent biannually thereafter. Enrollees may opt out of receiving the notices. The notice shall include a description of at least all of the following types of federal Food and Drug Administration-approved items and services: (A) Hormone therapy in the full range of formulations and methods of administration. (B) Low-dose antidepressants. (C) Anticonvulsants. (D) Medications to prevent or treat osteoporosis. (E) Nonhormonal medications for vasomotor-related symptoms. (5) Establish and maintain a policy to contract with providers delivering primary care, including advanced practice providers such as licensed nurse practitioners and certified nurse-midwives, who hold a certification or credential in menopause care from a nationally recognized organization, such as the Menopause Society or other similar organization. The policy shall state what steps the plan will take to incentivize providers to receive and maintain the certification or credential. (d) The plan shall file with the director within six months of the operative date of this statute the policies and notices specified in subdivision (c). The plan shall also disclose the policies to network providers, provider groups, and delegated entities that may be impacted by the policies and notices and shall attest to that disclosure to the director. (e) Coverage for the treatment options pursuant to this section shall be provided without discrimination on the basis of gender expression or identity. (f) This section does not apply to a Medi-Cal managed care plan contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. This section also does not apply to a Medicare supplement health care service plan contract. This section only applies to a specialized health care service plan to the extent it provides coverage for the treatment of symptoms resulting from menopause. (g) For purposes of this section, “menopause” includes perimenopause, menopause, and postmenopause. (Added by Stats. 2026, Ch. 27, Sec. 13. (SB 164) Effective June 29, 2026.)
1367.253.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must base menopause-related medical necessity and utilization review criteria on accepted menopause-care standards, use specified professional guidelines starting January 1, 2027, and avoid more restrictive conflicting criteria within the covered scope.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.253. (a) A health care service plan shall base a medical necessity determination or the utilization review criteria that the plan, and an entity acting on the plan’s behalf, applies to determine the medical necessity of health care services and benefits for the treatment of symptoms resulting from menopause on current generally accepted standards of menopause care. (b) Beginning January 1, 2027, when conducting utilization review of all covered health care services and benefits for the treatment of symptoms resulting from menopause, a health care service plan shall apply criteria and guidelines developed by the Menopause Society or another nationally recognized professional association, as specified by the department. (c) In conducting utilization review involving patient care decisions that are within the scope of the sources specified in subdivision (b), a health care service plan shall not apply different, additional, conflicting, or more restrictive utilization review criteria than the criteria and guidelines set forth in those sources. This subdivision does not prohibit a plan from applying utilization review criteria to health care services and benefits for menopause care that meet either of the following criteria: (1) Are outside the scope of the criteria and guidelines set forth in the sources specified in subdivision (b), if the utilization review criteria were developed in accordance with subdivision (a). (2) Relate to advancements in technology or types of care that are not covered in the most recent versions of the sources specified in subdivision (b), if the utilization review criteria were developed in accordance with subdivision (a). (d) If a health care service plan purchases or licenses utilization review criteria pursuant to paragraph (1) or (2) of subdivision (c), the plan shall verify and document before use that the criteria were developed in accordance with subdivision (a). (e) A health care service plan shall not adopt, impose, or enforce terms in its contracts or provider agreements, in writing or in operation, that undermine, alter, or conflict with this section. (f) For purposes of this section, the following definitions apply: (1) “Generally accepted standards of menopause care” means standards of care and clinical practice that are generally recognized by health care providers practicing in relevant clinical specialties, including gynecology, endocrinology, and family practice. Valid, evidence-based sources establishing generally accepted standards of menopause care include peer reviewed scientific studies and medical literature, clinical practice guidelines and recommendations of nonprofit health care provider professional associations, specialty societies, and federal government agencies, and drug labeling approved by the United States Food and Drug Administration. (2) “Menopause” includes perimenopause, menopause, and postmenopause. (3) “Utilization review” means either of the following: (A) Prospectively, retrospectively, or concurrently reviewing and approving, modifying, delaying, or denying, based in whole or in part on medical necessity, requests by health care providers, enrollees, or their authorized representatives for coverage of health care services prior to, retrospectively, or concurrent with the provision of health care services to enrollees. (B) Evaluating the medical necessity, appropriateness, or efficacy of health care services, benefits, or procedures, under any circumstances, to determine if a health care service or benefit subject to a medical necessity coverage requirement in a health care service plan contract is covered as medically necessary for an enrollee. (4) “Utilization review criteria” means criteria, standards, protocols, or guidelines used by a health care service plan to conduct utilization review. (g) (1) This section applies to all health care services and benefits for the treatment of symptoms resulting from menopause covered by a health care service plan contract, including prescription drugs. (2) This section applies to a health care service plan that conducts utilization review and an entity or contracting provider that performs utilization review or utilization management functions on a plan’s behalf. (3) This section does not apply to a Medi-Cal managed care plan contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. This section also does not apply to a Medicare supplement health care service plan contract. This section only applies to a specialized health care service plan to the extent it provides coverage for the treatment of symptoms resulting from menopause. (h) The director may assess administrative penalties for violations of this section as provided for in Section 1368.04, in addition to any other remedies permitted by law. (i) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement, interpret, or make specific this section and Section 1367.252 by means of all-plan letters or similar instructions, without taking regulatory action, until the department adopts regulations pursuant to the Administrative Procedure Act. The department shall consult with the Department of Insurance and interested stakeholders in developing guidance. (Added by Stats. 2026, Ch. 27, Sec. 14. (SB 164) Effective June 29, 2026.)
1367.255.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans generally may not charge cost-sharing for vasectomy services and procedures, and they may not add restrictions or delays.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.255. (a) (1) A health care service plan contract issued, amended, renewed, or delivered on or after January 1, 2024, except for a grandfathered health plan or a qualifying health plan for a health savings account, shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on vasectomy services and procedures. For a qualifying health plan for a health savings account, the carrier shall establish the plan’s cost sharing for vasectomy services and procedures at the minimum level necessary to preserve the enrollee’s ability to claim tax-exempt contributions and withdrawals from the enrollee’s health savings account under Internal Revenue Service laws, regulations, and guidance. Cost sharing shall not be imposed on a Medi-Cal beneficiary. (2) A health care service plan shall not impose any restrictions or delays, including, but not limited to, prior authorization, on vasectomy services or procedures. (3) Benefits for an enrollee under this section shall be the same for an enrollee’s covered spouse and covered nonspouse dependents. (4) For purposes of this section, “health care service plan” includes Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) and Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, to the extent that the benefits described in this subdivision are made the financial responsibility of the Medi-Cal managed care plan under its comprehensive risk contract with the State Department of Health Care Services. If some or all of the benefits described in this subdivision are not the financial responsibility of the Medi-Cal managed care plan, as determined by the State Department of Health Care Services, those benefits shall be available to Medi-Cal beneficiaries on a fee-for-service basis pursuant to subdivision (n) of Section 14132 of the Welfare and Institutions Code. (5) Utilization controls applicable to services described in this section provided by a Medi-Cal managed care plan shall be subject to this section. (b) Notwithstanding any other provision of this section, a religious employer may request a health care service plan contract without coverage for contraceptive methods that are contrary to the religious employer’s religious tenets. If so requested, a health care service plan contract shall be provided without coverage for vasectomy services and procedures. The exclusion from coverage under this provision shall not apply to vasectomy services or procedures for purposes other than contraception. (1) A health care service plan that contracts with a religious employer to provide a health care service plan that does not include coverage and benefits for vasectomy services and procedures shall notify, in writing, upon initial enrollment and annually thereafter upon renewal, each enrollee that vasectomy services and procedures are not included in the enrollee’s health care service plan. (2) For purposes of this section, a “religious employer” is an entity for which each of the following is true: (A) The inculcation of religious values is the purpose of the entity. (B) The entity primarily employs persons who share the religious tenets of the entity. (C) The entity serves primarily persons who share the religious tenets of the entity. (D) The entity is a nonprofit organization as described in Section 6033(a)(3)(A)(i) or (iii) of the Internal Revenue Code of 1986, as amended. (c) This section shall not be construed to deny or restrict in any way the department’s authority to ensure plan compliance with this chapter when a plan provides coverage for contraceptive drugs, devices, and products. (d) This section shall not be construed to require an individual or group health care service plan contract to cover experimental or investigational treatments. (e) For purposes of this section, the following definitions apply: (1) “Grandfathered health plan” has the meaning set forth in Section 1251 of PPACA. (2) “PPACA” means the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any rules, regulations, or guidance issued thereunder. (Added by Stats. 2022, Ch. 630, Sec. 14. (SB 523) Effective January 1, 2023.)
1367.27.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must maintain accurate provider directories, make them publicly accessible, update them on set schedules, and follow verification and correction rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.27. (a) Commencing July 1, 2016, a health care service plan shall publish and maintain a provider directory or directories with information on contracting providers that deliver health care services to the plan’s enrollees, including those that accept new patients. A provider directory shall not list or include information on a provider that is not currently under contract with the plan. (b) A health care service plan shall provide the directory or directories for the specific network offered for each product using a consistent method of network and product naming, numbering, or other classification method that ensures the public, enrollees, potential enrollees, the department, and other state or federal agencies can easily identify the networks and plan products in which a provider participates. By July 31, 2017, or 12 months after the date provider directory standards are developed under subdivision (k), whichever occurs later, a health care service plan shall use the naming, numbering, or classification method developed by the department pursuant to subdivision (k). (c) (1) An online provider directory or directories shall be available on the plan’s internet website to the public, potential enrollees, enrollees, and providers without any restrictions or limitations. The directory or directories shall be accessible without any requirement that an individual seeking the directory information demonstrate coverage with the plan, indicate interest in obtaining coverage with the plan, provide a member identification or policy number, provide any other identifying information, or create or access an account. (2) The online provider directory or directories shall be accessible on the plan’s public internet website through an identifiable link or tab and in a manner that is accessible and searchable by enrollees, potential enrollees, the public, and providers. By July 31, 2017, or 12 months after the date provider directory standards are developed under subdivision (k), whichever occurs later, the plan’s public internet website shall allow provider searches by, at a minimum, name, practice address, city, ZIP Code, California license number, National Provider Identifier number, admitting privileges to an identified hospital, product, tier, provider language or languages, provider group, hospital name, facility name, or clinic name, as appropriate. (d) (1) A health care service plan shall allow enrollees, potential enrollees, providers, and members of the public to request a printed copy of the provider directory or directories by contacting the plan through the plan’s toll-free telephone number, electronically, or in writing. A printed copy of the provider directory or directories shall include the information required in subdivisions (h) and (i). The printed copy of the provider directory or directories shall be provided to the requester by mail postmarked no later than five business days following the date of the request and may be limited to the geographic region in which the requester resides or works or intends to reside or work. (2) A health care service plan shall update its printed provider directory or directories at least quarterly, or more frequently, if required by federal law. (e) (1) The plan shall update the online provider directory or directories, at least weekly, or more frequently, if required by federal law, when informed of and upon confirmation by the plan of any of the following: (A) A contracting provider is no longer accepting new patients for that product, or an individual provider within a provider group is no longer accepting new patients. (B) A provider is no longer under contract for a particular plan product. (C) A provider’s practice location or other information required under subdivision (h) or (i) has changed. (D) Upon completion of the investigation described in subdivision (o), a change is necessary based on an enrollee complaint that a provider was not accepting new patients, was otherwise not available, or whose contact information was listed incorrectly. (E) Any other information that affects the content or accuracy of the provider directory or directories. (2) Upon confirmation of any of the following, the plan shall delete a provider from the directory or directories when: (A) A provider has retired or otherwise has ceased to practice. (B) A provider or provider group is no longer under contract with the plan for any reason. (C) The contracting provider group has informed the plan that the provider is no longer associated with the provider group and is no longer under contract with the plan. (f) The provider directory or directories shall include both an email address and a telephone number for members of the public and providers to notify the plan if the provider directory information appears to be inaccurate. This information shall be disclosed prominently in the directory or directories and on the plan’s internet website. (g) The provider directory or directories shall include the following disclosures informing enrollees that they are entitled to both of the following: (1) Language interpreter services, at no cost to the enrollee, including how to obtain interpretation services in accordance with Section 1367.04. (2) Full and equal access to covered services, including enrollees with disabilities as required under the federal Americans with Disabilities Act of 1990 and Section 504 of the Rehabilitation Act of 1973. (h) A full service health care service plan and a specialized mental health plan shall include all of the following information in the provider directory or directories: (1) The provider’s name, practice location or locations, and contact information. (2) Type of practitioner. (3) National Provider Identifier number. (4) California license number and type of license. (5) The area of specialty, including board certification, if any. (6) The provider’s office email address, if available. (7) The name of each affiliated provider group currently under contract with the plan through which the provider sees enrollees. (8) A listing for each of the following providers that are under contract with the plan: (A) For physicians and surgeons, the provider group, and admitting privileges, if any, at hospitals contracted with the plan. (B) Nurse practitioners, physician assistants, psychologists, acupuncturists, optometrists, podiatrists, chiropractors, licensed clinical social workers, marriage and family therapists, professional clinical counselors, qualified autism service providers, as defined in Section 4999.200 of the Business and Professions Code, nurse midwives, and dentists. (C) For federally qualified health centers or primary care clinics, the name of the federally qualified health center or clinic. (D) For a provider described in subparagraph (A) or (B) who is employed by a federally qualified health center or primary care clinic, and to the extent their services may be accessed and are covered through the contract with the plan, the name of the provider, and the name of the federally qualified health center or clinic. (E) Facilities, including, but not limited to, general acute care hospitals, skilled nursing facilities, urgent care clinics, ambulatory surgery centers, inpatient hospice, residential care facilities, and inpatient rehabilitation facilities. (F) Pharmacies, clinical laboratories, imaging centers, and other facilities providing contracted health care services. (9) The provider directory or directories may note that authorization or referral may be required to access some providers. (10) Non-English language, if any, spoken by a health care provider or other medical professional as well as non-English language spoken by a qualified medical interpreter, in accordance with Section 1367.04, if any, on the provider’s staff. (11) Identification of providers who no longer accept new patients for some or all of the plan’s products. (12) The network tier to which the provider is assigned, if the provider is not in the lowest tier, as applicable. Nothing in this section shall be construed to require the use of network tiers other than contract and noncontracting tiers. (13) All other information necessary to conduct a search pursuant to paragraph (2) of subdivision (c). (i) A vision, dental, or other specialized health care service plan, except for a specialized mental health plan, shall include all of the following information for each provider directory or directories used by the plan for its networks: (1) The provider’s name, practice location or locations, and contact information. (2) Type of practitioner. (3) National Provider Identifier number. (4) California license number and type of license, if applicable. (5) The area of specialty, including board certification, or other accreditation, if any. (6) The provider’s office email address, if available. (7) The name of each affiliated provider group or specialty plan practice group currently under contract with the plan through which the provider sees enrollees. (8) The names of each allied health care professional to the extent there is a direct contract for those services covered through a contract with the plan. (9) The non-English language, if any, spoken by a health care provider or other medical professional as well as non-English language spoken by a qualified medical interpreter, in accordance with Section 1367.04, if any, on the provider’s staff. (10) Identification of providers who no longer accept new patients for some or all of the plan’s products. (11) All other applicable information necessary to conduct a provider search pursuant to paragraph (2) of subdivision (c). (j) (1) The contract between the plan and a provider shall include a requirement that the provider inform the plan within five business days when either of the following occurs: (A) The provider is not accepting new patients. (B) If the provider had previously not accepted new patients, the provider is currently accepting new patients. (2) If a provider who is not accepting new patients is contacted by an enrollee or potential enrollee seeking to become a new patient, the provider shall direct the enrollee or potential enrollee to both the plan for additional assistance in finding a provider and to the department to report any inaccuracy with the plan’s directory or directories. (3) If an enrollee or potential enrollee informs a plan of a possible inaccuracy in the provider directory or directories, the plan shall promptly investigate, and, if necessary, undertake corrective action within 30 business days to ensure the accuracy of the directory or directories. (k) (1) On or before December 31, 2016, the department shall develop uniform provider directory standards to permit consistency in accordance with subdivision (b) and paragraph (2) of subdivision (c) and development of a multiplan directory by another entity. Those standards shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), until January 1, 2021. No more than two revisions of those standards shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) pursuant to this subdivision. (2) In developing the standards under this subdivision, the department shall seek input from interested parties throughout the process of developing the standards and shall hold at least one public meeting. The department shall take into consideration any requirements for provider directories established by the federal Centers for Medicare and Medicaid Services and the State Department of Health Care Services. (3) By July 31, 2017, or 12 months after the date provider directory standards are developed under this subdivision, whichever occurs later, a plan shall use the standards developed by the department for each product offered by the plan. (l) (1) A plan shall take appropriate steps to ensure the accuracy of the information concerning each provider listed in the plan’s provider directory or directories in accordance with this section, and shall, at least annually, review and update the entire provider directory or directories for each product offered. Each calendar year the plan shall notify all contracted providers described in subdivisions (h) and (i) as follows: (A) For individual providers who are not affiliated with a provider group described in subparagraph (A) or (B) of paragraph (8) of subdivision (h) and providers described in subdivision (i), the plan shall notify each provider at least once every six months. (B) For all other providers described in subdivision (h) who are not subject to the requirements of subparagraph (A), the plan shall notify its contracted providers to ensure that all of the providers are contacted by the plan at least once annually. (2) The notification shall include all of the following: (A) The information the plan has in its directory or directories regarding the provider or provider group, including a list of networks and plan products that include the contracted provider or provider group. (B) A statement that the failure to respond to the notification may result in a delay of payment or reimbursement of a claim pursuant to subdivision (p). (C) Instructions on how the provider or provider group can update the information in the provider directory or directories using the online interface developed pursuant to subdivision (m). (3) The plan shall require an affirmative response from the provider or provider group acknowledging that the notification was received. The provider or provider group shall confirm that the information in the provider directory or directories is current and accurate or update the information required to be in the directory or directories pursuant to this section, including whether or not the provider or provider group is accepting new patients for each plan product. (4) If the plan does not receive an affirmative response and confirmation from the provider that the information is current and accurate or, as an alternative, updates any information required to be in the directory or directories pursuant to this section, within 30 business days, the plan shall take no more than 15 business days to verify whether the provider’s information is correct or requires updates. The plan shall document the receipt and outcome of each attempt to verify the information. If the plan is unable to verify whether the provider’s information is correct or requires updates, the plan shall notify the provider 10 business days in advance of removal that the provider will be removed from the provider directory or directories. The provider shall be removed from the provider directory or directories at the next required update of the provider directory or directories after the 10-business-day notice period. A provider shall not be removed from the provider directory or directories if they respond before the end of the 10-business-day notice period. (5) General acute care hospitals shall be exempt from the requirements in paragraphs (3) and (4). (m) A plan shall establish policies and procedures with regard to the regular updating of its provider directory or directories, including the weekly, quarterly, and annual updates required pursuant to this section, or more frequently, if required by federal law or guidance. (1) The policies and procedures described under this subdivision shall be submitted by a plan annually to the department for approval and in a format described by the department pursuant to Section 1367.035. (2) Every health care service plan shall ensure processes are in place to allow providers to promptly verify or submit changes to the information required to be in the directory or directories pursuant to this section. Those processes shall, at a minimum, include an online interface for providers to submit verification or changes electronically and shall generate an acknowledgment of receipt from the health care service plan. Providers shall verify or submit changes to information required to be in the directory or directories pursuant to this section using the process required by the health care service plan. (3) The plan shall establish and maintain a process for enrollees, potential enrollees, other providers, and the public to identify and report possible inaccurate, incomplete, or misleading information currently listed in the plan’s provider directory or directories. This process shall, at a minimum, include a telephone number and a dedicated email address at which the plan will accept these reports, as well as a hyperlink on the plan’s provider directory internet website linking to a form where the information can be reported directly to the plan through its internet website. (n) (1) This section does not prohibit a plan from requiring its provider groups or contracting specialized health care service plans to provide information to the plan that is required by the plan to satisfy the requirements of this section for each of the providers that contract with the provider group or contracting specialized health care service plan. This responsibility shall be specifically documented in a written contract between the plan and the provider group or contracting specialized health care service plan. (2) If a plan requires its contracting provider groups or contracting specialized health care service plans to provide the plan with information described in paragraph (1), the plan shall continue to retain responsibility for ensuring that the requirements of this section are satisfied. (3) A provider group may terminate a contract with a provider for a pattern or repeated failure of the provider to update the information required to be in the directory or directories pursuant to this section. (4) A provider group is not subject to the payment delay described in subdivision (p) if all of the following occurs: (A) A provider does not respond to the provider group’s attempt to verify the provider’s information. As used in this paragraph, “verify” means to contact the provider in writing, electronically, and by telephone to confirm whether the provider’s information is correct or requires updates. (B) The provider group documents its efforts to verify the provider’s information. (C) The provider group reports to the plan that the provider should be deleted from the provider group in the plan directory or directories. (5) Section 1375.7, known as the Health Care Providers’ Bill of Rights, applies to any material change to a provider contract pursuant to this section. (o) (1) Whenever a health care service plan receives a report indicating that information listed in its provider directory or directories is inaccurate, the plan shall promptly investigate the reported inaccuracy and, no later than 30 business days following receipt of the report, either verify the accuracy of the information or update the information in its provider directory or directories, as applicable. (2) When investigating a report regarding its provider directory or directories, the plan shall, at a minimum, do the following: (A) Contact the affected provider no later than five business days following receipt of the report. (B) Document the receipt and outcome of each report. The documentation shall include the provider’s name, location, and a description of the plan’s investigation, the outcome of the investigation, and any changes or updates made to its provider directory or directories. (C) If changes to a plan’s provider directory or directories are required as a result of the plan’s investigation, the changes to the online provider directory or directories shall be made no later than the next scheduled weekly update, or the update immediately following that update, or sooner if required by federal law or regulations. For printed provider directories, the change shall be made no later than the next required update, or sooner if required by federal law or regulations. (p) (1) Notwithstanding Sections 1371 and 1371.35, a plan may delay payment or reimbursement owed to a provider or provider group as specified in subparagraph (A) or (B), if the provider or provider group fails to respond to the plan’s attempts to verify the provider’s or provider group’s information as required under subdivision (l). The plan shall not delay payment unless it has attempted to verify the provider’s or provider group’s information. As used in this subdivision, “verify” means to contact the provider or provider group in writing, electronically, and by telephone to confirm whether the provider’s or provider group’s information is correct or requires updates. A plan may seek to delay payment or reimbursement owed to a provider or provider group only after the 10-business day notice period described in paragraph (4) of subdivision (l) has lapsed. (A) For a provider or provider group that receives compensation on a capitated or prepaid basis, the plan may delay no more than 50 percent of the next scheduled capitation payment for up to one calendar month. (B) For any claims payment made to a provider or provider group, the plan may delay the claims payment for up to one calendar month beginning on the first day of the following month. (2) A plan shall notify the provider or provider group 10 business days before it seeks to delay payment or reimbursement to a provider or provider group pursuant to this subdivision. If the plan delays a payment or reimbursement pursuant to this subdivision, the plan shall reimburse the full amount of any payment or reimbursement subject to delay to the provider or provider group according to either of the following timelines, as applicable: (A) No later than three business days following the date on which the plan receives the information required to be submitted by the provider or provider group pursuant to subdivision (l). (B) At the end of the one-calendar month delay described in subparagraph (A) or (B) of paragraph (1), as applicable, if the provider or provider group fails to provide the information required to be submitted to the plan pursuant to subdivision (l). (3) A plan may terminate a contract for a pattern or repeated failure of the provider or provider group to alert the plan to a change in the information required to be in the directory or directories pursuant to this section. (4) A plan that delays payment or reimbursement under this subdivision shall document each instance a payment or reimbursement was delayed and report this information to the department in a format described by the department pursuant to Section 1367.035. This information shall be submitted along with the policies and procedures required to be submitted annually to the department pursuant to paragraph (1) of subdivision (m). (5) With respect to plans with Medi-Cal managed care contracts with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code, this subdivision shall be implemented only to the extent consistent with federal law and guidance. (q) In circumstances where the department finds that an enrollee reasonably relied upon materially inaccurate, incomplete, or misleading information contained in a health plan’s provider directory or directories, the department may require the health plan to provide coverage for all covered health care services provided to the enrollee and to reimburse the enrollee for any amount beyond what the enrollee would have paid, had the services been delivered by an in-network provider under the enrollee’s plan contract. Prior to requiring reimbursement in these circumstances, the department shall conclude that the services received by the enrollee were covered services under the enrollee’s plan contract. In those circumstances, the fact that the services were rendered or delivered by a noncontracting or out-of-plan provider shall not be used as a basis to deny reimbursement to the enrollee. (r) Whenever a plan determines as a result of this section that there has been a 10 percent change in the network for a product in a region, the plan shall file an amendment to the plan application with the department consistent with subdivision (f) of Section 1300.52 of Title 28 of the California Code of Regulations. (s) This section applies to plans with Medi-Cal managed care contracts with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code to the extent consistent with federal law and guidance and state law guidance issued after January 1, 2016. Notwithstanding any other provision to the contrary in a plan contract with the State Department of Health Care Services, and to the extent consistent with federal law and guidance and state guidance issued after January 1, 2016, a Medi-Cal managed care plan that complies with the requirements of this section shall not be required to distribute a printed provider directory or directories, except as required by paragraph (1) of subdivision (d). (t) A health plan that contracts with multiple employer welfare agreements regulated pursuant to Article 4.7 (commencing with Section 742.20) of Chapter 1 of Part 2 of Division 1 of the Insurance Code shall meet the requirements of this section. (u) This section shall not be construed to alter a provider’s obligation to provide health care services to an enrollee pursuant to the provider’s contract with the plan. (v) As part of the department’s routine examination of the fiscal and administrative affairs of a health care service plan pursuant to Section 1382, the department shall include a review of the health care service plan’s compliance with subdivision (p). (w) For purposes of this section, “provider group” means a medical group, independent practice association, or other similar group of providers. (Amended by Stats. 2025, Ch. 413, Sec. 3. (SB 402) Effective January 1, 2026.)
1367.28.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A full service health care service plan must list certain in-network providers in its provider directory and call center information, and must update that information when providers ask to be included or removed.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.28. Within six months after the department issues guidance pursuant to paragraph (1) of subdivision (e) of Section 1367.043, and no later than March 1, 2025, a full service health care service plan shall include information within or accessible from the plan’s provider directory, and accessible through the plan’s call center, that identifies which of a plan’s in-network providers have affirmed that they offer and have provided gender-affirming services, including, but not limited to, feminizing mammoplasty, male chest reconstruction, mastectomy, gender-confirming facial surgery, hysterectomy, oophorectomy, penectomy, orchiectomy, feminizing genitoplasty, metoidioplasty, phalloplasty, scrotoplasty, voice masculinization or feminization, hormone therapy related to gender dysphoria or intersex conditions, gender-affirming gynecological care, or voice therapy related to gender dysphoria or intersex conditions. This information shall be updated when an in-network provider requests its inclusion or exclusion as a provider that offers and provides gender-affirming services. Nothing in this act alters any business establishment’s obligation to provide full and equal services to customers or patients regardless of their sex and other protected characteristics, pursuant to the Unruh Civil Rights Act (Section 51 of the Civil Code) and other applicable law. (Added by Stats. 2022, Ch. 822, Sec. 3. (SB 923) Effective January 1, 2023.)
1367.29.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plans must give enrollees an identification card with specified information.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.29. (a) On and after July 1, 2011, in accordance with subdivision (b), a health care service plan that provides coverage for professional mental health services, including a specialized health care service plan that provides coverage for professional mental health services, shall issue an identification card to an enrollee in order to assist the enrollee with accessing health benefits coverage information, including, but not limited to, in-network provider access information, and claims processing purposes. The identification card, at a minimum, shall include all of the following information: (1) The name of the health care service plan issuing the identification card. (2) The enrollee’s identification number. (3) A telephone number that enrollees or providers may call for assistance with health benefits coverage information, in-network provider access information, and claims processing information, and if assessment services are provided by the health care service plan, access to assessment services for the purpose of referral to an appropriate level of care or an appropriate health care provider. (4) The health care service plan’s Internet Web site address. (b) The identification card required by this section shall be issued by a health care service plan or a specialized health care service plan to an enrollee upon enrollment or upon a change in the enrollee’s coverage that impacts the data content or format of the card. (c) This section does not require a health care service plan to issue a separate identification card for professional mental health services coverage if the plan issues a card for health care coverage in general and the card provides the information required by this section. (d) If a health care service plan or a specialized health care service plan, as described in subdivision (a), delegates responsibility for issuing the identification card to a contractor or an agent, the contractor or agent shall be required to comply with this section. (e) This section does not prohibit a health care service plan or a specialized health care service plan from meeting the standards of the Workgroup for Electronic Data Interchange (WEDI) or other national uniform standards with respect to identification cards, and a health care service plan shall be deemed compliant with this section if the plan conforms with these standards, as long as the minimum requirements described in subdivision (a) have been met. (f) For the purposes of this section, “identification card” includes other technology that performs substantially the same function as an identification card. (g) (1) This section shall not apply to Medicare supplement insurance, employee assistance programs, CHAMPUS supplement insurance, or TRI-CARE supplement insurance, or to hospital indemnity, accident-only, and specified disease insurance. This section shall also not apply to specialized health care service plans, except behavioral health-only plans. (2) Notwithstanding paragraph (1), this section shall not apply to a behavioral health-only plan that provides coverage for professional mental health services pursuant to a contract with a health care service plan or insurer if that plan or insurer issues an identification card to its subscribers or insureds pursuant to this section or Section 10123.198 of the Insurance Code. (Amended by Stats. 2018, Ch. 687, Sec. 1. (SB 910) Effective January 1, 2019.)
1367.3.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Group health care service plans must offer preventive care benefits for children and tell contractholders that the benefits are available.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.3. (a) Every health care service plan that covers hospital, medical, or surgical expenses on a group basis shall offer benefits for the comprehensive preventive care of children. This section shall apply to children 17 and 18 years of age, except as provided in subparagraph (D) of paragraph (2) of subdivision (b). Every plan shall communicate the availability of these benefits to all group contractholders and to all prospective group contractholders with whom they are negotiating. This section shall apply to a plan that, by rule or order of the director, has been exempted from subdivision (i) of Section 1367, insofar as that section and the rules thereunder relate to the provision of the preventive health care services described herein. (b) For purposes of this section, benefits for the comprehensive preventive care of children shall comply with both of the following: (1) Be consistent with both of the following: (A) The most recent Recommendations for Preventive Pediatric Health Care, as adopted by the American Academy of Pediatrics. (B) The Recommended Childhood Immunization Schedule/United States, jointly adopted as of January 1, 2025, by the American Academy of Pediatrics, the Advisory Committee on Immunization Practices, and the American Academy of Family Physicians. Immunizations subject to this subparagraph may be modified or supplemented by the State Department of Public Health pursuant to Section 120164. (2) Provide for the following: (A) Periodic health evaluations. (B) Immunizations. (C) Laboratory services in connection with periodic health evaluations. (D) Screening for blood lead levels in children of any age who are at risk for lead poisoning, as determined by a physician and surgeon affiliated with the plan, if the screening is prescribed by a health care provider affiliated with the plan. (c) For purposes of this section, a health care provider is any of the following: (1) A person licensed to practice medicine pursuant to Article 3 (commencing with Section 2050) of Chapter 5 of Division 2 of the Business and Professions Code. (2) A nurse practitioner licensed to practice pursuant to Article 8 (commencing with Section 2834) of Chapter 6 of Division 2 of the Business and Professions Code. (3) A physician assistant licensed to practice pursuant to Article 3 (commencing with Section 3513) of Chapter 7.7 of Division 2 of the Business and Professions Code. (Amended by Stats. 2025, Ch. 105, Sec. 19. (AB 144) Effective September 17, 2025.)
1367.30.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Group health care service plan contracts marketed, issued, or delivered to a California resident are subject to Section 1374.58, regardless of where the contract or subscriber is located.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.30. Notwithstanding any other provision of law, every group health care service plan contract marketed, issued, or delivered to a resident of this state, regardless of the situs of the contract or the subscriber, shall be subject to Section 1374.58. (Added by Stats. 2011, Ch. 722, Sec. 1. (SB 757) Effective January 1, 2012.)
1367.31.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts cannot require a referral before an enrollee gets reproductive and sexual health care coverage or services.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.31. (a) Every health care service plan contract issued, amended, renewed, or delivered on or after January 1, 2017, shall be prohibited from requiring an enrollee to receive a referral prior to receiving coverage or services for reproductive and sexual health care. (b) (1) For the purposes of this section, “reproductive and sexual health care services” are all reproductive and sexual health services described in Sections 6925, 6926, 6927, and 6928 of the Family Code, or Section 121020 of the Health and Safety Code, obtained by a patient. (2) For the purposes of this section, “reproductive and sexual health care services” do not include the services subject to a health care service plan’s referral procedures as required by subdivisions (a) and (b) of Section 1374.16. (3) This section applies whether or not the patient is a minor. (c) In implementing this section, a health care service plan may establish reasonable provisions governing utilization protocols for obtaining reproductive and sexual health care services, as provided for in subdivision (a), from health care providers participating in, or contracting with, the plan network, medical group, or independent practice association, provided that these provisions shall be consistent with the intent of this section and shall be those customarily applied to other health care providers, such as primary care physicians and surgeons, to whom the enrollee has direct access, and shall not be more restrictive for the provision of reproductive and sexual health care services. An enrollee shall not be required to obtain prior approval from another physician, another provider, or the health care service plan prior to obtaining direct access to reproductive and sexual health care services. A health care service plan may establish reasonable provisions governing communication with the enrollee’s primary care physician and surgeon regarding the enrollee’s condition, treatment, and any need for followup care. (d) This section shall not apply to a health care service plan contract that does not require enrollees to obtain a referral from their primary care physician prior to seeking covered health care services from a specialist. (e) A health care service plan shall not impose utilization protocols related to contraceptive drugs, supplies, and devices beyond the provisions outlined in Section 1367.25 of this code or Section 14132 of the Welfare and Institutions Code. (f) This section shall not apply to specialized health care service plan contracts or any health care service plan that is governed by Section 14131 of the Welfare and Institutions Code. (Added by Stats. 2016, Ch. 495, Sec. 3. (AB 1954) Effective January 1, 2017.)
1367.32.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan covering employees of a religious employer must give each enrollee written information at enrollment and every renewal about abortion and contraception benefits or services that are not included in the plan, and about no-cost options through the California Reproductive Health Equity Program.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.32. (a) A health care service plan that provides health coverage to the employees of a religious employer that does not include coverage and benefits for both abortion and contraception shall provide, in writing upon initial enrollment and annually thereafter upon renewal, each enrollee with information regarding both of the following: (1) Abortion and contraception benefits or services that are not included in the enrollee’s health care service plan contract. (2) Abortion and contraception benefits or services that may be available at no cost through the California Reproductive Health Equity Program. (b) For purposes of this section: (1) “Abortion” has the same meaning as defined in Section 123464. (2) “California Reproductive Health Equity Program” means the program established pursuant to Section 127632. (3) “Contraception” means the services and contraceptive methods described in paragraph (1) of subdivision (b) of Section 1367.25. (4) “Religious employer” has the same meaning as described in Section 1367.25. (c) This section does not alter the applicability of any other requirement of this chapter. (Added by Stats. 2022, Ch. 562, Sec. 1. (AB 2134) Effective January 1, 2023.)
1367.33.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health plan operated by a bona fide higher education institution must comply with contraceptive coverage rules if it directly serves only specified school-related groups and is issued, amended, renewed, or delivered on or after January 1, 2024.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.33. Notwithstanding any other law, a plan directly operated by a bona fide public or private institution of higher learning that directly provides health care services only to its students, faculty, staff, administration, and their respective dependents, and that is issued, amended, renewed, or delivered, on or after January 1, 2024, shall comply with the contraceptive coverage requirements of Sections 1367.25 and 1367.255. (Added by Stats. 2022, Ch. 630, Sec. 15. (SB 523) Effective January 1, 2023.)
1367.34.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must cover home STD test kits, including processing costs, when the kits are medically necessary or appropriate and ordered by a clinician or supplied under a standing order. Commercial health care plans must also cover these services when ordered for an enrollee by an in-network provider.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.34. (a) (1) Every health care service plan contract issued, amended, renewed, or delivered on or after January 1, 2022, shall provide coverage for home test kits for sexually transmitted diseases (STD), including any laboratory costs of processing the kit, that are deemed medically necessary or appropriate and ordered directly by a clinician or furnished through a standing order for patient use based on clinical guidelines and individual patient health needs. (2) A commercial health care plan is required to cover the services outlined in paragraph (1) when ordered for an enrollee by an in-network provider. (b) For purposes of this section, “home test kit” means a product used for a test recommended by the federal Centers for Disease Control and Prevention guidelines or the United States Preventive Services Task Force that has been CLIA-waived, FDA-cleared or -approved, or developed by a laboratory in accordance with established regulations and quality standards, to allow individuals to self-collect specimens for STDs, including HIV, remotely at a location outside of a clinical setting. (c) This section shall not apply to health care service plans contracting with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. For those health care service plans, the Medi-Cal requirements contained in subdivision (af) of Section 14132 of the Welfare and Institutions Code shall apply. (Added by Stats. 2021, Ch. 486, Sec. 3. (SB 306) Effective January 1, 2022. See same-numbered section added by Stats. 2021, Ch. 641.)
1367.35.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain group health care service plans must cover comprehensive preventive care for children 16 or younger and tell group contractholders that these benefits are available.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.35. (a) On and after January 1, 1993, every health care service plan that covers hospital, medical, or surgical expenses on a group basis shall provide benefits for the comprehensive preventive care of children 16 years of age or younger under terms and conditions agreed upon between the group subscriber and the plan. Every plan shall communicate the availability of these benefits to all group contractholders and to all prospective group contractholders with whom they are negotiating. This section shall apply to each plan that, by rule or order of the director, has been exempted from subdivision (i) of Section 1367, insofar as that section and the rules thereunder relate to the provision of the preventive health care services described in this section. (b) For purposes of this section, benefits for the comprehensive preventive care of children shall comply with both of the following: (1) Be consistent with both of the following: (A) The Recommendations for Preventive Pediatric Health Care, as adopted by the American Academy of Pediatrics in September of 1987. (B) The Recommended Childhood Immunization Schedule/United States, jointly adopted as of January 1, 2025, by the American Academy of Pediatrics, the Advisory Committee on Immunization Practices, and the American Academy of Family Physicians. Immunizations subject to this subparagraph may be modified or supplemented by the State Department of Public Health pursuant to Section 120164. (2) Provide for all of the following: (A) Periodic health evaluations. (B) Immunizations. (C) Laboratory services in connection with periodic health evaluations. (Amended by Stats. 2025, Ch. 105, Sec. 20. (AB 144) Effective September 17, 2025.)
1367.36.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans may not make physicians take on the cost risk for children’s required immunizations in certain contracts, and must reimburse out-of-contract immunizations within 45 days.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.36. (a) A risk-based contract between a health care service plan and a physician or physician group that is issued, amended, delivered, or renewed in this state on or after January 1, 2001, shall not include a provision that requires a physician or a physician group to assume financial risk for the acquisition costs of required immunizations for children as a condition of accepting the risk-based contract. A physician or physician group shall not be required to assume financial risk for immunizations that are not part of the current contract. (b) Beginning January 1, 2001, with respect to immunizations for children that are not part of the current contract between a health care service plan and a physician or physician group, the health care service plan shall reimburse a physician or physician group at the lowest of the following, until the contract is renegotiated: (1) the physician’s actual acquisition cost, (2) the “average wholesale price” as published in the Drug Topics Red Book, or (3) the lowest acquisition cost through sources made available to the physician by the health care service plan. Reimbursements shall be made within 45 days of receipt by the plan of documents from the physician demonstrating that the immunizations were performed, consistent with Section 1371 or through an alternative funding mechanism mutually agreed to by the health care service plan and the physician or physician group. The alternative funding mechanism shall be based on reimbursements consistent with this subdivision. (c) Physicians and physician groups may assume financial risk for providing required immunizations, if the immunizations have experiential data that has been negotiated and agreed upon by the health care service plan and the physician risk-bearing organization. However, a health care service plan shall not require a physician risk-bearing organization to accept financial risk or impose additional risk on a physician risk-bearing organization in violation of subdivision (a). (d) A health care service plan shall not include the acquisition costs associated with required immunizations for children in the capitation rate of a physician who is individually capitated. (Added by Stats. 2000, Ch. 845, Sec. 1. Effective January 1, 2001.)
1367.37.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plan contracts must cover emergency room care and follow-up treatment after rape or sexual assault without cost sharing, subject to stated conditions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.37. (a) (1) A health care service plan contract issued, amended, or renewed on or after July 1, 2025, excluding a specialized health care service plan contract, shall provide coverage for emergency room medical care and followup health care treatment for an enrollee who is treated following a rape or sexual assault, as defined in Sections 261, 261.6, 263, 263.1, 286, 287, and 288.7 of the Penal Code, without imposing cost sharing, including copayments, coinsurance, or deductibles, for the first nine months after the enrollee initiates treatment. (2) For the purposes of this section, “followup health care treatment” includes medical or surgical services for the diagnosis, prevention, or treatment of medical conditions arising from an instance of rape or sexual assault. (3) The waiver of the imposition of cost sharing pursuant to paragraph (1) shall only apply if the enrollee’s treating provider submits all requests for claims payments using accurate diagnosis codes specific to rape or sexual assault. (b) A health care service plan shall not require any of the following to provide coverage under this section: (1) An enrollee to file a police report on the rape or sexual assault. (2) Charges to be brought against an assailant. (3) An assailant to be convicted of an offense listed in subdivision (a). (c) (1) This section does not authorize an enrollee to receive followup health care treatment required to be covered by this section if treatment is furnished by a nonparticipating provider, except as specified in paragraphs (2) and (3). (2) A plan shall arrange for the provision of followup health care treatment required by this section from providers outside the plan’s network if those services are unavailable within the network to ensure timely access to covered health care services consistent with Section 1367.03. (3) A plan shall cover followup health care treatment if those services are for emergency services and care as defined in Section 1317.1. (d) For a health care service plan contract that meets the definition of a “high deductible health plan” set forth in Section 223(c)(2) of Title 26 of the United States Code, this section shall only apply once an enrollee’s deductible has been satisfied for the year. (e) “Cost sharing” includes any copayment, coinsurance, or deductible, or any other form of cost sharing paid by the enrollee other than premium or share of premium. (f) Coverage provided under this section is coverage of sensitive services provided to a protected individual as those terms are defined in Section 56.05 and pursuant to Section 56.107 of the Civil Code. (Added by Stats. 2024, Ch. 971, Sec. 2. (AB 2843) Effective January 1, 2025.)
1367.38.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must cover PANDAS and PANS diagnosis and treatment for qualifying contracts, with no higher cost sharing than other benefits.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.38. (a) A health care service plan contract issued, amended, or renewed on or after January 1, 2025, shall provide coverage for the prophylaxis, diagnosis, and treatment of Pediatric Autoimmune Neuropsychiatric Disorder Associated with Streptococcal Infections (PANDAS) and Pediatric Acute-onset Neuropsychiatric Syndrome (PANS) that is prescribed or ordered by the treating physician and surgeon and is medically necessary, as defined by current nationally recognized clinical practice guidelines by expert treating physicians published in peer-reviewed medical literature. Treatment for PANDAS and PANS that shall be covered includes antibiotics, medication and behavioral therapies to manage neuropsychiatric symptoms, immunomodulating medicines, plasma exchange, and intravenous immunoglobulin therapy. (b) Coverage for PANDAS and PANS shall not be subject to a copayment, coinsurance, deductible, or other cost sharing that is greater than that applied to other benefits provided by the contract. (c) (1) A required authorization for PANDAS and PANS prophylaxis, diagnosis, or treatment shall be provided in a timely manner that is appropriate for the severity of an enrollee’s condition pursuant to Section 1367.03. (2) A health care service plan shall not deny or delay coverage for PANDAS or PANS therapies because the enrollee previously received treatment, including the same or similar treatment, for PANDAS or PANS, or because the enrollee was diagnosed with or received treatment for their condition under a different diagnostic name, including autoimmune encephalopathy. (3) A health care service plan shall not limit coverage of immunomodulating therapies for PANDAS or PANS in a manner that is inconsistent with the treatment recommendations pursuant to subdivision (d), and shall not require a trial of therapies that treat only neuropsychiatric symptoms before authorizing coverage of immunomodulating therapies pursuant to this section. (d) Coverage for PANDAS and PANS shall adhere to the treatment recommendations delineated in current clinical practice guidelines published in peer-reviewed medical literature or put forth by organizations composed of expert treating clinicians. (e) For billing and diagnostic purposes, PANDAS and PANS shall be coded as autoimmune encephalitis until the American Medical Association and the federal Centers for Medicare and Medicaid Services create and assign a specific code or codes for PANDAS and PANS. After the creation of that code or codes, PANDAS and PANS may be coded as autoimmune encephalitis, PANDAS, or PANS. If PANDAS or PANS is known by a different common name in the future, it may be coded under that name and this section shall apply to that disorder or syndrome. (f) This section does not apply to a specialized health care service plan contract that covers dental or vision benefits or a Medicare supplement policy. (Added by Stats. 2024, Ch. 822, Sec. 1. (AB 2105) Effective January 1, 2025.)
1367.39.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts meeting the stated conditions must include coverage for ACE screenings.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.39. (a) A health care service plan contract issued, amended, or renewed on or after January 1, 2022, that provides coverage for pediatric services and preventive care, as required by this chapter, including Sections 1367.002 and 1367.005, shall additionally include coverage for adverse childhood experiences screenings. This section does not prohibit a health care service plan from applying cost-sharing requirements as authorized by law. (b) For purposes of this section, “adverse childhood experiences,” or “ACEs,” means an event, series of events, or set of circumstances that is experienced by an individual as physically or emotionally harmful or threatening and that has lasting adverse effects on the individual’s functioning and physical, social, emotional, or spiritual well-being. (c) The department may adopt guidance to health care service plans to implement this section. The guidance shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The departmental guidance shall apply the rules and regulations for screening for trauma as set forth in the Medi-Cal program as the minimum ACEs coverage requirements for health care service plans. This section does not prohibit a health care service plan from exceeding the Medi-Cal program’s rules and regulations for trauma screening. (Added by renumbering Section 1367.34 (as added by Stats. 2021, Ch. 641, Sec. 1) by Stats. 2024, Ch. 492, Sec. 3. (SB 1511) Effective January 1, 2025.)
1367.4.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health coverage plans covered by this section may not deny, limit, or price differently for coverage solely because a person has blindness or partial blindness.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.4. No plan issuing, providing, or administering any contract of individual or group coverage providing medical, surgical, or dental expense benefits applied for and issued on or after January 1, 1986, shall refuse to cover, or refuse to continue to cover, or limit the amount, extent, or kind of coverage available to an individual, or charge a different rate for the same coverage solely because of blindness or partial blindness. “Blindness or partial blindness” means central visual acuity of not more than 20/200 in the better eye, after correction, or visual acuity greater than 20/200 but with a limitation in the fields of vision so that the widest diameter of the visual field subtends an angle no greater than 20 degrees, certified by a licensed physician and surgeon who specializes in diseases of the eye or a licensed optometrist. (Added by Stats. 1985, Ch. 971, Sec. 1.)
1367.41.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must maintain a pharmacy and therapeutics committee to manage drug formulary lists, and the committee must meet set membership, conflict-of-interest, meeting, documentation, and review requirements.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.41. (a) Commencing January 1, 2017, a health care service plan shall maintain a pharmacy and therapeutics committee that shall be responsible for developing, maintaining, and overseeing any drug formulary list. If the plan delegates responsibility for the formulary to any entity, the obligation of the plan to comply with this chapter shall not be waived. (b) The pharmacy and therapeutics committee board membership shall conform with both of the following: (1) Represent a sufficient number of clinical specialties to adequately meet the needs of enrollees. (2) Consist of a majority of individuals who are practicing physicians, practicing pharmacists, and other practicing health professionals who are licensed to prescribe drugs. (c) Members of the board shall abstain from voting on any issue in which the member has a conflict of interest with respect to the issuer or a pharmaceutical manufacturer. (d) At least 20 percent of the board membership shall not have a conflict of interest with respect to the issuer or any pharmaceutical manufacturer. (e) The pharmacy and therapeutics committee shall meet at least quarterly and shall maintain written documentation of the rationale for its decisions regarding the development of, or revisions to, the formulary drug list. (f) The pharmacy and therapeutics committee shall do all of the following: (1) Develop and document procedures to ensure appropriate drug review and inclusion. (2) Base clinical decisions on the strength of the scientific evidence and standards of practice, including assessing peer-reviewed medical literature, pharmacoeconomic studies, outcomes research data, and other related information. (3) Consider the therapeutic advantages of drugs in terms of safety and efficacy when selecting formulary drugs. (4) Review policies that guide exceptions and other utilization management processes, including drug utilization review, quantity limits, and therapeutic interchange. (5) Evaluate and analyze treatment protocols and procedures related to the plan’s formulary at least annually. (6) Review and approve all clinical prior authorization criteria, step therapy protocols, and quantity limit restrictions applied to each covered drug. (7) Review new United States Food and Drug Administration-approved drugs and new uses for existing drugs. (8) Ensure that the plan’s formulary drug list or lists cover a range of drugs across a broad distribution of therapeutic categories and classes and recommended drug treatment regimens that treat all disease states and do not discourage enrollment by any group of enrollees. (9) Ensure that the plan’s formulary drug list or lists provide appropriate access to drugs that are included in broadly accepted treatment guidelines and that are indicative of general best practices at the time. (g) This section shall be interpreted consistent with federal guidance issued under paragraph (3) of subdivision (a) of Section 156.122 of Title 45 of the Code of Federal Regulations. This section shall apply to the individual, small group, and large group markets. (Added by Stats. 2015, Ch. 619, Sec. 3. (AB 339) Effective January 1, 2016.)
1367.42.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plans that cover essential health benefits must let enrollees use in-network retail pharmacies for prescription drug benefits, with stated exceptions. Certain individual or small group plans may use different retail-pharmacy cost sharing, but that cost sharing still counts toward the annual cost-sharing limit.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.42. (a) For plan years commencing on or after January 1, 2017, a plan that provides essential health benefits shall allow an enrollee to access prescription drug benefits at an in-network retail pharmacy unless the prescription drug is subject to restricted distribution by the United States Food and Drug Administration or requires special handling, provider coordination, or patient education that cannot be provided by a retail pharmacy. (b) A nongrandfathered individual or small group health plan contract may charge an enrollee a different cost sharing for obtaining a covered drug at a retail pharmacy, but all cost sharing shall count toward the plan’s annual limitation on cost sharing consistent with Section 1367.006. (Added by Stats. 2015, Ch. 619, Sec. 4. (AB 339) Effective January 1, 2016.)
1367.43.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must prorate an enrollee’s cost sharing for a partial prescription fill, starting January 1, 2019.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.43. Commencing January 1, 2019, a health care service plan shall prorate an enrollee’s cost sharing for a partial fill of a prescription dispensed pursuant to Section 4052.10 of the Business and Professions Code. This section shall only apply to oral, solid dosage forms of prescription drugs. (Added by Stats. 2017, Ch. 615, Sec. 3. (AB 1048) Effective January 1, 2018.)
1367.45.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plan contracts must cover an FDA-marketed AIDS vaccine recommended by the U.S. Public Health Service.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.45. (a) Every individual or group health care service plan contract that is issued, amended, or renewed on or after January 1, 2002, that covers hospital, medical, or surgery expenses shall provide coverage for a vaccine for acquired immune deficiency syndrome (AIDS) that is approved for marketing by the federal Food and Drug Administration and that is recommended by the United States Public Health Service. (b) This section may not be construed to require a health care service plan to provide coverage for any clinical trials relating to an AIDS vaccine or for any AIDS vaccine that has been approved by the federal Food and Drug Administration in the form of an investigational new drug application. (c) A health care service plan that contracts directly with an individual provider or provider organization may not delegate the risk adjusted treatment cost of providing services under this section unless the requirements of Section 1375.5 are met. (d) Nothing in this section is to be construed in any manner to limit or impede a health care service plan’s power or responsibility to negotiate the most cost-effective price for vaccine purchases. (e) Nothing in this section shall be construed to deny or restrict in any way the department’s authority to ensure plan compliance with this chapter when a plan provides coverage for prescription drugs. (Amended by Stats. 2002, Ch. 791, Sec. 5. Effective January 1, 2003.)
1367.46.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plan contracts must cover HIV testing.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.46. Every individual or group health care service plan contract that is issued, amended, or renewed on or after January 1, 2009, that covers hospital, medical, or surgery expenses shall provide coverage for human immunodeficiency virus (HIV) testing, regardless of whether the testing is related to a primary diagnosis. (Added by Stats. 2008, Ch. 631, Sec. 1. Effective January 1, 2009.)
1367.47.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans may only require an enrollee to pay the lower of the applicable cost-sharing amount or the retail price for a covered prescription drug, and they may not make a pharmacist or pharmacy charge more than the drug’s total retail price.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.47. (a) The maximum amount a health care service plan may require an enrollee to pay at the point of sale for a covered prescription drug is the lesser of the following: (1) The applicable cost-sharing amount for the prescription drug. (2) The retail price. (b) A health care service plan shall not require a pharmacist or pharmacy to charge or collect from an enrollee a cost-sharing amount that exceeds the total retail price for the prescription drug. (c) The payment rendered shall constitute the applicable cost sharing and shall apply to the deductible, if any, and also to the maximum out-of-pocket limit in the same manner as if the enrollee had purchased the prescription drug by paying the cost-sharing amount. (Added by Stats. 2018, Ch. 770, Sec. 2. (AB 2863) Effective January 1, 2019.)
1367.49.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may not use contract terms that block it from sharing cost or quality information, and it must give providers or suppliers review time and certain notices before posting information.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.49. (a) A contract issued, amended, renewed, or delivered on or after January 1, 2015, by or on behalf of a health care service plan and a provider or supplier shall not contain any provision that restricts the ability of the health care service plan to furnish consumers or purchasers information concerning any of the following: (1) The cost range of a procedure or a full course of treatment, including, but not limited to, facility, professional, and diagnostic services, prescription drugs, durable medical equipment, and other items and services related to the treatment. (2) The quality of services performed by the provider or supplier. (b) Any contractual provision inconsistent with this section shall be void and unenforceable. (c) A health care service plan shall provide the provider or supplier an advance opportunity of 30 days to review the methodology and data developed and compiled by the health care service plan, and used pursuant to subdivision (a), before cost or quality information is provided to consumers or purchasers, including material revisions or additions of new information. At the time the health care service plan provides a provider or supplier with the opportunity to review the methodology and data, it shall also notify the provider or supplier in writing of their opportunity to provide an Internet Web site link pursuant to subdivision (f). (d) If the information proposed to be furnished to enrollees and subscribers on the quality of services performed by a provider or supplier is data that the plan has developed and compiled, the plan shall utilize appropriate risk adjustment factors to account for different characteristics of the population, such as case mix, severity of patient’s condition, comorbidities, outlier episodes, and other factors to account for differences in the use of health care resources among providers and suppliers. (e) Any Internet Web site owned or controlled by a health care service plan, or operated by another person or entity under contract with or on behalf of a health care service plan, that displays the information developed and compiled by the health care service plan as referenced by this section shall prominently post the following statement: “Individual facilities or health care providers may disagree with the methodology used to define the cost ranges, the cost data, or quality measures. Many factors may influence cost or quality, including, but not limited to, the cost of uninsured and charity care, the type and severity of procedures, the case mix of a facility, special services such as trauma centers, burn units, medical and other educational programs, research, transplant services, technology, payer mix, and other factors affecting individual facilities and health care providers.” A health care service plan and a provider or supplier shall not be precluded from mutually agreeing in writing to an alternative method of conveying this statement. (f) If a provider or supplier chooses to provide an Internet Web site link where a response to the health care service plan’s posting may be found, it shall do so in a timely manner in order to satisfy the requirements of this section. If a provider or supplier chooses to provide a response, a plan shall post, in an easily identified manner, a prominent link to the provider’s or supplier’s Internet Web site where a response to the plan’s posting may be found. A health care service plan and a provider or supplier shall not be precluded from mutually agreeing in writing to an alternative method to convey a provider’s or supplier’s response. (g) For the purposes of this section, the following definitions shall apply: (1) “Consumers” means enrollees or subscribers of the health care service plan or beneficiaries of a self-funded health coverage arrangement administered by the health care service plan or other persons entitled to access services through a network established by the health care service plan. (2) “Provider” has the same meaning as that term is defined in Section 1367.50. (3) “Purchasers” means the sponsors of a self-funded health coverage arrangement administered by the health care service plan. (4) “Supplier” has the same meaning as that term is defined in Section 1367.50. (h) Section 1390 shall not apply for purposes of this section. (Amended by Stats. 2014, Ch. 83, Sec. 1. (SB 1340) Effective January 1, 2015.)
1367.5.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts issued, amended, renewed, or delivered on or after January 1, 2002, cannot include terms that block or limit health facilities’ compliance with Section 1262.5.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.5. No health care service plan contract that is issued, amended, renewed, or delivered on and after January 1, 2002, shall contain a provision that prohibits or restricts any health facilities’ compliance with the requirements of Section 1262.5. (Added by Stats. 2001, Ch. 691, Sec. 5. Effective January 1, 2002.)
1367.50.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan’s contract with a provider or supplier may not block disclosure of certain claims data to a qualified entity, and any disclosure must follow applicable privacy and security laws.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.50. (a) No contract in existence or issued, amended, or renewed on or after January 1, 2013, between a health care service plan and a provider or a supplier shall prohibit, condition, or in any way restrict the disclosure of claims data related to health care services provided to an enrollee or subscriber of the health care service plan or beneficiaries of any self-funded health coverage arrangement administered by the health care service plan, to a qualified entity, as defined in Section 1395kk(e)(2) of Title 42 of the United States Code. All disclosures of data made under this section shall comply with all applicable state and federal laws for the protection of the privacy and security of the data, including, but not limited to, the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the federal Health Information Technology for Economic and Clinical Health Act, Title XIII of the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5), and implementing regulations. (b) For purposes of this section, the following definitions apply: (1) “PPACA” means the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152). (2) “Provider” means a hospital, a skilled nursing facility, a comprehensive outpatient rehabilitation facility, a home health agency, a hospice, a clinic, or a rehabilitation agency. (3) “Supplier” means a physician and surgeon or other health care practitioner, or an entity that furnishes health care services other than a provider. (Added by Stats. 2012, Ch. 869, Sec. 2. (SB 1196) Effective January 1, 2013.)
1367.51.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans covered by this section must include specified diabetes-related coverage and limit insulin cost sharing, subject to stated exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.51. (a) A health care service plan contract, except a specialized health care service plan contract, that is issued, amended, delivered, or renewed on or after January 1, 2000, and that covers hospital, medical, or surgical expenses shall include coverage for the following equipment and supplies for the management and treatment of insulin-using diabetes, non-insulin-using diabetes, and gestational diabetes as medically necessary, even if the items are available without a prescription: (1) Blood glucose monitors and blood glucose testing strips. (2) Blood glucose monitors designed to assist the visually impaired. (3) Insulin pumps and all related necessary supplies. (4) Ketone urine testing strips. (5) Lancets and lancet puncture devices. (6) Pen delivery systems for the administration of insulin. (7) Podiatric devices to prevent or treat diabetes-related complications. (8) Insulin syringes. (9) Visual aids, excluding eyewear, to assist the visually impaired with proper dosing of insulin. (b) A health care service plan contract, except a specialized health care service plan contract, that is issued, amended, delivered, or renewed on or after January 1, 2000, that covers prescription benefits shall include coverage for the following prescription items if the items are determined to be medically necessary: (1) Insulin. (2) Prescriptive medications for the treatment of diabetes. (3) Glucagon. (c) The copayments and deductibles for the benefits specified in subdivisions (a) and (b) shall not exceed those established for similar benefits within the given plan. (d) (1) Notwithstanding subdivision (c), a large group health care service plan contract that is issued, amended, or renewed on or after January 1, 2026, shall not impose a copayment, coinsurance, deductible, or any other cost sharing on an insulin prescription drug that exceeds thirty-five dollars ($35) for a 30-day supply. At least one insulin for a given drug type in all forms and concentrations shall be on the prescription drug formulary. (2) Notwithstanding subdivision (c), an individual or small group health care service plan contract that is issued, amended, or renewed on or after January 1, 2027, shall not impose a copayment, coinsurance, deductible, or any other cost sharing on an insulin prescription drug that exceeds thirty-five dollars ($35) for a 30-day supply. If an individual or small group health care service plan contract maintains a drug formulary grouped into tiers, the cost-sharing cap pursuant to paragraph (1) shall apply only to insulin prescription drugs that are in Tier 1 and Tier 2. At least one insulin for a given drug type in all forms and concentrations shall be on Tier 1 or Tier 2. If there is no Tier 1 or Tier 2 insulin prescription drug that is clinically appropriate for an enrollee, the health care service plan shall limit the cost sharing for a higher tier drug to no more than thirty-five dollars ($35) for a 30-day supply for an individual enrollee. (3) If a health care service plan contract is a high deductible health plan, as defined in Section 223(c)(2) of Title 26 of the United States Code, the contract shall not impose a deductible, coinsurance, or any other cost sharing on an insulin prescription drug that exceeds thirty-five dollars ($35) for a 30-day supply, unless applying the thirty-five-dollar ($35) limitation for a 30-day supply of an insulin prescription drug would conflict with federal requirements for high deductible health plans. (4) When the state has the capacity to label or produce an insulin prescription drug, the deductible and copayment limitations in paragraph (1) shall also apply to an insulin prescription drug, or any therapeutic equivalent insulin prescription drug, that is labeled or produced by the state. (5) For purposes of this subdivision and subdivision (e): (A) “Drug type” includes, but is not limited to, rapid acting, regular or short acting, intermediate acting, long acting, ultra-long acting, and premixed. (B) “Insulin prescription drug” means a prescription drug that contains insulin and is used to control blood glucose levels to treat diabetes. (e) (1) Consistent with this section, on and after January 1, 2026, a health care service plan shall not impose step therapy protocols as a prerequisite to authorizing coverage of an insulin prescription drug described in subdivision (d), except as provided in paragraph (2). For purposes of this section, “step therapy protocol” means a process that specifies the sequence in which different prescription drugs for a given medical condition and medically appropriate for a particular patient are prescribed. For purposes of this section, step therapy is prohibited for both self-administered drugs and physician-administered drugs, except as provided in paragraph (2). (2) Because the United States Food and Drug Administration has approved one or more types of insulin, this section does not require a health care service plan to cover all of the types of insulin without step therapy, if at least one insulin in each drug type is covered without step therapy. (3) This subdivision does not apply to Medi-Cal managed care plans contracting with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (f) A health care service plan shall provide coverage for diabetes outpatient self-management training, education, and medical nutrition therapy necessary to enable an enrollee to properly use the equipment, supplies, and medications set forth in subdivisions (a) and (b), and additional diabetes outpatient self-management training, education, and medical nutrition therapy upon the direction or prescription of those services by the enrollee’s participating physician. If a plan delegates outpatient self-management training to contracting providers, the plan shall require contracting providers to ensure that diabetes outpatient self-management training, education, and medical nutrition therapy are provided by appropriately licensed or registered health care professionals. (g) The diabetes outpatient self-management training, education, and medical nutrition therapy services identified in subdivision (f) shall be provided by appropriately licensed or registered health care professionals as prescribed by a participating health care professional legally authorized to prescribe the service. These benefits shall include, but not be limited to, instruction that will enable diabetic patients and their families to gain an understanding of the diabetic disease process, and the daily management of diabetic therapy, in order to thereby avoid frequent hospitalizations and complications. (h) The copayments for the benefits specified in subdivision (f) shall not exceed those established for physician office visits by the plan. (i) A health care service plan governed by this section shall disclose the benefits covered pursuant to this section in the plan’s evidence of coverage and disclosure forms. (j) A health care service plan shall not reduce or eliminate coverage as a result of this section. (k) This section does not deny or restrict in any way the department’s authority to ensure plan compliance with this chapter if a plan provides coverage for prescription drugs. (l) This section does not apply to Medi-Cal managed care plans contracting with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code to the extent that the services described in this section are excluded from coverage under the contract between the Medi-Cal managed care plans and the State Department of Health Care Services. (Amended by Stats. 2025, Ch. 737, Sec. 2. (SB 40) Effective January 1, 2026.)
1367.54.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plan contracts that include maternity benefits must cover California Prenatal Screening Program participation, and that coverage cannot be treated as cost sharing.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.54. (a) Every group health care service plan contract that provides maternity benefits, except for a specialized health care service plan contract, that is issued, amended, renewed, or delivered on or after January 1, 1999, and every individual health care service plan contract of a type and form first offered for sale on or after January 1, 1999, that provides maternity benefits, except a specialized health care service plan contract, shall provide coverage for participation in the California Prenatal Screening Program, which is a statewide prenatal testing program administered by the State Department of Public Health, pursuant to Section 124977. Notwithstanding any other provision of law, a health care service plan that provides maternity benefits shall not require participation in the statewide prenatal testing program administered by the State Department of Public Health as a prerequisite to eligibility for, or receipt of, any other service. (b) Coverage required by this section shall not be subject to copayment, coinsurance, deductible, or any other form of cost sharing. (c) Reimbursement for services covered pursuant to this section shall be paid at the amount set pursuant to Section 124977 and regulations adopted thereunder. (Amended by Stats. 2015, Ch. 18, Sec. 7. (SB 75) Effective June 24, 2015.)
1367.6.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts must cover breast cancer screening, diagnosis, and treatment, and they may not deny enrollment or coverage solely because of family history or certain prior diagnostic procedures.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.6. (a) Every health care service plan contract, except a specialized health care service plan contract, that is issued, amended, delivered, or renewed on or after January 1, 2000, shall provide coverage for screening for, diagnosis of, and treatment for, breast cancer. (b) No health care service plan contract shall deny enrollment or coverage to an individual solely due to a family history of breast cancer, or who has had one or more diagnostic procedures for breast disease but has not developed or been diagnosed with breast cancer. (c) Every health care service plan contract shall cover screening and diagnosis of breast cancer, consistent with generally accepted medical practice and scientific evidence, upon the referral of the enrollee’s participating physician. (d) Treatment for breast cancer under this section shall include coverage for prosthetic devices or reconstructive surgery to restore and achieve symmetry for the patient incident to a mastectomy. Coverage for prosthetic devices and reconstructive surgery shall be subject to the copayment, or deductible and coinsurance conditions, that are applicable to the mastectomy and all other terms and conditions applicable to other benefits. (e) As used in this section, “mastectomy” means the removal of all or part of the breast for medically necessary reasons, as determined by a licensed physician and surgeon. Partial removal of a breast includes, but is not limited to, lumpectomy, which includes surgical removal of the tumor with clear margins. (f) As used in this section, “prosthetic devices” means the provision of initial and subsequent devices pursuant to an order of the patient’s physician and surgeon. (Amended by Stats. 2012, Ch. 449, Sec. 2. (SB 255) Effective January 1, 2013.)
1367.61.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts covering laryngectomy must also cover prosthetic devices to restore speaking, subject to the same deductible, coinsurance, and other applicable benefit terms.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.61. Every health care service plan contract which provides for the surgical procedure known as a laryngectomy and which is issued, amended, delivered, or renewed in this state on or after January 1, 1993, shall include coverage for prosthetic devices to restore a method of speaking for the patient incident to the laryngectomy. Coverage for prosthetic devices shall be subject to the deductible and coinsurance conditions applied to the laryngectomy and all other terms and conditions applicable to other benefits. As used in this section, “laryngectomy” means the removal of all or part of the larynx for medically necessary reasons, as determined by a licensed physician and surgeon. Any provision in any contract issued, amended, delivered, or renewed in this state on or after January 1, 1993, which is in conflict with this section shall be of no force or effect. As used in this section, “prosthetic devices” means and includes the provision of initial and subsequent prosthetic devices, including installation accessories, pursuant to an order of the patient’s physician and surgeon. “Prosthetic devices” does not include electronic voice producing machines. (Added by Stats. 1992, Ch. 808, Sec. 1. Effective January 1, 1993.)
1367.62.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans with maternity coverage must not limit inpatient hospital care below 48 hours after a normal delivery or 96 hours after a cesarean, except in specified circumstances, and must give required notices about that coverage.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.62. (a) No health care service plan contract that is issued, amended, renewed, or delivered on or after the effective date of the act adding this section, that provides maternity coverage, shall do any of the following: (1) Restrict benefits for inpatient hospital care to a time period less than 48 hours following a normal vaginal delivery and less than 96 hours following a delivery by caesarean section. However, coverage for inpatient hospital care may be for a time period less than 48 or 96 hours if both of the following conditions are met: (A) The decision to discharge the mother and newborn before the 48- or 96-hour time period is made by the treating physicians in consultation with the mother. (B) The contract covers a postdischarge followup visit for the mother and newborn within 48 hours of discharge, when prescribed by the treating physician. The visit shall be provided by a licensed health care provider whose scope of practice includes postpartum care and newborn care. The visit shall include, at a minimum, parent education, assistance and training in breast or bottle feeding, and the performance of any necessary maternal or neonatal physical assessments. The treating physician shall disclose to the mother the availability of a postdischarge visit, including an in-home visit, physician office visit, or plan facility visit. The treating physician, in consultation with the mother, shall determine whether the postdischarge visit shall occur at home, the plan’s facility, or the treating physician’s office after assessment of certain factors. These factors shall include, but not be limited to, the transportation needs of the family, and environmental and social risks. (2) Reduce or limit the reimbursement of the attending provider for providing care to an individual enrollee in accordance with the coverage requirements. (3) Provide monetary or other incentives to an attending provider to induce the provider to provide care to an individual enrollee in a manner inconsistent with the coverage requirements. (4) Deny a mother or her newborn eligibility, or continued eligibility, to enroll or to renew coverage solely to avoid the coverage requirements. (5) Provide monetary payments or rebates to a mother to encourage her to accept less than the minimum coverage requirements. (6) Restrict inpatient benefits for the second day of hospital care in a manner that is less than favorable to the mother or her newborn than those provided during the preceding portion of the hospital stay. (7) Require the treating physician to obtain authorization from the health care service plan prior to prescribing any services covered by this section. (b) (1) Every health care service plan shall include notice of the coverage specified in subdivision (a) in the plan’s evidence of coverage for evidences of coverage issued on or after January 1, 1998, and except as specified in paragraph (2), shall provide additional written notice of this coverage during the course of the enrollee’s prenatal care. The contract may require the treating physician or the enrollee’s medical group to provide this additional written notice of coverage during the course of the enrollee’s prenatal care. (2) Health care service plans that issue contracts that provide for coverage of the type commonly referred to as “preferred provider organizations” shall provide additional written notice to all females between the ages of 10 and 50 who are covered by those contracts of the coverage under subdivision (a) within 60 days of the effective date of this act. The plan shall provide additional written notice of the coverage specified in subdivision (a) during the course of prenatal care if both of the following conditions are met: (A) The plan previously notified subscribers that hospital stays for delivery would be inconsistent with the requirement in subparagraph (A) of paragraph (1) of subdivision (a). (B) The plan received notice, whether by receipt of a claim, a request for preauthorization for pregnancy-related services, or other actual notice that the enrollee is pregnant. (c) Nothing in this section shall be construed to prohibit a plan from negotiating the level and type of reimbursement with a provider for care provided in accordance with this section. (Amended by Stats. 1997, Ch. 798, Sec. 1. Effective October 9, 1997.)
1367.624.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Medically necessary pasteurized donor human milk from a licensed tissue bank is treated as a basic health care service.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.624. The provision of medically necessary pasteurized donor human milk obtained from a tissue bank licensed pursuant to Chapter 4.1 (commencing with Section 1635) is a basic health care service, as defined in subdivision (b) of Section 1345 and any regulations adopted thereunder. (Added by Stats. 2024, Ch. 975, Sec. 1. (AB 3059) Effective January 1, 2025.)
1367.625.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must create a maternal mental health program with required screenings, quality measures, and provider guidance.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.625. (a) A health care service plan shall develop a maternal mental health program designed to promote quality and cost-effective outcomes. The program shall consist of at least one maternal mental health screening to be conducted during pregnancy, at least one additional screening to be conducted during the first six weeks of the postpartum period, and additional postpartum screenings, if determined to be medically necessary and clinically appropriate in the judgment of the treating provider. The program shall be developed consistent with sound clinical principles and processes, and shall include quality measures to encourage screening, diagnosis, treatment, and referral. The program guidelines and criteria shall be provided to relevant medical providers, including all contracting obstetric providers. As part of a maternal mental health program the health care service plan is encouraged to improve screening, treatment, and referral to maternal mental health services, include coverage for doulas, incentivize training opportunities for contracting obstetric providers, and educate enrollees about the program. (b) For the purposes of this section: (1) “Contracting obstetric provider” means an individual who is certified or licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code, or an initiative act referred to in that division, and who is contracted with the enrollee’s health care service plan to provide services under the enrollee’s plan contract. (2) “Maternal mental health” means a mental health condition that occurs during pregnancy or during the postpartum period and includes, but is not limited to, postpartum depression. (c) This section does not apply to specialized health care service plans, except specialized behavioral health-only plans offering professional mental health services. (d) For purposes of this section, “health care service plan” includes Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) and Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. The State Department of Health Care Services shall seek any federal approvals it deems necessary to implement this section. This section applies to Medi-Cal managed care plan contracts only to the extent that the State Department of Health Care Services obtains any necessary federal approvals, and federal financial participation under the Medi-Cal program is available and not otherwise jeopardized. (e) Notwithstanding subdivision (a), a Medi-Cal managed care plan shall continue to comply with any quality measures required or adopted by the State Department of Health Care Services. Quality measures included in a Medi-Cal managed care plan’s maternal mental health program shall not be inconsistent with quality measures required or adopted by the State Department of Health Care Services. (Amended by Stats. 2024, Ch. 815, Sec. 1. (AB 1936) Effective January 1, 2025.)
1367.626.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must create a maternal and infant health equity program by January 1, 2025, and the department must report on doula coverage and related programs to the Legislature by January 1, 2027.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.626. (a) (1) On or before January 1, 2025, a health care service plan shall develop a maternal and infant health equity program that addresses racial health disparities in maternal and infant health outcomes through the use of doulas. This may be achieved by integrating the program into existing maternal mental health programs, including those encouraging the coverage of doula care, or by expanding existing doula programs. (2) (A) A Medi-Cal managed care plan shall be considered compliant with the requirements of this section by providing coverage of doula services so long as doula services are a Medi-Cal covered benefit. (B) For the purpose of this section, “Medi-Cal managed care plan” has the same meaning as provided in subdivision (j) of Section 14184.101 of the Welfare and Institutions Code. (b) The department, in consultation with the Department of Insurance, shall collect data and submit a report describing the doula coverage and programs established pursuant to subdivision (a) to the Legislature by January 1, 2027. The report may do both of the following: (1) Include the department’s Healthcare Effectiveness Data and Information Set (HEDIS) measures. (2) Assess quality of care, increased access, ongoing barriers to access, and more. (Amended by Stats. 2026, Ch. 27, Sec. 15. (SB 164) Effective June 29, 2026.)
1367.627.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care plan contracts must let providers separately bill certain immediate postpartum contraception items, and may not treat them as part of a general obstetric procedure payment.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.627. (a) A contract between a health care service plan and a health care provider issued, amended, or renewed on or after January 1, 2025, shall authorize a provider to separately bill for devices, implants, or professional services, or a combination thereof, associated with immediate postpartum contraception if the birth takes place in a general acute care hospital or licensed birth center. The provider contract shall not consider those devices, implants, or services to be part of a payment for a general obstetric procedure. (b) For purposes of this section, “immediate postpartum contraception” means the postpartum insertion of intrauterine devices or contraceptive implants performed before the enrollee is discharged from the general acute care hospital or licensed birth center and includes the devices or implants themselves. (c) This section does not affect an enrollee’s right to directly access women’s health care services, including contraceptive services, and informed consent. (Added by Stats. 2024, Ch. 950, Sec. 1. (AB 2129) Effective January 1, 2025.)
1367.63.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts generally must cover medically necessary reconstructive surgery, but not cosmetic surgery.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.63. (a) Every health care service plan contract, except a specialized health care service plan contract, that is issued, amended, renewed, or delivered in this state on or after July 1, 1999, shall cover reconstructive surgery, as defined in subdivision (c), that is necessary to achieve the purposes specified in subparagraph (A) or (B) of paragraph (1) of subdivision (c). Nothing in this section shall be construed to require a plan to provide coverage for cosmetic surgery, as defined in subdivision (d). (b) No individual, other than a licensed physician competent to evaluate the specific clinical issues involved in the care requested, may deny initial requests for authorization of coverage for treatment pursuant to this section. For a treatment authorization request submitted by a podiatrist or an oral and maxillofacial surgeon, the request may be reviewed by a similarly licensed individual, competent to evaluate the specific clinical issues involved in the care requested. (c) (1) “Reconstructive surgery” means surgery performed to correct or repair abnormal structures of the body caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease to do either of the following: (A) To improve function. (B) To create a normal appearance, to the extent possible. (2) As of July 1, 2010, “reconstructive surgery” shall include medically necessary dental or orthodontic services that are an integral part of reconstructive surgery, as defined in paragraph (1), for cleft palate procedures. (3) For purposes of this section, “cleft palate” means a condition that may include cleft palate, cleft lip, or other craniofacial anomalies associated with cleft palate. (d) “Cosmetic surgery” means surgery that is performed to alter or reshape normal structures of the body in order to improve appearance. (e) In interpreting the definition of reconstructive surgery, a health care service plan may utilize prior authorization and utilization review that may include, but need not be limited to, any of the following: (1) Denial of the proposed surgery if there is another more appropriate surgical procedure that will be approved for the enrollee. (2) Denial of the proposed surgery or surgeries if the procedure or procedures, in accordance with the standard of care as practiced by physicians specializing in reconstructive surgery, offer only a minimal improvement in the appearance of the enrollee. (3) Denial of payment for procedures performed without prior authorization. (4) For services provided under the Medi-Cal program (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code), denial of the proposed surgery if the procedure offers only a minimal improvement in the appearance of the enrollee, as may be defined in any regulations that may be promulgated by the State Department of Health Care Services. (f) As applied to services described in paragraph (2) of subdivision (c) only, this section shall not apply to Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) of, Chapter 8 (commencing with Section 14200) of, or Chapter 8.75 (commencing with Section 14591) of, Part 3 of Division 9 of the Welfare and Institutions Code, where such contracts do not provide coverage for California Children’s Services (CCS) or dental services. (Amended by Stats. 2011, Ch. 367, Sec. 3. (AB 574) Effective January 1, 2012.)
1367.635.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans covering mastectomies and lymph node dissections must cover specified hospital-stay, reconstructive, and complication-related care, and may not require prior approval for hospital-stay length decisions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.635. (a) Every health care service plan contract that is issued, amended, renewed, or delivered on or after January 1, 1999, that provides coverage for surgical procedures known as mastectomies and lymph node dissections, shall do all of the following: (1) Allow the length of a hospital stay associated with those procedures to be determined by the attending physician and surgeon in consultation with the patient, postsurgery, consistent with sound clinical principles and processes. No health care service plan shall require a treating physician and surgeon to receive prior approval from the plan in determining the length of hospital stay following those procedures. (2) Cover prosthetic devices or reconstructive surgery, including devices or surgery to restore and achieve symmetry for the patient incident to the mastectomy. Coverage for prosthetic devices and reconstructive surgery shall be subject to the deductible and coinsurance conditions applicable to other benefits. (3) Cover all complications from a mastectomy, including lymphedema. (b) As used in this section, all of the following definitions apply: (1) “Coverage for prosthetic devices or reconstructive surgery” means any initial and subsequent reconstructive surgeries or prosthetic devices, and followup care deemed necessary by the attending physician and surgeon. (2) “Prosthetic devices” means and includes the provision of initial and subsequent prosthetic devices pursuant to an order of the patient’s physician and surgeon. (3) “Mastectomy” means the removal of all or part of the breast for medically necessary reasons, as determined by a licensed physician and surgeon. Partial removal of a breast includes, but is not limited to, lumpectomy, which includes surgical removal of the tumor with clear margins. (4) “To restore and achieve symmetry” means that, in addition to coverage of prosthetic devices and reconstructive surgery for the diseased breast on which the mastectomy was performed, prosthetic devices and reconstructive surgery for a healthy breast is also covered if, in the opinion of the attending physician and surgeon, this surgery is necessary to achieve normal symmetrical appearance. (c) No individual, other than a licensed physician and surgeon competent to evaluate the specific clinical issues involved in the care requested, may deny requests for authorization of health care services pursuant to this section. (d) No health care service plan shall do any of the following in providing the coverage described in subdivision (a): (1) Reduce or limit the reimbursement of the attending provider for providing care to an individual enrollee or subscriber in accordance with the coverage requirements. (2) Provide monetary or other incentives to an attending provider to induce the provider to provide care to an individual enrollee or subscriber in a manner inconsistent with the coverage requirements. (3) Provide monetary payments or rebates to an individual enrollee or subscriber to encourage acceptance of less than the coverage requirements. (e) On or after July 1, 1999, every health care service plan shall include notice of the coverage required by this section in the plan’s evidence of coverage. (f) Nothing in this section shall be construed to limit retrospective utilization review and quality assurance activities by the plan. (Amended by Stats. 2012, Ch. 449, Sec. 3. (SB 255) Effective January 1, 2013.)
1367.64.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Most individual or group health care service plan contracts must cover prostate cancer screening and diagnosis, subject to the stated conditions and exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.64. (a) Every individual or group health care service plan contract, except for a specialized health care service plan contract, that is issued, amended, or renewed on or after January 1, 1999, shall be deemed to provide coverage for the screening and diagnosis of prostate cancer, including, but not limited to, prostate-specific antigen testing and digital rectal examinations, when medically necessary and consistent with good professional practice. (b) Nothing in this section shall be construed to establish a new mandated benefit or to prevent application of deductible or copayment provisions in a policy or plan, nor shall this section be construed to require that a policy or plan be extended to cover any other procedures under an individual or a group health care service plan contract. Nothing in this section shall be construed to authorize an enrollee to receive the services required to be covered by this section if those services are furnished by a nonparticipating provider, unless the enrollee is referred to that provider by a participating physician or nurse practitioner providing care. (Added by Stats. 1998, Ch. 839, Sec. 1. Effective January 1, 1999.)
1367.65.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts generally must cover mammography for screening or diagnostic purposes when there is a referral from a participating clinician, with an exception for specialized plans.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.65. (a) On or after January 1, 2000, each health care service plan contract, except a specialized health care service plan contract, that is issued, amended, delivered, or renewed shall be deemed to provide coverage for mammography for screening or diagnostic purposes upon referral by a participating nurse practitioner, participating certified nurse-midwife, participating physician assistant, or participating physician, providing care to the patient and operating within the scope of practice provided under existing law. (b) This section does not prevent application of copayment or deductible provisions in a plan, nor shall this section be construed to require that a plan be extended to cover any other procedures under an individual or a group health care service plan contract. This section does not authorize a plan enrollee to receive the services required to be covered by this section if those services are furnished by a nonparticipating provider, unless the plan enrollee is referred to that provider by a participating physician, nurse practitioner, or certified nurse-midwife providing care. (Amended by Stats. 2013, Ch. 76, Sec. 108. (AB 383) Effective January 1, 2014.)
1367.656.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plan contracts covering prescribed oral anticancer drugs must cap enrollee copayments and coinsurance at $250 for a 30-day supply, with a special rule for high-deductible plans.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.656. (a) Notwithstanding any other law, an individual or group health care service plan contract issued, amended, or renewed on or after January 1, 2015, that provides coverage for prescribed, orally administered anticancer medications used to kill or slow the growth of cancerous cells shall comply with all of the following: (1) Notwithstanding any deductible, the total amount of copayments and coinsurance an enrollee is required to pay shall not exceed two hundred fifty dollars ($250) for an individual prescription of up to a 30-day supply of a prescribed orally administered anticancer medication covered by the contract. (2) For a health care service plan contract that meets the definition of a “high deductible health plan” set forth in Section 223(c)(2) of Title 26 of the United States Code, paragraph (1) shall only apply once an enrollee’s deductible has been satisfied for the year. (3) An orally administered anticancer medication shall be provided consistent with the appropriate standard of care for that medication. (b) This section shall not apply to a specialized health care service plan contract that covers only dental or vision benefits or any coverage under a health care service plan contract for the Medicare Program pursuant to Title XVIII of the federal Social Security Act (42 U.S.C. Sec. 1395 et seq.). (Amended by Stats. 2023, Ch. 607, Sec. 1. (SB 421) Effective January 1, 2024.)
1367.66.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts must cover certain cervical cancer screening tests and HPV vaccine coverage, and they may not add cost-sharing to the HPV vaccine coverage.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.66. (a) Every individual or group health care service plan contract, except for a specialized health care service plan, issued, amended, or renewed on or after January 1, 2002, shall provide coverage for an annual cervical cancer screening test upon the referral of the patient’s physician and surgeon, a nurse practitioner, or a certified nurse-midwife, providing care to the patient and operating within the scope of practice otherwise permitted for the licensee. (1) The coverage for an annual cervical cancer screening test provided pursuant to this section shall include the conventional Pap test, a human papillomavirus screening test that is approved by the United States Food and Drug Administration (FDA), and the option of any cervical cancer screening test approved by the FDA, upon the referral of the patient’s health care provider. (2) This subdivision does not establish a new mandated benefit or prevent application of deductible or copayment provisions in an existing plan contract. The Legislature intends in this section to provide that cervical cancer screening services are deemed to be covered if the plan contract includes coverage for cervical cancer treatment or surgery. (b) A health care service plan contract, except for a specialized health care service plan, issued, amended, or renewed on or after January 1, 2024, shall provide coverage for the human papillomavirus vaccine for enrollees for whom the vaccine is approved by the FDA. A health care service plan contract shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided pursuant to this subdivision. (Amended by Stats. 2023, Ch. 809, Sec. 3. (AB 659) Effective January 1, 2024.)
1367.665.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must cover generally medically accepted cancer screening tests and generally may not require prior authorization for certain biomarker testing for advanced or metastatic stage 3 or 4 cancer.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.665. (a) A health care service plan contract, except for a specialized health care service plan contract, that is issued, amended, delivered, or renewed on or after July 1, 2000, shall be deemed to provide coverage for all generally medically accepted cancer screening tests, subject to all terms and conditions that would otherwise apply. (b) (1) A health care service plan contract, except for a specialized health care service plan contract, that is issued, amended, delivered, or renewed on or after July 1, 2022, shall not require prior authorization for either of the following: (A) Biomarker testing for an enrollee with advanced or metastatic stage 3 or 4 cancer. (B) Biomarker testing for cancer progression or recurrence in the enrollee with advanced or metastatic stage 3 or 4 cancer. (2) This subdivision shall also apply to health care service plan contracts and Medi-Cal managed care plan contracts with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. (c) For purposes of this section, “biomarker test” means a diagnostic test, such as single or multigene, of the cancer patient’s biospecimen, such as tissue, blood, or other bodily fluids, for DNA or RNA alterations, including phenotypic characteristics of a malignancy, to identify an individual with a subtype of cancer, in order to guide patient treatment. (d) Notwithstanding subdivision (b), this section does not prohibit a health care service plan from requiring prior authorization on biomarker testing that is not for an FDA-approved therapy for advanced or metastatic stage 3 or 4 cancer. (e) This section does not limit, prohibit, or modify an enrollee’s rights to biomarker testing as part of an approved clinical trial under Section 1370.6. (Amended by Stats. 2021, Ch. 605, Sec. 1. (SB 535) Effective January 1, 2022.)
1367.667.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Most health care service plans must cover medically necessary biomarker testing for covered contracts, and they must use a specified process to decide medical necessity and provide testing in a way that minimizes care disruptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.667. (a) A health care service plan contract, except for a specialized health care service plan contract, that is issued, amended, delivered, or renewed on or after July 1, 2024, shall cover medically necessary biomarker testing, subject to utilization review management, pursuant to this section. Biomarker testing shall be covered for the purposes of diagnosis, treatment, appropriate management, or ongoing monitoring of an enrollee’s disease or condition to guide treatment decisions. Coverage shall include biomarker tests that meet any of the following: (1) A labeled indication for a test that has been approved or cleared by the United States Food and Drug Administration (FDA) or is an indicated test for an FDA-approved drug. (2) A national coverage determination made by the federal Centers for Medicare and Medicaid Services. (3) A local coverage determination made by a Medicare Administrative Contractor for California. (4) Evidence-based clinical practice guidelines, supported by peer-reviewed literature and peer-reviewed scientific studies published in or accepted for publication by medical journals that meet nationally recognized requirements for scientific manuscripts and that submit most of their published articles for review by experts who are not part of the editorial staff. (5) Standards set by the National Academy of Medicine. (b) A health care service plan shall use the process described in Section 1363.5 to determine whether biomarker testing is medically necessary for purposes of this section. (c) A health care service plan that is subject to this section shall ensure that biomarker testing is provided in a manner that limits disruptions in care, including the need for multiple biopsies or biospecimen samples. This section does not require coverage of biomarker testing for screening purposes unless otherwise required by this chapter. (d) Restricted or denied use of biomarker testing for the purpose of diagnosis, treatment, or ongoing monitoring of any medical condition is subject to grievance and appeal processes under state and federal law. (e) (1) This section shall not apply to any Medi-Cal managed care plan contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. For these plans, the biomarker testing coverage pursuant to Section 14132.09 of the Welfare and Institutions Code shall apply. (2) This subdivision shall not be construed to remove any obligation that is otherwise applicable to Medi-Cal managed care plans licensed under this chapter. (f) For purposes of this section, the following definitions apply: (1) “Biomarker” means a characteristic that is objectively measured and evaluated as an indicator of normal biological processes, pathogenic processes, or pharmacological responses to a specific therapeutic intervention. A biomarker includes, but is not limited to, gene mutations or protein expression. (2) “Biomarker testing” means the analysis of an individual’s tissue, blood, or other biospecimen for the presence of a biomarker. Biomarker testing includes, but is not limited to, single-analyte tests, multiplex panel tests, and whole genome sequencing. (g) This section is subject to the provisions of Section 1367.665 as amended by Chapter 605 of the Statutes of 2021 for an enrollee with advanced or metastatic stage III or IV cancer. (Added by Stats. 2023, Ch. 401, Sec. 1. (SB 496) Effective January 1, 2024.)
1367.668.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts generally must cover certain colorectal cancer screening tests and related colonoscopies without cost sharing, except specialized contracts and limited out-of-network cases.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.668. (a) Every health care service plan contract, except a specialized health care service plan contract, that is issued, amended, or renewed on or after January 1, 2022, shall provide coverage without any cost sharing for a colorectal cancer screening test assigned either a grade of A or a grade of B by the United States Preventive Services Task Force. The required colonoscopy for a positive result on a test or procedure, other than a colonoscopy, that is a colorectal cancer screening examination or laboratory test identified assigned either a grade of A or a grade of B by the United States Preventive Services Task Force shall also be provided without any cost sharing. (b) This section does not preclude a health care service plan that has coverage for out-of-network benefits from imposing cost-sharing requirements for the items or services described in this section that are delivered by an out-of-network provider. (Added by Stats. 2021, Ch. 436, Sec. 1. (AB 342) Effective January 1, 2022.)
1367.67.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans with hospital, medical, or surgical coverage must include osteoporosis-related coverage in covered contracts issued, amended, delivered, or renewed on or after January 1, 1994.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.67. Every health care service plan contract that provides hospital, medical, or surgical coverage, that is issued, amended, delivered, or renewed in this state on or after January 1, 1994, shall be deemed to include coverage for services related to diagnosis, treatment, and appropriate management of osteoporosis. The services may include, but need not be limited to, all Food and Drug Administration approved technologies, including bone mass measurement technologies as deemed medically appropriate. (Added by Stats. 1993, Ch. 1208, Sec. 2. Effective January 1, 1994.)
1367.68.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan contract exclusion for certain jawbone-related surgical procedures cannot take effect against an enrollee if it would prevent medically necessary basic health care services.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.68. (a) Any provision in a health care service plan contract entered into, amended, or renewed in this state on or after July 1, 1995, that excludes coverage for any surgical procedure for any condition directly affecting the upper or lower jawbone, or associated bone joints, shall have no force or effect as to any enrollee if that provision results in any failure to provide medically-necessary basic health care services to the enrollee pursuant to the plan’s definition of medical necessity. (b) For purposes of this section, “plan contract” means every plan contract, except a specialized health care service plan contract, that covers hospital, medical, or surgical expenses. (c) Nothing in this section shall be construed to prohibit a plan from excluding coverage for dental services provided that any exclusion does not result in any failure to provide medically-necessary basic health care services. (Added by Stats. 1994, Ch. 1282, Sec. 1. Effective January 1, 1995.)
1367.69.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts of the covered type must include obstetrician-gynecologists as eligible primary care physicians if they meet the plan’s specialist eligibility criteria.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.69. (a) On or after January 1, 1995, every health care service plan contract that provides hospital, medical, or surgical coverage, that is issued, amended, delivered, or renewed in this state, shall include obstetrician-gynecologists as eligible primary care physicians, provided they meet the plan’s eligibility criteria for all specialists seeking primary care physician status. (b) For purposes of this section, the term “primary care physician” means a physician, as defined in Section 14254 of the Welfare and Institutions Code, who has the responsibility for providing initial and primary care to patients, for maintaining the continuity of patient care, and for initiating referral for specialist care. This means providing care for the majority of health care problems, including, but not limited to, preventive services, acute and chronic conditions, and psychosocial issues. (Added by Stats. 1994, Ch. 759, Sec. 2. Effective January 1, 1995.)
1367.695.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must let enrollees get certain obstetrical and gynecological services directly, and enrollees cannot be forced to get prior approval first.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.695. (a) The Legislature finds and declares that the unique, private, and personal relationship between women patients and their obstetricians and gynecologists warrants direct access to obstetrical and gynecological physician services. (b) Each health care service plan contract issued, amended, renewed, or delivered in this state, except a specialized health care service plan, shall allow an enrollee the option to seek obstetrical and gynecological physician services directly from a participating obstetrician and gynecologist or directly from a participating family physician and surgeon designated by the plan as providing obstetrical and gynecological services. (c) In implementing this section, a health care service plan may establish reasonable requirements governing utilization protocols and the use of obstetricians and gynecologists, or family physicians and surgeons, as provided for in subdivision (b), participating in the plan network, medical group, or independent practice association, if those requirements are consistent with the intent of this section, are customarily applied to other physicians and surgeons, such as primary care physicians and surgeons, to whom the enrollee has direct access, and are no more restrictive for the provision of obstetrical and gynecological physician services. An enrollee shall not be required to obtain prior approval from another physician, another provider, or the health care service plan prior to obtaining direct access to obstetrical and gynecological physician services, but the plan may establish reasonable requirements for the participating obstetrician and gynecologist or family physician and surgeon, as provided for in subdivision (b), to communicate with the enrollee’s primary care physician and surgeon regarding the enrollee’s condition, treatment, and any need for followup care. (d) This section does not diminish the requirements of Section 1367.69. (Amended by Stats. 2019, Ch. 632, Sec. 7. (AB 1622) Effective January 1, 2020.)
1367.7.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans that offer group maternity coverage must also offer prenatal diagnosis coverage for fetal genetic disorders in high-risk pregnancies, and they must tell group holders and negotiating groups that the coverage is available.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.7. On and after January 1, 1980, every health care service plan contract that covers hospital, medical, or surgical expenses on a group basis, and which offers maternity coverage in such groups, shall also offer coverage for prenatal diagnosis of genetic disorders of the fetus by means of diagnostic procedures in cases of high-risk pregnancy. Every health care service plan shall communicate the availability of such coverage to all group contract holders and to all groups with whom they are negotiating. (Added by Stats. 1979, Ch. 629.)
1367.71.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must treat certain dental anesthesia and related facility charges as covered in specified cases.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.71. (a) Every health care service plan contract, other than a specialized health care service plan contract, that is issued, amended, renewed, or delivered on or after January 1, 2000, shall be deemed to cover general anesthesia and associated facility charges for dental procedures rendered in a hospital or surgery center setting, when the clinical status or underlying medical condition of the patient requires dental procedures that ordinarily would not require general anesthesia to be rendered in a hospital or surgery center setting. The health care service plan may require prior authorization of general anesthesia and associated charges required for dental care procedures in the same manner that prior authorization is required for other covered diseases or conditions. (b) This section shall apply only to general anesthesia and associated facility charges for only the following enrollees, and only if the enrollees meet the criteria in subdivision (a): (1) Enrollees who are under seven years of age. (2) Enrollees who are developmentally disabled, regardless of age. (3) Enrollees whose health is compromised and for whom general anesthesia is medically necessary, regardless of age. (c) Nothing in this section shall require the health care service plan to cover any charges for the dental procedure itself, including, but not limited to, the professional fee of the dentist. Coverage for anesthesia and associated facility charges pursuant to this section shall be subject to all other terms and conditions of the plan that apply generally to other benefits. (d) Nothing in this section shall be construed to allow a health care service plan to deny coverage for basic health care services, as defined in Section 1345. (e) A health care service plan may include coverage specified in subdivision (a) at any time prior to January 1, 2000. (Added by Stats. 1998, Ch. 790, Sec. 1. Effective January 1, 1999.)
1367.8.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health plan cannot deny or reduce coverage, or charge a different rate for the same coverage, just because of a physical or mental impairment, unless actuarial or underwriting reasons support the decision.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.8. No plan issuing, providing, or administering any individual or group health care service plan entered into, amended, or issued on or after January 1, 1981, shall refuse to cover, or refuse to continue to cover, or limit the amount, extent or kind of coverage available to an individual, or charge a different rate for the same coverage solely because of a physical or mental impairment, except where the refusal, limitation or rate differential is based on sound actuarial principles applied to actual experience, or, if insufficient actual experience is available, then to sound underwriting practices. This section shall not apply to a health maintenance organization qualified pursuant to Title XIII of the federal Public Health Service Act if such organization gives public notice 30 days in advance, in a newspaper of general circulation published in the area served by the health maintenance organization, of its open enrollment period required by such act. (Added by Stats. 1980, Ch. 352.)
1367.9.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts covering hospital, medical, or surgical expenses may not include certain DES-related exclusions or limitations after January 1, 1981.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1367.9. No health care service plan contract which covers hospital, medical, or surgical expenses shall be issued, amended, delivered, or renewed in this state on or after January 1, 1981, if it contains any exclusion, reduction, or other limitations, as to coverage, deductibles, or coinsurance or copayment provisions applicable solely to conditions attributable to diethylstilbestrol or exposure to diethylstilbestrol. Any provision in any contract issued, amended, delivered, or renewed in this state on or after January 1, 1981, which is in conflict with this section shall be of no force or effect. (Added by renumbering Section 1367.8 (as added by Stats. 1980, Ch. 776) by Stats. 1981, Ch. 714.)
1368.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must maintain a department-approved grievance system, give notices and responses on set timelines, keep grievance records, and continue coverage in certain cancellation or nonrenewal disputes.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368. (a) Every plan shall do all of the following: (1) Establish and maintain a grievance system approved by the department under which enrollees may submit their grievances to the plan. Each system shall provide reasonable procedures in accordance with department regulations that shall ensure adequate consideration of enrollee grievances and rectification when appropriate. (2) Inform its subscribers and enrollees upon enrollment in the plan and annually thereafter of the procedure for processing and resolving grievances. The information shall include the location and telephone number where grievances may be submitted. (3) Provide forms for grievances to be given to subscribers and enrollees who wish to register written grievances. The forms used by plans licensed pursuant to Section 1353 shall be approved by the director in advance as to format. (4) (A) Provide for a written acknowledgment within five calendar days of the receipt of a grievance, except as noted in subparagraph (B). The acknowledgment shall advise the complainant of the following: (i) That the grievance has been received. (ii) The date of receipt. (iii) The name of the plan representative and the telephone number and address of the plan representative who may be contacted about the grievance. (B) (i) Grievances received by telephone, by facsimile, by email, or online through the plan’s internet website pursuant to Section 1368.015, that are not coverage disputes, disputed health care services involving medical necessity, or experimental or investigational treatment and that are resolved by the next business day following receipt are exempt from the requirements of subparagraph (A) and paragraph (5). The plan shall maintain a log of all these grievances. The log shall be periodically reviewed by the plan and shall include the following information for each complaint: (I) The date of the call. (II) The name of the complainant. (III) The complainant’s member identification number. (IV) The nature of the grievance. (V) The nature of the resolution. (VI) The name of the plan representative who took the call and resolved the grievance. (ii) For health plan contracts in the individual, small group, or large group markets, a health care service plan’s response to grievances subject to Section 1367.24 shall also comply with subdivision (c) of Section 156.122 of Title 45 of the Code of Federal Regulations. This paragraph shall not apply to Medi-Cal managed care health care service plan contracts or any entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (5) Provide subscribers and enrollees with written responses to grievances, with a clear and concise explanation of the reasons for the plan’s response. For grievances involving the delay, denial, or modification of health care services, the plan response shall describe the criteria used and the clinical reasons for its decision, including all criteria and clinical reasons related to medical necessity. If a plan, or one of its contracting providers, issues a decision delaying, denying, or modifying health care services based in whole or in part on a finding that the proposed health care services are not a covered benefit under the contract that applies to the enrollee, the decision shall clearly specify the provisions in the contract that exclude that coverage. (6) For grievances involving the cancellation, rescission, or nonrenewal of a health care service plan contract, the health care service plan shall continue to provide coverage to the enrollee or subscriber under the terms of the health care service plan contract until a final determination of the enrollee’s or subscriber’s request for review has been made by the health care service plan or the director pursuant to Section 1365 and this section. This paragraph shall not apply if the health care service plan cancels or fails to renew the enrollee’s or subscriber’s health care service plan contract for nonpayment of premiums pursuant to paragraph (1) of subdivision (a) of Section 1365. (7) Keep in its files all copies of grievances, and the responses thereto, for a period of five years. (b) (1) (A) After either completing the grievance process described in subdivision (a), or participating in the process for at least 30 days, a subscriber or enrollee may submit the grievance to the department for review. In any case determined by the department to be a case involving an imminent and serious threat to the health of the patient, including, but not limited to, severe pain, the potential loss of life, limb, or major bodily function, cancellations, rescissions, or the nonrenewal of a health care service plan contract, or in any other case where the department determines that an earlier review is warranted, a subscriber or enrollee shall not be required to complete the grievance process or to participate in the process for at least 30 days before submitting a grievance to the department for review. (B) A grievance may be submitted to the department for review and resolution prior to any arbitration. (C) Notwithstanding subparagraphs (A) and (B), the department may refer any grievance that does not pertain to compliance with this chapter to the State Department of Public Health, the California Department of Aging, the federal Health Care Financing Administration, or any other appropriate governmental entity for investigation and resolution. (2) If the subscriber or enrollee is a minor, or is incompetent or incapacitated, the parent, guardian, conservator, relative, or other designee of the subscriber or enrollee, as appropriate, may submit the grievance to the department as the agent of the subscriber or enrollee. Further, a provider may join with, or otherwise assist, a subscriber or enrollee, or the agent, to submit the grievance to the department. In addition, following submission of the grievance to the department, the subscriber or enrollee, or the agent, may authorize the provider to assist, including advocating on behalf of the subscriber or enrollee. For purposes of this section, a “relative” includes the parent, stepparent, spouse, adult son or daughter, grandparent, brother, sister, uncle, or aunt of the subscriber or enrollee. (3) The department shall review the written documents submitted with the subscriber’s or the enrollee’s request for review, or submitted by the agent on behalf of the subscriber or enrollee. The department may ask for additional information, and may hold an informal meeting with the involved parties, including providers who have joined in submitting the grievance or who are otherwise assisting or advocating on behalf of the subscriber or enrollee. If after reviewing the record, the department concludes that the grievance, in whole or in part, is eligible for review under the independent medical review system established pursuant to Article 5.55 (commencing with Section 1374.30), the department shall immediately notify the subscriber or enrollee, or agent, of that option and shall, if requested orally or in writing, assist the subscriber or enrollee in participating in the independent medical review system. (4) If after reviewing the record of a grievance, the department concludes that a health care service eligible for coverage and payment under a health care service plan contract has been delayed, denied, or modified by a plan, or by one of its contracting providers, in whole or in part due to a determination that the service is not medically necessary, and that determination was not communicated to the enrollee in writing along with a notice of the enrollee’s potential right to participate in the independent medical review system, as required by this chapter, the director shall, by order, assess administrative penalties. A proceeding for the issuance of an order assessing administrative penalties shall be subject to appropriate notice of, and the opportunity for, a hearing with regard to the person affected in accordance with Section 1397. The administrative penalties shall not be deemed an exclusive remedy available to the director. These penalties shall be paid to the Managed Care Administrative Fines and Penalties Fund and shall be used for the purposes specified in Section 1341.45. (5) The department shall send a written notice of the final disposition of the grievance, and the reasons therefor, to the subscriber or enrollee, the agent, to any provider that has joined with or is otherwise assisting the subscriber or enrollee, and to the plan, within 30 calendar days of receipt of the request for review unless the director, in the director’s discretion, determines that additional time is reasonably necessary to fully and fairly evaluate the relevant grievance. In any case not eligible for the independent medical review system established pursuant to Article 5.55 (commencing with Section 1374.30), the department’s written notice shall include, at a minimum, the following: (A) A summary of its findings and the reasons why the department found the plan to be, or not to be, in compliance with any applicable laws, regulations, or orders of the director. (B) A discussion of the department’s contact with any medical provider, or any other independent expert relied on by the department, along with a summary of the views and qualifications of that provider or expert. (C) If the enrollee’s grievance is sustained in whole or in part, information about any corrective action taken. (6) In any department review of a grievance involving a disputed health care service, as defined in subdivision (b) of Section 1374.30, that is not eligible for the independent medical review system established pursuant to Article 5.55 (commencing with Section 1374.30), in which the department finds that the plan has delayed, denied, or modified health care services that are medically necessary, based on the specific medical circumstances of the enrollee, and those services are a covered benefit under the terms and conditions of the health care service plan contract, the department’s written notice shall do either of the following: (A) Order the plan to promptly offer and provide those health care services to the enrollee. (B) Order the plan to promptly reimburse the enrollee for any reasonable costs associated with urgent care or emergency services, or other extraordinary and compelling health care services, when the department finds that the enrollee’s decision to secure those services outside of the plan network was reasonable under the circumstances. The department’s order shall be binding on the plan. (7) Distribution of the written notice shall not be deemed a waiver of any exemption or privilege under existing law, including, but not limited to, Section 7921.505 of the Government Code, for any information in connection with and including the written notice, nor shall any person employed or in any way retained by the department be required to testify as to that information or notice. (8) The director shall establish and maintain a system of aging of grievances that are pending and unresolved for 30 days or more that shall include a brief explanation of the reasons each grievance is pending and unresolved for 30 days or more. (9) A subscriber or enrollee, or the agent acting on behalf of a subscriber or enrollee, may also request voluntary mediation with the plan prior to exercising the right to submit a grievance to the department. The use of mediation services shall not preclude the right to submit a grievance to the department upon completion of mediation. In order to initiate mediation, the subscriber or enrollee, or the agent acting on behalf of the subscriber or enrollee, and the plan shall voluntarily agree to mediation. Expenses for mediation shall be borne equally by both sides. The department shall have no administrative or enforcement responsibilities in connection with the voluntary mediation process authorized by this paragraph. (c) The plan’s grievance system shall include a system of aging of grievances that are pending and unresolved for 30 days or more. The plan shall provide a quarterly report to the director of grievances pending and unresolved for 30 or more days with separate categories of grievances for Medicare enrollees and Medi-Cal enrollees. The plan shall include with the report a brief explanation of the reasons each grievance is pending and unresolved for 30 days or more. The plan may include the following statement in the quarterly report that is made available to the public by the director: “Under Medicare and Medi-Cal law, Medicare enrollees and Medi-Cal enrollees each have separate avenues of appeal that are not available to other enrollees. Therefore, grievances pending and unresolved may reflect enrollees pursuing their Medicare or Medi-Cal appeal rights.” If requested by a plan, the director shall include this statement in a written report made available to the public and prepared by the director that describes or compares grievances that are pending and unresolved with the plan for 30 days or more. Additionally, the director shall, if requested by a plan, append to that written report a brief explanation, provided in writing by the plan, of the reasons why grievances described in that written report are pending and unresolved for 30 days or more. The director shall not be required to include a statement or append a brief explanation to a written report that the director is required to prepare under this chapter, including Sections 1380 and 1397.5. (d) Subject to subparagraph (C) of paragraph (1) of subdivision (b), the grievance or resolution procedures authorized by this section shall be in addition to any other procedures that may be available to any person, and failure to pursue, exhaust, or engage in the procedures described in this section shall not preclude the use of any other remedy provided by law. (e) Nothing in this section shall be construed to allow the submission to the department of any provider grievance under this section. However, as part of a provider’s duty to advocate for medically appropriate health care for the provider’s patients pursuant to Sections 510 and 2056 of the Business and Professions Code, nothing in this subdivision shall be construed to prohibit a provider from contacting and informing the department about any concerns the provider has regarding compliance with or enforcement of this chapter. (f) To the extent required by Section 2719 of the federal Public Health Service Act (42 U.S.C. Sec. 300gg-19) and any subsequent rules or regulations, there shall be an independent external review pursuant to the standards required by the United States Secretary of Health and Human Services of a health care service plan’s cancellation, rescission, or nonrenewal of an enrollee’s or subscriber’s coverage. (Amended by Stats. 2021, Ch. 615, Sec. 224. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
1368.01.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The grievance system must resolve grievances within 30 days and add faster review and notice rules for urgent cases.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.01. (a) The grievance system shall require the plan to resolve grievances within 30 days, except as provided in subdivision (c). (b) The grievance system shall include a requirement for expedited plan review of grievances for cases involving an imminent and serious threat to the health of the patient, including, but not limited to, severe pain, potential loss of life, limb, or major bodily function. When the plan has notice of a case requiring expedited review, the grievance system shall require the plan to immediately inform enrollees and subscribers in writing of their right to notify the department of the grievance. The grievance system shall also require the plan to provide enrollees, subscribers, and the department with a written statement on the disposition or pending status of the grievance no later than three days from receipt of the grievance, except as provided in subdivision (c). Paragraph (4) of subdivision (a) of Section 1368 shall not apply to grievances handled pursuant to this section. (c) A health care service plan contract in the individual, small group, or large group markets that provides coverage for outpatient prescription drugs shall comply with subdivision (c) of Section 156.122 of Title 45 of the Code of Federal Regulations. This subdivision shall not apply to Medi-Cal managed care health care service plan contracts or any entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (Amended by Stats. 2015, Ch. 654, Sec. 4. (SB 282) Effective January 1, 2016.)
1368.015.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans with websites must provide an online grievance form and related website features, and certain mental health plan websites must include additional information and links.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.015. (a) Effective July 1, 2003, every plan with an internet website shall provide an online form through its internet website that subscribers or enrollees can use to file with the plan a grievance, as described in Section 1368, online. (b) The internet website shall have an easily accessible online grievance submission procedure that shall be accessible through a hyperlink on the internet website’s home page or member services portal clearly identified as “GRIEVANCE FORM.” All information submitted through this process shall be processed through a secure server. (c) The online grievance submission process shall be approved by the Department of Managed Health Care and shall meet the following requirements: (1) It shall utilize an online grievance form in HTML format that allows the user to enter required information directly into the form. (2) It shall allow the subscriber or enrollee to preview the grievance that will be submitted, including the opportunity to edit the form prior to submittal. (3) It shall include a current hyperlink to the Department of Managed Health Care internet website, and shall include a statement in a legible font that is clearly distinguishable from other content on the page and is in a legible size and type, containing the following language: “The California Department of Managed Health Care is responsible for regulating health care service plans. If you have a grievance against your health plan, you should first telephone your health plan at (insert health plan’s telephone number) and use your health plan’s grievance process before contacting the department. Utilizing this grievance procedure does not prohibit any potential legal rights or remedies that may be available to you. If you need help with a grievance involving an emergency, a grievance that has not been satisfactorily resolved by your health plan, or a grievance that has remained unresolved for more than 30 days, you may call the department for assistance. You may also be eligible for an Independent Medical Review (IMR). If you are eligible for IMR, the IMR process will provide an impartial review of medical decisions made by a health plan related to the medical necessity of a proposed service or treatment, coverage decisions for treatments that are experimental or investigational in nature and payment disputes for emergency or urgent medical services. The department also has a toll-free telephone number (1-888-466-2219) and a TDD line (1-877-688-9891) for the hearing and speech impaired. The department’s internet website www.dmhc.ca.gov has complaint forms, IMR application forms, and instructions online.” The plan shall update the URL, hyperlink, and telephone numbers in this statement as necessary. (d) A plan that utilizes a hardware system that does not have the minimum system requirements to support the software necessary to meet the requirements of this section is exempt from these requirements until January 1, 2006. (e) For purposes of this section, the following terms shall have the following meanings: (1) “Home page” means the first page or welcome page of an internet website that serves as a starting point for navigation of the internet website. (2) “HTML” means Hypertext Markup Language, the authoring language used to create documents on the world wide web, which defines the structure and layout of a web document. (3) “Hyperlink” means a special HTML code that allows text or graphics to serve as a link that, when clicked on, takes a user to another place in the same document, to another document, or to another internet website or page. (4) “Member services portal” means the first page or welcome page of an internet website that can be reached directly by the internet website’s home page and that serves as a starting point for a navigation of member services available on the internet website. (5) “Secure server” means an internet connection to an internet website that encrypts and decrypts transmissions, protecting them against third-party tampering and allowing for the secure transfer of data. (6) “URL” or “Uniform Resource Locator” means the address of an internet website or the location of a resource on the world wide web that allows a browser to locate and retrieve the internet website or the resource. (7) “Internet website” means a site or location on the world wide web. (f) (1) Every health care service plan, except a plan that primarily serves Medi-Cal or Healthy Families Program enrollees, shall maintain an internet website. For a health care service plan that provides coverage for professional mental health services, the internet website shall include, but not be limited to, providing information to subscribers, enrollees, and providers that will assist subscribers and enrollees in accessing mental health services as well as the information described in Section 1368.016. (2) The provision in paragraph (1) that requires compliance with Section 1368.016 shall not apply to a health care service plan that contracts with a specialized health care service plan, insurer, or other entity to cover professional mental health services for its enrollees, provided that the health care service plan provides a link on its internet website to an internet website operated by the specialized health care service plan, insurer, or other entity with which it contracts, and that plan, insurer, or other entity complies with Section 1368.016. (Amended by Stats. 2020, Ch. 370, Sec. 194. (SB 1371) Effective January 1, 2021.)
1368.016.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plans must post or link specified mental-health coverage and grievance information on their website, update modified material at least quarterly, and provide hard copies on request.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.016. (a) A health care service plan that provides coverage for professional mental health services, including a specialized health care service plan that provides coverage for professional mental health services, shall, pursuant to subdivision (f) of Section 1368.015, include on its Internet Web site, or provide a link to, the following information: (1) A telephone number that the enrollee or provider can call, during normal business hours, for assistance obtaining mental health benefits coverage information, including the extent to which benefits have been exhausted, in-network provider access information, and claims processing information. (2) A link to prescription drug formularies posted pursuant to Section 1367.205, or instructions on how to obtain the formulary, as described in Section 1367.20. (3) A detailed summary that describes the process by which the plan reviews and authorizes or approves, modifies, or denies requests for health care services as described in Sections 1363.5 and 1367.01. (4) Lists of providers or instructions on how to obtain the provider list, as required by Section 1367.27. (5) A detailed summary of the enrollee grievance process as described in Sections 1368 and 1368.015. (6) A detailed description of how an enrollee may request continuity of care pursuant to subdivisions (a) and (b) of Section 1373.95. (7) Information concerning the right, and applicable procedure, of an enrollee to request an independent medical review pursuant to Section 1374.30. (b) Any modified material described in subdivision (a) shall be updated at least quarterly. (c) The information described in subdivision (a) may be made available through a secured Internet Web site that is only accessible to enrollees. (d) The material described in subdivision (a) shall also be made available to enrollees in hard copy upon request. (e) This article does not preclude a health care service plan from including additional information on its Internet Web site for applicants, enrollees or subscribers, or providers, including, but not limited to, the cost of procedures or services by health care providers in a plan’s network. (f) The department shall include on the department’s Internet Web site a link to the Internet Web site of each health care service plan and specialized health care service plan described in subdivision (a). (g) This section shall not apply to Medicare supplement insurance, employee assistance programs, CHAMPUS supplement insurance, or TRI-CARE supplement insurance, or to hospital indemnity, accident-only, and specified disease insurance. This section shall also not apply to specialized health care service plans, except behavioral health-only plans. (h) This section shall not apply to a health care service plan that contracts with a specialized health care service plan, insurer, or other entity to cover professional mental health services for its enrollees, provided that the health care service plan provides a link on its Internet Web site to an Internet Web site operated by the specialized health care service plan, insurer, or other entity with which it contracts, and that plan, insurer, or other entity complies with this section or Section 10123.199 of the Insurance Code. (Amended by Stats. 2018, Ch. 687, Sec. 2. (SB 910) Effective January 1, 2019.)
1368.017.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must give enrollees written or electronic notice about the benefits of behavioral health and wellness screening for children and adolescents ages 8 to 18.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.017. (a) (1) A health care service plan shall provide to enrollees a written or electronic notice regarding the benefits of a behavioral health and wellness screening for children and adolescents 8 to 18 years of age. (2) “Behavioral health and wellness screening” means a screening, test, or assessment to identify indicators or symptoms of behavioral health issues in an individual, including, but not limited to, depression or anxiety. (b) The notice shall provide information regarding the benefits of behavioral health and wellness screenings for both depression and anxiety. (c) A health care service plan shall provide notice pursuant to this section annually. (d) This section does not apply to Medi-Cal managed care that contracts with the State Department of Health Care Services entered into pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. (Added by Stats. 2024, Ch. 200, Sec. 1. (AB 2556) Effective January 1, 2025.)
1368.02.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The director must establish and maintain a toll-free complaint line, and every health care service plan must publish specified contact information on required plan documents and notices.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.02. (a) The director shall establish and maintain a toll-free telephone number for the purpose of receiving complaints regarding health care service plans regulated by the director. (b) Every health care service plan shall publish the department’s toll-free telephone number, the department’s TDD line for the hearing and speech impaired, the plan’s telephone number, and the department’s internet website address, on every plan contract, on every evidence of coverage, on copies of plan grievance procedures, on plan complaint forms, and on all written notices to enrollees required under the grievance process of the plan, including any written communications to an enrollee that offer the enrollee the opportunity to participate in the grievance process of the plan and on all written responses to grievances. The department’s telephone number, the department’s TDD line, the plan’s telephone number, and the department’s internet website address shall be displayed by the plan in each of these documents in 12-point boldface type in the following regular type statement: “The California Department of Managed Health Care is responsible for regulating health care service plans. If you have a grievance against your health plan, you should first telephone your health plan at (insert health plan’s telephone number) and use your health plan’s grievance process before contacting the department. Utilizing this grievance procedure does not prohibit any potential legal rights or remedies that may be available to you. If you need help with a grievance involving an emergency, a grievance that has not been satisfactorily resolved by your health plan, or a grievance that has remained unresolved for more than 30 days, you may call the department for assistance. You may also be eligible for an Independent Medical Review (IMR). If you are eligible for IMR, the IMR process will provide an impartial review of medical decisions made by a health plan related to the medical necessity of a proposed service or treatment, coverage decisions for treatments that are experimental or investigational in nature and payment disputes for emergency or urgent medical services. The department also has a toll-free telephone number (1-888-466-2219) and a TDD line (1-877-688-9891) for the hearing and speech impaired. The department’s internet website www.dmhc.ca.gov has complaint forms, IMR application forms and instructions online.” (Amended by Stats. 2019, Ch. 113, Sec. 3. (AB 1802) Effective January 1, 2020.)
1368.03.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The department may require enrollees and subscribers to use a plan grievance process for up to 30 days before they pursue a grievance elsewhere, but it cannot impose that wait in expedited or otherwise earlier-review cases.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.03. (a) The department may require enrollees and subscribers to participate in a plan’s grievance process for up to 30 days before pursuing a grievance through the department or the independent medical review system. However, the department may not impose this waiting period for expedited review cases covered by subdivision (b) of Section 1368.01 or in any other case where the department determines that an earlier review is warranted. (b) Notwithstanding subdivision (a), the department may refer any grievance issue that does not pertain to compliance with this chapter to the State Department of Health Services, the California Department of Aging, the federal Health Care Financing Administration, or any other appropriate governmental entity for investigation and resolution. (c) This section shall become operative on January 1, 2001, and then only if Assembly Bill 55 of the 1999–2000 Regular Session is enacted. (Repealed (in Sec. 4) and added by Stats. 1999, Ch. 542, Sec. 5. Effective January 1, 2000. Section operative January 1, 2001, by its own provisions.)
1368.04.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The director must investigate certain grievance-related noncompliance and may assess administrative penalties in specified cases.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.04. (a) The director shall investigate and take enforcement action against plans regarding grievances reviewed and found by the department to involve noncompliance with the requirements of this chapter, including grievances that have been reviewed pursuant to the independent medical review system established pursuant to Article 5.55 (commencing with Section 1374.30). Where substantial harm to an enrollee has occurred as a result of plan noncompliance, the director shall, by order, assess administrative penalties subject to appropriate notice of, and the opportunity for, a hearing with regard to the person affected in accordance with Section 1397. The administrative penalties shall not be deemed an exclusive remedy available to the director. These penalties shall be paid to the Managed Care Administrative Fines and Penalties Fund and shall be used for the purposes specified in Section 1341.45. The director shall periodically evaluate grievances to determine if any audit, investigative, or enforcement actions should be undertaken by the department. (b) The director may, after appropriate notice and opportunity for hearing in accordance with Section 1397, by order, assess administrative penalties if the director determines that a health care service plan has knowingly committed, or has performed with a frequency that indicates a general business practice, either of the following: (1) Repeated failure to act promptly and reasonably to investigate and resolve grievances in accordance with Section 1368.01. (2) Repeated failure to act promptly and reasonably to resolve grievances when the obligation of the plan to the enrollee or subscriber is reasonably clear. (c) The administrative penalties available to the director pursuant to this section are not exclusive, and may be sought and employed in any combination with civil, criminal, and other administrative remedies deemed warranted by the director to enforce this chapter. (d) The administrative penalties authorized pursuant to this section shall be paid to the Managed Care Administrative Fines and Penalties Fund and shall be used for the purposes specified in Section 1341.45. (Amended by Stats. 2008, Ch. 607, Sec. 6. Effective September 30, 2008.)
1368.05.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The department must contract each year with community-based organizations and, together with its contractors, provide consumer assistance on health care coverage and complaints.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.05. (a) (1) By enacting this section, which was originally enacted by Assembly Bill 922 (Chapter 552 of the Statutes of 2011), the Legislature recognizes that, because of the enactment of federal health care reform on March 23, 2010, and the implementation of various provisions by January 1, 2014, and the ongoing complexities of health care reform, it is appropriate to transfer the direct consumer assistance activities to the Department of Managed Health Care, and the Legislature recognizes that these new duties are necessary to be carried out by the department in partnership with community-based consumer assistance organizations for the purposes of serving California’s health care consumers. (2) In addition to maintaining the toll-free telephone number for the purpose of receiving complaints regarding health care service plans as required in Section 1368.02, the department and its contractors shall carry out these new responsibilities, which include assisting consumers in navigating private and public health care coverage and assisting consumers in determining the regulator that regulates the health care coverage of a particular consumer. In order to further assist in implementing health care reform, the department and its contractors shall also receive and respond to inquiries, complaints, and requests for assistance and education concerning health care coverage available in California. (b) (1) The department shall annually contract with community-based organizations in furtherance of providing assistance to consumers as described in subdivision (a), as authorized by and in accordance with Section 19130 of the Government Code. (2) These organizations shall be community-based nonprofit consumer assistance programs that shall include in their mission the assistance of, and duty to, health care consumers. (3) Contracting consumer assistance organizations shall have experience in assisting consumers in navigating the local health care system, advising consumers regarding their health care coverage options, assisting consumers with problems in accessing health care services, and serving consumers with special needs, including, but not limited to, consumers with limited-English language proficiency, consumers requiring culturally competent services, low-income consumers, consumers with disabilities, consumers with low literacy rates, and consumers with multiple health conditions, including behavioral health. The organizations shall also have experience with, and the capacity for, collecting and reporting data regarding the consumers they assist, including demographic data, source of coverage, regulator, type of problem or issue, and resolution of complaints. (Amended by Stats. 2021, Ch. 696, Sec. 8. (AB 172) Effective October 8, 2021.)
1368.1.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

