Scott D. Wiener
- District 11
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law authorizes the Director of the Department of Managed Health Care to take disciplinary measures, including the imposition of civil penalties, against a licensee when the director determines that the licensee has committed an act or omission constituting grounds for disciplinary action, as specified. Under existing law, a person who violates the act, or a rule or order adopted or issued under the act, is generally liable for a civil penalty not to exceed $2,500 per violation. Existing law also includes various provisions that assess specific civil and administrative penalties for certain violations. Fines and penalties under the act are deposited into the Managed Care Administrative Fines and Penalties Fund, and used, upon appropriation by the Legislature, for designated purposes. This bill would increase the base amount of the civil penalty from $2,500 per violation to not more than $25,000 per violation, and would authorize a lower, proportionate penalty for specialized dental and vision health care service plans. Under the bill, the civil penalty base amount would be adjusted annually commencing January 1, 2028, and every 5 years thereafter, as specified. The bill would double the minimum and maximum amounts of the civil and administrative penalties described above, and, commencing January 1, 2028, and every 5 years thereafter, adjust these civil and administrative penalties, as specified. The bill would authorize the director to impose a corrective action plan to require future compliance with the act, under certain circumstances. If a health care service plan fails to comply with the corrective action plan in a timely manner, the bill would require the department to monitor the health care service plan through medical surveys, financial examinations, or other means necessary to ensure timely compliance, and would specify that failure to timely comply with a corrective action plan is grounds for disciplinary action. The bill would require the director, when assessing administrative and civil penalties against a health care service plan, to determine the appropriate amount of the penalty for each violation, based upon consideration of specified factors, such as the nature, scope, and gravity of the violation, whether the violation is an isolated incident, and the amount of the penalty necessary to deter similar violations in the future.
Chaptered by Secretary of State. Chapter 985, Statutes of 2022.
Approved by the Governor.
Enrolled and presented to the Governor at 3:30 p.m.
Assembly amendments concurred in. (Ayes 31. Noes 9. Page 5135.) Ordered to engrossing and enrolling.
Read third time. Passed. (Ayes 51. Noes 18. Page 6024.) Ordered to the Senate.
In Senate. Concurrence in Assembly amendments pending.
Ordered to third reading.
Read third time and amended. (Ayes 53. Noes 18. Page 5932.)
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 12. Noes 4.) (August 11).
August 3 set for first hearing. Placed on suspense file.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 3.) (June 28).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 27. Noes 9. Page 3879.) Ordered to the Assembly.
Read second time. Ordered to third reading.
Read second time and amended. Ordered to second reading.
From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3772.) (May 19).
Set for hearing May 19.
May 16 hearing: Placed on APPR suspense file.
Set for hearing May 16.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 1. Page 3512.) (April 26).
From committee: Do pass and re-refer to Com. on JUD. (Ayes 8. Noes 1. Page 3461.) (April 20). Re-referred to Com. on JUD.
Set for hearing April 26 in JUD. pending receipt.
Set for hearing April 20.
Art. IV. Sec. 8(a) of the Constitution dispensed with.
Joint Rule 55 suspended. (Ayes 31. Noes 6. Page 2880.)
(Ayes 31. Noes 6.)
From printer. May be acted upon on or after February 19.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
|Bill Text Versions||Format|
|01/19/22 - Introduced|
|04/28/22 - Amended Senate|
|05/19/22 - Amended Senate|
|06/13/22 - Amended Assembly|
|06/30/22 - Amended Assembly|
|08/18/22 - Amended Assembly|
|08/29/22 - Enrolled|
|09/30/22 - Chaptered|
|04/18/22- Senate Health|
|04/22/22- Senate Judiciary|
|05/13/22- Senate Appropriations|
|05/19/22- Senate Appropriations|
|05/23/22- Sen. Floor Analyses|
|06/24/22- Assembly Health|
|08/01/22- Assembly Appropriations|
|08/17/22- ASSEMBLY FLOOR ANALYSIS|
|08/19/22- ASSEMBLY FLOOR ANALYSIS|
|08/22/22- Sen. Floor Analyses|
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