California Health Care Legislation signed by Governor Schartzenegger

California
Last week, Governor Schwarzenegger (R) signed two bills that make California the first state to establish a health insurance exchange pursuant to PPACA. AB 1602, sponsored by Assembly Speaker John Pérez, and SB 900, sponsored by Senator Elaine Alquist, establish the California Health Benefit Exchange. During a phone call on Wednesday, President Obama reportedly encouraged Schwarzenegger to sign the companion bills so California's insurance exchange could begin operating by the January 2014 federal deadline. California's health insurance exchange is likely to be the largest exchange operated by a single state, with as many as 8.3 million residents expected to be eligible for coverage.
The exchange will provide consumers with a marketplace of insurance plans through a website that will provide standardized, detailed information about the plans and offer a toll-free number to help consumers understand their options. The exchange will also will provide resources to connect eligible Californians to federal subsidies for health coverage or government programs such as Medi-Cal, California's Medicaid program, as required by PPACA.

The bills also established an independent, five-member board to oversee California's exchange. The board will select health insurers to participate in the exchange and determine the process for enrolling Californians in the program. Governor Schwarzenegger will select two board members before his term ends and the legislature will appoint the remaining members.
The governor recently signed several additional health care bills, including:

• SB 1088, which allows young adults to retain coverage under their parents' health insurance plan until age 26
• AB 2244, which prohibits health plans from denying coverage to children with preexisting health conditions
• AB 2470, which bars health insurers from rescinding a member's health insurance coverage except in cases where fraud or intentional misrepresentation has occurred
• SB 1163, which requires independent actuaries to review and certify health insurers' rate filings to ensure that premium costs are calculated accurately and that all proposed rate hikes are posted on insurer and state websites
• AB 2345, which requires all health plans to cover certain preventive services with no cost-sharing