If a plan denies coverage for certain experimental treatment for an enrollee with a terminal illness, it must give the enrollee written reasons, alternative covered options if any, and grievance or complaint materials within five business days.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.1. (a) A plan that denies coverage to an enrollee with a terminal illness, which for the purposes of this section refers to an incurable or irreversible condition that has a high probability of causing death within one year or less, for treatment, services, or supplies deemed experimental, as recommended by a participating plan provider, shall provide to the enrollee within five business days all of the following information: (1) A statement setting forth the specific medical and scientific reasons for denying coverage. (2) A description of alternative treatment, services, or supplies covered by the plan, if any. Compliance with this subdivision by a plan shall not be construed to mean that the plan is engaging in the unlawful practice of medicine. (3) Copies of the plan’s grievance procedures or complaint form, or both. The complaint form shall provide an opportunity for the enrollee to request a conference as part of the plan’s grievance system provided under Section 1368. (b) Upon receiving a complaint form requesting a conference pursuant to paragraph (3) of subdivision (a), the plan shall provide the enrollee, within 30 calendar days, an opportunity to attend a conference, to review the information provided to the enrollee pursuant to paragraphs (1) and (2) of subdivision (a), conducted by a plan representative having authority to determine the disposition of the complaint. The plan shall allow attendance, in person, at the conference, by an enrollee, a designee of the enrollee, or both, or, if the enrollee is a minor or incompetent, the parent, guardian, or conservator of the enrollee, as appropriate. However, the conference required by this subdivision shall be held within five business days if the treating participating physician determines, after consultation with the health plan medical director or his or her designee, based on standard medical practice, that the effectiveness of either the proposed treatment, services, or supplies or any alternative treatment, services, or supplies covered by the plan, would be materially reduced if not provided at the earliest possible date. (c) Nothing in this section shall limit the responsibilities, rights, or authority provided in Sections 1370 and 1370.1. (Added by Stats. 1994, Ch. 582, Sec. 1. Effective January 1, 1995.)
1368.2.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts generally must include hospice care, and the director must adopt implementing regulations.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.2. (a) On and after January 1, 2002, every group health care service plan contract, except a specialized health care service plan contract, which is issued, amended, or renewed, shall include a provision for hospice care. (b) The hospice care shall at a minimum be equivalent to hospice care provided by the federal Medicare program pursuant to Title XVIII of the Social Security Act. (c) The hospice care provided under this section is not required to include preliminary services set forth in subdivision (d) of Section 1749. However, an enrollee who receives those preliminary services shall remain eligible for coverage of curative treatment by a health care service plan during the course of preliminary services and prior to the election of hospice services. (d) The following are applicable to this section and to paragraph (7) of subdivision (b) of Section 1345: (1) The definitions in Section 1746, except for subdivisions (o) and (p) of that section. (2) The “federal regulations” which means the regulations adopted for hospice care under Title XVIII of the Social Security Act in Title 42 of the Code of Federal Regulations, Chapter IV, Part 418, except Subparts A, B, G, and H, and any amendments or successor provisions thereto. (e) The director no later than January 1, 2001, shall adopt regulations to implement this section. The regulations shall meet all of the following requirements: (1) Be consistent with all material elements of the federal regulations that are not by their terms applicable only to eligible Medicare beneficiaries. If there is a conflict between a federal regulation and any state regulation, other than those adopted pursuant to this section, the director shall adopt the regulation that is most favorable for plan subscribers, members or enrollees to receive hospice care. (2) Be consistent with any other applicable federal or state laws. (3) Be consistent with the definitions of Section 1746, except for subdivisions (o) and (p) of that section. (f) This section is not applicable to the subscribers, members, or enrollees of a health care service plan who elect to receive hospice care under the Medicare program. (Amended by Stats. 2005, Ch. 77, Sec. 30. Effective January 1, 2006.)
1368.5.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must pay or reimburse covered pharmacist services in certain settings.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.5. (a) Every health care service plan that offers coverage for a service that is within the scope of practice of a duly licensed pharmacist shall pay or reimburse the cost of the service performed by a pharmacist at an in-network pharmacy or a pharmacist at an out-of-network pharmacy if the health care service plan has an out-of-network pharmacy benefit. (b) Payment or reimbursement may be made pursuant to this section for a service performed by a duly licensed pharmacist only when all of the following conditions are met: (1) The service performed is within the lawful scope of practice of the pharmacist. (2) The coverage otherwise provides reimbursement for identical services performed by other licensed health care providers. (c) Nothing in this section shall require the plan to pay a claim to more than one provider for duplicate service or be interpreted to limit physician reimbursement. (Amended by Stats. 2023, Ch. 322, Sec. 1. (AB 317) Effective January 1, 2024.)
1368.7.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

During certain emergencies, a health care service plan must keep enrollees connected to medically necessary care, file a disruption notice within 48 hours, and maintain a toll-free help number.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1368.7. (a) A health care service plan shall provide an enrollee who has been displaced or whose health may otherwise be affected by a state of emergency, as declared by the Governor pursuant to Section 8625 of the Government Code, or a health emergency, as declared by the State Public Health Officer pursuant to Section 101080, access to medically necessary health care services. (b) Within 48 hours of a declaration by the Governor of a state of emergency or a declaration by the State Public Health Officer of a health emergency that displaces, or has the immediate potential to displace, enrollees or health care providers, or that otherwise affects, or may affect, health care providers or the health of enrollees, a health care service plan operating in the county or counties included in the declaration shall file with the department a notification describing whether the plan has experienced or expects to experience any disruption to the operation of the plan, explaining how the plan is communicating with potentially impacted enrollees, and summarizing the actions the plan has taken or is in the process of taking to ensure that the health care needs of enrollees are met. The department may require the plan to take actions, including, but not limited to, the following: (1) Shorten time limits for health care service plans to approve prior authorization, precertification, or referrals, and extend the time that prior authorizations, precertifications, and referrals remain valid. (2) Extend filing deadlines for claims. (3) Suspend prescription refill limitations and allow an impacted enrollee to refill their prescriptions at an out-of-network pharmacy. (4) Authorize an enrollee to replace medical equipment or supplies. (5) Allow an enrollee to access an appropriate out-of-network provider if an in-network provider is unavailable due to the state of emergency or if the enrollee is out of the area due to displacement. (6) Have a toll-free telephone number that an affected enrollee may call for answers to questions, including questions about the loss of health insurance identification cards, access to prescription refills, or how to access health care. (c) This section shall not be construed to limit the Governor’s authority under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code), or the director’s authority under any provision of this chapter. (d) The director may issue guidance in the form of all-plan letters to health care service plans regarding compliance with this section during the first three years following the declaration of emergency, or until the emergency is terminated, whichever occurs first. This guidance shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Amended by Stats. 2022, Ch. 421, Sec. 1. (SB 979) Effective January 1, 2023.)
1369.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Every plan must set up procedures that let subscribers and enrollees take part in establishing the plan’s public policy.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1369. Every plan shall establish procedures to permit subscribers and enrollees to participate in establishing the public policy of the plan. For purposes of this section, public policy means acts performed by a plan or its employees and staff to assure the comfort, dignity, and convenience of patients who rely on the plan’s facilities to provide health care services to them, their families, and the public. (Amended by Stats. 2005, Ch. 45, Sec. 1. Effective January 1, 2006.)
137.
## Health and Safety Code - HSC ## DIVISION 1. ADMINISTRATION OF PUBLIC HEALTH [135 - 1179.102] ( Division 1 enacted by Stats. 1939, Ch. 60. ) ## PART 1. STATE DEPARTMENT OF HEALTH SERVICES [137 - 429.997] ( Heading of Part 1 amended by Stats. 1980, Ch. 676. ) ## CHAPTER 1.3. Women’s Health [137 - 140] ( Chapter 1.3 added by Stats. 1994, Ch. 760, Sec. 2. )
Verify source ↗

The State Department of Public Health must develop a coordinated state strategy for women’s health.

## Health and Safety Code - HSC ## DIVISION 1. ADMINISTRATION OF PUBLIC HEALTH [135 - 1179.102] ( Division 1 enacted by Stats. 1939, Ch. 60. ) ## PART 1. STATE DEPARTMENT OF HEALTH SERVICES [137 - 429.997] ( Heading of Part 1 amended by Stats. 1980, Ch. 676. ) ## CHAPTER 1.3. Women’s Health [137 - 140] ( Chapter 1.3 added by Stats. 1994, Ch. 760, Sec. 2. ) ## 137. (a) The State Department of Public Health shall develop a coordinated state strategy for addressing the health-related needs of women, including implementation of goals and objectives for women’s health. (b) The approved programmatic costs associated with this strategy shall be the responsibility of the State Department of Public Health unless otherwise provided by law. (Amended by Stats. 2012, Ch. 23, Sec. 8. (AB 1467) Effective June 27, 2012.)
1370.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Every plan must set up procedures, under department regulations, to continuously review quality of care, medical personnel performance, service and facility use, and costs.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1370. Every plan shall establish procedures in accordance with department regulations for continuously reviewing the quality of care, performance of medical personnel, utilization of services and facilities, and costs. Notwithstanding any other provision of law, there shall be no monetary liability on the part of, and no cause of action for damages shall arise against, any person who participates in plan or provider quality of care or utilization reviews by peer review committees which are composed chiefly of physicians and surgeons or dentists, psychologists, or optometrists, or any of the above, for any act performed during the reviews if the person acts without malice, has made a reasonable effort to obtain the facts of the matter, and believes that the action taken is warranted by the facts, and neither the proceedings nor the records of the reviews shall be subject to discovery, nor shall any person in attendance at the reviews be required to testify as to what transpired thereat. Disclosure of the proceedings or records to the governing body of a plan or to any person or entity designated by the plan to review activities of the plan or provider committees shall not alter the status of the records or of the proceedings as privileged communications. The above prohibition relating to discovery or testimony shall not apply to the statements made by any person in attendance at a review who is a party to an action or proceeding the subject matter of which was reviewed, or to any person requesting hospital staff privileges, or in any action against an insurance carrier alleging bad faith by the carrier in refusing to accept a settlement offer within the policy limits, or to the director in conducting surveys pursuant to Section 1380. This section shall not be construed to confer immunity from liability on any health care service plan. In any case in which, but for the enactment of the preceding provisions of this section, a cause of action would arise against a health care service plan, the cause of action shall exist notwithstanding the provisions of this section. (Amended by Stats. 1999, Ch. 525, Sec. 105. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1370.1.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A plan may use subcommittees for peer review and may delegate Section 1370 responsibilities to them, but it must control the delegated scope and can revoke that authority at any time.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1370.1. Nothing in this article shall be construed to prevent a plan from utilizing subcommittees to participate in peer review activities, nor to prevent a plan from delegating the responsibilities required by Section 1370, as it determines to be appropriate, to subcommittees including subcommittees composed of a majority of nonphysician health care providers licensed pursuant to the Business and Professions Code, so long as the plan controls the scope of authority delegated and may revoke all or part of this authority at any time. Persons who participate in the subcommittees shall be entitled to the same immunity from monetary liability and actions for civil damages as persons who participate in plan or provider peer review committees pursuant to Section 1370. (Amended by Stats. 1988, Ch. 828, Sec. 2.)
1370.2.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

When a contested claim is appealed to the plan, the plan must send it to the medical director or another appropriately licensed health care provider for review.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1370.2. Upon an appeal to the plan of a contested claim, the plan shall refer the claim to the medical director or other appropriately licensed health care provider. This health care provider or the medical director shall review the appeal and, if he or she determines that he or she is competent to evaluate the specific clinical issues presented in the claim, shall make a determination on the appealed claim. If the health care provider or medical director determines that he or she is not competent to evaluate the specific clinical issues of the appealed claim, prior to making a determination, he or she shall consult with an appropriately licensed health care provider who is competent to evaluate the specific clinical issues presented in the claim. For the purposes of this section, “competent to evaluate the specific clinical issues” means that the reviewer has education, training, and relevant expertise that is pertinent for evaluating the specific clinical issues that serve as the basis of the contested claim. The requirements of this section shall apply to claims that are contested on the basis of a clinical issue, the necessity for treatment, or the type of treatment proposed or utilized. The plan shall determine whether or not to use an appropriate specialist provider in the review of contested claims. (Added by Stats. 1994, Ch. 614, Sec. 2. Effective January 1, 1995.)
1370.4.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must provide an external independent review process for certain enrollees with life-threatening or seriously debilitating conditions and related therapy denials.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1370.4. (a) Every health care service plan shall provide an external, independent review process to examine the plan’s coverage decisions regarding experimental or investigational therapies for individual enrollees who meet all of the following criteria: (1) (A) The enrollee has a life-threatening or seriously debilitating condition. (B) For purposes of this section, “life-threatening” means either or both of the following: (i) Diseases or conditions where the likelihood of death is high unless the course of the disease is interrupted. (ii) Diseases or conditions with potentially fatal outcomes, where the end point of clinical intervention is survival. (C) For purposes of this section, “seriously debilitating” means diseases or conditions that cause major irreversible morbidity. (2) The enrollee’s physician certifies that the enrollee has a condition, as defined in paragraph (1), for which standard therapies have not been effective in improving the condition of the enrollee, for which standard therapies would not be medically appropriate for the enrollee, or for which there is no more beneficial standard therapy covered by the plan than the therapy proposed pursuant to paragraph (3). (3) Either (A) the enrollee’s physician, who is under contract with or employed by the plan, has recommended a drug, device, procedure, or other therapy that the physician certifies in writing is likely to be more beneficial to the enrollee than any available standard therapies, or (B) the enrollee, or the enrollee’s physician who is a licensed, board-certified or board-eligible physician qualified to practice in the area of practice appropriate to treat the enrollee’s condition, has requested a therapy that, based on two documents from the medical and scientific evidence, as defined in subdivision (d), is likely to be more beneficial for the enrollee than any available standard therapy. The physician certification pursuant to this subdivision shall include a statement of the evidence relied upon by the physician in certifying his or her recommendation. Nothing in this subdivision shall be construed to require the plan to pay for the services of a nonparticipating physician provided pursuant to this subdivision, that are not otherwise covered pursuant to the plan contact. (4) The enrollee has been denied coverage by the plan for a drug, device, procedure, or other therapy recommended or requested pursuant to paragraph (3). (5) The specific drug, device, procedure, or other therapy recommended pursuant to paragraph (3) would be a covered service, except for the plan’s determination that the therapy is experimental or investigational. (b) The plan’s decision to delay, deny, or modify experimental or investigational therapies shall be subject to the independent medical review process under Article 5.55 (commencing with Section 1374.30) except that, in lieu of the information specified in subdivision (b) of Section 1374.33, an independent medical reviewer shall base his or her determination on relevant medical and scientific evidence, including, but not limited to, the medical and scientific evidence defined in subdivision (d). (c) The independent medical review process shall also meet the following criteria: (1) The plan shall notify eligible enrollees in writing of the opportunity to request the external independent review within five business days of the decision to deny coverage. (2) If the enrollee’s physician determines that the proposed therapy would be significantly less effective if not promptly initiated, the analyses and recommendations of the experts on the panel shall be rendered within seven days of the request for expedited review. At the request of the expert, the deadline shall be extended by up to three days for a delay in providing the documents required. The timeframes specified in this paragraph shall be in addition to any otherwise applicable timeframes contained in subdivision (c) of Section 1374.33. (3) Each expert’s analysis and recommendation shall be in written form and state the reasons the requested therapy is or is not likely to be more beneficial for the enrollee than any available standard therapy, and the reasons that the expert recommends that the therapy should or should not be provided by the plan, citing the enrollee’s specific medical condition, the relevant documents provided, and the relevant medical and scientific evidence, including, but not limited to, the medical and scientific evidence as defined in subdivision (d), to support the expert’s recommendation. (4) Coverage for the services required under this section shall be provided subject to the terms and conditions generally applicable to other benefits under the plan contract. (d) For the purposes of subdivision (b), “medical and scientific evidence” means the following sources: (1) Peer-reviewed scientific studies published in or accepted for publication by medical journals that meet nationally recognized requirements for scientific manuscripts and that submit most of their published articles for review by experts who are not part of the editorial staff. (2) Peer-reviewed literature, biomedical compendia, and other medical literature that meet the criteria of the National Institutes of Health’s National Library of Medicine for indexing in Index Medicus, Excerpta Medicus (EMBASE), Medline, and MEDLARS database of Health Services Technology Assessment Research (HSTAR). (3) Medical journals recognized by the Secretary of Health and Human Services, under Section 1861(t)(2) of the Social Security Act. (4) Either of the following reference compendia: (A) The American Hospital Formulary Service’s Drug Information. (B) The American Dental Association Accepted Dental Therapeutics. (5) Any of the following reference compendia, if recognized by the federal Centers for Medicare and Medicaid Services as part of an anticancer chemotherapeutic regimen: (A) The Elsevier Gold Standard’s Clinical Pharmacology. (B) The National Comprehensive Cancer Network Drug and Biologics Compendium. (C) The Thomson Micromedex DrugDex. (6) Findings, studies, or research conducted by or under the auspices of federal government agencies and nationally recognized federal research institutes, including the Federal Agency for Health Care Policy and Research, National Institutes of Health, National Cancer Institute, National Academy of Sciences, Health Care Financing Administration, Congressional Office of Technology Assessment, and any national board recognized by the National Institutes of Health for the purpose of evaluating the medical value of health services. (7) Peer-reviewed abstracts accepted for presentation at major medical association meetings. (e) The independent review process established by this section shall be required on and after January 1, 2001. (Amended by Stats. 2009, Ch. 479, Sec. 2. (AB 830) Effective January 1, 2010.)
1370.6.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans generally may not deny or restrict approved clinical trial participation or related routine care coverage for eligible enrollees.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1370.6. (a) An individual or group health care service plan contract that is issued, amended, or renewed on or after January 1, 2020, shall not: (1) Deny a qualified enrollee’s participation in an approved clinical trial. (2) Deny, limit, or impose additional conditions on the coverage of routine patient care costs for items and services furnished in connection with a qualified enrollee’s participation in an approved clinical trial. (3) Discriminate against an enrollee based on the qualified enrollee’s participation in an approved clinical trial. (b) (1) Subdivision (a) applies to: (A) A qualified enrollee participating in an approved clinical trial conducted by a participating provider. (B) A qualified enrollee participating in an approved clinical trial conducted by a nonparticipating provider, including a nonparticipating provider located outside this state, if the clinical trial is not offered or available through a participating provider. (2) If one or more participating providers is conducting an approved clinical trial, a health care service plan may require a qualified enrollee to participate in the clinical trial through a participating provider if the participating provider accepts the enrollee as a clinical trial participant. (3) A health care service plan may restrict coverage to an approved clinical trial in this state, unless the clinical trial is not offered or available through a participating provider in this state. (c) (1) The payment rate for routine patient care costs provided by a nonparticipating provider under a contract that is issued, amended, or renewed on or after January 1, 2020, shall be the negotiated rate the health care service plan would otherwise pay a participating provider for the same services, less applicable cost sharing. (2) Cost sharing for routine patient care costs shall be the same as that applied to the same services not delivered in a clinical trial, except that the in-network cost sharing and out-of-pocket maximum shall apply if the clinical trial is not offered or available through a participating provider. (3) This section does not limit or modify any existing requirements under this chapter or prevent application of cost-sharing provisions in a contract, except as provided in paragraph (2). (d) For purposes of this section: (1) “Approved clinical trial” means a phase I, phase II, phase III, or phase IV clinical trial conducted in relation to the prevention, detection, or treatment of cancer or another life-threatening disease or condition that meets at least one of the following: (A) The study or investigation is approved or funded, which may include funding through in-kind donations, by one or more of the following: (i) The National Institutes of Health. (ii) The federal Centers for Disease Control and Prevention. (iii) The Agency for Healthcare Research and Quality. (iv) The federal Centers for Medicare and Medicaid Services. (v) A cooperative group or center of any of the entities described in clauses (i) to (iv), inclusive, the Department of Defense, or the United States Department of Veterans Affairs. (vi) A qualified nongovernmental research entity identified in the guidelines issued by the National Institutes of Health for center support grants. (vii) One of the following departments, if the study or investigation has been reviewed and approved through a system of peer review that the Secretary of the United States Department of Health and Human Services determines is comparable to the system of peer review used by the National Institutes of Health and ensures unbiased review of the highest scientific standards by qualified individuals who have no interest in the outcome of the review: (I) The United States Department of Veterans Affairs. (II) The United States Department of Defense. (III) The United States Department of Energy. (B) The study or investigation is conducted under an investigational new drug application reviewed by the United States Food and Drug Administration. (C) The study or investigation is a drug trial that is exempt from an investigational new drug application reviewed by the United States Food and Drug Administration. (2) “Life-threatening disease or condition” means a disease or condition from which the likelihood of death is probable, unless the course of the disease or condition is interrupted. (3) “Qualified enrollee” means an enrollee who meets both of the following conditions: (A) The enrollee is eligible to participate in an approved clinical trial, according to the clinical trial protocol, for the treatment of cancer or another life-threatening disease or condition. (B) Either of the following applies: (i) The referring health care professional is a participating provider and has concluded that the enrollee’s participation in the clinical trial would be appropriate because the enrollee meets the conditions of subparagraph (A). (ii) The enrollee provides medical and scientific information establishing that the enrollee’s participation in the clinical trial would be appropriate because the enrollee meets the conditions of subparagraph (A). (4) “Routine patient care costs” include drugs, items, devices, and services provided consistent with coverage under the contract for an enrollee who is not enrolled in an approved clinical trial, including the following: (A) Drugs, items, devices, and services typically covered absent a clinical trial. (B) Drugs, items, devices, and services required solely for the provision of an investigational drug, item, device, or service. (C) Drugs, items, devices, and services required for the clinically appropriate monitoring of the investigational drug, item, device, or service. (D) Drugs, items, devices, and services provided for the prevention of complications arising from the provision of the investigational drug, item, device, or service. (E) Drugs, items, devices, and services needed for the reasonable and necessary care arising from the provision of the investigational drug, item, device, or service, including diagnosis and treatment of complications. (5) “Routine patient care costs” does not include the following: (A) The investigational drug, item, device, or service itself. (B) Drugs, items, devices, and services provided solely to satisfy data collection and analysis needs that are not used in the direct clinical management of the enrollee. (C) Drugs, items, devices, and services specifically excluded from coverage in the contract, except for drugs, items, devices, and services required to be covered pursuant to this section or other applicable law. (D) Drugs, items, devices, and services customarily provided free of charge to a clinical trial participant by the research sponsor. (e) This section shall not be construed to limit coverage provided by a health care service plan contract with respect to clinical trials. (f) The provision of services required by this section shall not, in itself, give rise to liability on the part of the health care service plan. (g) This section does not apply to a specialized health care service plan contract. (h) This section does not limit, prohibit, or modify an enrollee’s rights to the independent review process available under Section 1370.4 or to the Independent Medical Review System available under Article 5.55 (commencing with Section 1374.30). (Repealed and added by Stats. 2019, Ch. 482, Sec. 2. (SB 583) Effective January 1, 2020.)
1371.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must pay complete claims within 30 calendar days and may have to add interest or a fee if they are late; some specialized vision plans may use statistical methods for fraud recovery under conditions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371. (a) (1) A health care service plan, including a specialized health care service plan, shall reimburse a complete claim or portion thereof, whether in state or out of state, as soon as practicable, but no later than 30 calendar days after receipt of the claim by the health care service plan. If a claim or portion thereof does not meet the criteria for a complete claim or the criteria for coverage under the plan contract, the claimant shall be notified, in writing, that the claim or portion thereof is contested or denied, as soon as practicable, but no later than 30 calendar days after receipt of the claim by the health care service plan. (2) The notice that a claim or portion thereof, is contested shall identify the portion of the claim that is contested, by procedure or revenue code, and the specific information needed from the provider to reconsider the claim, including any defect or impropriety or additional information needed to adjudicate the claim. (3) The notice that a claim or portion thereof, is denied shall identify the portion of the claim that is denied, by procedure or revenue code, and the specific reasons for the denial including any defect or impropriety. (4) If a complete claim is not reimbursed by delivery to the claimant’s address of record within 30 calendar days after receipt, interest shall accrue at a rate of 15 percent per annum beginning with the first calendar day after the 30-calendar-day period. A health care service plan shall automatically include in its payment of the claim all interest that has accrued pursuant to this section without requiring the claimant to submit a request for the interest amount. A plan failing to comply with this requirement shall pay the claimant a fee of the greater of an additional fifteen dollars ($15) or 10 percent of the accrued interest. (5) For the purposes of this section, a claim, or portion thereof, is reasonably contested if the plan has not received the completed claim and all information necessary to determine payer liability for the claim, or has not been granted reasonable access to information concerning provider services. Information necessary to determine payer liability for the claim includes, but is not limited to, reports of investigations concerning fraud and misrepresentation, and necessary consents, releases, and assignments, a claim on appeal, or other information necessary for the plan to determine the medical necessity for the health care services provided. A plan may not contest a claim that is consistent with the procedure or revenue codes and services approved by prior authorization with appropriate documentation included on the claim. (6) If a claim or portion thereof is contested on the basis that the plan has not received all information necessary to determine payer liability for the claim or portion thereof and notice has been provided pursuant to this section, the plan shall have 30 calendar days after receipt of this additional information to complete reconsideration of the claim. If a plan has received all of the information necessary to determine payer liability for a contested claim and has not reimbursed a claim it has determined to be payable within 30 calendar days of the receipt of that information, interest shall accrue and be payable at a rate of 15 percent per annum beginning with the first calendar day after the 30-calendar-day period. (b) Notwithstanding any other law, a specialized health care service plan that undertakes solely to arrange for the provision of vision care services may use a statistically reliable method to investigate suspected fraud and to recover overpayments made as a result of fraud only if the specialized health care service plan complies with this subdivision. (1) A specialized health care service plan’s statistically reliable method, and how the specialized health care service plan intends to utilize that method to determine recovery of overpayments made as a result of fraud, shall be submitted to, and approved by, the department as elements of the specialized health care service plan’s antifraud plan established and approved pursuant to Section 1348. The specialized health care service plan’s utilization of a statistically reliable method shall help protect and promote the interests of enrollees and shall help ensure a stable health care delivery system. The statistically reliable method shall be consistent with direction provided by the International Standards for the Professional Practice of Internal Auditing and the guidance provided by the International Professional Practices Framework guide, which are both produced by the Institute of Internal Auditors. (2) Pursuant to its antifraud plan established and approved pursuant to Section 1348, a specialized health care service plan shall provide a written notice of suspected fraud to a provider that includes, at a minimum, all of the following: (A) A clear description of the specialized health care service plan’s statistically reliable methodology. The description shall include information that ensures that the sample size used to calculate the repayment amount is consistent with the professional guidance provided in the 2009 edition of the American Institute of Certified Public Accountants’ Audit Sampling Considerations of Circular A-133 Compliance Audits. (B) A clear description of the universe of claims from which the statistical random sample was drawn and, if different, the universe of claims upon which the statistical analysis was applied to generate the recovery amount. (C) A clear explanation of how the specialized health care service plan’s statistically reliable methodology was utilized in the specialized health care service plan’s findings of suspected fraud. (D) Notice that a provider may dispute the specialized health care service plan’s findings within 45 working days from the date of receipt of the notice of suspected fraud. (E) The following information for each of the claims in the statistical sample that was utilized in the specialized health care service plan’s findings: (i) The claim number. (ii) The name of the patient. (iii) The date of service. (iv) The date of payment. (v) A clear explanation of the basis upon which the specialized health care service plan suspects the claim is fraudulent. (3) A specialized health care service plan that undertakes solely to arrange for the provision of vision care services may use a statistically reliable method to recover overpayments made as a result of suspected fraud only if the universe of claims upon which the statistical analysis is performed consists only of those claims made between 365 days from the date of payment of the earliest in time claim and the date of payment of the latest in time claim. Notice shall be mailed to the provider no later than 60 days following the date of payment of the latest in time claim. (4) If the provider contests the specialized health care service plan’s notice of suspected fraud, the provider, within 45 working days of the date of receipt of the notice of suspected fraud, shall send written notice to the specialized health care service plan stating the basis upon which the provider believes that the claims are not fraudulent. The specialized health care service plan shall receive and process this contested notice of suspected fraud as a provider dispute pursuant to subdivision (a) of this section, paragraph (1) of subdivision (h) of Section 1367, and the regulations promulgated thereunder. (5) A specialized health care service plan may offset the amount the specialized health care service plan disclosed as overpaid to the provider in an uncontested notice of suspected fraud against the provider’s current claim submissions only if all of the following requirements are met: (A) The provider fails to reimburse the specialized health care service plan within 45 working days from the date of receipt by the provider of the notice of suspected fraud. (B) The specialized health care service plan sends written notice to the provider no less than 10 working days prior to withholding current claim payments in which the specialized health care service plan, at a minimum, states its intent to withhold current claim payments and identifies the claim payments that the specialized health care service plan intends to withhold. (C) The withheld claim payments do not exceed the amount asserted by the specialized health care service plan to be owed to the specialized health care service plan in its notice of suspected fraud. (6) This section does not limit or remove a specialized health care service plan’s obligation to comply with its antifraud plan established pursuant to Section 1348, or to limit or remove the specialized health care service plan’s obligation to comply with the requirements for claims subject to subdivision (a). (7) This subdivision does not limit or remove a specialized health care service plan’s ability to recover overpayments as long as recovery is consistent with applicable law, including subdivision (a) and the regulations promulgated thereunder. (8) This subdivision does not apply to claims submitted by a physician and surgeon for medical or surgical services that are outside the scope of practice of an optometrist pursuant to the Optometry Practice Act (Chapter 7 (commencing with Section 3000) of Division 2 of the Business and Professions Code). (c) The obligation of a plan to comply with this section shall not be deemed to be waived when the plan requires its medical groups, independent practice associations, or other contracting entities to pay claims for covered services. (d) The department may issue compliance guidance and amend regulations for consistency with this section. The guidance and amendments shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) until December 31, 2027. (e) This section shall become operative on January 1, 2026. (Repealed (in Sec. 1) and added by Stats. 2024, Ch. 763, Sec. 2. (AB 3275) Effective January 1, 2025. Operative January 1, 2026, by its own provisions.)
1371.1.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans that identify an overpayment must send written notice, and the provider must reimburse the plan within 30 working days unless the provider contests it in writing.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.1. (a) (1) Whenever a health care service plan, including a specialized health care service plan, determines that in reimbursing a claim for provider services an institutional or professional provider has been overpaid, and then notifies the provider in writing through a separate notice identifying the overpayment and the amount of the overpayment, the provider shall reimburse the health care service plan within 30 working days of receipt by the provider of the notice of overpayment unless the overpayment or portion thereof is contested by the provider in which case the health care service plan shall be notified, in writing, within 30 working days. The notice that an overpayment is being contested shall identify the portion of the overpayment that is contested and the specific reasons for contesting the overpayment. (2) If the provider does not make reimbursement for an uncontested overpayment within 30 working days after receipt, interest shall accrue at the rate of 10 percent per annum beginning with the first calendar day after the 30-working-day period. (3) A prorated cost-sharing payment, or any portion thereof, made to a pharmacist for the dispensing of a partial fill pursuant to Section 4052.10 of the Business and Professions Code shall not be considered to be an overpayment pursuant to this section. (b) (1) This subdivision shall only apply to a health care service plan contract covering dental services or a specialized health care service plan contract covering dental services pursuant to this chapter. (2) The health care service plan’s notice of overpayment shall inform the provider how to access the plan’s dispute resolution mechanism offered pursuant to subdivision (h) of Section 1367. The notice shall include the name and address to which the dispute should be submitted and a statement that Section 1371.1 of the Health and Safety Code requires a provider to reimburse the plan for an overpayment within 30 working days of receipt by the provider of the notice of overpayment unless the provider contests the overpayment within 30 working days. The notice shall also include information clearly identifying the claim, the name of the patient, the date of service, and a clear explanation of the basis upon which the plan or the plan’s capitated provider believes the amount paid on the claim was in excess of the amount due, including interest and penalties on the claim. The notice shall also include a statement that if the provider does not make reimbursement of an uncontested overpayment within 30 working days after receipt of the notice, interest shall accrue at a rate of 10 percent per annum. (Amended by Stats. 2017, Ch. 615, Sec. 4. (AB 1048) Effective January 1, 2018.)
1371.11.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must use a non-fee-based default payment method for dental providers, and fee-based payment can be used only with affirmative consent.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.11. (a) The following definitions shall apply for purposes of this section: (1) (A) “Affirmative consent” means a dental provider’s express consent to opt in or opt out of receiving fee-based payment. Affirmative consent requires a dental provider’s signature. The terms of the affirmative consent shall be clear and readily understandable. (B) Affirmative consent may be given through email. (C) A provider accessing funds does not constitute affirmative consent to receive a fee-based payment. (2) “Contracted vendor” means a third party facilitating payment processing on behalf of the health care service plan. (3) “Dental provider” means an individual or group of individuals licensed under Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code. (4) “Fee-based payment” refers to any payment type that requires the dental provider to incur a fee from the health care service plan or its contracted vendor to access payment from a plan or its contracted vendor. (5) “Health care service plan” or “plan” means a health care service plan defined in paragraph (2) of subdivision (a) of Section 1374.194. (6) “Signature” includes an electronic or digital signature if the form of the signature is recognized as a valid signature under applicable federal or state law, including, but not limited to, checking a box indicating affirmative consent. (b) (1) A health care service plan that provides payment directly, or through a contracted vendor, to a dental provider shall have a non-fee-based default method of payment. (2) The health care service plan shall remit or associate with each payment the claims and claim details associated with payment. (c) (1) A health care service plan or its contracted vendor shall obtain affirmative consent from a dental provider who opts in to a fee-based payment method before the plan or vendor provides a fee-based payment method to the provider. (2) At the time a dental provider opts in to a fee-based payment method, the health care service plan or its contracted vendor shall provide information on the payment method, including a notice of the fees charged by the plan or contracted vendor, alternative methods of payment, instructions on how to opt out of the fee-based payment method, and a notice of the dental provider’s ability to opt out of the fee-based payment method at any time. (3) Upon receipt of the dental provider’s affirmative consent, the health care service plan or its contracted vendor subsequently may issue payments to the dental provider using a fee-based payment method. (4) The health care service plan also shall notify the dental provider if its contracted vendor is sharing a part of the profit, fee arrangement, or board composition with the plan. (d) (1) A dental provider may opt out of a fee-based payment method and opt in to a non-fee-based payment method at any time by providing affirmative consent to the health care service plan or its contracted vendor. (2) If a dental provider opts in or opts out of a fee-based method of payment pursuant to this subdivision, the provider’s payment method decision shall remain in effect until the provider informs the plan or contracted vendor of another preferred method of payment, including fee-based or non-fee-based methods. (e) A health care service plan or its contracted vendor that obtains a dental provider’s affirmative consent to opt in or opt out of a fee-based payment method shall apply the decision to include both of the following: (1) The dental provider’s entire practice. (2) To all products or services covered by the health care service plan pursuant to a contract with the dental provider, including network provider contracts, as described in Section 1374.193. (f) This section does not apply if a health care service plan has a direct contract with a provider that allows the provider to choose payment methods, including a non-fee-based payment method for services rendered. (g) This section does not change, alter, or extend the scope of Section 1367. (h) This section shall become operative on April 1, 2026, and apply to all health care service plan contracts issued, amended, or renewed on or after that date. (Added by Stats. 2025, Ch. 219, Sec. 1. (SB 386) Effective January 1, 2026. Operative April 1, 2026, by its own provisions.)
1371.2.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may not ask for reimbursement of an overpayment or cut payment to a provider just because the provider contracted with another licensed health care service plan for an approved benefit plan.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.2. No health care service plan, including a specialized health care service plan, shall request reimbursement for overpayment or reduce the level of payment to a provider based solely on the allegation that the provider has entered into a contract with any other licensed health care service plan for participation in a benefit plan that has been approved by the director. (Amended by Stats. 2002, Ch. 760, Sec. 3. Effective January 1, 2003.)
1371.22.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A contract term that uses a provider’s lowest rate as the plan’s payment rate must not count certain uninsured patients’ cash payments.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.22. If a contract between a health care service plan and a provider requires that the provider accept, as payment from the plan, the lowest payment rate charged by the provider to any patient or third party, this contract provision shall not be deemed to apply to, or take into consideration, any cash payments made to the provider by individual patients who do not have any private or public form of health care coverage for the service rendered by the provider, as described in subdivision (c) of Section 657 of the Business and Professions Code. This section shall apply to a provider contract that is issued, amended, or renewed on or after the effective date of this section. (Added by Stats. 1998, Ch. 20, Sec. 2. Effective April 14, 1998.)
1371.25.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A plan, entities contracting with a plan, and providers are each responsible for their own acts or omissions and are not liable for others’ acts, omissions, or defense costs.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.25. A plan, any entity contracting with a plan, and providers are each responsible for their own acts or omissions, and are not liable for the acts or omissions of, or the costs of defending, others. Any provision to the contrary in a contract with providers is void and unenforceable. Nothing in this section shall preclude a finding of liability on the part of a plan, any entity contracting with a plan, or a provider, based on the doctrines of equitable indemnity, comparative negligence, contribution, or other statutory or common law bases for liability. (Added by Stats. 1995, Ch. 774, Sec. 2. Effective January 1, 1996.)
1371.3.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain group health care service plans must allow assignment of reimbursement rights to the State Department of Health Services when care is provided to a Medi-Cal beneficiary.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.3. On and after January 1, 1994, every group health care service plan that provides hospital, medical, or surgical expense benefits for plan members and their dependents shall authorize and permit assignment of the enrollee’s or subscriber’s right to any reimbursement for health care services covered under the plan contract to the State Department of Health Services when health care services are provided to a Medi-Cal beneficiary. This section, however, shall not apply to a Medi-Cal beneficiary for health care services provided pursuant to a contract with the State Department of Health Services under Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. (Added by Stats. 1993, Ch. 744, Sec. 1. Effective January 1, 1994.)
1371.30.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The department must create and manage an independent dispute resolution process for certain health plan claim disputes, and the plan and other parties must follow the process and implement the decision.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.30. (a) (1) By September 1, 2017, the department shall establish an independent dispute resolution process for the purpose of processing and resolving a claim dispute between a health care service plan and a noncontracting individual health professional for services subject to subdivision (a) of Section 1371.9. (2) Prior to initiating the independent dispute resolution process, the parties shall complete the plan’s internal process. (3) If either the noncontracting individual health professional or the plan appeals a claim to the department’s independent dispute resolution process, the other party shall participate in the appeal process as described in this section. (b) (1) The department shall establish uniform written procedures for the submission, receipt, processing, and resolution of claim payment disputes pursuant to this section and any other guidelines for implementing this section. These procedures shall include a process for each party to submit into evidence information that will be kept confidential from the other party, in order to preserve the confidentiality of the source contract. (2) The department shall establish reasonable and necessary fees for the purpose of administering this section, to be paid by both parties. (3) In establishing the independent dispute resolution process, the department shall permit the bundling of claims submitted to the same plan or the same delegated entity for the same or similar services by the same noncontracting individual health professional. (4) The department shall permit a physician group, independent practice association, or other entity authorized to act on behalf of a noncontracting individual health professional to initiate and participate in the independent dispute resolution process. (5) (A) In deciding the dispute, the independent organization shall conduct a de novo review and base its decision regarding the appropriate reimbursement solely on the information and documents timely submitted into evidence by the parties to the dispute. (B) The independent organization shall assign reviewers to each case based on their relevant education, background, and medical claims payment and clinical experience. (c) (1) The department may contract with one or more independent organizations to conduct the proceedings. The independent organization handling a dispute shall be independent of either party to the dispute. (2) The department shall establish conflict-of-interest standards, consistent with the purposes of this section, that an organization shall meet in order to qualify to administer the independent dispute resolution program. The conflict-of-interest standards shall be consistent with the standards pursuant to subdivisions (c) and (d) of Section 1374.32. (3) The department may contract with the same independent organization or organizations as the Department of Insurance. (4) The department shall provide, upon the request of an interested person, a copy of all nonproprietary information, as determined by the director, filed with the department by an independent organization seeking to contract with the department to administer the independent dispute resolution process pursuant to this section. The department may charge a nominal fee to cover the costs of providing a copy of the information pursuant to this paragraph. (5) The independent organization retained to conduct proceedings shall be deemed to be consultants for purposes of Section 43.98 of the Civil Code. (6) Contracts entered into pursuant to the authority in this subdivision shall be exempt from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, Section 19130 of the Government Code, and Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of the Government Code and shall be exempt from the review or approval of any division of the Department of General Services. (d) The decision obtained through the department’s independent dispute resolution process shall be binding on both parties. The plan shall implement the decision obtained through the independent dispute resolution process. If dissatisfied, either party may pursue any right, remedy, or penalty established under any other applicable law. (e) This section shall not apply to a Medi-Cal managed health care service plan or any entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (f) If a health care service plan delegates payment functions to a contracted entity, including, but not limited to, a medical group or independent practice association, then the delegated entity shall comply with this section. (g) This section shall not apply to emergency services and care, as defined in Section 1317.1. (h) The definitions in subdivision (f) of Section 1371.9 shall apply for purposes of this section. (i) This section shall not be construed to alter a health care service plan’s obligations pursuant to Sections 1371 and 1371.4. (j) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement, interpret, or make specific this section by means of all-plan letters or similar instructions, without taking regulatory action, until the time regulations are adopted. (k) By January 1, 2019, the department shall provide a report to the Governor, the President pro Tempore of the Senate, the Speaker of the Assembly, and the Senate and Assembly Committees on Health of the data and information provided in the independent dispute resolution process in a manner and format specified by the Legislature. (Amended by Stats. 2020, Ch. 278, Sec. 1. (AB 2157) Effective January 1, 2021.)
1371.31.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must reimburse certain noncontracting providers using a specified rate rule and must file rate data and related materials with the department.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.31. (a) (1) For services rendered subject to Section 1371.9, effective July 1, 2017, unless otherwise agreed to by the noncontracting individual health professional and the plan, the plan shall reimburse the greater of the average contracted rate or 125 percent of the amount Medicare reimburses on a fee-for-service basis for the same or similar services in the general geographic region in which the services were rendered. For the purposes of this section, “average contracted rate” means the average of the contracted commercial rates paid by the health plan or delegated entity for the same or similar services in the geographic region. This subdivision does not apply to subdivision (c) of Section 1371.9 or subdivision (b) of this section. (2) (A) By July 1, 2017, each health care service plan and its delegated entities shall provide to the department all of the following: (i) Data listing its average contracted rates for the plan for services most frequently subject to Section 1371.9 in each geographic region in which the services are rendered for the calendar year 2015. (ii) Its methodology for determining the average contracted rate for the plan for services subject to Section 1371.9. The methodology to determine an average contracted rate shall ensure that the plan includes the highest and lowest contracted rates for the calendar year 2015. (iii) The policies and procedures used to determine the average contracted rates under this subdivision. (B) For each calendar year after the plan’s initial submission of the average contracted rate as specified in subparagraph (A) and until the standardized methodology under paragraph (3) is specified, a health care service plan and the plan’s delegated entities shall adjust the rate initially established pursuant to this subdivision by the Consumer Price Index for Medical Care Services, as published by the United States Bureau of Labor Statistics. (3) (A) By January 1, 2019, the department shall specify a methodology that plans and delegated entities shall use to determine the average contracted rates for services most frequently subject to Section 1371.9. This methodology shall take into account, at a minimum, information from the independent dispute resolution process, the specialty of the individual health professional, and the geographic region in which the services are rendered. The methodology to determine an average contracted rate shall ensure that the plan includes the highest and lowest contracted rates. (B) Health care service plans and delegated entities shall provide to the department the policies and procedures used to determine the average contracted rates in compliance with subparagraph (A). (C) If, based on the health care service plan’s model, a health care service plan does not pay a statistically significant number or dollar amount of claims for services covered under Section 1371.9, the health care service plan shall demonstrate to the department that it has access to a statistically credible database reflecting rates paid to noncontracting individual health professionals for services provided in a geographic region and shall use that database to determine an average contracted rate required pursuant to paragraph (1). (D) The department shall review the information filed pursuant to this subdivision as part of its examination of fiscal and administrative affairs pursuant to Section 1382. (E) The average contracted rate data submitted pursuant to this section shall be confidential and not subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). (F) In developing the standardized methodology under this subdivision, the department shall consult with interested parties throughout the process of developing the standards, including the Department of Insurance, representatives of health plans, insurers, health care providers, hospitals, consumer advocates, and other stakeholders it deems appropriate. The department shall hold the first stakeholder meeting no later than July 1, 2017. (4) A health care service plan shall include in its reports submitted to the department pursuant to Section 1367.035 and regulations adopted pursuant to that section, in a manner specified by the department, the number of payments made to noncontracting individual health professionals for services at a contracting health facility and subject to Section 1371.9, as well as other data sufficient to determine the proportion of noncontracting individual health professionals to contracting individual health professionals at contracting health facilities, as defined in subdivision (f) of Section 1371.9. The department shall include a summary of this information in its January 1, 2019, report required pursuant to subdivision (k) of Section 1371.30 and its findings regarding the impact of the act that added this section on health care service plan contracting and network adequacy. (5) A health care service plan that provides services subject to Section 1371.9 shall meet the network adequacy requirements set forth in this chapter, including, but not limited to, subdivisions (d) and (e) of Section 1367 of this code and in Exhibits (H) and (I) of subdivision (d) of Section 1300.51 of, and Sections 1300.67.2 and 1300.67.2.1 of, Title 28 of the California Code of Regulations, including, but not limited to, inpatient hospital services and specialist physician services, and if necessary, the department may adopt additional regulations related to those services. This section shall not be construed to limit the director’s authority under this chapter. (6) For purposes of this section for Medicare fee-for-service reimbursement, geographic regions shall be the geographic regions specified for physician reimbursement for Medicare fee-for-service by the United States Department of Health and Human Services. (7) A health care service plan shall authorize and permit assignment of the enrollee’s right, if any, to any reimbursement for health care services covered under the plan contract to a noncontracting individual health professional who furnishes the health care services rendered subject to Section 1371.9. Lack of assignment pursuant to this paragraph shall not be construed to limit the applicability of this section, Section 1371.30, or Section 1371.9. (8) A noncontracting individual health professional, health care service plan, or health care service plan’s delegated entity who disputes the claim reimbursement under this section shall utilize the independent dispute resolution process described in Section 1371.30. (b) If nonemergency services are provided by a noncontracting individual health professional consistent with subdivision (c) of Section 1371.9 to an enrollee who has voluntarily chosen to use the enrollee’s out-of-network benefit for services covered by a plan that includes coverage for out-of-network benefits, unless otherwise agreed to by the plan and the noncontracting individual health professional, the amount paid by the health care service plan shall be the amount set forth in the enrollee’s evidence of coverage. This payment is not subject to the independent dispute resolution process described in Section 1371.30. (c) If a health care service plan delegates the responsibility for payment of claims to a contracted entity, including, but not limited to, a medical group or independent practice association, then the entity to which that responsibility is delegated shall comply with the requirements of this section. (d) (1) A payment made by the health care service plan to the noncontracting health care professional for nonemergency services as required by Section 1371.9 and this section, in addition to the applicable cost sharing owed by the enrollee, shall constitute payment in full for nonemergency services rendered unless either party uses the independent dispute resolution process or other lawful means pursuant to Section 1371.30. (2) Notwithstanding any other law, the amounts paid by a plan for services under this section shall not constitute the prevailing or customary charges, the usual fees to the general public, or other charges for other payers for an individual health professional. (3) This subdivision shall not preclude the use of the independent dispute resolution process pursuant to Section 1371.30. (e) This section shall not apply to a Medi-Cal managed health care service plan or any other entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (f) This section shall not apply to emergency services and care, as defined in Section 1317.1. (g) The definitions in subdivision (f) of Section 1371.9 shall apply for purposes of this section. (h) This section shall not be construed to alter a health care service plan’s obligations pursuant to Sections 1371 and 1371.4. (Amended by Stats. 2021, Ch. 615, Sec. 225. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
1371.34.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Complaints from enrollees to a health care service plan about delayed or denied claim payments must be treated as grievances under Section 1368, even if the enrollee does not use the word “grievance.”

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.34. (a) A complaint made by an enrollee to a health care service plan about a delay or denial of a payment of a claim shall be treated as a grievance subject to Section 1368 whether or not the enrollee uses the term “grievance” as part of the complaint. This section does not apply to specialized health care service plans. (b) This section shall become operative on January 1, 2026. (Added by Stats. 2024, Ch. 763, Sec. 3. (AB 3275) Effective January 1, 2025. Operative January 1, 2026, by its own provisions.)
1371.35.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must pay complete claims within 30 calendar days and send written notices for contested or denied claims.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.35. (a) (1) A health care service plan, including a specialized health care service plan, shall reimburse a complete claim or portion thereof, whether in state or out of state, as soon as practicable, but no later than 30 calendar days after receipt of the claim by the health care service plan. If a claim or portion thereof does not meet the criteria for a complete claim or the criteria for coverage under the plan contract, a health care service plan shall notify the claimant, in writing, that the claim or portion thereof is contested or denied, as soon as practicable, but no later than 30 calendar days after receipt of the claim by the health care service plan. (2) The notice that a claim or portion thereof, is contested shall identify the portion of the claim that is contested, by procedure or revenue code, and the specific information needed from the provider to reconsider the claim, including any defect or impropriety or additional information needed to adjudicate the claim. (3) The notice that a claim or portion thereof, is denied shall identify the portion of the claim that is denied, by procedure or revenue code, and the specific reasons for the denial, including any defect or impropriety. (b) If a claim, or portion thereof, is not reimbursed by delivery to the claimant’s address of record within 30 calendar days after receipt, the plan shall pay interest at a rate of 15 percent per annum beginning with the first calendar day after the 30-calendar-day period. A health care service plan shall automatically include all interest that has accrued pursuant to this section in the payment made to the claimant, without requiring a request therefor. A plan failing to comply with this requirement shall pay the claimant the greater of an additional fifteen dollars ($15) or a fee of 10 percent of the accrued interest. (c) For the purposes of this section, a claim, or portion thereof, is reasonably contested if the plan has not received the completed claim. A paper claim from an institutional provider shall be deemed complete upon submission of a legible emergency department report and a completed UB 92 or other format adopted by the National Uniform Billing Committee, and reasonable relevant information requested by the plan within 30 calendar days of receipt of the claim. An electronic claim from an institutional provider shall be deemed complete upon submission of an electronic equivalent to the UB 92 or other format adopted by the National Uniform Billing Committee, and reasonable relevant information requested by the plan within 30 calendar days of receipt of the claim. However, if the plan requests a copy of the emergency department report within the 30 calendar days after receipt of the electronic claim from the institutional provider, the plan may also request additional reasonable relevant information within 30 calendar days of receipt of the emergency department report, at which time the claim shall be deemed complete. A claim from a professional provider shall be deemed complete upon submission of a completed HCFA 1500 or its electronic equivalent or other format adopted by the National Uniform Billing Committee, and reasonable relevant information requested by the plan within 30 calendar days of receipt of the claim. The provider shall provide the plan reasonable relevant information within 10 working days of receipt of a written request that is clear and specific regarding the information sought. If, as a result of reviewing the reasonable relevant information, the plan requires further information, the plan shall have an additional 15 calendar days after receipt of the reasonable relevant information to request the further information, notwithstanding any time limit to the contrary in this section, at which time the claim shall be deemed complete. (d) This section shall not apply to claims about which there is evidence of fraud and misrepresentation, to eligibility determinations, or in instances where the plan has not been granted reasonable access to information under the provider’s control. A plan shall specify, in a written notice sent to the provider within 30 calendar days of receipt of the claim, which, if any, of these exceptions applies to a claim. (e) If a claim or portion thereof is contested on the basis that the plan has not received information reasonably necessary to determine payer liability for the claim or portion thereof, then the plan shall have 30 calendar days after receipt of this additional information to complete reconsideration of the claim. If a claim, or portion thereof, undergoing reconsideration is not reimbursed by delivery to the claimant’s address of record within 30 calendar days after receipt of the additional information, the plan shall pay interest at the rate of 15 percent per annum beginning with the first calendar day after the 30-calendar-day period. A health care service plan shall automatically include the interest due in the payment made to the claimant, without requiring a request therefor. (f) The obligation of the plan to comply with this section shall not be deemed to be waived when the plan requires its medical groups, independent practice associations, or other contracting entities to pay claims for covered services. This section shall not be construed to prevent a plan from assigning, by a written contract, the responsibility to pay interest and late charges pursuant to this section to medical groups, independent practice associations, or other entities. (g) A plan shall not delay payment on a claim from a physician or other provider to await the submission of a claim from a hospital or other provider, without citing specific rationale as to why the delay was necessary and providing a monthly update regarding the status of the claim and the plan’s actions to resolve the claim, to the provider that submitted the claim. (h) A health care service plan shall not request or require that a provider waive its rights pursuant to this section. (i) This section shall not apply to capitated payments. (j) This section shall apply only to claims for services rendered to a patient who was provided emergency services and care as defined in Section 1317.1 in the United States on or after September 1, 1999. (k) This section shall not be construed to affect the rights or obligations of any person pursuant to Section 1371. (l) This section shall not be construed to affect a written agreement, if any, of a provider to submit bills within a specified time period. (m) The department may issue compliance guidance and amend regulations for consistency with this section. The guidance and amendments shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) until December 31, 2027. (n) This section shall become operative on January 1, 2026. (Repealed (in Sec. 4) and added by Stats. 2024, Ch. 763, Sec. 5. (AB 3275) Effective January 1, 2025. Operative January 1, 2026, by its own provisions.)
1371.36.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may not deny payment for certain claims for services in a licensed acute care hospital when the services were previously authorized and the listed conditions are met.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.36. (a) A health care service plan shall not deny payment of a claim on the basis that the plan, medical group, independent practice association, or other contracting entity did not provide authorization for health care services that were provided in a licensed acute care hospital and that were related to services that were previously authorized, if all of the following conditions are met: (1) It was medically necessary to provide the services at the time. (2) The services were provided after the plan’s normal business hours. (3) The plan does not maintain a system that provides for the availability of a plan representative or an alternative means of contact through an electronic system, including voicemail or electronic mail, whereby the plan can respond to a request for authorization within 30 minutes of the time that a request was made. (b) This section shall not apply to investigational or experimental therapies, or other noncovered services. (Added by Stats. 2000, Ch. 827, Sec. 5. Effective January 1, 2001.)
1371.37.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must not engage in unfair payment patterns. The director may investigate and, after a final determination, may impose penalties and require faster claim payment; the department must also report and publish certain information.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.37. (a) A health care service plan is prohibited from engaging in an unfair payment pattern, as defined in this section. (b) Consistent with subdivision (a) of Section 1371.39, the director may investigate a health care service plan to determine whether it has engaged in an unfair payment pattern. (c) An “unfair payment pattern,” as used in this section, means any of the following: (1) Engaging in a demonstrable and unjust pattern, as defined by the department, of reviewing or processing complete and accurate claims that results in payment delays. (2) Engaging in a demonstrable and unjust pattern, as defined by the department, of reducing the amount of payment or denying complete and accurate claims. (3) Failing on a repeated basis to pay the uncontested portions of a claim within the timeframes specified in Section 1371, 1371.1, or 1371.35. (4) Failing on a repeated basis to automatically include the interest due on claims pursuant to Section 1371. (d) (1) Upon a final determination by the director that a health care service plan has engaged in an unfair payment pattern, the director may: (A) Impose monetary penalties as permitted under this chapter. (B) Require the health care service plan for a period of three years from the date of the director’s determination, or for a shorter period prescribed by the director, to pay complete and accurate claims from the provider within a shorter period of time than that required by Section 1371. The provisions of this subparagraph shall not become operative until January 1, 2002. (C) Include a claim for costs incurred by the department in any administrative or judicial action, including investigative expenses and the cost to monitor compliance by the plan. (2) For any overpayment made by a health care service plan while subject to the provisions of paragraph (1), the provider shall remain liable to the plan for repayment pursuant to Section 1371.1. (e) The enforcement remedies provided in this section are not exclusive and shall not limit or preclude the use of any otherwise available criminal, civil, or administrative remedy. (f) The penalties set forth in this section shall not preclude, suspend, affect, or impact any other duty, right, responsibility, or obligation under a statute or under a contract between a health care service plan and a provider. (g) A health care service plan may not delegate any statutory liability under this section. (h) For the purposes of this section, “complete and accurate claim” has the same meaning as that provided in the regulations adopted by the department pursuant to subdivision (a) of Section 1371.38. (i) On or before December 31, 2001, the department shall report to the Legislature and the Governor information regarding the development of the definition of “unjust pattern” as used in this section. This report shall include, but not be limited to, a description of the process used and a list of the parties involved in the department’s development of this definition as well as recommendations for statutory adoption. (j) The department shall make available upon request and on its website, information regarding actions taken pursuant to this section, including a description of the activities that were the basis for the action. (Added by Stats. 2000, Ch. 827, Sec. 6. Effective January 1, 2001.)
1371.38.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The department must adopt regulations by July 1, 2001, to ensure health plans have a dispute resolution mechanism, and the regulations must require that mechanism to be fair, fast, and cost-effective for contracting and non-contracting providers.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.38. (a) The department shall, on or before July 1, 2001, adopt regulations that ensure that plans have adopted a dispute resolution mechanism pursuant to subdivision (h) of Section 1367. The regulations shall require that any dispute resolution mechanism of a plan is fair, fast, and cost-effective for contracting and non-contracting providers and define the term “complete and accurate claim, including attachments and supplemental information or documentation.” (b) On or before December 31, 2001, the department shall report to the Governor and the Legislature its recommendations for any additional statutory requirements relating to plan and provider dispute resolution mechanisms. (Added by Stats. 2000, Ch. 827, Sec. 7. Effective January 1, 2001.)
1371.39.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Providers and plans may report suspected unfair payment or billing patterns to the department, and the department must review complaint data annually.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.39. (a) Providers may report to the department through the toll-free provider line, email address, or another method designated by the department, instances in which the provider believes a plan is engaging in an unfair payment pattern. (b) Plans may report to the department through the toll-free provider line, email address, or another method designated by the department, instances in which the plan believes a provider is engaging in an unfair billing pattern. (c) “Unfair billing pattern” means engaging in a demonstrable and unjust pattern of unbundling of claims, upcoding of claims, or other demonstrable and unjustified billing patterns, as defined by the department. (d) On or before July 1, 2019, and at least annually thereafter, the department shall review complaints filed pursuant to subdivision (a). If the review of complaint data indicates a possible unfair payment pattern, the department may conduct an audit or an enforcement action pursuant to subdivision (s) of Section 1300.71 of Title 28 of the California Code of Regulations. (Amended by Stats. 2018, Ch. 303, Sec. 1. (AB 2674) Effective January 1, 2019.)
1371.4.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must give 24-hour access for emergency post-stabilization authorization, reimburse emergency care until stabilization, and follow specific response and transfer rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.4. (a) A health care service plan that covers hospital, medical, or surgical expenses, or its contracting medical providers, shall provide 24-hour access for enrollees and providers, including, but not limited to, noncontracting hospitals, to obtain timely authorization for medically necessary care, for circumstances where the enrollee has received emergency services and care is stabilized, but the treating provider believes that the enrollee may not be discharged safely. A physician and surgeon shall be available for consultation and for resolving disputed requests for authorizations. A health care service plan that does not require prior authorization as a prerequisite for payment for necessary medical care following stabilization of an emergency medical condition or active labor need not satisfy the requirements of this subdivision. (b) A health care service plan, or its contracting medical providers, shall reimburse providers for emergency services and care provided to its enrollees, until the care results in stabilization of the enrollee, except as provided in subdivision (c). As long as federal or state law requires that emergency services and care be provided without first questioning the patient’s ability to pay, a health care service plan shall not require a provider to obtain authorization prior to the provision of emergency services and care necessary to stabilize the enrollee’s emergency medical condition. (c) Payment for emergency services and care may be denied only if the health care service plan, or its contracting medical providers, reasonably determines that the emergency services and care were never performed; provided that a health care service plan, or its contracting medical providers, may deny reimbursement to a provider for a medical screening examination in cases when the plan enrollee did not require emergency services and care and the enrollee reasonably should have known that an emergency did not exist. A health care service plan may require prior authorization as a prerequisite for payment for necessary medical care following stabilization of an emergency medical condition. (d) If there is a disagreement between the health care service plan and the provider regarding the need for necessary medical care, following stabilization of the enrollee, the plan shall assume responsibility for the care of the patient either by having medical personnel contracting with the plan personally take over the care of the patient within a reasonable amount of time after the disagreement, or by having another general acute care hospital under contract with the plan agree to accept the transfer of the patient as provided in Section 1317.2, Section 1317.2a, or other pertinent statute. However, this requirement shall not apply to necessary medical care provided in hospitals outside the service area of the health care service plan. If the health care service plan fails to satisfy the requirements of this subdivision, further necessary care shall be deemed to have been authorized by the plan. Payment for this care may not be denied. (e) A health care service plan may delegate the responsibilities enumerated in this section to the plan’s contracting medical providers. (f) Subdivisions (b), (c), (d), (g), and (h) shall not apply with respect to a nonprofit health care service plan that has 3,500,000 enrollees and maintains a prior authorization system that includes the availability by telephone within 30 minutes of a practicing emergency department physician. (g) The Department of Managed Health Care shall adopt by July 1, 1995, on an emergency basis, regulations governing instances when an enrollee requires medical care following stabilization of an emergency medical condition, including appropriate timeframes for a health care service plan to respond to requests for treatment authorization. (h) The Department of Managed Health Care shall adopt, by July 1, 1999, on an emergency basis, regulations governing instances when an enrollee in the opinion of the treating provider requires necessary medical care following stabilization of an emergency medical condition, including appropriate timeframes for a health care service plan to respond to a request for treatment authorization from a treating provider who has a contract with a plan. (i) The definitions set forth in Section 1317.1 shall control the construction of this section. (j) (1) A health care service plan that is contacted by a hospital pursuant to Section 1262.8 shall, within 30 minutes of the time the hospital makes the initial telephone call requesting information, either authorize poststabilization care or inform the hospital that it will arrange for the prompt transfer of the enrollee to another hospital. (2) A health care service plan that is contacted by a hospital pursuant to Section 1262.8 shall reimburse the hospital for poststabilization care rendered to the enrollee if any of the following occur: (A) The health care service plan authorizes the hospital to provide poststabilization care. (B) The health care service plan does not respond to the hospital’s initial contact or does not make a decision regarding whether to authorize poststabilization care or to promptly transfer the enrollee within the timeframe set forth in paragraph (1). (C) There is an unreasonable delay in the transfer of the enrollee, and the noncontracting physician and surgeon determines that the enrollee requires poststabilization care. (3) A health care service plan shall not require a hospital representative or a noncontracting physician and surgeon to make more than one telephone call pursuant to Section 1262.8 to the number provided in advance by the health care service plan. The representative of the hospital that makes the telephone call may be, but is not required to be, a physician and surgeon. (4) An enrollee who is billed by a hospital in violation of Section 1262.8 may report receipt of the bill to the health care service plan and the department. The department shall forward that report to the State Department of Public Health. (5) For purposes of this section, “poststabilization care” means medically necessary care provided after an emergency medical condition has been stabilized. (Amended by Stats. 2008, Ch. 603, Sec. 4. Effective January 1, 2009.)
1371.5.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan providing basic health care services generally may not require prior authorization or refuse to pay for ambulance services tied to a 911 emergency request when the listed emergency conditions are met.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.5. (a) No health care service plan that provides basic health care services shall require prior authorization or refuse to pay for any ambulance or ambulance transport services, referred to in paragraph (6) of subdivision (b) of Section 1345, provided to an enrollee as a result of a “911” emergency response system request for assistance if either of the following conditions apply: (1) The request was made for an emergency medical condition and ambulance transport services were required. (2) An enrollee reasonably believed that the medical condition was an emergency medical condition and reasonably believed that the condition required ambulance transport services. (b) As used in this section, “emergency medical condition” has the same meaning as in Section 1317.1. (c) The determination as to whether an enrollee reasonably believed that the medical condition was an emergency medical condition that required an emergency response shall not be based solely upon a retrospective analysis of the level of care eventually provided to, or a final discharge of, the person who received emergency assistance. (d) A health care service plan shall not be required to pay for any ambulance or ambulance transport services if the health care service plan determines that the ambulance or ambulance transport services were never performed, an emergency condition did not exist, or upon findings of fraud, incorrect billings, the provision of services that were not covered under the member’s current benefit plan, or membership that was invalid at the time services were delivered for the pending emergency claim. (Added by Stats. 1998, Ch. 979, Sec. 3. Effective January 1, 1999.)
1371.51.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts issued, amended, or renewed on or after July 1, 2025 must set up reimbursement for certain emergency-related mobile health programs and limit enrollee cost-sharing for noncontracting providers.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.51. (a) A health care service plan contract issued, amended, or renewed on or after July 1, 2025, shall establish a process to reimburse for services provided by a community paramedicine program, triage to alternate destination program, or mobile integrated health program. (b) (1) A health care service plan contract issued, amended, or renewed on or after July 1, 2025, shall require an enrollee who receives covered services from a noncontracting community paramedicine program, triage to alternate destination program, or mobile integrated health program to pay no more than the same cost-sharing amount that the enrollee would pay for the same covered services received from a contracting community paramedicine program, triage to alternate destination program, or mobile integrated health program. (2) Notwithstanding any other law, reimbursement rates adopted pursuant to this subdivision shall not exceed the health care service plan’s usual and customary charges for services rendered. (c) For purposes of this section, the following definitions apply: (1) “Community paramedicine program” means a program defined in Section 1815. (2) “Mobile integrated health program” means a team of licensed health care practitioners, operating within their scope of practice, who provide mobile health services to support the emergency medical services system. (3) “Triage to alternate destination program” means a program defined in Section 1819. (Added by Stats. 2024, Ch. 884, Sec. 1. (SB 1180) Effective January 1, 2025.)
1371.55.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plans must cap an enrollee’s cost-sharing for covered air ambulance services from a noncontracting provider at the in-network amount, and the plan must tell the enrollee and provider what that amount is.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.55. (a) (1) Notwithstanding Section 1367.11, a health care service plan contract issued, amended, or renewed on or after January 1, 2020, shall provide that if an enrollee receives covered services from a noncontracting air ambulance provider, the enrollee shall pay no more than the same cost-sharing amount that the enrollee would pay for the same covered services received from a contracting air ambulance provider. This amount shall be referred to as the “in-network cost-sharing amount.” (2) An enrollee shall not owe the noncontracting provider more than the in-network cost-sharing amount for services subject to this section. At the time of payment by the plan to the noncontracting provider, the plan shall inform the enrollee and the noncontracting provider of the in-network cost-sharing amount owed by the enrollee. (b) The following shall apply for purposes of this section: (1) Any cost sharing paid by the enrollee for the services subject to this section shall count toward the limit on annual out-of-pocket expenses established under Section 1367.006. (2) Cost sharing arising from services subject to this section shall be counted toward any deductible in the same manner as cost sharing would be attributed to a contracting provider. (3) The cost sharing paid by the enrollee pursuant to this section shall satisfy the enrollee’s obligation to pay cost sharing for the health service. (c) A noncontracting provider may advance to collections only the in-network cost-sharing amount, as determined by the plan pursuant to subdivision (a), that the enrollee failed to pay. (d) A health care service plan or a provider may seek relief in any court for the purpose of resolving a payment dispute. A provider is not prohibited from using a health care service plan’s existing dispute resolution processes. (e) Air ambulance service providers remain subject to the balance billing protections for Medi-Cal beneficiaries under Section 14019.4 of the Welfare and Institutions Code. (Added by Stats. 2019, Ch. 537, Sec. 2. (AB 651) Effective January 1, 2020.)
1371.56.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plans must limit what enrollees pay for covered ground ambulance services from noncontracting providers to the in-network cost-sharing amount, and providers are restricted in how they collect unpaid amounts.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.56. (a) (1) Unless otherwise required by this chapter, a health care service plan contract issued, amended, or renewed on or after January 1, 2024, shall require an enrollee who receives covered services from a noncontracting ground ambulance provider to pay no more than the same cost-sharing amount that the enrollee would pay for the same covered services received from a contracting ground ambulance provider. This amount shall be referred to as the “in-network cost-sharing amount.” (2) An enrollee shall not owe the noncontracting ground ambulance provider more than the in-network cost-sharing amount for services subject to this section. At the time of payment by the plan to the noncontracting provider, the plan shall inform the enrollee and the noncontracting provider of the in-network cost-sharing amount owed by the enrollee and shall disclose whether or not the enrollee’s coverage is regulated by the department or if the coverage is not state-regulated. (b) (1) The in-network cost-sharing amount paid by the enrollee pursuant to this section shall count toward the limit on annual out-of-pocket expenses established under Section 1367.006. (2) Cost sharing arising pursuant to this section shall count toward any deductible in the same manner as cost sharing would be attributed to a contracting provider. (3) The in-network cost-sharing amount paid by the enrollee pursuant to this section shall satisfy the enrollee’s obligation to pay cost sharing for the health service. (c) A noncontracting ground ambulance provider shall only advance to collections the in-network cost-sharing amount, as determined by the plan pursuant to subdivision (a), that the enrollee failed to pay. (1) A noncontracting ground ambulance provider, or an entity acting on its behalf, including a debt buyer or assignee of the debt, shall not do either of the following: (A) Report adverse information to a consumer credit reporting agency. (B) Commence civil action against the enrollee for a minimum of 12 months after the initial billing regarding amounts owed by the enrollee pursuant to subdivision (a). (2) With respect to an enrollee, a noncontracting ground ambulance provider, or an entity acting on its behalf, including an assignee of the debt, shall not use wage garnishments or liens on primary residences as a means of collecting unpaid bills pursuant to this section. (d) (1) Unless otherwise agreed to by the noncontracting ground ambulance provider and the health care service plan, the plan shall directly reimburse a noncontracting ground ambulance provider for ground ambulance services the difference between the in-network cost-sharing amount and an amount described, as follows: (A) If there is a rate established or approved by a local government, at the rate established or approved by the governing body of the local government having jurisdiction for that area or subarea, including an exclusive operating area pursuant to Section 1797.85. (B) If the local government having jurisdiction where the service was provided does not have an established or approved rate for that service, the amount established by Section 1300.71 (a)(3)(B) of Title 28 of the California Code of Regulations. (2) A local government has jurisdiction over the ground ambulance transport if either of the following applies: (A) The ground ambulance transport is initiated within the boundaries of the local government’s regulatory jurisdiction. (B) In the case of ground ambulance transports provided on a mutual or automatic aid basis into another jurisdiction, the local government where the noncontracting ground ambulance provider is based. (3) A payment made by the health care service plan to the noncontracting ground ambulance provider for services as required in subdivision (a), plus the applicable cost sharing owed by the enrollee, shall constitute payment in full for services rendered. (4) Notwithstanding any other law, the amounts paid by a health care service plan for services under this section shall not constitute the prevailing or customary charges, the usual fees to the general public, or other charges for other payers for an individual ground ambulance provider. (e) A health care service plan or a provider may seek relief in any appropriate court for the purpose of resolving a payment dispute. A ground ambulance provider may use a health care service plan’s existing dispute resolution processes. (f) Ground ambulance service providers remain subject to the balance billing protections for Medi-Cal beneficiaries under Section 14019.4 of the Welfare and Institutions Code. (g) This section does not apply to a Medi-Cal managed health care service plan or any entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (Amended by Stats. 2024, Ch. 520, Sec. 7. (SB 1061) Effective January 1, 2025.)
1371.8.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may not rescind or modify a treatment authorization after the provider has rendered the service in good faith under that authorization.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.8. A health care service plan that authorizes a specific type of treatment by a provider shall not rescind or modify this authorization after the provider renders the health care service in good faith and pursuant to the authorization for any reason, including, but not limited to, the plan’s subsequent rescission, cancellation, or modification of the enrollee’s or subscriber’s contract or the plan’s subsequent determination that it did not make an accurate determination of the enrollee’s or subscriber’s eligibility. This section shall not be construed to expand or alter the benefits available to the enrollee or subscriber under a plan. The Legislature finds and declares that by adopting the amendments made to this section by Assembly Bill 1324 of the 2007–08 Regular Session it does not intend to instruct a court as to whether or not the amendments are existing law. (Amended by Stats. 2007, Ch. 702, Sec. 1. Effective January 1, 2008.)
1371.9.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plans must protect enrollees from extra billing by noncontracting individual health professionals, with limited exceptions for written out-of-network consent.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1371.9. (a) (1) Except as provided in subdivision (c), a health care service plan contract issued, amended, or renewed on or after July 1, 2017, shall provide that if an enrollee receives covered services from a contracting health facility at which, or as a result of which, the enrollee receives services provided by a noncontracting individual health professional, the enrollee shall pay no more than the same cost sharing that the enrollee would pay for the same covered services received from a contracting individual health professional. This amount shall be referred to as the “in-network cost-sharing amount.” (2) An enrollee shall not owe the noncontracting individual health professional more than the in-network cost-sharing amount for services subject to this section. At the time of payment by the plan to the noncontracting individual health professional, the plan shall inform the enrollee and the noncontracting individual health professional of the in-network cost-sharing amount owed by the enrollee. (3) A noncontracting individual health professional shall not bill or collect any amount from the enrollee for services subject to this section except for the in-network cost-sharing amount. Any communication from the noncontracting individual health professional to the enrollee prior to the receipt of information about the in-network cost-sharing amount pursuant to paragraph (2) shall include a notice in 12-point bold type stating that the communication is not a bill and informing the enrollee that the enrollee shall not pay until the enrollee is informed by the enrollee’s health care service plan of any applicable cost sharing. (4) (A) If the noncontracting individual health professional has received more than the in-network cost-sharing amount from the enrollee for services subject to this section, the noncontracting individual health professional shall refund any overpayment to the enrollee within 30 calendar days after receiving payment from the enrollee. (B) If the noncontracting individual health professional does not refund any overpayment to the enrollee within 30 calendar days after being informed of the enrollee’s in-network cost-sharing amount, interest shall accrue at the rate of 15 percent per annum beginning with the date payment was received from the enrollee. (C) A noncontracting individual health professional shall automatically include in their refund to the enrollee all interest that has accrued pursuant to this section without requiring the enrollee to submit a request for the interest amount. (b) Except for services subject to subdivision (c), the following shall apply: (1) Any cost sharing paid by the enrollee for the services subject to this section shall count toward the limit on annual out-of-pocket expenses established under Section 1367.006. (2) Cost sharing arising from services subject to this section shall be counted toward any deductible in the same manner as cost sharing would be attributed to a contracting individual health professional. (3) The cost sharing paid by the enrollee pursuant to this section shall satisfy the enrollee’s obligation to pay cost sharing for the health service and shall constitute “applicable cost sharing owed by the enrollee.” (c) For services subject to this section, if an enrollee has a health care service plan that includes coverage for out-of-network benefits, a noncontracting individual health professional may bill or collect from the enrollee the out-of-network cost sharing, if applicable, only when the enrollee consents in writing and that written consent demonstrates satisfaction of all the following criteria: (1) At least 24 hours in advance of care, the enrollee shall consent in writing to receive services from the identified noncontracting individual health professional. (2) The consent shall be obtained by the noncontracting individual health professional in a document that is separate from the document used to obtain the consent for any other part of the care or procedure. The consent shall not be obtained by the facility or any representative of the facility. The consent shall not be obtained at the time of admission or at any time when the enrollee is being prepared for surgery or any other procedure. (3) At the time consent is provided, the noncontracting individual health professional shall give the enrollee a written estimate of the enrollee’s total out-of-pocket cost of care. The written estimate shall be based on the professional’s billed charges for the service to be provided. The noncontracting individual health professional shall not attempt to collect more than the estimated amount without receiving separate written consent from the enrollee or the enrollee’s authorized representative, unless circumstances arise during delivery of services that were unforeseeable at the time the estimate was given that would require the provider to change the estimate. (4) The consent shall advise the enrollee that the enrollee may elect to seek care from a contracted provider or may contact the enrollee’s health care service plan in order to arrange to receive the health service from a contracted provider for lower out-of-pocket costs. (5) The consent and estimate shall be provided to the enrollee in the language spoken by the enrollee, if the language is a Medi-Cal threshold language, as defined in subdivision (d) of Section 128552. (6) The consent shall also advise the enrollee that any costs incurred as a result of the enrollee’s use of the out-of-network benefit shall be in addition to in-network cost-sharing amounts and may not count toward the annual out-of-pocket maximum on in-network benefits or a deductible, if any, for in-network benefits. (d) A noncontracting individual health professional who fails to comply with the requirements of subdivision (c) has not obtained written consent for purposes of this section. Under those circumstances, subdivisions (a) and (b) shall apply and subdivision (c) shall not apply. (e) (1) A noncontracting individual health professional may advance to collections only the in-network cost-sharing amount, as determined by the plan pursuant to subdivision (a) or the out-of-network cost-sharing amount owed pursuant to subdivision (c), that the enrollee has failed to pay. (2) The noncontracting individual health professional, or any entity acting on their behalf, including any assignee of the debt, shall not do either of the following: (A) Report adverse information to a consumer credit reporting agency. (B) Commence civil action against the enrollee for a minimum of 150 days after the initial billing regarding amounts owed by the enrollee under subdivision (a) or (c). (3) With respect to an enrollee, the noncontracting individual health professional, or any entity acting on their behalf, including any assignee of the debt, shall not use wage garnishments or liens on primary residences as a means of collecting unpaid bills under this section. (f) For purposes of this section and Sections 1371.30 and 1371.31, the following definitions shall apply: (1) “Contracting health facility” means a health facility that is contracted with the enrollee’s health care service plan to provide services under the enrollee’s plan contract. A contracting health care facility includes, but is not limited to, the following providers: (A) A licensed hospital. (B) An ambulatory surgery or other outpatient setting, as described in subdivision (a), (d), (e), (g), or (h) of Section 1248.1. (C) A laboratory. (D) A radiology or imaging center. (2) “Cost sharing” includes any copayment, coinsurance, or deductible, or any other form of cost sharing paid by the enrollee other than premium or share of premium. (3) “Individual health professional” means a physician and surgeon or other professional who is licensed by this state to deliver or furnish health care services. For this purpose, an “individual health professional” shall not include a dentist, licensed pursuant to the Dental Practice Act (Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code). (4) “In-network cost-sharing amount” means an amount no more than the same cost sharing the enrollee would pay for the same covered service received from a contracting health professional. The in-network cost-sharing amount with respect to an enrollee with coinsurance shall be based on the amount paid by the plan pursuant to paragraph (1) of subdivision (a) of Section 1371.31. (5) “Noncontracting individual health professional” means a physician and surgeon or other professional who is licensed by the state to deliver or furnish health care services and who is not contracted with the enrollee’s health care service product. For this purpose, a “noncontracting individual health professional” shall not include a dentist, licensed pursuant to the Dental Practice Act (Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code). Application of this definition is not precluded by a noncontracting individual health professional’s affiliation with a group. (g) This section shall not be construed to require a health care service plan to cover services not required by law or by the terms and conditions of the health care service plan contract. (h) This section shall not be construed to exempt a plan or provider from the requirements under Section 1371.4 or 1373.96, nor abrogate the holding in Prospect Medical Group, Inc. v. Northridge Emergency Medical Group (2009) 45 Cal.4th 497. (i) If a health care service plan delegates payment functions to a contracted entity, including, but not limited to, a medical group or independent practice association, the delegated entity shall comply with this section. (j) This section shall not apply to a Medi-Cal managed health care service plan or any other entity that enters into a contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code. (k) This section shall not apply to emergency services and care, as defined in Section 1317.1. (Amended by Stats. 2024, Ch. 520, Sec. 8. (SB 1061) Effective January 1, 2025.)
1372.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A plan may offer plan contracts or specialized health care service plan contracts, but special plans cannot offer basic health care services unless permitted by the director. Certain advertising and contract materials for multiple plan types may be used only if the director authorizes them.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1372. Subject to the applicable provisions of this chapter, a plan may offer one or more plan contracts or specialized health care service plan contracts, except that a specialized health care service plan contract shall not offer one or more basic health care services except as may be permitted by rule or order of the director. Advertising, disclosure forms, contract forms, and evidences of coverage for more than one type of plan contract or specialized health care service plan contract, or both, may not be used except as authorized by the director pursuant to this chapter. (Amended by Stats. 1999, Ch. 525, Sec. 108. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1373.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section limits health plan contract terms that reduce or exclude coverage for Medi-Cal/Medicaid, sterilization services, newborns, adopted children, and certain dependent children, and it sets notice, enrollment, and coverage-continuation rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373. (a) (1) A plan contract may not provide an exception for other coverage if the other coverage is entitlement to Medi-Cal benefits under Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, or Medicaid benefits under Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code. (2) Each plan contract shall be interpreted not to provide an exception for the Medi-Cal or Medicaid benefits. (3) A plan contract shall not provide an exemption for enrollment because of an applicant’s entitlement to Medi-Cal benefits under Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, or Medicaid benefits under Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code. (4) A plan contract may not provide that the benefits payable thereunder are subject to reduction if the individual insured has entitlement to the Medi-Cal or Medicaid benefits. (b) (1) A plan contract that provides coverage, whether by specific benefit or by the effect of general wording, for sterilization operations or procedures shall not impose any disclaimer, restriction on, or limitation of, coverage relative to the covered individual’s reason for sterilization. (2) As used in this section, “sterilization operations or procedures” shall have the same meaning as that specified in Section 10120 of the Insurance Code. (c) Every plan contract that provides coverage to the spouse or dependents of the subscriber or spouse shall grant immediate accident and sickness coverage, from and after the moment of birth, to each newborn infant of any subscriber or spouse covered and to each minor child placed for adoption from and after the date on which the adoptive child’s birth parent or other appropriate legal authority signs a written document, including, but not limited to, a health facility minor release report, a medical authorization form, or a relinquishment form, granting the subscriber or spouse the right to control health care for the adoptive child or, absent this written document, on the date there exists evidence of the subscriber’s or spouse’s right to control the health care of the child placed for adoption. No plan may be entered into or amended if it contains any disclaimer, waiver, or other limitation of coverage relative to the coverage or insurability of newborn infants of, or children placed for adoption with, a subscriber or spouse covered as required by this subdivision. (d) (1) Every plan contract that provides that coverage of a dependent child of a subscriber shall terminate upon attainment of the limiting age for dependent children specified in the plan, shall also provide that attainment of the limiting age shall not operate to terminate the coverage of the child while the child is and continues to meet both of the following criteria: (A) Incapable of self-sustaining employment by reason of a physically or mentally disabling injury, illness, or condition. (B) Chiefly dependent upon the subscriber for support and maintenance. (2) The plan shall notify the subscriber that the dependent child’s coverage will terminate upon attainment of the limiting age unless the subscriber submits proof of the criteria described in subparagraphs (A) and (B) of paragraph (1) to the plan within 60 days of the date of receipt of the notification. The plan shall send this notification to the subscriber at least 90 days prior to the date the child attains the limiting age. Upon receipt of a request by the subscriber for continued coverage of the child and proof of the criteria described in subparagraphs (A) and (B) of paragraph (1), the plan shall determine whether the child meets that criteria before the child attains the limiting age. If the plan fails to make the determination by that date, it shall continue coverage of the child pending its determination. (3) The plan may subsequently request information about a dependent child whose coverage is continued beyond the limiting age under this subdivision but not more frequently than annually after the two-year period following the child’s attainment of the limiting age. (4) If the subscriber changes carriers to another plan or to a health insurer, the new plan or insurer shall continue to provide coverage for the dependent child. The new plan or insurer may request information about the dependent child initially and not more frequently than annually thereafter to determine if the child continues to satisfy the criteria in subparagraphs (A) and (B) of paragraph (1). The subscriber shall submit the information requested by the new plan or insurer within 60 days of receiving the request. (5) (A) Except as set forth in subparagraph (B), under no circumstances shall the limiting age be less than 26 years of age with respect to plan years beginning on or after September 23, 2010. (B) For plan years beginning before January 1, 2014, a group health care service plan contract that qualifies as a grandfathered health plan under Section 1251 of the federal Patient Protection and Affordable Care Act (Public Law 111-148) and that makes available dependent coverage of children may exclude from coverage an adult child who has not attained 26 years of age only if the adult child is eligible to enroll in an eligible employer-sponsored health plan, as defined in Section 5000A(f)(2) of the Internal Revenue Code, other than a group health plan of a parent. (C) (i) With respect to a child (I) whose coverage under a group or individual plan contract ended, or who was denied or not eligible for coverage under a group or individual plan contract, because under the terms of the contract the availability of dependent coverage of children ended before the attainment of 26 years of age, and (II) who becomes eligible for that coverage by reason of the application of this paragraph, the health care service plan shall give the child an opportunity to enroll that shall continue for at least 30 days. This opportunity and the notice described in clause (ii) shall be provided not later than the first day of the first plan year beginning on or after September 23, 2010, consistent with the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any additional federal guidance or regulations issued by the United States Secretary of Health and Human Services. (ii) The health care service plan shall provide written notice stating that a dependent described in clause (i) who has not attained 26 years of age is eligible to enroll in the plan for coverage. This notice may be provided to the dependent’s parent on behalf of the dependent. If the notice is included with other enrollment materials for a group plan, the notice shall be prominent. (iii) In the case of an individual who enrolls under this subparagraph, coverage shall take effect no later than the first day of the first plan year beginning on or after September 23, 2010. (iv) A dependent enrolling in a group health plan for coverage pursuant to this subparagraph shall be treated as a special enrollee as provided under the rules of Section 146.117(d) of Title 45 of the Code of Federal Regulations. The health care service plan shall offer the recipient of the notice all of the benefit packages available to similarly situated individuals who did not lose coverage by reason of cessation of dependent status. Any difference in benefits or cost-sharing requirements shall constitute a different benefit package. A dependent enrolling in a group health plan for coverage pursuant to this subparagraph shall not be required to pay more for coverage than similarly situated individuals who did not lose coverage by reason of cessation of dependent status. (D) Nothing in this section shall require a health care service plan to make coverage available for a child of a child receiving dependent coverage. Nothing in this section shall be construed to modify the definition of “dependent” as used in the Revenue and Taxation Code with respect to the tax treatment of the cost of coverage. (e) A plan contract that provides coverage, whether by specific benefit or by the effect of general wording, for both an employee and one or more covered persons dependent upon the employee and provides for an extension of the coverage for any period following a termination of employment of the employee shall also provide that this extension of coverage shall apply to dependents upon the same terms and conditions precedent as applied to the covered employee, for the same period of time, subject to payment of premiums, if any, as required by the terms of the policy and subject to any applicable collective bargaining agreement. (f) A group contract shall not discriminate against handicapped persons or against groups containing handicapped persons. Nothing in this subdivision shall preclude reasonable provisions in a plan contract against liability for services or reimbursement of the handicap condition or conditions relating thereto, as may be allowed by rules of the director. (g) Every group contract shall set forth the terms and conditions under which subscribers and enrollees may remain in the plan in the event the group ceases to exist, the group contract is terminated, or an individual subscriber leaves the group, or the enrollees’ eligibility status changes. (h) (1) A health care service plan or specialized health care service plan may provide for coverage of, or for payment for, professional mental health services, or vision care services, or for the exclusion of these services. If the terms and conditions include coverage for services provided in a general acute care hospital or an acute psychiatric hospital as defined in Section 1250 and do not restrict or modify the choice of providers, the coverage shall extend to care provided by a psychiatric health facility as defined in Section 1250.2 operating pursuant to licensure by the State Department of Health Care Services. A health care service plan that offers outpatient mental health services but does not cover these services in all of its group contracts shall communicate to prospective group contractholders as to the availability of outpatient coverage for the treatment of mental or nervous disorders. (2) No plan shall prohibit the member from selecting any psychologist who is licensed pursuant to the Psychology Licensing Law (Chapter 6.6 (commencing with Section 2900) of Division 2 of the Business and Professions Code), any optometrist who is the holder of a certificate issued pursuant to Chapter 7 (commencing with Section 3000) of Division 2 of the Business and Professions Code or, upon referral by a physician and surgeon licensed pursuant to the Medical Practice Act (Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code), (A) any marriage and family therapist who is the holder of a license under Section 4980.50 of the Business and Professions Code, (B) any licensed clinical social worker who is the holder of a license under Section 4996 of the Business and Professions Code, (C) any registered nurse licensed pursuant to Chapter 6 (commencing with Section 2700) of Division 2 of the Business and Professions Code, who possesses a master’s degree in psychiatric-mental health nursing and is listed as a psychiatric-mental health nurse by the Board of Registered Nursing, (D) any advanced practice registered nurse certified as a clinical nurse specialist pursuant to Article 9 (commencing with Section 2838) of Chapter 6 of Division 2 of the Business and Professions Code who participates in expert clinical practice in the specialty of psychiatric-mental health nursing, to perform the particular services covered under the terms of the plan, and the certificate holder is expressly authorized by law to perform these services, or (E) any professional clinical counselor who is the holder of a license under Chapter 16 (commencing with Section 4999.10) of Division 2 of the Business and Professions Code. (3) Nothing in this section shall be construed to allow any certificate holder or licensee enumerated in this section to perform professional mental health services beyond his or her field or fields of competence as established by his or her education, training, and experience. (4) For the purposes of this section: (A) “Marriage and family therapist” means a licensed marriage and family therapist who has received specific instruction in assessment, diagnosis, prognosis, and counseling, and psychotherapeutic treatment of premarital, marriage, family, and child relationship dysfunctions, which is equivalent to the instruction required for licensure on January 1, 1981. (B) “Professional clinical counselor” means a licensed professional clinical counselor who has received specific instruction in assessment, diagnosis, prognosis, counseling, and psychotherapeutic treatment of mental and emotional disorders, which is equivalent to the instruction required for licensure on January 1, 2012. (5) Nothing in this section shall be construed to allow a member to select and obtain mental health or psychological or vision care services from a certificate holder or licenseholder who is not directly affiliated with or under contract to the health care service plan or specialized health care service plan to which the member belongs. All health care service plans and individual practice associations that offer mental health benefits shall make reasonable efforts to make available to their members the services of licensed psychologists. However, a failure of a plan or association to comply with the requirements of the preceding sentence shall not constitute a misdemeanor. (6) As used in this subdivision, “individual practice association” means an entity as defined in subsection (5) of Section 1307 of the federal Public Health Service Act (42 U.S.C. Sec. 300e-1(5)). (7) Health care service plan coverage for professional mental health services may include community residential treatment services that are alternatives to inpatient care and that are directly affiliated with the plan or to which enrollees are referred by providers affiliated with the plan. (i) If the plan utilizes arbitration to settle disputes, the plan contracts shall set forth the type of disputes subject to arbitration, the process to be utilized, and how it is to be initiated. (j) A plan contract that provides benefits that accrue after a certain time of confinement in a health care facility shall specify what constitutes a day of confinement or the number of consecutive hours of confinement that are requisite to the commencement of benefits. (k) If a plan provides coverage for a dependent child who is over 26 years of age and enrolled as a full-time student at a secondary or postsecondary educational institution, the following shall apply: (1) Any break in the school calendar shall not disqualify the dependent child from coverage. (2) If the dependent child takes a medical leave of absence, and the nature of the dependent child’s injury, illness, or condition would render the dependent child incapable of self-sustaining employment, the provisions of subdivision (d) shall apply if the dependent child is chiefly dependent on the subscriber for support and maintenance. (3) (A) If the dependent child takes a medical leave of absence from school, but the nature of the dependent child’s injury, illness, or condition does not meet the requirements of paragraph (2), the dependent child’s coverage shall not terminate for a period not to exceed 12 months or until the date on which the coverage is scheduled to terminate pursuant to the terms and conditions of the plan, whichever comes first. The period of coverage under this paragraph shall commence on the first day of the medical leave of absence from the school or on the date the physician and surgeon determines the illness prevented the dependent child from attending school, whichever comes first. Any break in the school calendar shall not disqualify the dependent child from coverage under this paragraph. (B) Documentation or certification of the medical necessity for a leave of absence from school shall be submitted to the plan at least 30 days prior to the medical leave of absence from the school, if the medical reason for the absence and the absence are foreseeable, or 30 days after the start date of the medical leave of absence from school and shall be considered prima facie evidence of entitlement to coverage under this paragraph. (4) This subdivision shall not apply to a specialized health care service plan or to a Medicare supplement plan. (Amended by Stats. 2013, Ch. 23, Sec. 14. (AB 82) Effective June 27, 2013.)
1373.1.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain group plans must extend the same coverage-conversion rights and conditions to a covered dependent spouse, and those conversion rights cannot require a physical exam or health statement.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.1. Every group plan entered into, amended, or renewed on or after January 1, 1977, which provides hospital, medical, or surgical expense benefits for employees or subscribers and their dependents, and which contains provisions granting the employee or subscriber the right to convert the coverage in the event of termination of employment or membership, shall include in such conversion provisions the same conversion rights and conditions to a covered dependent spouse of the employee or subscriber in the event the covered dependent spouse ceases to be a qualified family member by reason of termination of marriage or death of the employee or subscriber. Such conversion rights shall not require a physical examination or a statement of health. (Added by Stats. 1976, Ch. 1173.)
1373.10.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plans must offer coverage for treatment by specified certificate holders to group contract holders, except for public-entity employee contracts.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.10. (a) On and after January 1, 1985, every health care service plan, that is not a health maintenance organization or is not a plan that enters exclusively into specialized health care service plan contracts, as defined by subdivision (n) of Section 1345, which provides coverage for hospital, medical, or surgical expenses, shall offer coverage to group contract holders for expenses incurred as a result of treatment by holders of certificates under Section 4938 of the Business and Professions Code, under such terms and conditions as may be agreed upon between the health care service plan and the group contract holder. A health care service plan is not required to offer the coverage provided by this section as part of any contract covering employees of a public entity. (b) For the purposes of this section, “health maintenance organization” or “HMO” means a public or private organization, organized under the laws of this state, which does all of the following: (1) Provides or otherwise makes available to enrolled participants health care services, including at least the following basic health care services: usual physician services, hospitalization, laboratory, X-ray, emergency and preventive services, and out-of-area coverage. (2) Is compensated, except for copayments, for the provision of basic health care services listed in paragraph (1) to enrolled participants on a predetermined periodic rate basis. (3) Provides physician services primarily directly through physicians who are either employees or partners of the organization, or through arrangements with individual physicians or one or more groups of physicians, organized on a group practice or individual practice basis. (Added by renumbering Section 1373.4 (as amended by Stats. 1985, Ch. 84) by Stats. 1986, Ch. 718, Sec. 3.)
1373.11.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan offering podiatry benefits may not refuse to reasonably consider affiliating with podiatrists just because they are podiatrists.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.11. A health care service plan that offers or provides one or more podiatry services, as defined in Section 2472 of the Business and Professions Code, as a specific podiatric plan benefit shall not refuse to give reasonable consideration to affiliation with podiatrists for the provision of service solely on the basis that they are podiatrists. (Added by renumbering Section 1373.7 (as added by Stats. 1984, Ch. 163) by Stats. 1986, Ch. 718, Sec. 4.)
1373.12.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan offering chiropractic benefits cannot refuse reasonable consideration of chiropractors just because they are chiropractors.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.12. A health care service plan which offers or provides one or more chiropractic services, as defined in Section 7 of the Chiropractic Initiative Act, as a specific chiropractic plan benefit, when those services are not provided pursuant to a contract as described in subdivision (a) of Section 1373.9, shall not refuse to give reasonable consideration to affiliation with chiropractors for provision of services solely on the basis that they are chiropractors. Section 1390 shall not apply to this section. (Added by Stats. 1991, Ch. 1224, Sec. 1.)
1373.13.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must not discriminate against a licensed dentist in providing or contracting for professional services solely because of the dentist’s educational degree.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.13. (a) It is the intent of the Legislature that all persons licensed in this state to engage in the practice of dentistry shall be accorded equal professional status and privileges, without regard to the degree earned. (b) Notwithstanding any other provision of law, no health care service plan shall discriminate, with respect to the provision of, or contracts for, professional services, against a licensed dentist solely on the basis of the educational degree held by the dentist. (Added by Stats. 1991, Ch. 729, Sec. 2.)
1373.14.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Some health care service plans may not exclude covered persons from long-term care facility or home-based care benefits when the person is diagnosed with certain severe brain-related conditions, unless the exclusion is for a preexisting condition.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.14. Except for a preexisting condition, any health care service plan, except a specialized health care service plan, which provides coverage on a group or individual basis for long-term care facility services or home-based care shall not exclude persons covered by the plan from receiving these benefits, if they are diagnosed as having any significant destruction of brain tissue with resultant loss of brain function, including, but not limited to, progressive, degenerative, and dementing illnesses, including, but not limited to, Alzheimer’s disease, from the coverage offered for long-term care facility services or home-based care. For purposes of this section, where a particular disease can be determined only with an autopsy, “diagnosed” means clinical diagnosis not dependent on pathological confirmation, but employing nationally accepted criteria. (Amended by Stats. 1988, Ch. 1049, Sec. 1.)
1373.18.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

For covered health care service plan contracts, enrollee copayments must be based only on the negotiated alternative rate, and plans or providers may not charge more than that amount.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.18. Whenever any health care service plan, except a specialized health care service plan, negotiates and enters into a contract with providers to provide services at alternative rates of payment of the type described in Sections 10133 and 11512 of the Insurance Code, and enrollee copayments are to be based upon a percentage of the fee for services to be rendered, the amount of the enrollee copayment shall be calculated exclusively from the negotiated alternative rate for the service rendered. No health care service plan or provider, negotiating and entering into a contract pursuant to this section, shall charge or collect copayment amounts greater than those calculated in accordance with this section. This section shall become operative on January 1, 1993. (Added by Stats. 1991, Ch. 827, Sec. 1. Section operative January 1, 1993, by its own provisions.)
1373.19.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans using binding arbitration must provide a single neutral arbitrator for disputes with $200,000 or less in claimed damages, unless the parties later agree in writing to another arbitrator setup.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.19. Any health care service plan that includes a term that requires the parties to submit to binding arbitration shall, for those cases or disputes for which the total amount of damages claimed is two hundred thousand dollars ($200,000) or less, provide for selection by the parties of a single neutral arbitrator who shall have no jurisdiction to award more than two hundred thousand dollars ($200,000). This provision shall not be subject to waiver, except that nothing in this section shall prevent the parties to an arbitration from agreeing in writing, after a case or dispute has arisen and a request for arbitration has been submitted, to use a tripartite arbitration panel that includes two party-appointed arbitrators or a panel of three neutral arbitrators, or another multiple arbitrator system mutually agreeable to the parties. The agreement shall clearly indicate, in boldface type, that “A case or dispute subject to binding arbitration has arisen between the parties and we mutually agree to waive the requirement that cases or disputes for which the total amount of damages claimed is two hundred thousand dollars ($200,000) or less be adjudicated by a single neutral arbitrator.” If the parties agree to waive the requirement to use a single neutral arbitrator, the enrollee or subscriber shall have three business days to rescind the agreement. If the agreement is also signed by counsel of the enrollee or subscriber, the agreement shall be immediately binding and may not be rescinded. If the parties are unable to agree on the selection of a neutral arbitrator, and the plan does not use a professional dispute resolution organization independent of the plan that has a procedure for a rapid selection or default appointment of a neutral arbitrator, the method provided in Section 1281.6 of the Code of Civil Procedure may be utilized. (Amended by Stats. 1996, Ch. 1093, Sec. 1. Effective January 1, 1997.)
1373.2.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain group health care service plans must give covered dependent spouses the same conversion rights and conditions as the employee or subscriber.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.2. Every group health care service plan entered into, amended, or renewed on or after January 1, 1976, which provides hospital, medical, or surgical expense benefits for employees or subscribers and their dependents and which contains provisions granting the employee or subscriber the right to convert the coverage in the event of termination of employment or membership, shall include in such conversion provisions the same conversion rights and conditions to a covered dependent spouse of the employee or subscriber in the event the covered dependent spouse ceases to be a qualified family member by reason of termination of marriage. (Added by Stats. 1976, Ch. 1079.)
1373.20.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care plans that use arbitration for enrollee or subscriber disputes must follow specified arbitration-selection and hardship-fee rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.20. (a) If a plan uses arbitration to settle disputes with enrollees or subscribers, and does not use a professional dispute resolution organization independent of the plan that has a procedure for a rapid selection, or default appointment, of neutral arbitrators, the following requirements shall be met by the plan with respect to the arbitration of the disputes and shall not be subject to waiver: (1) If the party seeking arbitration and the plan against which arbitration is sought, in cases or disputes requiring a single neutral arbitrator, are unable to select a neutral arbitrator within 30 days after service of a written demand requesting the designation, it shall be conclusively presumed that the agreed method of selection has failed and the method provided in Section 1281.6 of the Code of Civil Procedure may be utilized. (2) In cases or disputes in which the parties have agreed to use a tripartite arbitration panel consisting of two party arbitrators and one neutral arbitrator, and the party arbitrators are unable to agree on the designation of a neutral arbitrator within 30 days after service of a written demand requesting the designation, it shall be conclusively presumed that the agreed method of selection has failed and the method provided in Section 1281.6 of the Code of Civil Procedure may be utilized. (b) If a court reviewing a petition filed pursuant to Section 1373.19 or subdivision (a) finds that a party has engaged in dilatory conduct intended to cause delay in proceeding under the arbitration agreement, the court, by order, may award reasonable costs, including attorney fees, incurred in connection with the filing of the petition. (c) If a plan uses arbitration to settle disputes with enrollees or subscribers, the following requirements shall be met with respect to extreme hardship cases: (1) The plan contract shall contain a provision for the assumption of all or a portion of an enrollee’s or subscriber’s share of the fees and expenses of the neutral arbitrator in cases of extreme hardship. (2) The plan shall disclose this provision to subscribers in any evidence of coverage issued or amended after August 1, 1997. (3) The plan shall provide enrollees, upon request, with an application for relief under this subdivision, or information on how to obtain an application from the professional dispute resolution organization that will administer the arbitration process. If the plan uses a professional dispute resolution organization independent of the plan, the provision for assumption of the arbitration fees in cases of extreme hardship shall be established and administered by the dispute resolution organization. (4) Approval or denial of the application shall be determined by either (A) a professional dispute resolution organization independent of the plan if the plan uses a professional dispute resolution organization, or (B) a neutral arbitrator who is not assigned to hear the underlying dispute, who has been selected pursuant to paragraph (1) of subdivision (a), and whose fees and expenses are paid for by the plan. (Added by Stats. 1996, Ch. 1093, Sec. 2. Effective January 1, 1997.)
1373.21.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan that uses arbitration must give the parties a written decision with the prevailing party, award amount, relevant terms, and reasons. The department must keep identifying information out of certain arbitration decisions, may request complete decisions for administration, and must make modified decisions available on request.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.21. (a) If a health care service plan uses arbitration to settle disputes with enrollees or subscribers, it shall require that an arbitration award be accompanied by a written decision to the parties that indicates the prevailing party, the amount of any award and other relevant terms of the award, and the reasons for the award rendered. (b) A copy of any modified written decision, including the amount of the award and other relevant terms of the award, the reasons for the award rendered, the name of the arbitrator or arbitrators, but excluding the names of the enrollee, the plan, witnesses, attorneys, providers, health plan employees, and health facilities, shall be provided to the department on a quarterly basis. The department shall make these modified decisions available to the public upon request. (c) Subdivision (b) shall not preclude the department from requesting and securing from any plan copies of complete arbitration decisions issued pursuant to subdivision (a) for the purposes of administering this chapter. (d) If the department receives a request for information about an arbitration decision obtained by the department pursuant to subdivision (b) or (c), the department shall not release information identifying a person or entity whose name has been or should have been removed from the arbitration decision pursuant to subdivision (b). (e) Nothing in this section shall be construed to preclude the department, or any plan or person, from disclosing information contained in an arbitration decision if the disclosure is otherwise permitted by law. (Added by Stats. 1998, Ch. 838, Sec. 1. Effective January 1, 1999.)
1373.3.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

An enrollee may choose any available primary care physician that contracts with the plan, if the physician is in the service area where the enrollee lives or works.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.3. An enrollee shall not be prohibited from selecting as a primary care physician any available primary care physician who contracts with the plan in the service area where the enrollee lives or works. This section shall apply to any plan contract issued, amended, renewed, or delivered on or after January 1, 1996. (Added by Stats. 1995, Ch. 515, Sec. 2. Effective January 1, 1996.)
1373.4.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans may not impose higher maternity copays or deductibles than the comparable non-maternity amounts, and they cannot restrict coverage for involuntary pregnancy complications in the way described here.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.4. (a) No health care service plan contract that is issued, amended, renewed, or delivered on or after July 1, 2003, that provides maternity coverage shall do either of the following: (1) Contain a copayment or deductible for inpatient hospital maternity services that exceeds the most common amount of the copayment or deductible contained in the contract for inpatient services provided for other covered medical conditions. (2) Contain a copayment or deductible for ambulatory care maternity services that exceeds the most common amount of the copayment or deductible contained in the contract for ambulatory care services provided for other covered medical conditions. (b) No health care service plan that provides maternity benefits for a person covered continuously from conception shall be issued, amended, delivered, or renewed in this state if it contains any exclusion, reduction, or other limitations as to coverage, deductibles, or coinsurance provisions as to involuntary complications of pregnancy, unless the provisions apply generally to all benefits paid under the plan. (c) If the pregnancy is interrupted, the maternity deductible charged for prenatal care and delivery shall be based on the value of the medical services received, providing it is never more than two-thirds of the plan’s maternity deductible. (d) For purposes of this section, involuntary complications of pregnancy shall include, but not be limited to, puerperal infection, eclampsia, cesarean section delivery, ectopic pregnancy, and toxemia. (e) This section shall not permit copayments or deductibles in the Medi-Cal program that are not otherwise authorized under state or federal law. (f) This section shall become operative on July 1, 2003. (Repealed (in Sec. 2) and added by Stats. 2002, Ch. 880, Sec. 3. Effective January 1, 2003. Section operative July 1, 2003, by its own provisions.)
1373.5.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Spouses covered under the same master health plan may each claim the combined maximum contractual benefits for themselves or their enrolled dependents, subject to a 100% cap on the covered charge.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.5. When spouses are both employed as employees, and both have enrolled themselves and their eligible family members under a group health care service plan provided by their respective employers, and each spouse is covered as an employee under the terms of the same master contract, each spouse may claim on his or her behalf, or on behalf of his or her enrolled dependents, the combined maximum contractual benefits to which an employee is entitled under the terms of the master contract, not to exceed in the aggregate 100 percent of the charge for the covered expense or service. This section shall apply to every group plan entered into, delivered, amended, or renewed in this state on or after January 1, 1978. (Amended by Stats. 2016, Ch. 50, Sec. 52. (SB 1005) Effective January 1, 2017.)
1373.6.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section requires certain health care service plans and group contracts to provide conversion coverage or conversion rights, sets notice and filing duties, and creates exceptions for some contract terminations and covered persons.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.6. This section does not apply to a specialized health care service plan contract or to a plan contract that primarily or solely supplements Medicare. The director may adopt rules consistent with federal law to govern the discontinuance and replacement of plan contracts that primarily or solely supplement Medicare. (a) (1) Every group contract entered into, amended, or renewed on or after September 1, 2003, that provides hospital, medical, or surgical expense benefits for employees or members shall provide that an employee or member whose coverage under the group contract has been terminated by the employer shall be entitled to convert to nongroup membership, without evidence of insurability, subject to the terms and conditions of this section. (2) If the health care service plan provides coverage under an individual health care service plan contract, other than conversion coverage under this section, it shall offer one of the two plans that it is required to offer to a federally eligible defined individual pursuant to Section 1366.35. The plan shall provide this coverage at the same rate established under Section 1399.805 for a federally eligible defined individual. A health care service plan that is federally qualified under the federal Health Maintenance Organization Act (42 U.S.C. Sec. 300e et seq.) may charge a rate for the coverage that is consistent with the provisions of that act. (3) If the health care service plan does not provide coverage under an individual health care service plan contract, it shall offer a health benefit plan contract that is the same as a health benefit contract offered to a federally eligible defined individual pursuant to Section 1366.35. The health care service plan may offer either the most popular health maintenance organization model plan or the most popular preferred provider organization plan, each of which has the greatest number of enrolled individuals for its type of plan as of January 1 of the prior year, as reported by plans that provide coverage under an individual health care service plan contract to the department or the Department of Insurance by January 31, 2003, and annually thereafter. A health care service plan subject to this paragraph shall provide this coverage with the same cost-sharing terms and at the same premium as a health care service plan providing coverage to that individual under an individual health care service plan contract pursuant to Section 1399.805. The health care service plan shall file the health benefit plan it will offer, including the premium it will charge and the cost-sharing terms of the plan, with the Department of Managed Health Care. (b) A conversion contract shall not be required to be made available to an employee or member if termination of his or her coverage under the group contract occurred for any of the following reasons: (1) The group contract terminated or an employer’s participation terminated and the group contract is replaced by similar coverage under another group contract within 15 days of the date of termination of the group coverage or the subscriber’s participation. (2) The employee or member failed to pay amounts due the health care service plan. (3) The employee or member was terminated by the health care service plan from the plan for good cause. (4) The employee or member knowingly furnished incorrect information or otherwise improperly obtained the benefits of the plan. (5) The employer’s hospital, medical, or surgical expense benefit program is self-insured. (c) A conversion contract is not required to be issued to any person if any of the following facts are present: (1) The person is covered by or is eligible for benefits under Title XVIII of the United States Social Security Act. (2) The person is covered by or is eligible for hospital, medical, or surgical benefits under any arrangement of coverage for individuals in a group, whether insured or self-insured. (3) The person is covered for similar benefits by an individual policy or contract. (4) The person has not been continuously covered during the three-month period immediately preceding that person’s termination of coverage. (d) Benefits of a conversion contract shall meet the requirements for benefits under this chapter. (e) Unless waived in writing by the plan, written application and first premium payment for the conversion contract shall be made not later than 63 days after termination from the group. A conversion contract shall be issued by the plan which shall be effective on the day following the termination of coverage under the group contract if the written application and the first premium payment for the conversion contract are made to the plan not later than 63 days after the termination of coverage, unless these requirements are waived in writing by the plan. (f) The conversion contract shall cover the employee or member and his or her dependents who were covered under the group contract on the date of their termination from the group. (g) A notification of the availability of the conversion coverage shall be included in each evidence of coverage. However, it shall be the sole responsibility of the employer to notify its employees of the availability, terms, and conditions of the conversion coverage which responsibility shall be satisfied by notification within 15 days of termination of group coverage. Group coverage shall not be deemed terminated until the expiration of any continuation of the group coverage. For purposes of this subdivision, the employer shall not be deemed the agent of the plan for purposes of notification of the availability, terms, and conditions of conversion coverage. (h) As used in this section, “hospital, medical, or surgical benefits under state or federal law” do not include benefits under Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, or Title XIX of the United States Social Security Act. (i) Every group contract entered into, amended, or renewed before September 1, 2003, shall be subject to the provisions of this section as it read prior to its amendment by Assembly Bill 1401 of the 2001–02 Regular Session. (j) (1) On and after January 1, 2014, and except as provided in paragraph (2), this section shall apply only to individual grandfathered health plan contracts previously issued pursuant to this section to federally eligible defined individuals. (2) If Section 5000A of the Internal Revenue Code, as added by Section 1501 of PPACA, is repealed or amended to no longer apply to the individual market, as defined in Section 2791 of the federal Public Health Service Act (42 U.S.C. Section 300gg-91), paragraph (1) shall become inoperative on the date of that repeal or amendment. (3) For purposes of this subdivision, the following definitions apply: (A) “Grandfathered health plan” has the same meaning as that term is defined in Section 1251 of PPACA. (B) “PPACA” means the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care Education and Reconciliation Act of 2010 (Public Law 111-152), and any rules, regulations, or guidance issued pursuant to that law. (Amended by Stats. 2013, Ch. 441, Sec. 5. (AB 1180) Effective October 1, 2013.)
1373.620.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section requires certain health care service plans to send specified renewal notices at least 60 days before the renewal date, and requires the department to adopt uniform model notices.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.620. (a) (1) At least 60 days prior to the plan renewal date, a health care service plan that does not otherwise issue individual health care service plan contracts shall issue the notice described in paragraph (2) to any subscriber enrolled in an individual health benefit plan contract issued pursuant to Section 1373.6 that is not a grandfathered health plan. (2) The notice shall be in at least 12-point type and shall include all of the following: (A) Notice that, as of the renewal date, the individual plan contract will not be renewed. (B) The availability of individual health coverage through Covered California, including at least all of the following: (i) That, beginning on January 1, 2014, individuals seeking coverage may not be denied coverage based on health status. (ii) That the premium rates for coverage offered by a health care service plan or a health insurer cannot be based on an individual’s health status. (iii) That individuals obtaining coverage through Covered California may, depending upon income, be eligible for premium subsidies and cost-sharing subsidies. (iv) That individuals seeking coverage must obtain this coverage during an open or special enrollment period, and a description of the open and special enrollment periods that may apply. (b) (1) At least 60 days prior to the plan renewal date, a health care service plan that issues individual health care service plan contracts shall issue the notice described in paragraph (2) to a subscriber enrolled in an individual health benefit plan contract issued pursuant to Section 1366.35 or 1373.6 that is not a grandfathered health plan. (2) The notice shall be in at least 12-point type and shall include all of the following: (A) Notice that, as of the renewal date, the individual plan contract will not be renewed. (B) Information regarding the individual health plan contract that the health plan will issue as of January 1, 2014, which the health plan has reasonably concluded is the most comparable to the individual’s current plan. The notice shall include information on premiums for the possible replacement plan and instructions that the individual can continue their coverage by paying the premium stated by the due date. (C) Notice of the availability of other individual health coverage through Covered California, including at least all of the following: (i) That, beginning on January 1, 2014, individuals seeking coverage may not be denied coverage based on health status. (ii) That the premium rates for coverage offered by a health care service plan or a health insurer cannot be based on an individual’s health status. (iii) That individuals obtaining coverage through Covered California may, depending upon income, be eligible for premium subsidies and cost-sharing subsidies. (iv) That individuals seeking coverage must obtain this coverage during an open or special enrollment period, and a description of the open and special enrollment periods that may apply. (c) No later than September 1, 2013, the department, in consultation with the Department of Insurance, shall adopt uniform model notices that health plans shall use to comply with subdivisions (a) and (b) and Sections 1366.50, 1373.622, and 1399.861. Use of the model notices shall not require prior approval by the department. The model notices adopted by the department for purposes of this section shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The director may modify the wording of these model notices specifically for the purposes of clarity, readability, and accuracy. (d) The notices required in this section are vital documents, pursuant to clause (iii) of subparagraph (B) of paragraph (1) of subdivision (b) of Section 1367.04, and shall be subject to the applicable requirements of that section. (e) For purposes of this section, the following definitions shall apply: (1) “Covered California” means the California Health Benefit Exchange established pursuant to Section 100500 of the Government Code. (2) “Grandfathered health plan” has the same meaning as that term is defined in Section 1251 of PPACA. (3) “PPACA” means the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any rules, regulations, or guidance issued pursuant to that law. (Added by Stats. 2013, Ch. 441, Sec. 6. (AB 1180) Effective October 1, 2013.)
1373.621.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section requires certain health plan contracts to offer continuation benefits to eligible former employees and former spouses, and it sets notice, election, premium, and termination rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.621. (a) Except for a specialized health care service plan, every health care service plan contract that is issued, amended, delivered, or renewed in this state on or after January 1, 1999, that provides hospital, medical, or surgical expense coverage under an employer-sponsored group plan for an employer subject to COBRA, as defined in subdivision (e), or an employer group for which the plan is required to offer Cal-COBRA coverage, as defined in subdivision (f), including a carrier providing replacement coverage under Section 1399.63, shall further offer the former employee the opportunity to continue benefits as required under subdivision (b), and shall further offer the former spouse of an employee or former employee the opportunity to continue benefits as required under subdivision (c). (b) (1) In the event a former employee who worked for the employer for at least five years prior to the date of termination of employment and who is 60 years of age or older on the date employment ends is entitled to and so elects to continue benefits under COBRA or Cal-COBRA for himself or herself and for any spouse, the employee or spouse may further continue benefits beyond the date coverage under COBRA or Cal-COBRA ends, as set forth in paragraph (2). Except as otherwise specified, continuation coverage shall be under the same benefit terms and conditions as if the continuation coverage under COBRA or Cal-COBRA had remained in force. For the employee or spouse, continuation coverage following the end of COBRA or Cal-COBRA is subject to payment of premiums to the health care service plan. Individuals ineligible for COBRA or Cal-COBRA, or who are eligible but have not elected or exhausted continuation coverage under federal COBRA or Cal-COBRA, are not entitled to continuation coverage under this section. Premiums for continuation coverage under this section shall be billed by, and remitted to, the health care service plan in accordance with subdivision (d). Failure to pay the requisite premiums may result in termination of the continuation coverage in accordance with the applicable provisions in the plan’s group subscriber agreement with the former employer. (2) The employer shall notify the former employee or spouse or both, or the former spouse of the employee or former employee, of the availability of the continuation benefits under this section in accordance with Section 2800.2 of the Labor Code. To continue health care coverage pursuant to this section, the individual shall elect to do so by notifying the plan in writing within 30 calendar days prior to the date continuation coverage under COBRA or Cal-COBRA is scheduled to end. Every health care service plan and specialized health care service plan shall provide to the employer replacing a health care service plan contract issued by the plan, or to the employer’s agent or broker representative, within 15 days of any written request, information in possession of the plan reasonably required to administer the requirements of Section 2800.2 of the Labor Code. (3) The continuation coverage shall end automatically on the earlier of (A) the date the individual reaches age 65, (B) the date the individual is covered under any group health plan not maintained by the employer or any other health plan, regardless of whether that coverage is less valuable, (C) the date the individual becomes entitled to Medicare under Title XVIII of the Social Security Act, (D) for a spouse, five years from the date on which continuation coverage under COBRA or Cal-COBRA was scheduled to end for the spouse, or (E) the date on which the employer terminates its group subscriber agreement with the health care service plan and ceases to provide coverage for any active employees through that plan, in which case the health care service plan shall notify the former employee or spouse or both of the right to a conversion plan in accordance with Section 1373.6. (c) (1) If a former spouse of an employee or former employee was covered as a qualified beneficiary under COBRA or Cal-COBRA, the former spouse may further continue benefits beyond the date coverage under COBRA or Cal-COBRA ends, as set forth in paragraph (2) of subdivision (b). Except as otherwise specified in this section, continuation coverage shall be under the same benefit terms and conditions as if the continuation coverage under COBRA or Cal-COBRA had remained in force. Continuation coverage following the end of COBRA or Cal-COBRA is subject to payment of premiums to the health care service plan. Premiums for continuation coverage under this section shall be billed by, and remitted to, the health care service plan in accordance with subdivision (d). Failure to pay the requisite premiums may result in termination of the continuation coverage in accordance with the applicable provisions in the plan’s group subscriber agreement with the employer or former employer. (2) The continuation coverage for the former spouse shall end automatically on the earlier of (A) the date the individual reaches 65 years of age, (B) the date the individual is covered under any group health plan not maintained by the employer or any other health plan, regardless of whether that coverage is less valuable, (C) the date the individual becomes entitled to Medicare under Title XVIII of the Social Security Act, (D) five years from the date on which continuation coverage under COBRA or Cal-COBRA was scheduled to end for the former spouse, or (E) the date on which the employer or former employer terminates its group subscriber agreement with the health care service plan and ceases to provide coverage for any active employees through that plan. (d) (1) If the premium charged to the employer for a specific employee or dependent eligible under this section is adjusted for the age of the specific employee, or eligible dependent, on other than a composite basis, the rate for continuation coverage under this section shall not exceed 102 percent of the premium charged by the plan to the employer for an employee of the same age as the former employee electing continuation coverage in the case of an individual who was eligible for COBRA, and 110 percent in the case of an individual who was eligible for Cal-COBRA. If the coverage continued is that of a former spouse, the premium charged shall not exceed 102 percent of the premium charged by the plan to the employer for an employee of the same age as the former spouse selecting continuation coverage in the case of an individual who was eligible for COBRA, and 110 percent in the case of an individual who was eligible for Cal-COBRA. (2) If the premium charged to the employer for a specific employee or dependent eligible under this section is not adjusted for age of the specific employee, or eligible dependent, then the rate for continuation coverage under this section shall not exceed 213 percent of the applicable current group rate. For purposes of this section, the “applicable current group rate” means the total premiums charged by the health care service plan for coverage for the group, divided by the relevant number of covered persons. (3) However, in computing the premiums charged to the specific employer group, the health care service plan shall not include consideration of the specific medical care expenditures for beneficiaries receiving continuation coverage pursuant to this section. (e) For purposes of this section, “COBRA” means Section 4980B of Title 26 of the United States Code, Section 1161 et seq. of Title 29 of the United States Code, and Section 300bb of Title 42 of the United States Code, as added by the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), and as amended. (f) For purposes of this section, “Cal-COBRA” means the continuation coverage that must be offered pursuant to Article 4.5 (commencing with Section 1366.20), or Article 1.7 (commencing with Section 10128.50) of Chapter 1 of Part 2 of Division 2 of the Insurance Code. (g) For the purposes of this section, “former spouse” means either an individual who is divorced from an employee or former employee or an individual who was married to an employee or former employee at the time of the death of the employee or former employee. (h) Every plan evidence of coverage that is issued, amended, or renewed after July 1, 1999, shall contain a description of the provisions and eligibility requirements for the continuation coverage offered pursuant to this section. (i) This section does not apply to any individual who is not eligible for its continuation coverage prior to January 1, 2005. (Amended by Stats. 2013, Ch. 441, Sec. 7. (AB 1180) Effective October 1, 2013.)
1373.622.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must keep providing coverage to certain enrolled individuals after the pilot ends, send a notice by October 1, 2013, and submit a final reconciliation report to the department; the department also has related payment and reconciliation duties.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.622. (a) (1) After the termination of the pilot program under Section 1373.62, a health care service plan shall continue to provide coverage under the same terms and conditions specified in Section 1376.62 as it existed on January 1, 2007, including the terms of the standard benefit plan and the subscriber payment amount, to each individual who was terminated from the program pursuant to subdivision (f) of Section 12725 of the Insurance Code during the term of the pilot program and who enrolled or applied to enroll in a standard benefit plan within 63 days of termination. The State Department of Health Care Services shall continue to pay the amount described in Section 1376.62 for each of those individuals. A health care service plan shall not be required to offer the coverage described in Section 1373.62 after the termination of the pilot program to individuals not already enrolled in the program. (2) Notwithstanding paragraph (1) of this subdivision or Section 1373.62 as it existed on January 1, 2007, the following rules shall apply: (A) (i) A health care service plan shall not be obligated to provide coverage to any individual pursuant to this section on or after January 1, 2014. (ii) The State Department of Health Care Services shall not be obligated to provide any payment to any health care service plan under this section for (I) health care expenses incurred on or after January 1, 2014, or (II) the standard monthly administrative fee, as defined in Section 1373.62 as it existed on January 1, 2007, for any month after December 2013. (B) Each health care service plan providing coverage pursuant to this section shall, on or before October 1, 2013, send a notice to each individual enrolled in a standard benefit plan that is in at least 12-point type and with, at minimum, the following information: (i) Notice as to whether or not the plan will terminate as of January 1, 2014. (ii) The availability of individual health coverage, including through Covered California, including at least all of the following: (I) That, beginning on January 1, 2014, individuals seeking coverage may not be denied coverage based on health status. (II) That the premium rates for coverage offered by a health care service plan or a health insurer cannot be based on an individual’s health status. (III) That individuals obtaining coverage through Covered California may, depending upon income, be eligible for premium subsidies and cost-sharing subsidies. (IV) That individuals seeking coverage must obtain this coverage during an open or special enrollment period, and a description of the open and special enrollment periods that may apply. (C) As a condition of receiving payment for a reporting period pursuant to this section, a health care service plan shall provide the State Department of Health Care Services with a complete, final annual reconciliation report by the earlier of December 31, 2014, or an earlier date as prescribed by Section 1373.62, as it existed on January 1, 2007, for that reporting period. To the extent that it receives a complete, final reconciliation report for a reporting period by the date required pursuant to this subparagraph, the State Department of Health Care Services shall complete reconciliation with the health care service plan for that reporting period within 18 months after receiving the report. (b) If the state fails to expend, pursuant to this section, sufficient funds for the state’s contribution amount to any health care service plan, the health care service plan may increase the monthly payments that its subscribers are required to pay for any standard benefit plan to the amount that the State Department of Health Care Services would charge without a state subsidy for the same plan issued to the same individual within the program. (c) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this section by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions, without taking regulatory action. (Amended by Stats. 2015, Ch. 18, Sec. 8. (SB 75) Effective June 24, 2015.)
1373.65.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must file and send notice before certain provider contract terminations, and they cannot send the notice until the department approves it or the approval period expires.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.65. (a) At least 75 days before the termination date of its contract with a provider group or a general acute care hospital, the health care service plan shall submit an enrollee block transfer filing to the department that includes the written notice the plan proposes to send to affected enrollees. The plan may not send this notice to enrollees until the department has reviewed and approved its content. If the department does not respond within seven days of the date of its receipt of the filing, the notice shall be deemed approved. (b) At least 60 days before the termination date of a contract between a health care service plan and a provider group or a general acute care hospital, the plan shall send the written notice described in subdivision (a) by United States mail to enrollees who are assigned to the terminated provider group or hospital. A plan that is unable to comply with the timeframe because of exigent circumstances shall apply to the department for a waiver. The plan is excused from complying with this requirement only if its waiver application is granted by the department or the department does not respond within seven days of the date of its receipt of the waiver application. If the terminated provider is a hospital and the plan assigns enrollees to a provider group with exclusive admitting privileges to the hospital, the plan shall send the written notice to each enrollee who is a member of the provider group and who resides within a 15-mile radius of the terminated hospital. If the plan operates as a preferred provider organization or assigns members to a provider group with admitting privileges to hospitals in the same geographic area as the terminated hospital, the plan shall send the written notice to all enrollees who reside within a 15-mile radius of the terminated hospital. (c) The health care service plan shall send enrollees of a preferred provider organization the written notice required by subdivision (b) only if the terminated provider is a general acute care hospital. (d) If an individual provider terminates the provider’s contract or employment with a provider group that contracts with a health care service plan, the plan may require that the provider group send the notice required by subdivision (b). (e) If, after sending the notice required by subdivision (b), a health care service plan reaches an agreement with a terminated provider to renew or enter into a new contract or to not terminate their contract, the plan shall offer each affected enrollee the option to return to that provider. If an affected enrollee does not exercise this option, the plan shall reassign the enrollee to another provider. (f) A health care service plan and a provider shall include in all written, printed, or electronic communications sent to an enrollee that concern the contract termination or block transfer, the following statement in not less than 8-point type: “If you have been receiving care from a health care provider, you may have a right to keep your provider for a designated time period. Please contact your health plan’s customer service department, and if you have further questions, you are encouraged to contact the Department of Managed Health Care, which protects consumers, by telephone at its toll-free number, 1-888-466-2219, or at a TDD number for the hearing and speech impaired at 1-877-688-9891, or online at www.dmhc.ca.gov.” (g) For purposes of this section, “provider group” means a medical group, independent practice association, or any other similar organization. (Amended by Stats. 2019, Ch. 113, Sec. 5. (AB 1802) Effective January 1, 2020.)
1373.7.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A qualifying health care service plan contract written or issued outside California may not be treated as forbidding covered persons from choosing a California-licensed psychologist to provide covered services in California.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.7. A health care service plan contract, which is written or issued for delivery outside of California and which provides benefits for California residents that are within the scope of psychological practice, shall not be deemed to prohibit persons covered under the contract from selecting a psychologist licensed in California to perform the services in California which are within the terms of the contract even though the psychologist is not licensed in the state where the contract is written or issued for delivery. (Added by Stats. 1981, Ch. 558.)
1373.8.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section says a licensed health care service plan contract cannot prevent covered people from choosing certain California-licensed providers to perform covered services in California, even if those providers are not licensed in the state where the contract was issued.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.8. A health care service plan contract where the plan is licensed to do business in this state and the plan provides coverage that includes California residents, but that may be written or issued for delivery outside of California, and where benefits are provided within the scope of practice of a licensed clinical social worker, a registered nurse licensed pursuant to Chapter 6 (commencing with Section 2700) of Division 2 of the Business and Professions Code who possesses a master’s degree in psychiatric-mental health nursing and is listed as a psychiatric-mental health nurse by the Board of Registered Nursing, an advanced practice registered nurse who is certified as a clinical nurse specialist pursuant to Article 9 (commencing with Section 2838) of Chapter 6 of Division 2 of the Business and Professions Code who participates in expert clinical practice in the specialty of psychiatric-mental health nursing, a marriage and family therapist who is the holder of a license under Section 4980.50 of the Business and Professions Code, or a professional clinical counselor who is the holder of a license under Chapter 16 (commencing with Section 4999.10) of Division 2 of the Business and Professions Code shall not be deemed to prohibit persons covered under the contract from selecting those licensed persons in California to perform the services in California that are within the terms of the contract even though the licensees are not licensed in the state where the contract is written or issued for delivery. It is the intent of the Legislature in amending this section in the 1984 portion of the 1983–84 Legislative Session that persons covered by the contract and those providers of health care specified in this section who are licensed in California should be entitled to the benefits provided by the plan for services of those providers rendered to those persons. (Amended by Stats. 2011, Ch. 381, Sec. 31. (SB 146) Effective January 1, 2012.)
1373.9.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan that contracts for alternative-rate services must give reasonable consideration to timely written affiliation proposals from licensed or certified professional providers, unless the plan is specialized.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.9. (a) Except in the case of a specialized health care service plan, a health care service plan which negotiates and enters into a contract with professional providers to provide services at alternative rates of payment of the type described in Sections 10133 and 11512 of the Insurance Code, shall give reasonable consideration to timely written proposals for affiliation by licensed or certified professional providers. (b) For the purposes of this section, the following definitions are applicable: (1) “Reasonable consideration” means consideration in good faith of the terms of proposals for affiliation prior to the time that contracts for alternative rates of payment are entered into or renewed. A plan may specify the terms and conditions of affiliation to assure cost efficiency, qualification of providers, appropriate utilization of services, accessibility, convenience to persons who would receive the provider’s services, and consistency with the plan’s basic method of operation, but shall not exclude providers because of their category of license. (2) “Professional provider” means a holder of a certificate or license under Division 2 (commencing with Section 500) of the Business and Professions Code, or any initiative act referred to therein, except for those certified or licensed pursuant to Article 3 of Chapter 5 (commencing with Section 2050) or Chapter 11 (commencing with Section 4800), who may, within the scope of their licenses, perform the services of a specific plan benefit defined in the health care service plan’s contracts with its enrollees. (c) A plan which has an affiliation with an institutional provider or with professional providers is not required by this section to give consideration to affiliation with professional providers who hold the same category of license or certificate and propose to serve a geographic area served adequately by the affiliated providers that provide their professional services as employees or agents of that institutional or professional provider, or contract with that institutional or professional provider to provide professional services. (Added by Stats. 1984, Ch. 977, Sec. 1.)
1373.95.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must file and update continuity of care policies, give notices to enrollees, and include specific transition and review procedures; special mental health plans have additional policy rules and exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.95. (a) (1) A health care service plan, other than a specialized health care service plan that offers professional mental health services on an employer-sponsored group basis, shall file a written continuity of care policy as a material modification with the department before March 31, 2004. (2) A health care service plan shall include all of the following in its written continuity of care policy: (A) A description of the plan’s process for the block transfer of enrollees from a terminated provider group or hospital to a new provider group or hospital. (B) A description of the manner in which the plan facilitates the completion of covered services pursuant to Section 1373.96. (C) A template of the notice the plan proposes to send to enrollees describing its policy and informing enrollees of their right to completion of covered services. (D) A description of the plan’s process to review an enrollee’s request for the completion of covered services. (E) A provision ensuring that reasonable consideration is given to the potential clinical effect on an enrollee’s treatment caused by a change of provider. (3) If approved by the department, the provisions of the written continuity of care policy shall replace all prior continuity of care policies. The plan shall file a revision of the policy with the department if it makes a material change to it. (b) (1) The provisions of this subdivision apply to a specialized health care service plan that offers professional mental health services on an employer-sponsored group basis. (2) The plan shall file with the department a written policy describing the manner in which it facilitates the continuity of care for a new enrollee who has been receiving services from a nonparticipating mental health provider for an acute, serious, or chronic mental health condition when his or her employer changed health plans. The written policy shall allow the new enrollee a reasonable transition period to continue his or her course of treatment with the nonparticipating mental health provider prior to transferring to a participating provider and shall include the provision of mental health services on a timely, appropriate, and medically necessary basis from the nonparticipating provider. The policy may provide that the length of the transition period take into account on a case-by-case basis, the severity of the enrollee’s condition and the amount of time reasonably necessary to effect a safe transfer. The policy shall ensure that reasonable consideration is given to the potential clinical effect of a change of provider on the enrollee’s treatment for the condition. The policy shall describe the plan’s process to review an enrollee’s request to continue his or her course of treatment with a nonparticipating mental health provider. Nothing in this paragraph shall be construed to require the plan to accept a nonparticipating mental health provider onto its panel for treatment of other enrollees. For purposes of the continuing treatment of the transferring enrollee, the plan may require the nonparticipating mental health provider, as a condition of the right conferred under this section, to enter into its standard mental health provider contract. (3) A plan may require a nonparticipating mental health provider whose services are continued pursuant to the written policy, to agree in writing to the same contractual terms and conditions that are imposed upon the plan’s participating providers, including location within the plan’s service area, reimbursement methodologies, and rates of payment. If the plan determines that an enrollee’s health care treatment should temporarily continue with his or her existing provider or nonparticipating mental health provider, the plan shall not be liable for actions resulting solely from the negligence, malpractice, or other tortious or wrongful acts arising out of the provisions of services by the existing provider or a nonparticipating mental health provider. (4) The written policy shall not apply to an enrollee who is offered an out-of-network option or to an enrollee who had the option to continue with his or her previous specialized health care service plan that offers professional mental health services on an employer-sponsored group basis or mental health provider and instead voluntarily chose to change health plans. (5) This subdivision shall not apply to a specialized health care service plan that offers professional mental health services on an employer-sponsored group basis if it includes out-of-network coverage that allows the enrollee to obtain services from his or her existing mental health provider or nonparticipating mental health provider. (c) The health care service plan, including a specialized health care service plan that offers professional mental health services on an employer-sponsored group basis, shall provide to all new enrollees notice of its written continuity of care policy and information regarding the process for an enrollee to request a review under the policy and shall provide, upon request, a copy of the written policy to an enrollee. (d) Nothing in this section shall require a health care service plan or a specialized health care service plan that offers professional mental health services on an employer-sponsored group basis to cover services or provide benefits that are not otherwise covered under the terms and conditions of the plan contract. (e) The following definitions apply for the purposes of this section: (1) “Hospital” means a general acute care hospital. (2) “Nonparticipating mental health provider” means a psychiatrist, licensed psychologist, licensed marriage and family therapist, licensed social worker, or licensed professional clinical counselor who does not contract with the specialized health care service plan that offers professional mental health services on an employer-sponsored group basis. (3) “Provider group” means a medical group, independent practice association, or any other similar organization. (Amended by Stats. 2011, Ch. 381, Sec. 32. (SB 146) Effective January 1, 2012.)
1373.96.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must let an enrollee keep getting covered services from a terminated or nonparticipating provider when the enrollee asks, subject to the section’s conditions and time limits.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1373.96. (a) A health care service plan shall, at the request of an enrollee, provide for the completion of covered services as set forth in this section by a terminated provider or by a nonparticipating provider. (b) (1) The completion of covered services shall be provided by a terminated provider to an enrollee who, at the time of the contract’s termination, was receiving services from that provider for one of the conditions described in subdivision (c). (2) The completion of covered services shall be provided by a nonparticipating provider to a newly covered enrollee who, at the time the enrollee’s coverage became effective, was receiving services from that provider for one of the conditions described in subdivision (c). (c) The health care service plan shall provide for the completion of covered services for the following conditions: (1) An acute condition. An acute condition is a medical condition that involves a sudden onset of symptoms due to an illness, injury, or other medical problem that requires prompt medical attention and that has a limited duration. Completion of covered services shall be provided for the duration of the acute condition. (2) (A) A serious chronic condition. A serious chronic condition is a medical condition due to a disease, illness, or other medical problem or medical disorder that is serious in nature and that persists without full cure or worsens over an extended period of time or requires ongoing treatment to maintain remission or prevent deterioration. Completion of covered services shall be provided for a period of time necessary to complete a course of treatment and to arrange for a safe transfer to another provider, as determined by the health care service plan in consultation with the enrollee and the terminated provider or nonparticipating provider and consistent with good professional practice. (B) Completion of covered services under subparagraph (A) shall not exceed 12 months from the contract termination date or 12 months from the effective date of coverage for a newly covered enrollee. (3) (A) A pregnancy. A pregnancy is the three trimesters of pregnancy and the immediate postpartum period. Completion of covered services shall be provided for the duration of the pregnancy. (B) For purposes of an individual who presents written documentation of being diagnosed with a maternal mental health condition from the individual’s treating health care provider, completion of covered services for the maternal mental health condition shall not exceed 12 months from the diagnosis or from the end of pregnancy, whichever occurs later. (4) A terminal illness. A terminal illness is an incurable or irreversible condition that has a high probability of causing death within one year or less. Completion of covered services shall be provided for the duration of a terminal illness, which may exceed 12 months from the contract termination date or 12 months from the effective date of coverage for a new enrollee. (5) The care of a newborn child between birth and age 36 months. Completion of covered services under this paragraph shall not exceed 12 months from the contract termination date or 12 months from the effective date of coverage for a newly covered enrollee. (6) Performance of a surgery or other procedure that is authorized by the plan as part of a documented course of treatment and has been recommended and documented by the provider to occur within 180 days of the contract’s termination date or within 180 days of the effective date of coverage for a newly covered enrollee. (d) (1) The plan may require the terminated provider whose services are continued beyond the contract termination date pursuant to this section to agree in writing to be subject to the same contractual terms and conditions that were imposed upon the provider before termination, including, but not limited to, credentialing, hospital privileging, utilization review, peer review, and quality assurance requirements. If the terminated provider does not agree to comply or does not comply with these contractual terms and conditions, the plan is not required to continue the provider’s services beyond the contract termination date. (2) Unless otherwise agreed upon by the terminated provider and the plan or by the individual provider and the provider group, the services rendered pursuant to this section shall be compensated at rates and methods of payment similar to those used by the plan or the provider group for currently contracting providers providing similar services who are not capitated and who are practicing in the same or a similar geographic area as the terminated provider. Neither the plan nor the provider group is required to continue the services of a terminated provider if the provider does not accept the payment rates provided for in this paragraph. (e) (1) The plan may require a nonparticipating provider whose services are continued pursuant to this section for a newly covered enrollee to agree in writing to be subject to the same contractual terms and conditions that are imposed upon currently contracting providers providing similar services who are not capitated and who are practicing in the same or a similar geographic area as the nonparticipating provider, including, but not limited to, credentialing, hospital privileging, utilization review, peer review, and quality assurance requirements. If the nonparticipating provider does not agree to comply or does not comply with these contractual terms and conditions, the plan is not required to continue the provider’s services. (2) Unless otherwise agreed upon by the nonparticipating provider and the plan or by the nonparticipating provider and the provider group, the services rendered pursuant to this section shall be compensated at rates and methods of payment similar to those used by the plan or the provider group for currently contracting providers providing similar services who are not capitated and who are practicing in the same or a similar geographic area as the nonparticipating provider. Neither the plan nor the provider group is required to continue the services of a nonparticipating provider if the provider does not accept the payment rates provided for in this paragraph. (f) The amount of, and the requirement for payment of, copayments, deductibles, or other cost-sharing components during the period of completion of covered services with a terminated provider or a nonparticipating provider are the same as would be paid by the enrollee if receiving care from a provider currently contracting with or employed by the plan. (g) If a plan delegates the responsibility of complying with this section to a provider group, the plan shall ensure that the requirements of this section are met. (h) This section does not require a plan to provide for completion of covered services by a provider whose contract with the plan or provider group has been terminated or not renewed for reasons relating to a medical disciplinary cause or reason, as defined in paragraph (6) of subdivision (a) of Section 805 of the Business and Professions Code, or fraud or other criminal activity. (i) This section does not require a plan to cover services or provide benefits that are not otherwise covered under the terms and conditions of the plan contract. Except as provided in subdivision (l), this section does not apply to a newly covered enrollee covered under an individual subscriber agreement who is undergoing a course of treatment on the effective date of their coverage for a condition described in subdivision (c). (j) Except as provided in subdivision (l), this section does not apply to a newly covered enrollee who is offered an out-of-network option or to a newly covered enrollee who had the option to continue with their previous health plan or provider and instead voluntarily chose to change health plans. (k) The provisions contained in this section are in addition to any other responsibilities of a health care service plan to provide continuity of care pursuant to this chapter. This section does not preclude a plan from providing continuity of care beyond the requirements of this section. (l) (1) A health care service plan shall, at the request of a newly covered enrollee under an individual health care service plan contract, arrange for the completion of covered services as set forth in this section by a nonparticipating provider for one of the conditions described in subdivision (c) if the newly covered enrollee meets both of the following: (A) The newly covered enrollee’s prior coverage was terminated under paragraph (5) or (6) of subdivision (a) of Section 1365 or subdivision (d) or (e) of Section 10273.6 of the Insurance Code, which includes circumstances when a health benefit plan is withdrawn from any portion of a market. (B) At the time the enrollee’s coverage became effective, the newly covered enrollee was receiving services from that provider for one of the conditions described in subdivision (c). (2) The completion of covered services required to be provided under this subdivision apply to services rendered to the newly covered enrollee on and after the effective date of their new coverage. (3) A violation of this subdivision does not constitute a crime under Section 1390. (m) Notice as to the process by which an enrollee may request completion of covered services pursuant to this section shall be provided in every disclosure form as required under Section 1363 and in any evidence of coverage issued after January 1, 2018. A plan shall provide a written copy of this information to its contracting providers and provider groups. A plan shall also provide a copy to its enrollees upon request. Notice as to the availability of the right to request completion of covered services shall be part of, accompany, or be sent simultaneously with any termination of coverage notice sent in the circumstances described in subdivision (l). (n) The following definitions apply for the purposes of this section: (1) “Individual provider” means a person who is a licentiate, as defined in Section 805 of the Business and Professions Code, or a person licensed under Chapter 2 (commencing with Section 1000) of Division 2 of the Business and Professions Code. (2) “Maternal mental health condition” means a mental health condition that can impact a woman during pregnancy, peri or postpartum, or that arises during pregnancy, in the peri or postpartum period, up to one year after delivery. (3) “Nonparticipating provider” means a provider who is not contracted with the enrollee’s health care service plan to provide services under the enrollee’s plan contract. (4) “Provider” shall have the same meaning as set forth in subdivision (i) of Section 1345. (5) “Provider group” means a medical group, independent practice association, or any other similar organization. (Amended by Stats. 2019, Ch. 776, Sec. 1. (AB 577) Effective January 1, 2020.)
1374.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan that covers an employee and a covered spouse dependent must not give employees less favorable coverage terms than the spouse coverage.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374. If a health care service plan entered into, amended, or renewed in this state on or after the effective date of this section provides in any manner for coverage for an employee and a covered spouse dependent on such employee, the plan shall not provide for coverage under conditions less favorable for employees than coverage provided for covered spouses dependent upon the employees. (Added by Stats. 1976, Ch. 59.)
1374.1.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must offer dependent coverage for qualifying parent or stepparent dependents in scope, and must give HICAP notice in certain Medicare-related applications.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.1. (a) An individual health care service plan contract issued, amended, or renewed on or after January 1, 2023, that provides dependent coverage shall make dependent coverage available to a parent or stepparent who meets the definition of a qualifying relative under Section 152(d) of Title 26 of the United States Code and who lives or resides within the health care service plan’s service area. (b) It is the intent of the Legislature to ensure that an individual who is seeking to add to their contract a dependent parent or stepparent who is eligible for or enrolled in Medicare is informed of and understands their specific rights and health care options before enrolling the dependent parent or stepparent in an individual health care service plan contract, including the potential benefits, financial assistance, and tax liability under those options. (c) If an applicant is seeking to add to their contract a dependent parent or stepparent who is eligible for or enrolled in Medicare: (1) A health care service plan shall provide, at the time of solicitation and on the application, to an applicant who does not apply through the California Health Benefit Exchange written notice that the Health Insurance Counseling and Advocacy Program (HICAP) provides health insurance counseling to senior California residents free of charge, including the name, address, and telephone number of the local HICAP program and the statewide HICAP telephone number, 1-800-434-0222. (2) The California Health Benefit Exchange shall provide to an applicant who applies through the California Health Benefit Exchange written notice that HICAP provides health insurance counseling to senior California residents free of charge, including the name, address, and telephone number of the local HICAP program and the statewide HICAP telephone number, 1-800-434-0222. (3) A solicitor shall provide the name, address, and telephone number of the local HICAP program and the statewide HICAP telephone number, 1-800-434-0222, at the time of solicitation. (d) This section does not apply to specialized health care service plans, Medicare supplement insurance, CHAMPUS supplement insurance, or TRICARE supplement insurance, or to hospital-only, accident-only, or specified disease insurance policies that reimburse for hospital, medical, or surgical benefits. (Amended by Stats. 2022, Ch. 118, Sec. 1. (AB 2127) Effective January 1, 2023.)
1374.10.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health care service plans must offer home health care benefits in group contracts, with subscriber-group rejection allowed.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.10. (a) Every health care service plan that covers hospital, medical or surgical expenses and which is not qualified as a health maintenance organization under Title XIII of the federal Public Health Service Act (42 U.S.C. Sec. 300e, et seq.) shall make available and offer to include in every group contract entered into on or after January 1, 1979, benefits for home health care as set forth in this section provided by a licensed home health agency subject to the right of the subscriber group to reject the benefits or to select any alternative level of benefits as may be offered by the health care service plan. In rural areas where there are no licensed home health agencies or in which the supply of home health agency services does not meet the needs of the community, the services of visiting nurses, if available, shall be offered under the health care service plan subject to the terms and conditions set forth in subdivision (b). (b) As used in this section: (1) “Home health care” means the continued care and treatment of a covered person who is under the direct care and supervision of a physician but only if (i) continued hospitalization would have been required if home health care were not provided, (ii) the home health treatment plan is established and approved by a physician within 14 days after an inpatient hospital confinement has ended and such treatment plan is for the same or related condition for which the covered person was hospitalized, and (iii) home health care commences within 14 days after the hospital confinement has ended. “Home health services” consist of, but shall not be limited to, the following: (i) part-time or intermittent skilled nursing services provided by a registered nurse or licensed vocational nurse; (ii) part-time or intermittent home health aide services which provide supportive services in the home under the supervision of a registered nurse or a physical, speech or occupational therapist; (iii) physical, occupational or speech therapy; and (iv) medical supplies, drugs and medicines prescribed by a physician and related pharmaceutical services, and laboratory services to the extent such charges or costs would have been covered under the plan if the covered person had remained in the hospital. (2) “Home health agency” means a public or private agency or organization licensed by the State Department of Health Services in accordance with the provisions of Chapter 8 (commencing with Section 1725) of Division 2 of the Health and Safety Code. (c) The plan may contain a limitation on the number of home health visits for which benefits are payable, but the number of such visits shall not be less than 100 in any calendar year or in any continuous 12-month period for each person covered under the plan. Except for a home health aide, each visit by a representative of a home health agency shall be considered as one home health care visit. A visit of four hours or less by a home health aide shall be considered as one home health visit. (d) Home health benefits in this section shall be subject to all other provisions of this chapter. In addition, such benefits may be subject to an annual deductible of not more than fifty dollars ($50) for each person covered under a plan, and may be subject to a coinsurance provision which provides coverage of not less than 80 percent of the reasonable charges for such services. (e) Nothing in this section shall preclude a plan offering other health care benefits provided in the home. (f) Nothing in this section shall relieve any plan from providing all basic health care services as required by subdivision (i) of Section 1367 except that a plan subject to this section may fulfill that requirement with respect to home health services in connection with any particular group contract by providing benefits for home health care as set forth in this section if the subscriber group has not rejected such benefits. (Added by Stats. 1978, Ch. 1130.)
1374.11.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may not deny certain claims just because the patient was confined in jail or juvenile detention, if the person is otherwise entitled to reimbursement and incurred the expense during confinement.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.11. No health care service plan shall deny a claim for hospital, medical, surgical, dental, or optometric services for the sole reason that the individual served was confined in a city or county jail or was a juvenile detained in any facility, if such individual is otherwise entitled to reimbursement for such services under such contract and incurs expense for the services so provided during confinement. This provision shall apply to any health care service plan contract entered into or renewed on or after July 1, 1980, whether or not such contract contains any provision terminating benefits under such plan upon an individual’s confinement in a city or county jail or juvenile detention facility. (Added by Stats. 1980, Ch. 90.)
1374.12.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health plan contracts covered by this section cannot be treated as limiting the plan’s liability for certain state-hospital expenses just because the care was provided in a state hospital, if the plan would otherwise have paid for the services.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.12. No health care service plan contract issued, entered into, or renewed on or after July 1, 1984, shall be deemed to contain any provision restricting the liability of the plan with respect to expenses solely because the expenses were incurred while the member was in a state hospital, if the policy, contract, or agreement would have paid for the services but for the fact that they were provided in a state hospital. Nothing in this section shall be deemed to require a plan to pay a state hospital for covered expenses incurred by a member at a rate or charge higher than the plan would pay for such services to a hospital with which the plan has entered a contract providing for alternative rates of payment or limiting payments for services secured by members. (Added by Stats. 1983, Ch. 796, Sec. 1. Effective September 14, 1983.)
1374.13.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan may not require in-person contact, or restrict the service setting, before paying for covered telehealth services; the section also applies to certain Medi-Cal managed care contracts, and it does not allow required telehealth use when the provider says it is not appropriate.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.13. (a) For the purposes of this section, the definitions in subdivision (a) of Section 2290.5 of the Business and Professions Code apply. (b) It is the intent of the Legislature to recognize the practice of telehealth as a legitimate means by which an individual may receive health care services from a health care provider without in-person contact with the health care provider. (c) A health care service plan shall not require that in-person contact occur between a health care provider and a patient before payment is made for the covered services appropriately provided through telehealth, subject to the terms and conditions of the contract entered into between the enrollee or subscriber and the health care service plan, and between the health care service plan and its participating providers or provider groups, and pursuant to Section 1374.14. (d) A health care service plan shall not limit the type of setting where services are provided for the patient or by the health care provider before payment is made for the covered services appropriately provided through telehealth, subject to the terms and conditions of the contract entered into between the enrollee or subscriber and the health care service plan, and between the health care service plan and its participating providers or provider groups, and pursuant to Section 1374.14. (e) This section shall also apply to health care service plan contracts and Medi-Cal managed care plan contracts with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. (f) Notwithstanding any other law, this section does not authorize a health care service plan to require the use of telehealth if the health care provider has determined that it is not appropriate. (Amended by Stats. 2019, Ch. 867, Sec. 2. (AB 744) Effective January 1, 2020.)
1374.14.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plan contracts must treat telehealth services the same as in-person services for reimbursement, coverage, and related cost-sharing limits, with stated exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.14. (a) (1) A contract between a health care service plan and a health care provider for the provision of health care services to an enrollee or subscriber shall specify that the health care service plan shall reimburse the treating or consulting health care provider for the diagnosis, consultation, or treatment of an enrollee or subscriber appropriately delivered through telehealth services on the same basis and to the same extent that the health care service plan is responsible for reimbursement for the same service through in-person diagnosis, consultation, or treatment. (2) This section does not limit the ability of a health care service plan and a health care provider to negotiate the rate of reimbursement for a health care service provided pursuant to a contract subject to this section. Services that are the same, as determined by the provider’s description of the service on the claim, shall be reimbursed at the same rate whether provided in person or through telehealth. When negotiating a rate of reimbursement for telehealth services for which no in-person equivalent exists, a health care service plan and the provider shall ensure the rate is consistent with subdivision (h) of Section 1367. (3) This section does not require telehealth reimbursement to be unbundled from other capitated or bundled, risk-based payments. (b) (1) A health care service plan contract shall specify that the health care service plan shall provide coverage for health care services appropriately delivered through telehealth services on the same basis and to the same extent that the health care service plan is responsible for coverage for the same service through in-person diagnosis, consultation, or treatment. Coverage shall not be limited only to services delivered by select third-party corporate telehealth providers. (2) This section does not alter the obligation of a health care service plan to ensure that enrollees have access to all covered services through an adequate network of contracted providers, as required under Sections 1367, 1367.03, and 1367.035, and the regulations promulgated thereunder. (3) This section does not require a health care service plan to cover telehealth services provided by an out-of-network provider, unless coverage is required under other law. (c) A health care service plan may offer a contract containing a copayment or coinsurance requirement for a health care service delivered through telehealth services, provided that the copayment or coinsurance does not exceed the copayment or coinsurance applicable if the same services were delivered through in-person diagnosis, consultation, or treatment. This subdivision does not require cost sharing for services provided through telehealth. (d) Services provided through telehealth and covered pursuant to this chapter shall be subject to the same deductible and annual or lifetime dollar maximum as equivalent services that are not provided through telehealth. (e) The definitions in subdivision (a) of Section 2290.5 of the Business and Professions Code apply to this section. (f) This section shall not apply to Medi-Cal managed care plans that contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) of, Chapter 8 (commencing with Section 14200) of, or Chapter 8.75 (commencing with Section 14591) of, Part 3 of Division 9 of the Welfare and Institutions Code. (g) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Amended by Stats. 2021, Ch. 439, Sec. 4. (AB 457) Effective January 1, 2022.)
1374.141.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

If a health care service plan offers telehealth through a third-party corporate telehealth provider, it must make specified disclosures, notify enrollees about records and cost-sharing, report data to the department, and ensure delegated entities comply.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.141. (a) If a health care service plan offers a service via telehealth to an enrollee through a third-party corporate telehealth provider, all of the following conditions shall be met: (1) The health care service plan shall disclose to the enrollee in any promotion or coordination of the service both of the following: (A) The availability of receiving the service on an in-person basis or via telehealth, if available, from the enrollee’s primary care provider, treating specialist, or from another contracting individual health professional, contracting clinic, or contracting health facility consistent with the service and existing timeliness and geographic access standards in Sections 1367 and 1367.03 and regulations promulgated thereunder. (B) If the enrollee has coverage for out-of-network benefits, a reminder of the availability of receiving the service either via telehealth or on an in-person basis using the enrollee’s out-of-network benefits, and the cost sharing obligation for out-of-network benefits compared to in-network benefits and balance billing protections for services received from contracted providers. (2) After being notified pursuant to paragraph (1), the enrollee chooses to receive the service via telehealth through a third-party corporate telehealth provider. (3) The enrollee consents to the service consistent with Section 2290.5 of the Business and Professions Code. (4) If the enrollee is currently receiving specialty telehealth services for a mental or behavioral health condition, the enrollee is given the option of continuing to receive that service with the contracting individual health professional, a contracting clinic, or a contracting health facility. (b) For purposes of this section, the following definitions apply: (1) “Contracting individual health professional” means a physician and surgeon or other professional who is licensed by the state to deliver or furnish health care services, including mental and behavioral health services, and who is contracted with or employed by the enrollee’s health care service plan as a network provider. A “contracting individual health professional” shall not include a dentist licensed pursuant to the Dental Practice Act (Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code). Application of this definition is not precluded by a contracting individual health professional’s affiliation with a group. (2) “Contracting clinic” means a clinic, as defined in Section 1200, that is contracted with or owned by the enrollee’s health care service plan and as a network provider. (3) “Contracting health facility” means a health facility, as defined in Section 1250 and paragraph (1) of subdivision (f) of Section 1371.9, that is contracted with or operated by the enrollee’s health care service plan and serves as a network provider. (4) “Third-party corporate telehealth provider” means a corporation directly contracted with a health care service plan that provides health care services exclusively through a telehealth technology platform and has no physical location at which a patient can receive services. (c) If services are provided to an enrollee through a third-party corporate telehealth provider, a health care service plan shall comply with all of the following: (1) Notify the enrollee of their right to access their medical records pursuant to, and consistent with, Chapter 1 (commencing with Section 123100) of Part 1 of Division 106. (2) Notify the enrollee that the record of any services provided to the enrollee through a third-party corporate telehealth provider shall be shared with their primary care provider, unless the enrollee objects. (3) Ensure that the records are entered into a patient record system shared with the enrollee’s primary care provider or are otherwise provided to the enrollee’s primary care provider, unless the enrollee objects, in a manner consistent with state and federal law. (4) Notify the enrollee that all services received through the third-party corporate telehealth provider are available at in-network cost-sharing and out-of-pocket costs shall accrue to any applicable deductible or out-of-pocket maximum. (d) A health care service plan shall include in its reports submitted to the department pursuant to Section 1367.035 and regulations adopted pursuant to that section, in a manner specified by the department, all of the following for each product type: (1) By specialty, the total number of services delivered via telehealth by third-party corporate telehealth providers. (2) The names of each third-party corporate telehealth provider contracted with the plan and, for each, the number of services provided by specialty. (3) For each third-party corporate telehealth provider with which it contracts, the percentage of the third-party corporate telehealth provider’s contracted providers available to the plan’s enrollees that are also contracting individual health professionals. (4) For each third-party corporate telehealth provider with which it contracts, the types of telehealth services utilized by enrollees, including frequency of use, gender, age, and any other information as determined by the department. (5) For each enrollee that has accessed services for a third-party corporate telehealth provider, enrollee demographic data, including gender and age, and any other information as determined by the department. (e) The director shall investigate and take enforcement action, as appropriate, against a health care service plan that fails to comply with these requirements and shall periodically evaluate contracts between health care service plans and third-party corporate telehealth providers to determine if any audit, evaluation, or enforcement actions should be undertaken by the department. (f) If a health care service plan delegates responsibilities under this section to a contracted entity, including, but not limited to, a medical group or independent practice association, the delegated entity shall comply with this section. (g) This section shall not apply when an enrollee seeks services directly from a third-party corporate telehealth provider. (h) This section shall not apply to a health care service plan contract or a Medi-Cal managed care plan contract with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. The State Department of Health Care Services shall consider the appropriateness of applying the requirements of this section, in whole or in part, to the Medi-Cal program pursuant to the advisory group process described in paragraph (2) of subdivision (f) of Section 14124.12 of the Welfare and Institutions Code. (Added by Stats. 2021, Ch. 439, Sec. 5. (AB 457) Effective January 1, 2022.)
1374.142.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain dental health care service plans must report telehealth-related data to the department and disclose to enrollees how third-party telehealth visits affect benefit limits.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.142. (a) A health care service plan that issues, sells, renews, or offers a plan contract covering dental services, including a specialized health care service plan contract covering dental services that offers a service via telehealth to an enrollee through a third-party corporate telehealth provider shall report to the department, in a manner specified by the department, all of the following for each product type: (1) The total number of services delivered via telehealth by a third-party corporate telehealth provider. (2) For each third-party corporate telehealth provider with which it contracts, the percentage of the third-party telehealth provider’s contracted providers available to the plan’s enrollees that are also network providers. (3) For each third-party corporate telehealth provider with which it contracts, the types of telehealth services utilized by enrollees, including information on the gender and age of the enrollee, and any other information as determined by the department. (b) A health care service plan that issues, sells, renews, or offers a plan contract covering dental services, including a specialized health care service plan contract covering dental services that offers a service via telehealth to an enrollee through a third-party corporate telehealth provider, shall disclose to the enrollee the impact of third-party telehealth visits on the enrollee’s benefit limitations, including frequency limitations and the enrollee’s annual maximum. (c) Section 1374.141 shall not apply to specialized health care service plans covering dental services. (d) For the purposes of this section, “third-party corporate telehealth provider” means a corporation that provides dental services exclusively through a telehealth technology platform and has no physical location at which a patient can receive services, and is directly contracted with a health care service plan, including a specialized health care service plan, that issues, sells, renews, or offers a plan contract covering dental services. (Added by Stats. 2022, Ch. 525, Sec. 1. (AB 1982) Effective January 1, 2023.)
1374.15.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must disclose its payment-rate calculation method and data when requested by a contracting public entity or political subdivision, within a reasonable time and no later than 60 calendar days.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.15. Any health care service plan shall, upon request by any public entity or political subdivision of the state with whom it has entered into a contract, disclose within a reasonable time period, not to exceed 60 calendar days, the method and data used in calculating the rates of payment for the contract. (Added by Stats. 1991, Ch. 898, Sec. 2.)
1374.16.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans generally must set up and run procedures for standing referrals and specialist referrals for enrollees, with short decision and referral deadlines.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.16. (a) Every health care service plan, except a specialized health care service plan, shall establish and implement a procedure by which an enrollee may receive a standing referral to a specialist. The procedure shall provide for a standing referral to a specialist if the primary care physician determines in consultation with the specialist, if any, and the plan medical director or his or her designee, that an enrollee needs continuing care from a specialist. The referral shall be made pursuant to a treatment plan approved by the health care service plan in consultation with the primary care physician, the specialist, and the enrollee, if a treatment plan is deemed necessary to describe the course of the care. A treatment plan may be deemed to be not necessary provided that a current standing referral to a specialist is approved by the plan or its contracting provider, medical group, or independent practice association. The treatment plan may limit the number of visits to the specialist, limit the period of time that the visits are authorized, or require that the specialist provide the primary care physician with regular reports on the health care provided to the enrollee. (b) Every health care service plan, except a specialized health care service plan, shall establish and implement a procedure by which an enrollee with a condition or disease that requires specialized medical care over a prolonged period of time and is life-threatening, degenerative, or disabling may receive a referral to a specialist or specialty care center that has expertise in treating the condition or disease for the purpose of having the specialist coordinate the enrollee’s health care. The referral shall be made if the primary care physician, in consultation with the specialist or specialty care center if any, and the plan medical director or his or her designee determines that this specialized medical care is medically necessary for the enrollee. The referral shall be made pursuant to a treatment plan approved by the health care service plan in consultation with the primary care physician, specialist or specialty care center, and enrollee, if a treatment plan is deemed necessary to describe the course of care. A treatment plan may be deemed to be not necessary provided that the appropriate referral to a specialist or specialty care center is approved by the plan or its contracting provider, medical group, or independent practice association. After the referral is made, the specialist shall be authorized to provide health care services that are within the specialist’s area of expertise and training to the enrollee in the same manner as the enrollee’s primary care physician, subject to the terms of the treatment plan. (c) The determinations described in subdivisions (a) and (b) shall be made within three business days of the date the request for the determination is made by the enrollee or the enrollee’s primary care physician and all appropriate medical records and other items of information necessary to make the determination are provided. Once a determination is made, the referral shall be made within four business days of the date the proposed treatment plan, if any, is submitted to the plan medical director or his or her designee. (d) Subdivisions (a) and (b) do not require a health care service plan to refer to a specialist who, or to a specialty care center that, is not employed by or under contract with the health care service plan to provide health care services to its enrollees, unless there is no specialist within the plan network that is appropriate to provide treatment to the enrollee, as determined by the primary care physician in consultation with the plan medical director as documented in the treatment plan developed pursuant to subdivision (a) or (b). (e) For the purposes of this section, “specialty care center” means a center that is accredited or designated by an agency of the state or federal government or by a voluntary national health organization as having special expertise in treating the life-threatening disease or condition or degenerative and disabling disease or condition for which it is accredited or designated. (f) As used in this section, a “standing referral” means a referral by a primary care physician to a specialist for more than one visit to the specialist, as indicated in the treatment plan, if any, without the primary care physician having to provide a specific referral for each visit. (g) This section shall become operative on (1) January 1, 2004, or (2) the date of adoption of an accreditation or designation by an agency of the state or federal government or by a voluntary national health organization of an HIV or AIDS specialist, whichever date is earlier. (Repealed (in Sec. 1) and added by Stats. 2000, Ch. 426, Sec. 2. Effective January 1, 2001. Section operative January 1, 2004, or sooner, by its own provisions.)
1374.17.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan must not deny transplant-related coverage because an enrollee or subscriber has HIV.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.17. (a) A health care service plan shall not deny coverage that is otherwise available under the plan contract for the costs of solid organ or other tissue transplantation services based upon the enrollee or subscriber being infected with the human immunodeficiency virus. (b) Notwithstanding any other provision of law, in the provision of benefits required by this section, a health care service plan may utilize case management, network providers, utilization review techniques, prior authorization, copayments, or other cost sharing, subject to the terms and conditions of the plan contract and consistent with sound clinical processes and guidelines. (Added by Stats. 2005, Ch. 419, Sec. 1. Effective January 1, 2006.)
1374.18.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans covering dental services must disclose whether coverage is “State Regulated” and, when required, put that statement on an ID card.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.18. (a) To assist a provider in determining if an enrollee’s health care service plan coverage is regulated by the State of California, the health care service plan shall disclose whether the enrollee’s dental coverage is “State Regulated” through a provider portal, if available, or otherwise upon request, on or after January 1, 2025. (b) A health care service plan shall include the statement “State Regulated” if the enrollee’s dental coverage is subject to regulation by the department on an electronic or physical identification card, or both if available, for contracts covering dental services issued on or after January 1, 2025. (c) For purposes of this section, “health care service plan” means a health care service plan that issues, sells, renews, or offers a contract covering dental services, including a specialized health care service plan covering dental services. (Added by Stats. 2023, Ch. 125, Sec. 1. (AB 952) Effective January 1, 2024.)
1374.19.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Dental plans covered by this section must disclose their coordination-of-benefits policy and follow payment rules for primary and secondary dental benefit plans.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.19. (a) This section shall only apply to a health care service plan covering dental services or a specialized health care service plan contract covering dental service pursuant to this chapter. (b) For purposes of this section, the following terms have the following meanings: (1) “Coordination of benefits” means the method by which a health care service plan covering dental services or a specialized health care service plan contract, covering dental services, and one or more other health care service plans, specialized health care service plans, or disability insurers, covering dental services, pay their respective reimbursements for dental benefits when an enrollee is covered by multiple health care service plans or specialized health care services plan contracts, or a combination thereof, or a combination of health care service plans or specialized health care service plan contracts and disability insurers. (2) “Primary dental benefit plan” means a health care service plan or specialized health care service plan contract regulated pursuant to this chapter or a dental insurance policy issued by a disability insurer regulated pursuant to Part 2 (commencing with Section 10110) of Division 2 of the Insurance Code that provides an enrollee or insured with primary dental coverage. (3) “Secondary dental benefit plan” means a health care service plan or specialized health care service plan contract regulated pursuant to this chapter or a dental insurance policy issued by a disability insurer regulated pursuant to Part 2 (commencing with Section 10110) of Division 2 of the Insurance Code that provides an enrollee or insured with secondary dental coverage. (c) A health care service plan covering dental services or a specialized health care service plan issuing a specialized health care service plan contract covering dental services shall declare its coordination of benefits policy prominently in its evidence of coverage or contract with both enrollee and subscriber. (d) When a primary dental benefit plan is coordinating its benefits with one or more secondary dental benefits plans, it shall pay the maximum amount required by its contract with the enrollee or subscriber. (e) A health care service plan covering dental services or a specialized health care service plan contract covering dental services, when acting as a secondary dental benefit plan, shall pay the lesser of either the amount that it would have paid in the absence of any other dental benefit coverage, or the enrollee’s total out-of-pocket cost payable under the primary dental benefit plan for benefits covered under the secondary plan. (f) Nothing in this section is intended to conflict with or modify the way in which a health care service plan covering dental services or a specialized health care service plan covering dental services determines which dental benefit plan is primary and which is secondary in coordinating benefits with another plan or insurer pursuant to existing state law or regulation. (Added by Stats. 2007, Ch. 164, Sec. 2. Effective January 1, 2008.)
1374.192.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must reimburse contracting providers for covered business expenses tied to certain public health emergencies, with limits and exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.192. (a) Notwithstanding any other law, a health care service plan, including a specialized health care service plan and a health care service plan that issues, sells, renews, or offers a contract covering dental services, shall reimburse its contracting health care providers for business expenses to prevent the spread of diseases causing public health emergencies declared on or after January 1, 2022. For purposes of this subdivision, “business expenses” means personal protective equipment, additional supplies, materials, and clinical staff time over and above those expenses usually included in an office visit or other nonfacility service or services if performed during a public health emergency, as defined by law, due to respiratory-transmitted infectious disease and pursuant to subdivision (b). (b) A health care service plan shall reimburse a contracting health care provider pursuant to subdivision (a) for each individual patient encounter, limited to one encounter per day per enrollee for the duration of the public health emergency. (c) A change to a contract between a health care service plan and a health care provider that delegates financial risk for testing, including related items and services, related to a public health emergency declared pursuant to Section 8558 of the Government Code is a material change to the parties’ contract. A health care service plan shall not delegate the financial risk to a contracted health care provider for the cost of enrollee services provided under this section unless the parties have negotiated and agreed upon a new contract provision pursuant to Section 1375.7. (d) The department shall ensure a health care service plan provides timely reimbursement to its contracting health care providers pursuant to subdivision (a). The department may adopt guidance to implement this section. The guidance shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (e) For purposes of this section, “contracting health care provider” means a physician and surgeon, dentist, or doctor of podiatric medicine who is licensed by the state to deliver or furnish health care services, who owns or operates a practice, and who is contracted with the enrollee’s health care service plan. The term “contracting health care provider” only applies to a dentist if the enrollee is covered by a health care service plan contract or specialized health care service plan contract that includes dental benefits. (f) This section does not apply to the state of emergency declared by the Governor on March 4, 2020, relating to the coronavirus 2019 (COVID-19) pandemic. (g) This section shall not apply to a Medi-Cal managed care plan that contracts with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) of, Chapter 8 (commencing with Section 14200) of, or Chapter 8.75 (commencing with Section 14591) of, Part 3 of Division 9 of the Welfare and Institutions Code. (Added by Stats. 2021, Ch. 538, Sec. 1. (SB 242) Effective January 1, 2022.)
1374.193.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section limits when a health care service plan or contracting entity may let a third party use a provider network contract for dental services, and it requires specific disclosures, website listing, and timing rules.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.193. (a) A health care service plan that issues, sells, renews, or offers a plan contract covering dental services, including a specialized health care service plan contract covering dental services, or a contracting entity may grant a third party access to a provider network contract, or a provider’s dental services or contractual discounts provided pursuant to a provider network contract if the requirements of subdivisions (b) and (c) are met. (b) A health care service plan that issues, sells, renews, or offers a plan contract covering dental services may grant a third party access to a provider network contract if, at the time the provider network contract is entered into, and at any time a notice is sent to a health care provider as required under Section 1375.7, the provider network contract allows a provider to choose not to participate in third-party access to the provider network contract. The third-party access provision of the provider network contract shall be clearly identified. A plan shall not grant third-party access to the provider network contract of a provider that does not participate in third-party access to the provider network contract. (c) A contracting entity may grant a third party access to a provider network contract, or a provider’s dental services or contractual discounts provided pursuant to a provider network contract, if all of the following are met: (1) The provider network contract specifically states that the contracting entity may enter into an agreement with a third party that would allow the third party to obtain the contracting entity’s rights and responsibilities as if the third party were the contracting entity, and when the contracting entity is a health care service plan, the provider chose to participate in third-party access at the time the provider network contract was entered into. (2) If the contracting entity is a health care service plan, the third-party access provision of the provider network contract shall clearly identify in the plan contract and notice to the provider, as required pursuant to Section 1375.7, the following language conspicuously placed on the first page of the document in 12-point underlined type: This contract grants third-party access to the provider network. The provider network contracting entity has entered into an agreement with other dental plans or third parties that allows the third party to obtain the contracting entity’s rights and responsibilities as if the third party were the contracting entity. The list of all third parties with access to this provider network can be found at (insert internet website as identified in paragraph (4)). You have the right to choose not to participate in third-party access. To exercise your right to not participate in the third-party access, submit your written or electronic request to the health care service plan. (3) The contracting entity identifies prior to signing the contract, in writing or electronic form to the provider, all third parties in existence as of the date the provider network contract is entered into. (4) The contracting entity identifies all third parties in existence in a list on its internet website that is updated at least once every 90 days. (5) (A) The contracting entity requires a third party to identify the source of the discount on all written or electronic remittance advices or explanations of payment under which a discount is taken. (B) This paragraph does not apply to electronic transactions mandated by the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191). (6) A third party’s right to a provider’s discounted rate ceases as of the termination date of the provider network contract. (7) The contracting entity makes available a copy of the provider network contract relied on in the adjudication of a claim to a participating provider within 30 days of a request from the provider. (d) A provider is not bound by or required to perform dental treatment or services under a provider network contract granted to a third party in violation of this section. (e) This section does not apply if any of the following criteria are met: (1) The provider network contract is for dental services provided to a beneficiary of the federal Medicare Program pursuant to Title XVIII of the federal Social Security Act (42 U.S.C. Sec. 1395 et seq.) or the federal Medicaid program pursuant to Title XIX of the federal Social Security Act (42 U.S.C. Sec. 1396 et seq.). (2) Access to a provider network contract is granted to a health care service plan that issues, sells, renews, or offers a plan contract covering dental services, including a specialized health care service plan contract covering dental services, or a contracting entity operating under the same brand licensee program as the contracting entity. (3) Access to a provider network contract is granted to an affiliate of a contracting entity. A list of the contracting entity’s affiliates shall be made available to a provider in writing or electronic form before access is granted to a third party pursuant to subdivision (b). (f) The director shall adopt regulations as are necessary to implement and enforce this section in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (g) As used in this section: (1) “Contracting entity” means a person or entity that enters into direct contracts with providers for the delivery of dental services in the ordinary course of business, including a health care service plan or third-party administrator. (2) “Dental services” means services for the diagnosis, prevention, treatment, or cure of a dental condition, illness, injury, or disease. “Dental services” does not include services delivered by a provider that are billed as medical expenses under a health care service plan contract or specialized health care service plan contract. (3) “Provider” means an individual or entity that provides dental services or supplies, as defined by the health care service plan contract or specialized health care service plan contract, including a dentist or physician, but not a physician organization that leases or rents its network to a third party. (4) “Provider network contract” means a contract between a contracting entity and a provider entered into on or after January 1, 2020, that specifies the rights and responsibilities of the contracting entity and provides for the delivery and payment of dental services to an enrollee. (5) “Third party” means a person or entity that enters into a contract with a contracting entity or with another third party to gain access to the dental services or contractual discounts of a provider network contract. “Third party” does not include an employer or other group for whom the health care service plan, specialized health care service plan, or contracting entity provides administrative services, including the payment of claims. (Added by Stats. 2019, Ch. 540, Sec. 1. (AB 954) Effective January 1, 2020.)
1374.194.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A plan must not, on and after January 1, 2025, issue, amend, renew, or offer certain dental plan contracts that include a dental waiting period provision or a preexisting condition provision, subject to a Medi-Cal dental managed care exception.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.194. (a) The following definitions shall apply for purposes of this section: (1) “Dental waiting period provision” means a plan contract provision that limits coverage for a specified period of time following an enrollee’s effective date of coverage. (2) “Plan” means a health care service plan that issues, sells, renews, or offers a plan contract covering dental services, including a specialized health care service plan covering dental services. (3) “Preexisting condition provision” means a contract provision that excludes or limits coverage for services, charges, or expenses incurred following an enrollee’s effective date of coverage for a condition for which dental services, diagnosis, care, or treatment was recommended or received preceding the effective date of coverage. (b) On and after January 1, 2025, a plan shall not issue, amend, renew, or offer a plan contract that imposes a dental waiting period provision in a large group plan or preexisting condition provision for any plan. (c) This section does not apply to Medi-Cal dental managed care contracts authorized under Chapter 7 (commencing with Section 14000) and Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code. (Added by Stats. 2023, Ch. 557, Sec. 1. (AB 1048) Effective January 1, 2024.)
1374.195.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

This section limits what dental plan contracts and providers can charge, and requires certain dental plan documents to include a consumer notice.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.195. (a) With respect to a contract between a health care service plan or specialized health care service plan and a dentist to provide covered dental services to enrollees of the plan, the contract shall not require a dentist to accept an amount set by the plan as payment for dental care services provided to an enrollee that are not covered services under the enrollee’s plan contract. This subdivision shall only apply to provider contracts issued, amended, or renewed on or after January 1, 2011. (b) A provider shall not charge more for dental services that are not covered services under a plan contract than his or her usual and customary rate for those services. The department shall not be required to enforce this subdivision. (c) The evidence of coverage and disclosure form, or combined evidence of coverage and disclosure form, for every health care service plan contract covering dental services, or specialized health care service plan contract covering dental services, that is issued, amended, or renewed on or after July 1, 2011, shall include the following statement: IMPORTANT: If you opt to receive dental services that are not covered services under this plan, a participating dental provider may charge you his or her usual and customary rate for those services. Prior to providing a patient with dental services that are not a covered benefit, the dentist should provide to the patient a treatment plan that includes each anticipated service to be provided and the estimated cost of each service. If you would like more information about dental coverage options, you may call member services at [insert appropriate telephone number] or your insurance broker. To fully understand your coverage, you may wish to carefully review this evidence of coverage document. (d) For purposes of this section, “covered services” or “covered dental services” means dental care services for which the plan is obligated to pay pursuant to an enrollee’s plan contract, or for which the plan would be obligated to pay pursuant to an enrollee’s plan contract but for the application of contractual limitations such as deductibles, copayments, coinsurance, waiting periods, annual or lifetime maximums, frequency limitations, or alternative benefit payments. (Added by Stats. 2010, Ch. 673, Sec. 1. (AB 2275) Effective January 1, 2011.)
1374.196.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

The department must require health care service plans to establish and maintain four APIs starting on the later of January 1, 2027 or when final federal rules take effect, and the director may issue compliance guidance until January 1, 2027.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.196. (a) Commencing January 1, 2027, or when final federal rules are implemented, whichever occurs later, the department shall require a health care service plan to establish and maintain the following application programming interfaces (API) for the benefit of enrollees and contracted providers, as applicable: (1) Patient access API. (2) Provider access API. (3) Payer-to-payer API. (4) Prior authorization API. (b) API described in subdivision (a) shall be in accordance with standards published in a final rule issued by the federal Centers for Medicare and Medicaid Services and published in the Federal Register, and shall align with federal effective dates, including enforcement delays and suspensions, issued by the federal Centers for Medicare and Medicaid Services. (c) (1) Until January 1, 2027, the director may issue guidance to health care service plans regarding compliance with this section and that guidance shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (2) In developing the guidance under this subdivision, the department shall seek input from the State Department of Health Care Services. (d) This section does not limit existing requirements under this chapter, including, but not limited to, Section 1367.27. (Amended by Stats. 2024, Ch. 386, Sec. 1. (AB 2198) Effective January 1, 2025.)
1374.197.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans covered by this section must assess and verify a provider’s qualifications within 60 days after a completed credentialing application, and must notify the applicant within seven business days that receipt was confirmed and whether the application is complete.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.197. (a) For provider contracts issued, amended, or renewed on and after January 1, 2023, a health care service plan that provides coverage for mental health and substance use disorders and that credentials health care providers of those services for its networks shall assess and verify the qualifications of a health care provider within 60 days after receiving a completed provider credentialing application. Upon receipt of the application by the credentialing department, the health care service plan shall notify the applicant within seven business days, to verify receipt and inform the applicant whether the application is complete. The 60-day timeline shall apply only to the credentialing process and does not include contracting completion. (b) For the purposes of this section, “mental health and substance use disorder” and “health care provider” have the same meanings as defined in Section 1374.72. (Added by Stats. 2022, Ch. 533, Sec. 1. (AB 2581) Effective January 1, 2023.)
1374.198.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans or their delegates must decide credentialing applications within 90 days and send receipt/completeness notice within 10 business days.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.198. (a) Except as provided in Section 1374.197, within one year of the operative date of this section, a health care service plan or its delegate that credentials health care providers for its networks shall make a determination regarding the credentials of a health care provider within 90 days after receiving a completed provider credentialing application, including all required third-party verifications. Upon receipt of the application by the credentialing department, the health care service plan or its delegate shall notify the applicant within 10 business days to verify receipt and inform the applicant whether the application is complete. The health care service plan shall activate the provider upon successful approval and notify the applicant of the activation within 10 days of approval if the approval occurs prior to the end of the 90-day timeline. The 90-day timeline shall apply only to the credentialing process and does not include contracting completion. If the health care service plan or its delegate does not meet the 90-day requirement, the applicant’s credentials shall be provisionally approved for 120 days unless any of the following apply: (1) The applicant is subject to discipline by the licensing entity for that applicant. (2) The applicant has one or more adverse action reports or one or more reports of malpractice payments filed with the National Practitioner Data Bank. (3) The applicant has not been credentialed by the health care service plan in the past five years. (b) This section does not apply to contracts with the State Department of Health Care Services pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of Welfare and Institutions Code. (Added by Stats. 2025, Ch. 630, Sec. 1. (AB 1041) Effective January 1, 2026.)
1374.20.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

A group health care service plan generally may not change contract premium rates, copayments, coinsurance, or deductibles during the contract term, except in listed circumstances.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.20. (a) No group health care service plan shall change the premium rates or applicable copayments or coinsurances or deductibles for the length of the contract, except as specified in subdivision (b), during any of the following time periods: (1) After the group contractholder has delivered written notice of acceptance of the contract. (2) After the start of the employer’s annual open enrollment period. (3) After the receipt of payment of the premium for the first month of coverage in accordance with the contract effective date. (b) Changes to the premium rates or applicable copayments or coinsurances or deductibles of a contract shall, subject to the plan meeting the requirements of this article, be allowed in any of the following circumstances: (1) When authorized or required in the group contract. (2) When the contract was agreed to under a preliminary agreement that states that it is subject to execution of a definitive agreement. (3) When the plan and contractholder mutually agree in writing. (Added by Stats. 2002, Ch. 336, Sec. 4. Effective January 1, 2003.)
1374.21.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

Health care service plans must give advance written notice before certain premium or coverage changes take effect, and must give written reasons when denying or declining coverage for a large group.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.21. (a) (1) A change in premium rates or changes in coverage stated in a small group health care service plan contract shall not become effective unless the plan has delivered in writing a notice indicating the change or changes at least 60 days prior to the contract renewal effective date. (2) A change on premium rates or changes in coverage stated in a large group health care service plan contract shall not become effective unless the plan has delivered a written notice indicating the change or changes at least 120 days before the contract renewal effective date. The notice for large group health plans shall include the following information: (A) Whether the rate proposed to be in effect is greater than the average rate increase for individual market products negotiated by the California Health Benefit Exchange for the most recent calendar year for which the rates are final. (B) Whether the rate proposed to be in effect is greater than the average rate increase negotiated by the Board of Administration of the Public Employees’ Retirement System for the most recent calendar year for which the rates are final or greater than the average rate increase for coverage offered in the large group market, as filed pursuant to Section 1385.045. (C) Whether the rate change includes any portion of the excise tax paid by the health plan. (D) How to obtain the rate filing required under Article 6.2 (commencing with Section 1385.01). (E) How to apply to the department to have the proposed rate reviewed by the department if a request is made within 30 days of the notice. (b) A health care service plan that declines to offer coverage to or denies enrollment for a large group applying for coverage shall, at the time of the denial of coverage, provide the applicant with the specific reason or reasons for the decision in writing, in clear, easily understandable language. (c) (1) For group health care service plan contracts, if the department determines that a rate is unreasonable or not justified consistent with Article 6.2 (commencing with Section 1385.01), the plan shall notify the contractholder of this determination. This notification may be included in the notice required in subdivision (a). (2) The notification to the contractholder shall be developed by the department and shall include the following statements in 14-point type: (A) The Department of Managed Health Care has determined that the rate for this product is unreasonable or not justified after reviewing information submitted to it by the plan. (B) The contractholder has the option to obtain other coverage from this plan or another plan, or to keep this coverage. (C) Small business purchasers may want to contact Covered California at www.coveredca.com for help in understanding available options. (3) In developing the notification, the department shall take into consideration that this notice is required to be provided to a small group applicant pursuant to subdivision (g) of Section 1385.03. (4) The development of the notification required under this subdivision shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (5) The plan may include in the notification to the contractholder the internet website address at which the plan’s final justification for implementing an increase that has been determined to be unreasonable by the director may be found pursuant to Section 154.230 of Title 45 of the Code of Federal Regulations. (6) The notice shall also be provided to the solicitor for the contractholder, if any, so that the solicitor may assist the purchaser in finding other coverage. (Amended by Stats. 2019, Ch. 807, Sec. 1. (AB 731) Effective January 1, 2020.)
1374.22.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

A required written notice must be mailed to the group contract holder at least 60 days before renewal, and it must include the premium increase amount, benefit/design changes, and the reasons for those changes in specified formats.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.22. (a) The written notice described in subdivision (a) of Section 1374.21 shall be delivered by mail at the last known address at least 60 days prior to the renewal effective date to the group contract holder. (b) The written notice shall state in italics and in 12-point type the actual dollar amount and the specific percentage of the premium rate increase. Further, the notice shall describe in plain understandable English and highlighted in italics any changes in the plan design or change in benefits with reduction in benefits, waivers, exclusions, or conditions. (c) The written notice shall specify in a minimum of 10-point bold typeface the reason or reasons for premium rate changes, plan design, or plan benefit changes. (Amended by Stats. 2010, Ch. 661, Sec. 3. (SB 1163) Effective January 1, 2011.)
1374.23.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

If the plan does not guarantee premium rates, plan design, or benefits for more than 180 days, it must mail written notice to the group contract holder at least 30 days before the group contract renewal effective date.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.23. Notwithstanding subdivision (a) of Section 1374.22, if the plan does not guarantee either premium rates or plan design or benefits for any specified time period greater than 180 days, it shall deliver the written notice by mail to the group contract holder at least 30 days prior to the group contract renewal effective date. (Added by Stats. 1990, Ch. 949, Sec. 1.)
1374.24.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

Health care service plans required to give the notice, and their authorized representatives or agents, are generally protected from liability for statements made in the specified notice-related communications unless malice in fact is shown.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.24. There shall be no liability on the part of, and no cause of action of any nature shall arise against, any health care service plan required to provide the notice or its authorized representatives, or agents, for any statement made, unless shown to have been made with malice in fact, by any of them in (a) any written notice or in any other oral or written communication specifying the reasons for the notice, (b) any communication providing information pertaining to that notice, or (c) evidence submitted at any court proceeding or informal inquiry in which that notice is at issue. (Added by Stats. 1990, Ch. 949, Sec. 1.)
1374.25.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

Proof that a notice and its reason were mailed to the appropriate entity or individual at the most current policy or plan address counts as sufficient proof of the notice required by this chapter.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.25. Proof of mailing a notice and the reason therefor to the appropriate entity or individual at the most current policy or plan address shall be sufficient proof of the notice required by this chapter. (Added by Stats. 1990, Ch. 949, Sec. 1.)
1374.255.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

Health care service plan contracts covered by this section must not change the cost-sharing design during the plan year, unless state or federal law requires it.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.255. (a) This section shall apply to grandfathered health care service plan contracts and nongrandfathered health care service plan contracts in the individual or small group markets that are issued, amended, or renewed on or after January 1, 2017. (b) Notwithstanding paragraph (1) of subdivision (b) of Section 1374.20, a health care service plan contract shall not change the cost-sharing design during the plan year, except when required by state or federal law. (c) For purposes of this section, the following definitions shall apply: (1) “Cost sharing” includes any copayment, coinsurance, deductible, or any other form of cost sharing by the enrollee other than the premium or share of premium. (2) “Plan year” has the meaning set forth in Section 144.103 of Title 45 of the Code of Federal Regulations. For nongrandfathered health care service plan contracts in the individual market, “plan year” means the calendar year. (3) “Cost-sharing design” means the amount or proportion of cost sharing applied to a covered benefit. (Added by Stats. 2016, Ch. 192, Sec. 1. (SB 923) Effective January 1, 2017.)
1374.26.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

The director may adopt reasonable regulations, and changes to them, when needed to administer this article.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.26. The director may, as required by this article, or from time to time as conditions warrant, pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, adopt reasonable regulations, and amendments and additions thereto, as are necessary to administer this article. (Amended by Stats. 1999, Ch. 525, Sec. 112. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.27.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

The director may impose administrative penalties and suspend or revoke a health care service plan’s license after notice and hearing if the plan violated this article or related regulations.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.27. The director may levy administrative penalties and may suspend or revoke the license or licenses issued to any health care service plan, after notice and hearing, to have violated this article or a regulation adopted pursuant to the authority of this article. Notice of hearing shall be accomplished and a hearing conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all of the powers granted therein. The remedies available to the director pursuant to this article are not exclusive, and may be sought and employed in any combination with other remedies deemed advisable by the director to enforce the provisions of this article. (Amended by Stats. 1999, Ch. 525, Sec. 113. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.28.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

The director may suspend a health care service plan’s authority to transact business if, after notice and hearing, the plan is found to have violated this article or related regulations, or knowingly allowed someone else to do so.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.28. In addition to any other penalty provided by law or the availability of any administrative procedure, if a health care service plan, after notice and hearing, is found to have violated this article, or regulations adopted pursuant to this article, or knowingly permits any person to do so, the director may suspend the authority of the plan to transact business. (Amended by Stats. 1999, Ch. 525, Sec. 114. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.29.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. )
Verify source ↗

This section states the article’s purpose: to protect the public interest, stop unfair and unlawful health care business practices, and ensure consumers and employers get advance notice of health coverage cost changes.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.5. Health Care Service Plan Coverage Contract Changes [1374.20 - 1374.29] ( Heading of Article 5.5 amended by Stats. 2002, Ch. 336, Sec. 2. ) ## 1374.29. The purpose of this article is to promote the public interest, to prevent unfair and unlawful health care business practices, and to promote adequate consumer and employer advance notice of changes in the cost of health coverage in order to allow for comparative shopping and to reduce the cost of health coverage. (Added by renumbering Section 1374.20 by Stats. 2002, Ch. 336, Sec. 3. Effective January 1, 2003.)
1374.3.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans must comply with specified Family Code and Welfare and Institutions Code requirements.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.3. Notwithstanding any other provision of this chapter or of a health care service plan contract, every health care service plan shall comply with the requirements of Chapter 7 (commencing with Section 3750) of Part 1 of Division 9 of the Family Code and Section 14124.94 of the Welfare and Institutions Code. (Amended by Stats. 1996, Ch. 1062, Sec. 18. Effective January 1, 1997.)
1374.30.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

This section creates the Independent Medical Review System and gives enrollees a process to challenge denied, modified, or delayed health care services tied to medical necessity.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.30. (a) Commencing January 1, 2001, there is hereby established in the department the Independent Medical Review System. (b) For the purposes of this chapter, “disputed health care service” means any health care service eligible for coverage and payment under a health care service plan contract that has been denied, modified, or delayed by a decision of the plan, or by one of its contracting providers, in whole or in part due to a finding that the service is not medically necessary. A decision regarding a disputed health care service relates to the practice of medicine and is not a coverage decision. A disputed health care service does not include services provided by a specialized health care service plan, except to the extent that the service (1) involves the practice of medicine, or (2) is provided pursuant to a contract with a health care service plan that covers hospital, medical, or surgical benefits. If a plan, or one of its contracting providers, issues a decision denying, modifying, or delaying health care services, based in whole or in part on a finding that the proposed health care services are not a covered benefit under the contract that applies to the enrollee, the statement of decision shall clearly specify the provision in the contract that excludes that coverage. (c) For the purposes of this chapter, “coverage decision” means the approval or denial of health care services by a plan, or by one of its contracting entities, substantially based on a finding that the provision of a particular service is included or excluded as a covered benefit under the terms and conditions of the health care service plan contract. A “coverage decision” does not encompass a plan or contracting provider decision regarding a disputed health care service. (d) (1) All enrollee grievances involving a disputed health care service are eligible for review under the Independent Medical Review System if the requirements of this article are met. If the department finds that an enrollee grievance involving a disputed health care service does not meet the requirements of this article for review under the Independent Medical Review System, the enrollee request for review shall be treated as a request for the department to review the grievance pursuant to subdivision (b) of Section 1368. All other enrollee grievances, including grievances involving coverage decisions, remain eligible for review by the department pursuant to subdivision (b) of Section 1368. (2) In any case in which an enrollee or provider asserts that a decision to deny, modify, or delay health care services was based, in whole or in part, on consideration of medical necessity, the department shall have the final authority to determine whether the grievance is more properly resolved pursuant to an independent medical review as provided under this article or pursuant to subdivision (b) of Section 1368. (3) The department shall be the final arbiter when there is a question as to whether an enrollee grievance is a disputed health care service or a coverage decision. The department shall establish a process to complete an initial screening of an enrollee grievance. If there appears to be any medical necessity issue, the grievance shall be resolved pursuant to an independent medical review as provided under this article or pursuant to subdivision (b) of Section 1368. (e) Every health care service plan contract that is issued, amended, renewed, or delivered in this state on or after January 1, 2000, shall provide an enrollee with the opportunity to seek an independent medical review whenever health care services have been denied, modified, or delayed by the plan, or by one of its contracting providers, if the decision was based in whole or in part on a finding that the proposed health care services are not medically necessary. For purposes of this article, an enrollee may designate an agent to act on his or her behalf, as described in paragraph (2) of subdivision (b) of Section 1368. The provider may join with or otherwise assist the enrollee in seeking an independent medical review, and may advocate on behalf of the enrollee. (f) Medi-Cal beneficiaries enrolled in a health care service plan shall not be excluded from participation. Medicare beneficiaries enrolled in a health care service plan shall not be excluded unless expressly preempted by federal law. Reviews of cases for Medi-Cal enrollees shall be conducted in accordance with statutes and regulations for the Medi-Cal program. (g) The department may seek to integrate the quality of care and consumer protection provisions, including remedies, of the Independent Medical Review System with related dispute resolution procedures of other health care agency programs, including the Medicare and Medi-Cal programs, in a way that minimizes the potential for duplication, conflict, and added costs. Nothing in this subdivision shall be construed to limit any rights conferred upon enrollees under this chapter. (h) The independent medical review process authorized by this article is in addition to any other procedures or remedies that may be available. (i) Every health care service plan shall prominently display in every plan member handbook or relevant informational brochure, in every plan contract, on enrollee evidence of coverage forms, on copies of plan procedures for resolving grievances, on letters of denials issued by either the plan or its contracting organization, on the grievance forms required under Section 1368, and on all written responses to grievances, information concerning the right of an enrollee to request an independent medical review in cases where the enrollee believes that health care services have been improperly denied, modified, or delayed by the plan, or by one of its contracting providers. (j) An enrollee may apply to the department for an independent medical review when all of the following conditions are met: (1) (A) The enrollee’s provider has recommended a health care service as medically necessary, or (B) The enrollee has received urgent care or emergency services that a provider determined was medically necessary, or (C) The enrollee, in the absence of a provider recommendation under subparagraph (A) or the receipt of urgent care or emergency services by a provider under subparagraph (B), has been seen by an in-plan provider for the diagnosis or treatment of the medical condition for which the enrollee seeks independent review. The plan shall expedite access to an in-plan provider upon request of an enrollee. The in-plan provider need not recommend the disputed health care service as a condition for the enrollee to be eligible for an independent review. For purposes of this article, the enrollee’s provider may be an out-of-plan provider. However, the plan shall have no liability for payment of services provided by an out-of-plan provider, except as provided pursuant to subdivision (c) of Section 1374.34. (2) The disputed health care service has been denied, modified, or delayed by the plan, or by one of its contracting providers, based in whole or in part on a decision that the health care service is not medically necessary. (3) The enrollee has filed a grievance with the plan or its contracting provider pursuant to Section 1368, and the disputed decision is upheld or the grievance remains unresolved after 30 days. The enrollee shall not be required to participate in the plan’s grievance process for more than 30 days. In the case of a grievance that requires expedited review pursuant to Section 1368.01, the enrollee shall not be required to participate in the plan’s grievance process for more than three days. (k) An enrollee may apply to the department for an independent medical review of a decision to deny, modify, or delay health care services, based in whole or in part on a finding that the disputed health care services are not medically necessary, within six months of any of the qualifying periods or events under subdivision (j). The director may extend the application deadline beyond six months if the circumstances of a case warrant the extension. (l) The enrollee shall pay no application or processing fees of any kind. (m) As part of its notification to the enrollee regarding a disposition of the enrollee’s grievance that denies, modifies, or delays health care services, the plan shall provide the enrollee with a one- or two-page application form approved by the department, and an addressed envelope, which the enrollee may return to initiate an independent medical review. The plan shall include on the form any information required by the department to facilitate the completion of the independent medical review, such as the enrollee’s diagnosis or condition, the nature of the disputed health care service sought by the enrollee, a means to identify the enrollee’s case, and any other material information. The form shall also include the following: (1) Notice that a decision not to participate in the independent medical review process may cause the enrollee to forfeit any statutory right to pursue legal action against the plan regarding the disputed health care service. (2) A statement indicating the enrollee’s consent to obtain any necessary medical records from the plan, any of its contracting providers, and any out-of-plan provider the enrollee may have consulted on the matter, to be signed by the enrollee. (3) Notice of the enrollee’s right to provide information or documentation, either directly or through the enrollee’s provider, regarding any of the following: (A) A provider recommendation indicating that the disputed health care service is medically necessary for the enrollee’s medical condition. (B) Medical information or justification that a disputed health care service, on an urgent care or emergency basis, was medically necessary for the enrollee’s medical condition. (C) Reasonable information supporting the enrollee’s position that the disputed health care service is or was medically necessary for the enrollee’s medical condition, including all information provided to the enrollee by the plan or any of its contracting providers, still in the possession of the enrollee, concerning a plan or provider decision regarding disputed health care services, and a copy of any materials the enrollee submitted to the plan, still in the possession of the enrollee, in support of the grievance, as well as any additional material that the enrollee believes is relevant. (4) A section designed to collect information on the enrollee’s ethnicity, race, and primary language spoken that includes both of the following: (A) A statement of intent indicating that the information is used for statistics only, in order to ensure that all enrollees get the best care possible. (B) A statement indicating that providing this information is optional and will not affect the independent medical review process in any way. (n) Upon notice from the department that the health care service plan’s enrollee has applied for an independent medical review, the plan or its contracting providers shall provide to the independent medical review organization designated by the department a copy of all of the following documents within three business days of the plan’s receipt of the department’s notice of a request by an enrollee for an independent review: (1) (A) A copy of all of the enrollee’s medical records in the possession of the plan or its contracting providers relevant to each of the following: (i) The enrollee’s medical condition. (ii) The health care services being provided by the plan and its contracting providers for the condition. (iii) The disputed health care services requested by the enrollee for the condition. (B) Any newly developed or discovered relevant medical records in the possession of the plan or its contracting providers after the initial documents are provided to the independent medical review organization shall be forwarded immediately to the independent medical review organization. The plan shall concurrently provide a copy of medical records required by this subparagraph to the enrollee or the enrollee’s provider, if authorized by the enrollee, unless the offer of medical records is declined or otherwise prohibited by law. The confidentiality of all medical record information shall be maintained pursuant to applicable state and federal laws. (2) A copy of all information provided to the enrollee by the plan and any of its contracting providers concerning plan and provider decisions regarding the enrollee’s condition and care, and a copy of any materials the enrollee or the enrollee’s provider submitted to the plan and to the plan’s contracting providers in support of the enrollee’s request for disputed health care services. This documentation shall include the written response to the enrollee’s grievance, required by paragraph (4) of subdivision (a) of Section 1368. The confidentiality of any enrollee medical information shall be maintained pursuant to applicable state and federal laws. (3) A copy of any other relevant documents or information used by the plan or its contracting providers in determining whether disputed health care services should have been provided, and any statements by the plan and its contracting providers explaining the reasons for the decision to deny, modify, or delay disputed health care services on the basis of medical necessity. The plan shall concurrently provide a copy of documents required by this paragraph, except for any information found by the director to be legally privileged information, to the enrollee and the enrollee’s provider. The department and the independent medical review organization shall maintain the confidentiality of any information found by the director to be the proprietary information of the plan. (o) This section shall become operative on July 1, 2015. (Repealed (in Sec. 1) and added by Stats. 2012, Ch. 872, Sec. 2. (SB 1410) Effective January 1, 2013. Section operative July 1, 2015, by its own provisions.)
1374.31.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

This section sets deadlines and procedures for independent medical review requests, including fast delivery of materials in urgent cases, department review and notice duties, plan notice duties, and limits on what the review organization may consider.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.31. (a) If there is an imminent and serious threat to the health of the enrollee, as specified in subdivision (c) of Section 1374.33, all necessary information and documents shall be delivered to an independent medical review organization within 24 hours of approval of the request for review. In reviewing a request for review, the department may waive the requirement that the enrollee follow the plan’s grievance process in extraordinary and compelling cases, where the director finds that the enrollee has acted reasonably. (b) The department shall expeditiously review requests and immediately notify the enrollee in writing as to whether the request for an independent medical review has been approved, in whole or in part, and, if not approved, the reasons therefor. The plan shall promptly issue a notification to the enrollee, after submitting all of the required material to the independent medical review organization, that includes an annotated list of documents submitted and offer the enrollee the opportunity to request copies of those documents from the plan. The department shall promptly approve enrollee requests whenever the enrollee’s plan has agreed that the case is eligible for an independent medical review. The department shall not refer coverage decisions for independent review. To the extent an enrollee request for independent review is not approved by the department, the enrollee request shall be treated as an immediate request for the department to review the grievance pursuant to subdivision (b) of Section 1368. (c) An independent medical review organization, specified in Section 1374.32, shall conduct the review in accordance with Section 1374.33 and any regulations or orders of the director adopted pursuant thereto. The organization’s review shall be limited to an examination of the medical necessity of the disputed health care services and shall not include any consideration of coverage decisions or other contractual issues. (Added by Stats. 1999, Ch. 533, Sec. 1. Effective January 1, 2000.)
1374.32.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

The department must contract with independent medical review organizations, and those organizations must stay independent from health care service plans and avoid listed conflicts of interest.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.32. (a) The department shall contract with one or more independent medical review organizations in the state to conduct reviews for purposes of this article. The independent medical review organizations shall be independent of any health care service plan doing business in this state. The director may establish additional requirements, including conflict-of-interest standards, consistent with the purposes of this article, that an organization shall be required to meet in order to qualify for participation in the Independent Medical Review System and to assist the department in carrying out its responsibilities. (b) The independent medical review organizations and the medical professionals retained to conduct reviews shall be deemed to be medical consultants for purposes of Section 43.98 of the Civil Code. (c) The independent medical review organization, any experts it designates to conduct a review, or any officer, director, or employee of the independent medical review organization shall not have any material professional, familial, or financial affiliation, as determined by the director, with any of the following: (1) The plan. (2) Any officer, director, or employee of the plan. (3) A physician, the physician’s medical group, or the independent practice association involved in the health care service in dispute. (4) The facility or institution at which either the proposed health care service, or the alternative service, if any, recommended by the plan, would be provided. (5) The development or manufacture of the principal drug, device, procedure, or other therapy proposed by the enrollee whose treatment is under review, or the alternative therapy, if any, recommended by the plan. (6) The enrollee or the enrollee’s immediate family. (d) In order to contract with the department for purposes of this article, an independent medical review organization shall meet all of the following requirements: (1) The organization shall not be an affiliate or a subsidiary of, nor in any way be owned or controlled by, a health plan or a trade association of health plans. A board member, director, officer, or employee of the independent medical review organization shall not serve as a board member, director, or employee of a health care service plan. A board member, director, or officer of a health plan or a trade association of health plans shall not serve as a board member, director, officer, or employee of an independent medical review organization. (2) The organization shall submit to the department the following information upon initial application to contract for purposes of this article and, except as otherwise provided, annually thereafter upon any change to any of the following information: (A) The names of all stockholders and owners of more than 5 percent of any stock or options, if a publicly held organization. (B) The names of all holders of bonds or notes in excess of one hundred thousand dollars ($100,000), if any. (C) The names of all corporations and organizations that the independent medical review organization controls or is affiliated with, and the nature and extent of any ownership or control, including the affiliated organization’s type of business. (D) The names and biographical sketches of all directors, officers, and executives of the independent medical review organization, as well as a statement regarding any past or present relationships the directors, officers, and executives may have with any health care service plan, disability insurer, managed care organization, provider group, or board or committee of a plan, managed care organization, or provider group. (E) (i) The percentage of revenue the independent medical review organization receives from expert reviews, including, but not limited to, external medical reviews, quality assurance reviews, and utilization reviews. (ii) The names of any health care service plan or provider group for which the independent medical review organization provides review services, including, but not limited to, utilization review, quality assurance review, and external medical review. Any change in this information shall be reported to the department within five business days of the change. (F) A description of the review process including, but not limited to, the method of selecting expert reviewers and matching the expert reviewers to specific cases. (G) A description of the system the independent medical review organization uses to identify and recruit medical professionals to review treatment and treatment recommendation decisions, the number of medical professionals credentialed, and the types of cases and areas of expertise that the medical professionals are credentialed to review. (H) A description of how the independent medical review organization ensures compliance with the conflict-of-interest provisions of this section. (3) The organization shall demonstrate that it has a quality assurance mechanism in place that does the following: (A) Ensures that the medical professionals retained are appropriately credentialed and privileged. (B) Ensures that the reviews provided by the medical professionals are timely, clear, and credible, and that reviews are monitored for quality on an ongoing basis. (C) Ensures that the method of selecting medical professionals for individual cases achieves a fair and impartial panel of medical professionals who are qualified to render recommendations regarding the clinical conditions and the medical necessity of treatments or therapies in question. (D) Ensures the confidentiality of medical records and the review materials, consistent with the requirements of this section and applicable state and federal law. (E) Ensures the independence of the medical professionals retained to perform the reviews through conflict-of-interest policies and prohibitions, and ensures adequate screening for conflicts of interest, pursuant to paragraph (5). (4) Medical professionals selected by independent medical review organizations to review medical treatment decisions shall be physicians or other appropriate providers who meet the following minimum requirements: (A) The medical professional shall be a clinician expert in the treatment of the enrollee’s medical condition and knowledgeable about the proposed treatment through recent or current actual clinical experience treating patients with the same or a similar medical condition as the enrollee. (B) Notwithstanding any other provision of law, the medical professional shall hold a nonrestricted license in any state of the United States, and for physicians, a current certification by a recognized American medical specialty board in the area or areas appropriate to the condition or treatment under review. The independent medical review organization shall give preference to the use of a physician licensed in California as the reviewer, except when training and experience with the issue under review reasonably requires the use of an out-of-state reviewer. (C) The medical professional shall have no history of disciplinary action or sanctions, including, but not limited to, loss of staff privileges or participation restrictions, taken or pending by any hospital, government, or regulatory body. (5) Neither the expert reviewer, nor the independent medical review organization, shall have any material professional, material familial, or material financial affiliation with any of the following: (A) The plan or a provider group of the plan, except that an academic medical center under contract to the plan to provide services to enrollees may qualify as an independent medical review organization provided it will not provide the service and provided the center is not the developer or manufacturer of the proposed treatment. (B) Any officer, director, or management employee of the plan. (C) The physician, the physician’s medical group, or the independent practice association (IPA) proposing the treatment. (D) The institution at which the treatment would be provided. (E) The development or manufacture of the treatment proposed for the enrollee whose condition is under review. (F) The enrollee or the enrollee’s immediate family. (6) For purposes of this section, the following terms shall have the following meanings: (A) “Material familial affiliation” means any relationship as a spouse, child, parent, sibling, spouse’s parent, or child’s spouse. (B) “Material professional affiliation” means any physician-patient relationship, any partnership or employment relationship, a shareholder or similar ownership interest in a professional corporation, or any independent contractor arrangement that constitutes a material financial affiliation with any expert or any officer or director of the independent medical review organization. “Material professional affiliation” does not include affiliations that are limited to staff privileges at a health facility. (C) “Material financial affiliation” means any financial interest of more than 5 percent of total annual revenue or total annual income of an independent medical review organization or individual to which this subdivision applies. “Material financial affiliation” does not include payment by the plan to the independent medical review organization for the services required by this section, nor does “material financial affiliation” include an expert’s participation as a contracting plan provider where the expert is affiliated with an academic medical center or a National Cancer Institute-designated clinical cancer research center. (e) The department shall provide, upon the request of any interested person, a copy of all nonproprietary information, as determined by the director, filed with it by an independent medical review organization seeking to contract under this article. The department may charge a nominal fee to the interested person for photocopying the requested information. (f) This section shall become operative on July 1, 2015. (Repealed (in Sec. 3) and added by Stats. 2012, Ch. 872, Sec. 4. (SB 1410) Effective January 1, 2013. Section operative July 1, 2015, by its own provisions.)
1374.33.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

This section requires independent medical review of disputed health care services, sets deadlines for the review and written decision, and requires confidentiality and public reporting.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.33. (a) Upon receipt of information and documents related to a case, the medical professional reviewer or reviewers selected to conduct the review by the independent medical review organization shall promptly review all pertinent medical records of the enrollee, provider reports, as well as any other information submitted to the organization as authorized by the department or requested from any of the parties to the dispute by the reviewers. If reviewers request information from any of the parties, a copy of the request and the response shall be provided to all of the parties. The reviewer or reviewers shall also review relevant information related to the criteria set forth in subdivision (b). (b) Following its review, the reviewer or reviewers shall determine whether the disputed health care service was medically necessary based on the specific medical needs of the enrollee and any of the following: (1) Peer-reviewed scientific and medical evidence regarding the effectiveness of the disputed service. (2) Nationally recognized professional standards. (3) Expert opinion. (4) Generally accepted standards of medical practice. (5) Treatments that are likely to provide a benefit to a patient for conditions for which other treatments are not clinically efficacious. (c) The organization shall complete its review and make its determination in writing, and in layperson’s terms to the maximum extent practicable, within 30 days of the receipt of the application for review and supporting documentation, or within less time as prescribed by the director. If the disputed health care service has not been provided and the enrollee’s provider or the department certifies in writing that an imminent and serious threat to the health of the enrollee may exist, including, but not limited to, serious pain, the potential loss of life, limb, or major bodily function, or the immediate and serious deterioration of the health of the enrollee, the analyses and determinations of the reviewers shall be expedited and rendered within three days of the receipt of the information. Subject to the approval of the department, the deadlines for analyses and determinations involving both regular and expedited reviews may be extended by the director for up to three days in extraordinary circumstances or for good cause. (d) The medical professionals’ analyses and determinations shall state whether the disputed health care service is medically necessary. Each analysis shall cite the enrollee’s medical condition, the relevant documents in the record, and the relevant findings associated with the provisions of subdivision (b) to support the determination. If more than one medical professional reviews the case, the recommendation of the majority shall prevail. If the medical professionals reviewing the case are evenly split as to whether the disputed health care service should be provided, the decision shall be in favor of providing the service. (e) The independent medical review organization shall provide the director, the plan, the enrollee, and the enrollee’s provider with the analyses and determinations of the medical professionals reviewing the case, and a description of the qualifications of the medical professionals. The independent medical review organization shall keep the names of the reviewers confidential in all communications with entities or individuals outside the independent medical review organization, except in cases where the reviewer is called to testify and in response to court orders. If more than one medical professional reviewed the case and the result was differing determinations, the independent medical review organization shall provide each of the separate reviewer’s analyses and determinations. (f) The director shall immediately adopt the determination of the independent medical review organization, and shall promptly issue a written decision to the parties that shall be binding on the plan. (g) After removing the names of the parties, including, but not limited to, the enrollee, all medical providers, the plan, and any of the plan’s employees or contractors, director decisions adopting a determination of an independent medical review organization shall be made available by the department to the public in a searchable database on the department’s Internet Web site, after considering applicable laws governing disclosure of public records, confidentiality, and personal privacy. (h) (1) Information regarding each director decision provided by the database referenced in subdivision (g) shall include all of the following: (A) Enrollee demographic profile information, including age and gender. (B) The enrollee diagnosis and disputed health care service. (C) Whether the independent medical review was for medically necessary services pursuant to this article or for experimental or investigational therapies pursuant to Section 1370.4. (D) Whether the independent medical review was standard or expedited. (E) Length of time from the receipt by the independent medical review organization of the application for review and supporting documentation to the rendering of a determination by the independent medical review organization in writing. (F) Length of time from receipt by the department of the independent medical review application to the issuance of the director’s determination in writing to the parties that is binding on the health care service plan. (G) Credentials and qualifications of the reviewer or reviewers. (H) The nature of the statutory criteria set forth in subdivision (b) that the reviewer or reviewers used to make the case decision. (I) The final result of the determination. (J) The year the determination was made. (K) A detailed case summary that includes the specific standards, criteria, and medical and scientific evidence, if any, that led to the case decision. (2) The database referenced in subdivision (g) shall be accompanied by all of the following: (A) The annual rate of independent medical review among the total enrolled population. (B) The annual rate of independent medical review cases by health care service plan. (C) The number, type, and resolution of independent medical review cases by health care service plan. (D) The number, type, and resolution of independent medical review cases by ethnicity, race, and primary language spoken. (i) This section shall become operative on July 1, 2015. (Repealed (in Sec. 5) and added by Stats. 2012, Ch. 872, Sec. 6. (SB 1410) Effective January 1, 2013. Section operative July 1, 2015, by its own provisions.)
1374.34.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

A health care plan must promptly carry out the director’s independent review decision, reimburse or authorize services within five working days in specified cases, and must not delay the review process.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.34. (a) Upon receiving the decision adopted by the director pursuant to Section 1374.33 that a disputed health care service is medically necessary, the plan shall promptly implement the decision. In the case of reimbursement for services already rendered, the plan shall reimburse the provider or enrollee, whichever applies, within five working days. In the case of services not yet rendered, the plan shall authorize the services within five working days of receipt of the written decision from the director, or sooner if appropriate for the nature of the enrollee’s medical condition, and shall inform the enrollee and provider of the authorization in accordance with the requirements of paragraph (3) of subdivision (h) of Section 1367.01. (b) A plan shall not engage in any conduct that has the effect of prolonging the independent review process. The engaging in that conduct or the failure of the plan to promptly implement the decision is a violation of this chapter and, in addition to any other fines, penalties, and other remedies available to the director under this chapter, the plan shall be subject to an administrative penalty of not less than ten thousand dollars ($10,000) for each day that the decision is not implemented. The administrative penalties shall be paid to the Managed Care Administrative Fines and Penalties Fund and shall be used for the purposes specified in Section 1341.45. (c) The director shall require the plan to promptly reimburse the enrollee for any reasonable costs associated with those services when the director finds that the disputed health care services were a covered benefit under the terms and conditions of the health care service plan contract, and the services are found by the independent medical review organization to have been medically necessary pursuant to Section 1374.33, and either the enrollee’s decision to secure the services outside of the plan provider network was reasonable under the emergency or urgent medical circumstances, or the health care service plan contract does not require or provide prior authorization before the health care services are provided to the enrollee. (d) In addition to requiring plan compliance regarding subdivisions (a), (b), and (c) the director shall review individual cases submitted for independent medical review to determine whether any enforcement actions, including penalties, may be appropriate. In particular, where substantial harm, as defined in Section 3428 of the Civil Code, to an enrollee has already occurred because of the decision of a plan, or one of its contracting providers, to delay, deny, or modify covered health care services that an independent medical review determines to be medically necessary pursuant to Section 1374.33, the director shall impose penalties. (e) Pursuant to Section 1368.04, the director shall perform an annual audit of independent medical review cases for the dual purposes of education and the opportunity to determine if any investigative or enforcement actions should be undertaken by the department, particularly if a plan repeatedly fails to act promptly and reasonably to resolve grievances associated with a delay, denial, or modification of medically necessary health care services when the obligation of the plan to provide those health care services to enrollees or subscribers is reasonably clear. (f) A plan’s provision of prescription drugs to a Medi-Cal beneficiary pursuant to paragraph (5) of subdivision (b) of Section 14105.33 of the Welfare and Institutions Code and in accordance with the State Department of Health Care Services coverage policies shall not be a ground for an enforcement action. Nothing in this article is intended to limit a plan’s responsibility to provide medically necessary health care services pursuant to this chapter. (g) Commencing January 1, 2028, and every five years thereafter, the penalty amount specified in this section shall be adjusted based on the average rate of change in premium rates for the individual and small group markets, and weighted by enrollment, since the previous adjustment. (Amended by Stats. 2022, Ch. 985, Sec. 3. (SB 858) Effective January 1, 2023.)
1374.35.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

The director must set a reasonable per-case reimbursement schedule for independent medical review costs, and health care service plans must bear those costs through a director-established assessment fee system.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.35. (a) After considering the results of a competitive bidding process and any other relevant information on program costs, the director shall establish a reasonable, per-case reimbursement schedule to pay the costs of independent medical review organization reviews, which may vary depending on the type of medical condition under review and on other relevant factors. (b) The costs of the independent medical review system for enrollees shall be borne by health care service plans pursuant to an assessment fee system established by the director. In determining the amount to be assessed, the director shall consider all appropriations available for the support of this chapter, and existing fees paid to the department. The director may adjust fees upward or downward, on a schedule set by the department, to address shortages or overpayments, and to reflect utilization of the independent review process. (Added by Stats. 1999, Ch. 533, Sec. 1. Effective January 1, 2000.)
1374.36.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. )
Verify source ↗

The director must submit a report to the Legislature by March 1, 2002, and the report must describe certain implementation costs and staffing impacts. The department may charge for extra copies requested. The section becomes operative on January 1, 2001, only if Assembly Bill 55 of the 1999–2000 Regular Session is enacted.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.55. Appeals Seeking Independent Medical Reviews [1374.30 - 1374.36] ( Article 5.55 added by Stats. 1999, Ch. 533, Sec. 1. ) ## 1374.36. (a) The director shall submit to the Legislature by March 1, 2002, a report on the initial implementation of this article. The report shall include a description of assessments imposed on plans to implement this article, increased staffing and other resources attributable to these new responsibilities, and any redirection of existing staff and resources to carry out these responsibilities. A single copy of the report shall be made available at no cost to members of the public upon request. The department may recover the cost of additional copies that are requested. (b) This section shall become operative on January 1, 2001, and then only if Assembly Bill 55 of the 1999–2000 Regular Session is enacted. (Added by Stats. 1999, Ch. 542, Sec. 11. Effective January 1, 2000. Section operative January 1, 2001, by its own provisions.)
1374.5.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health care service plan covered by this section must not include a lifetime waiver for mental health services coverage in nongroup contracts for any applicant, if the plan is issued, renewed, or amended on or after January 1, 1988.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.5. A health care service plan, which is issued, renewed, or amended on or after January 1, 1988, which includes mental health services coverage in nongroup contracts may not include a lifetime waiver for that coverage with respect to any applicant. The lifetime waiver of coverage provision shall be deemed unenforceable. (Added by Stats. 1987, Ch. 1163, Sec. 1.)
1374.51.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

A health plan may not use whether a member’s psychiatric inpatient admission was voluntary or involuntary to decide if a claim can be reimbursed.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.51. No plan may utilize any information regarding whether an enrollee’s psychiatric inpatient admission was made on a voluntary or involuntary basis for the purpose of determining eligibility for claim reimbursement. (Added by Stats. 2001, Ch. 506, Sec. 3. Effective January 1, 2002.)
1374.55.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Large-group plans must cover infertility and fertility services, small-group plans must offer coverage, and plans may not impose certain fertility-related exclusions or limits.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.55. (a) (1) A large group health care service plan contract, except a specialized health care service plan contract, that is issued, amended, or renewed on or after January 1, 2026, shall provide coverage for the diagnosis and treatment of infertility and fertility services, including a maximum of three completed oocyte retrievals with unlimited embryo transfers in accordance with the guidelines of the American Society for Reproductive Medicine (ASRM), using single embryo transfer when recommended and medically appropriate. (2) A small group health care service plan contract, except a specialized health care service plan contract, that is issued, amended, or renewed on or after January 1, 2026, shall offer coverage for the diagnosis and treatment of infertility and fertility services. This paragraph shall not be construed to require a small group health care service plan contract to provide coverage for infertility services. (3) A health care service plan shall include notice of the coverage specified in this section in the plan’s evidence of coverage. (b) For purposes of this section, “infertility” means a condition or status characterized by any of the following: (1) A licensed physician’s findings, based on a patient’s medical, sexual, and reproductive history, age, physical findings, diagnostic testing, or any combination of those factors. This definition shall not prevent testing and diagnosis of infertility before the 12-month or 6-month period to establish infertility in paragraph (3). (2) A person’s inability to reproduce either as an individual or with their partner without medical intervention. (3) The failure to establish a pregnancy or to carry a pregnancy to live birth after regular, unprotected sexual intercourse. For purposes of this section, “regular, unprotected sexual intercourse” means no more than 12 months of unprotected sexual intercourse for a person under 35 years of age or no more than 6 months of unprotected sexual intercourse for a person 35 years of age or older. Pregnancy resulting in miscarriage does not restart the 12-month or 6-month time period to qualify as having infertility. (c) The contract may not include any of the following: (1) Any exclusion, limitation, or other restriction on coverage of fertility medications that are different from those imposed on other prescription medications. (2) Any exclusion or denial of coverage of any fertility services based on a covered individual’s participation in fertility services provided by or to a third party. For purposes of this section, “third party” includes an oocyte, sperm, or embryo donor, gestational carrier, or surrogate that enables an intended recipient to become a parent. (3) Any deductible, copayment, coinsurance, benefit maximum, waiting period, or any other limitation on coverage for the diagnosis and treatment of infertility, except as provided in subdivision (a) that are different from those imposed upon benefits for services not related to infertility. (d) This section does not in any way deny or restrict any existing right or benefit to coverage and treatment of infertility or fertility services under an existing law, plan, or policy. (e) Consistent with Section 1365.5, coverage for the treatment of infertility and fertility services shall be provided without discrimination on the basis of age, ancestry, color, disability, domestic partner status, gender, gender expression, gender identity, genetic information, marital status, national origin, race, religion, sex, or sexual orientation. This subdivision shall not be construed to interfere with the clinical judgment of a physician and surgeon. (f) This section does not apply to Medi-Cal managed care health care service plan contracts or any entity that enters into a contract with the State Department of Health Care Services for the delivery of health care services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), Chapter 8.75 (commencing with Section 14591), or Chapter 8.9 (commencing with Section 14700) of Part 3 of Division 9 of the Welfare and Institutions Code. (g) This section shall not apply to a religious employer, as defined in Section 1367.25. (h) This section shall not apply to a health care benefit plan or contract entered into with the Board of Administration of the Public Employees’ Retirement System pursuant to the Public Employees’ Medical and Hospital Care Act (Part 5 (commencing with Section 22750) of Division 5 of Title 2 of the Government Code) until July 1, 2027. (i) (1) Until January 1, 2027, the director may issue guidance regarding compliance with this section, and that guidance shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (2) The department shall consult with the Department of Insurance and stakeholders in issuing the guidance specified in paragraph (1). (Amended by Stats. 2025, Ch. 21, Sec. 8. (AB 116) Effective June 30, 2025.)
1374.551.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

If a covered treatment may cause infertility, standard fertility preservation services count as a basic health care service and are not treated as infertility coverage under Section 1374.55.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.551. (a) When a covered treatment may directly or indirectly cause iatrogenic infertility, standard fertility preservation services are a basic health care service, as defined in subdivision (b) of Section 1345, and are not within the scope of coverage for the treatment of infertility for the purposes of Section 1374.55. (b) For purposes of this section, the following definitions apply: (1) “Iatrogenic infertility” means infertility caused directly or indirectly by surgery, chemotherapy, radiation, or other medical treatment. (2) “May directly or indirectly cause” means medical treatment with a possible side effect of infertility, as established by the American Society of Clinical Oncology or the American Society for Reproductive Medicine. (3) “Standard fertility preservation services” means procedures consistent with the established medical practices and professional guidelines published by the American Society of Clinical Oncology or the American Society for Reproductive Medicine. (c) This section does not apply to Medi-Cal managed care health care service plan contracts or any entity that enters into a contract with the State Department of Health Care Services for the delivery of health care services pursuant to Chapter 7 (commencing with Section 14000), Chapter 8 (commencing with Section 14200), Chapter 8.75 (commencing with Section 14591), or Chapter 8.9 (commencing with Section 14700) of Part 3 of Division 9 of the Welfare and Institutions Code. (Added by Stats. 2019, Ch. 853, Sec. 1. (SB 600) Effective January 1, 2020.)
1374.56.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Most health care service plan contracts must cover testing and treatment for PKU, with some limits and exceptions.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.56. (a) On and after July 1, 2000, every health care service plan contract, except a specialized health care service plan contract, issued, amended, delivered, or renewed in this state that provides coverage for hospital, medical, or surgical expenses shall provide coverage for the testing and treatment of phenylketonuria (PKU) under the terms and conditions of the plan contract. (b) Coverage for treatment of phenylketonuria (PKU) shall include those formulas and special food products that are part of a diet prescribed by a licensed physician and managed by a health care professional in consultation with a physician who specializes in the treatment of metabolic disease and who participates in or is authorized by the plan, provided that the diet is deemed medically necessary to avert the development of serious physical or mental disabilities or to promote normal development or function as a consequence of phenylketonuria (PKU). (c) Coverage pursuant to this section is not required except to the extent that the cost of the necessary formulas and special food products exceeds the cost of a normal diet. (d) For purposes of this section, the following definitions shall apply: (1) “Formula” means an enteral product or enteral products for use at home that are prescribed by a physician or nurse practitioner, or ordered by a registered dietician upon referral by a health care provider authorized to prescribe dietary treatments, as medically necessary for the treatment of phenylketonuria (PKU). (2) “Special food product” means a food product that is both of the following: (A) Prescribed by a physician or nurse practitioner for the treatment of phenylketonuria (PKU) and is consistent with the recommendations and best practices of qualified health professionals with expertise germane to, and experience in the treatment and care of, phenylketonuria (PKU). It does not include a food that is naturally low in protein, but may include a food product that is specially formulated to have less than one gram of protein per serving. (B) Used in place of normal food products, such as grocery store foods, used by the general population. (Added by Stats. 1999, Ch. 541, Sec. 1. Effective January 1, 2000.)
1374.57.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Health care service plans may not deny a dependent child eligibility or benefits just because the child does not live with the employee or subscriber, and they must enroll certain dependent children when a court order for medical support exists.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.57. (a) No group health care service plan that provides hospital, medical, or surgical expense benefits for employees or subscribers and their dependents shall exclude a dependent child from eligibility or benefits solely because the dependent child does not reside with the employee or subscriber. (b) A health care service plan that provides hospital, medical, or surgical expense benefits for employees or subscribers and their dependents shall enroll, upon application by the employer or group administrator, a dependent child of the noncustodial parent when the parent is the employee or subscriber, at any time the noncustodial or custodial parent makes an application for enrollment to the employer or group administrator when a court order for medical support exists. Except as provided in Section 1374.3, the application to the employer or group administrator shall be made within 90 days of the issuance of the court order. In the case of children who are eligible for medicaid, the State Department of Health Services or the district attorney in whose jurisdiction the child resides may make that application. (c) This section shall not be construed to require that a health care service plan enroll a dependent who resides outside the plan’s geographic service area, except as provided in Section 1374.3. (d) Notwithstanding any other provision of this section, all health care service plans shall comply with the standards set forth in Section 1374.3. (Amended by Stats. 1994, Ch. 147, Sec. 9. Effective July 11, 1994.)
1374.58.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. )
Verify source ↗

Certain health plans must give registered domestic partners the same coverage as spouses and cannot discriminate in coverage.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5. Standards [1367 - 1374.198] ( Article 5 added by Stats. 1975, Ch. 941. ) ## 1374.58. (a) A group health care service plan that provides hospital, medical, or surgical expense benefits shall provide equal coverage to employers or guaranteed associations, as defined in Section 1357, for the registered domestic partner of an employee or subscriber to the same extent, and subject to the same terms and conditions, as provided to a spouse of the employee or subscriber, and shall inform employers and guaranteed associations of this coverage. A plan shall not offer or provide coverage for a registered domestic partner that is not equal to the coverage provided to the spouse of an employee or subscriber, and shall not discriminate in coverage between spouses or domestic partners of a different sex and spouses or domestic partners of the same sex. The prohibitions and requirements imposed by this section are in addition to any other prohibitions and requirements imposed by law. (b) If an employer or guaranteed association has purchased coverage for spouses and registered domestic partners pursuant to subdivision (a), a health care service plan that provides hospital, medical, or surgical expense benefits for employees or subscribers and their spouses shall enroll, upon application by the employer or group administrator, a registered domestic partner of an employee or subscriber in accordance with the terms and conditions of the group contract that apply generally to all spouses under the plan, including coordination of benefits. (c) For purposes of this section, the term “domestic partner” shall have the same meaning as that term is used in Section 297 of the Family Code. (d) (1) A health care service plan may require that the employee or subscriber verify the status of the domestic partnership by providing to the plan a copy of a valid Declaration of Domestic Partnership filed with the Secretary of State pursuant to Section 298 of the Family Code or an equivalent document issued by a local agency of this state, another state, or a local agency of another state under which the partnership was created. The plan may also require that the employee or subscriber notify the plan upon the termination of the domestic partnership. (2) Notwithstanding paragraph (1), a health care service plan may require the information described in that paragraph only if it also requests from the employee or subscriber whose spouse is provided coverage, verification of marital status and notification of dissolution of the marriage. (e) Nothing in this section shall be construed to expand the requirements of Section 4980B of Title 26 of the United States Code, Section 1161, and following, of Title 29 of the United States Code, or Section 300bb-1, and following, of Title 42 of the United States Code, as added by the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), and as those provisions may be later amended. (f) A plan subject to this section that is issued, amended, delivered, or renewed in this state on or after January 2, 2005, shall be deemed to provide coverage for registered domestic partners that is equal to the coverage provided to a spouse of an employee or subscriber. (Amended by Stats. 2011, Ch. 722, Sec. 2. (SB 757) Effective January 1, 2012.)
1374.60.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

This section defines “point-of-service plan contract,” “out-of-network coverage or services,” and “in-network coverage or services.”

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.60. For purpose of this article, the following definitions shall apply: (a) A “point-of-service plan contract” means any plan contract offered by a health care service plan whereby the health care service plan assumes financial risk for both “in-network coverage or services” and “out-of-network coverage or services.” The term “point-of-service plan contract” shall not apply to a plan contract where the out-of-network coverage or service is underwritten by an insurance company admitted in this state or is provided by a self-insured employer and is offered in conjunction with in-network coverage or services provided pursuant to a health care service plan contract. (b) “Out-of-network coverage or services” means health care services received either from (1) providers who are not employed by, under contract with, or otherwise affiliated with the health care service plan, except for health care services received from these providers in an emergency or when referred or authorized by the plan under procedures specifically reviewed and approved by the director or (2) providers who are employed by, under contract with, or otherwise affiliated with a health care service plan in instances when the “in-network coverage or services” requirements for care set forth in the health care service plan’s approved evidence of coverage are not met. (c) “In-network coverage or services” means all of the following: (1) All the health care services provided or offered under the requirements of this chapter that are received from a provider employed by, under contract with, or otherwise affiliated with the health care service plan and in accordance with the procedures set forth in the plan’s approved evidence of coverage. (2) Health care services received from a provider not affiliated with the health care service plan when the plan arranges for the enrollee to receive services from that provider. (3) Out-of-area emergency care provided in accordance with the procedures set by the health care service plan to be followed in securing these services. (Amended by Stats. 1999, Ch. 525, Sec. 115. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.62.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

Certain point-of-service plan contracts are covered by this article when out-of-network risk is transferred through reinsurance.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.62. A point-of-service plan contract, in which any risk for out-of-network coverage or services is transferred from a health care service plan through reinsurance, shall be subject to this article. (Added by Stats. 1993, Ch. 987, Sec. 3. Effective January 1, 1994.)
1374.64.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

A plan may offer a point-of-service contract only if it meets licensing, time-in-operation, financial, and reporting conditions; the director may require monthly reports or order the plan to stop offering the contract.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.64. (a) Only a plan that has been licensed under this chapter and in operation in this state for a period of five years or more, or a plan licensed under this chapter and operating in this state for a period of five or more years under a combination of (1) licensure under this chapter and (2) pursuant to a certificate of authority issued by the Department of Insurance may offer a point-of-service contract. A specialized health care service plan shall not offer a point-of-service plan contract unless this plan was formerly registered under the Knox-Mills Health Plan Act (Article 2.5 (commencing with Section 12530) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code), as repealed by Chapter 941 of the Statutes of 1975, and offered point-of-service plan contracts previously approved by the director on July 1, 1976, and on September 1, 1993. (b) A plan may offer a point-of-service plan contract only if the director has not found the plan to be in violation of any requirements, including administrative capacity, under this chapter or the rules adopted thereunder and the plan meets, at a minimum, the following financial criteria: (1) The minimum financial criteria for a plan that maintains a minimum net worth of at least five million dollars ($5,000,000) shall be: (A) (i) Initial tangible net equity so that the plan is not required to file monthly reports with the director as required by Section 1300.84.3(d)(1)(G) of Title 28 of the California Code of Regulations and then have and maintain adjusted tangible net equity to be determined pursuant to either of the following: (I) In the case of a plan that is required to have and maintain a tangible net equity as required by Section 1300.76(a)(1) or (2) of Title 28 of the California Code of Regulations, multiply 130 percent times the sum resulting from the addition of the plan’s tangible net equity required by Section 1300.76(a)(1) or (2) of Title 28 of the California Code of Regulations and the number that equals 10 percent of the plan’s annualized health care expenditures for out-of-network services for point-of-service enrollees. (II) In the case of a plan that is required to have and maintain a tangible net equity as required by Section 1300.76(a)(3) of Title 28 of the California Code of Regulations, recalculate the plan’s tangible net equity under Section 1300.76(a)(3) of Title 28 of the California Code of Regulations excluding the plan’s annualized health care expenditures for out-of-network services for point-of-service enrollees, add together the number resulting from this recalculation and the number that equals 10 percent of the plan’s annualized health care expenditures for out-of-network services for point-of-service enrollees, and multiply this sum times 130 percent, provided that the product of this multiplication must exceed 130 percent of the tangible net equity required by Section 1300.76(a)(3) of Title 28 of the California Code of Regulations so that the plan is not required to file monthly reports to the director as required by Section 1300.84.3(d)(1)(G) of Title 28 of the California Code of Regulations. (ii) The failure of a plan offering a point-of-service plan contract under this article to maintain adjusted tangible net equity as determined by this subdivision shall require the filing of monthly reports with the director pursuant to Section 1300.84.3(d) of Title 28 of the California Code of Regulations, in addition to any other requirements that may be imposed by the director on a plan under this article and chapter. (iii) The calculation of tangible net equity under any report to be filed by a plan offering a point-of-service plan contract under this article and required of a plan pursuant to Section 1384, and the regulations adopted thereunder, shall be on the basis of adjusted tangible net equity as determined under this subdivision. (B) Demonstrates adequate working capital, including (i) a current ratio (current assets divided by current liabilities) of at least 1:1, after excluding obligations of officers, directors, owners, or affiliates, or (ii) evidence that the plan is now meeting its obligations on a timely basis and has been doing so for at least the preceding two years. Short-term obligations of affiliates for goods or services arising in the normal course of business that are payable on the same terms as equivalent transactions with nonaffiliates shall not be excluded. For purposes of this subdivision, an obligation is considered short term if the repayment schedule is 30 days or fewer. (C) Demonstrates a trend of positive earnings over the previous eight fiscal quarters. (2) The minimum financial criteria for a plan that maintains a minimum net worth of at least one million five hundred thousand dollars ($1,500,000) but less than five million dollars ($5,000,000) shall be: (A) (i) Initial tangible net equity so that the plan is not required to file monthly reports with the director as required by Section 1300.84.3(d)(1)(G) of Title 28 of the California Code of Regulations and then have and maintain adjusted tangible net equity to be determined pursuant to either of the following: (I) In the case of a plan that is required to have and maintain a tangible net equity as required by Section 1300.76(a)(1) or (2) of Title 28 of the California Code of Regulations, multiply 130 percent times the sum resulting from the addition of the plan’s tangible net equity required by Section 1300.76(a)(1) or (2) of Title 28 of the California Code of Regulations and the number that equals 10 percent of the plan’s annualized health care expenditures for out-of-network services for point-of-service enrollees. (II) In the case of a plan that is required to have and maintain a tangible net equity as required by Section 1300.76(a)(3) of Title 28 of the California Code of Regulations, recalculate the plan’s tangible net equity under Section 1300.76(a)(3) excluding the plan’s annualized health care expenditures for out-of-network services for point-of-service enrollees, add together the number resulting from this recalculation and the number that equals 10 percent of the plan’s annualized health care expenditures for out-of-network services for point-of-service enrollees, and multiply this sum times 130 percent, provided that the product of this multiplication must exceed 130 percent of the tangible net equity required by Section 1300.76(a)(3) of Title 28 of the California Code of Regulations so that the plan is not required to file monthly reports to the director as required by Section 1300.84.3(d)(1)(G) of Title 28 of the California Code of Regulations. (ii) The failure of a plan offering a point-of-service plan contract under this article to maintain adjusted tangible net equity as determined by this subdivision shall require the filing of monthly reports with the director pursuant to Section 1300.84.3(d) of Title 28 of the California Code of Regulations, in addition to any other requirements that may be imposed by the director on a plan under this article and chapter. (iii) The calculation of tangible net equity under any report to be filed by a plan offering a point-of-service plan contract under this article and required of a plan pursuant to Section 1384, and the regulations adopted thereunder, shall be on the basis of adjusted tangible net equity as determined under this subdivision. (B) Demonstrates adequate working capital, including (i) a current ratio (current assets divided by current liabilities) of at least 1:1, after excluding obligations of officers, directors, owners, or affiliates or (ii) evidence that the plan is now meeting its obligations on a timely basis and has been doing so for at least the preceding two years. Short-term obligations of affiliates for goods or services arising in the normal course of business that are payable on the same terms as equivalent transactions with nonaffiliates shall not be excluded. For purposes of this subdivision, an obligation is considered short term if the repayment schedule is 30 days or fewer. (C) Demonstrates a trend of positive earnings over the previous eight fiscal quarters. (D) Demonstrates to the director that it has obtained insurance for the cost of providing any point-of-service enrollee with out-of-network covered health care services, the aggregate value of which exceeds five thousand dollars ($5,000) in any year. This insurance shall obligate the insurer to continue to provide care for the period in which a premium was paid in the event a plan becomes insolvent. Where a plan cannot obtain insurance as required by this subparagraph, then a plan may demonstrate to the director that it has made other arrangements, acceptable to the director, for the cost of providing enrollees out-of-network health care services; but in this case the expenditure for total out-of-network costs for all enrollees in all point-of-service contracts shall be limited to a percentage, acceptable to the director, not to exceed 15 percent of total health care expenditures for all its enrollees. (c) Within 30 days of the close of each month a plan offering point-of-service plan contracts under paragraph (2) of subdivision (b) shall file with the director a monthly financial report consisting of a balance sheet and statement of operations of the plan, which need not be certified, and a calculation of the adjusted tangible net equity required under subparagraph (A). The financial statements shall be prepared on a basis consistent with the financial statements furnished by the plan pursuant to Section 1300.84.2 of Title 28 of the California Code of Regulations. A plan shall also make special reports to the director as the director may from time to time require. Each report to be filed by a plan pursuant to this subdivision shall be verified by a principal officer of the plan as set forth in Section 1300.84.2(e) of Title 28 of the California Code of Regulations. (d) If it appears to the director that a plan does not have sufficient financial viability, or organizational and administrative capacity to ensure the delivery of health care services to its enrollees, the director may, by written order, direct the plan to discontinue the offering of a point-of-service plan contract. The order shall be effective immediately. (Amended by Stats. 2009, Ch. 298, Sec. 5. (AB 1540) Effective January 1, 2010.)
1374.65.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

Point-of-service plan contracts must encourage enrollees to use in-network services, can only offer out-of-network coverage if in-network coverage is also provided, and must not treat certain arranged services and certain emergency care as out-of-network.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.65. Point-of-service plan contracts shall: (a) Provide incentives, including financial incentives, for enrollees to use in-network coverage or services. (b) Only offer coverage or services obtained out-of-network if it also provides coverage or services on an in-network basis. (c) Shall not consider the following to be out-of-network coverage or services: (1) Health care services received from a provider not affiliated with the health care service plan when the plan arranges for the enrollee to receive services from that provider. (2) Out-of-area emergency care provided in accordance with the procedures set by the health care service plan to be followed in securing these services. (Added by Stats. 1993, Ch. 987, Sec. 3. Effective January 1, 1994.)
1374.66.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

A health care service plan offering a point-of-service contract may impose certain out-of-network limits and deductibles, and may use risk-sharing arrangements for provider contracts if listed disclosure and risk limits are met.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.66. Any health care service plan that offers a point-of-service plan contract may do all of the following: (a) Limit or exclude coverage for specific types of services or conditions when obtained out-of-plan. (b) Include annual out-of-pocket limits, copayments, and annual and lifetime maximum benefit limits for out-of-network coverage or services that are different or separate from any amounts or limits applied to in-network coverage or services, and may impose a deductible on coverage for out-of-network coverage or services. (c) To the extent permitted under this chapter, may limit the groups to which a point-of-service plan contract is offered, and may adopt nondiscriminatory renewal guidelines under which one or more point-of-service plan contracts would be replaced with other than point-of-service plan contracts. If a point-of-service plan contract is sold to a group, then the group shall offer it to all members of that group who are eligible for coverage by the health care service plan. (d) Treat as out-of-network services those services that an enrollee obtains from a provider affiliated with the plan, but not in accordance with the authorization procedures set forth in the health care service plan’s approved evidence of coverage. (e) Contracts between health care service plans and medical providers, for the purpose of providing medical services under point-of-service contracts, may include risk-sharing arrangements for out-of-network services, but only if the risk sharing arrangements meet all of the following conditions: (1) The contracting medical provider agrees to participate in risk-sharing arrangements applicable to out-of-network services. (2) If the medical provider is reimbursed on a capitated or prepaid basis, the contract shall clearly disclose the capitation or prepayment amount to be paid to the medical provider for in-network services received by enrollees under point-of-service contracts. (3) Any capitation or prepayment amounts paid to the medical provider shall not place the medical provider directly at risk for or directly transfer liability for out-of-network services received by enrollees under point-of-service contracts. (4) The risk-sharing arrangements for out-of-network services may provide a bonus or incentive to the medical provider to attempt to reduce the utilization of out-of-network services, but shall not place the medical provider at risk for any amounts in excess of the amounts used by the plan to budget for or fund the risk-sharing pool for out-of-network services. (5) The contract between the medical provider and the plan shall clearly disclose the mathematical method by which funding for the risk-sharing arrangement is established, the mathematical method by which and the extent to which payments for out-of-network services are debited against the risk-sharing funds, and the method by which the risk-sharing arrangement is reconciled on no less than an annual basis. (6) The contract is approved by the director. (Amended by Stats. 1999, Ch. 525, Sec. 117. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.67.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

A health care service plan offering a point-of-service plan contract must keep point-of-service revenue and out-of-network spending within set percentage limits, with a short compliance window if the limits are exceeded.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.67. A health care service plan offering a point-of-service plan contract is subject to the following limitations: (a) A health care service plan shall limit its offering of point-of-service plan contracts so that no more than 50 percent of the plan’s total premium revenue in any fiscal quarter is earned from point-of-service plan contracts. (b) A health care service plan offering a point-of-service plan contract shall not expend in any fiscal-year quarter more than 20 percent of its total health care expenditures for all its enrollees for out-of-network services for point-of-service enrollees. (c) If the amount specified in subdivision (a) or (b) is exceeded by 2 percent in any quarter, the health care service plan shall come into compliance with subdivisions (a) and (b) by the end of the next following quarter. If compliance with the amount specified in subdivisions (a) and (b) is not demonstrated in the health care service plan’s next quarterly report, the director may prohibit the health care service plan from offering a point-of-service plan contract to new groups, or may require the health care service plan to amend one or more of its point-of-service contracts at the time of renewal to delete some or all of the out-of-network coverage or services as may be necessary for the plan to demonstrate compliance to the director’s satisfaction. (d) The limitation imposed by this section shall not apply to a plan which in substantial part indemnified subscribers and enrollees pursuant to contracts issued under such plan’s former registration under the Knox-Mills Health Plan Act in 1975 and as of that date, and on September 1, 1993, was offering point-of-service plan contracts previously approved by the director. (Amended by Stats. 1999, Ch. 525, Sec. 118. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.68.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

A health care service plan offering a point-of-service plan contract must keep a required deposit, track and record out-of-network utilization separately, and show the director it has enough fiscal, administrative, and marketing capacity.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.68. A health care service plan that offers a point-of-service plan contract shall do all of the following: (a) Deposit with the director or, at the discretion of the director, with any organization or trustee acceptable to the director through which a custodial or controlled account is maintained, cash, securities, or any combination of these, which is acceptable to the director, that at all times have a fair market value equal to the greater of either one of the following: (1) Two hundred thousand dollars ($200,000). (2) One hundred twenty percent of the plan’s current monthly claims payable plus incurred but not reported balance for coverage out-of-network coverage or services provided under point-of-service contracts. (b) Track out-of-network point-of-service utilization separately from in-network utilization. (c) Record point-of-service utilization in a manner that will permit utilization and cost reporting as the director may require. (d) Demonstrate to the satisfaction of the director that the health care service plan has the fiscal, administrative, and marketing capacity to control its point-of-service plan contract enrollment, utilization, and costs so as not to jeopardize the financial viability or organizational and administrative capacity of the health care service plan. (e) Maintain the deposit required under subdivision (a) in a manner agreed to by the director, subject to subdivision (a) of Section 1377 and any regulations adopted thereunder. (f) Any deposit made pursuant to this section shall be a credit against any deposit required by subdivision (a) of Section 1377. (Amended by Stats. 1999, Ch. 525, Sec. 119. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)
1374.69.
## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. )
Verify source ↗

A health care service plan must file a notice of material modification at least 20 business days before offering a point-of-service plan contract, and that notice must describe how the plan will meet several listed contract and operations requirements.

## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 2.2. Health Care Service Plans [1340 - 1399.874] ( Chapter 2.2 added by Stats. 1975, Ch. 941. ) ## ARTICLE 5.6. Point-of-Service Health Care Service Plan Contracts [1374.60 - 1374.76] ( Article 5.6 added by Stats. 1993, Ch. 987, Sec. 3. ) ## 1374.69. At least 20 business days prior to offering a point-of-service plan contract, a health care service plan shall file a notice of material modification in accordance with Section 1352. The notice of material modification shall include, but not be limited to, provisions specifying how the health care service plan shall accomplish all of the following: (a) Design the benefit levels and conditions of coverage for in-network coverage and services and out-of-network point-of-service utilization. (b) Provide or arrange for the provision of adequate systems to do all of the following: (1) Process and pay claims for all out-of-network coverage and services. (2) Generate accurate financial and utilization data and reports on a timely basis, so that it and any authorized regulatory agency can evaluate the health care service plan’s experience with point-of-service plan contracts and monitor compliance with point-of-service plan contract projections established by the health care service plan and regulatory requirements. (3) Track and monitor the quality of health care obtained out-of-network by plan enrollees to the extent reasonable and possible. (4) Respond promptly to enrollee grievances and complaints, written or oral, including those regarding services obtained out-of-network. (5) Meet the requirements for a point-of-service plan contract set forth in this section and any additional requirements that may be required by the director. (c) Comply initially and on an ongoing basis with the requirements of this article. (d) This section shall become operative July 1, 1995. (Amended by Stats. 1999, Ch. 525, Sec. 120. Effective January 1, 2000. Operative July 1, 2000, or sooner, by Sec. 214 of Ch. 525.)

Provision text is displayed from LexChat’s stored statute record. Use the official source links to verify amendments, commencement, and current legal force.

LexChat organizes source-backed legal information for research. Verify amendments, commencement, and current legal force with the official publisher before relying on it.