HomeMy WebLinkAboutMINUTES - 08131985 - 1.23 TO: BOARD OF SUPERVISORS
Contra
FROM: Phil Batchelor, County Administrator
Costa
DATE: County
August 5 , 1985
SUBJECT:
Legislation: AB 600 (McAlister)
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION•
Adopt a position of support for AB 600 by Assemblyman McAlister
which would establish a Health Coverage Association to insure
persons unable to get health insurance because of pre-existing
conditions, or whose medical condition makes their health
insurance premiums unreasonably high.
BACKGROUND:
Private insurance carriers generally refuse to cover pre-existing
conditions and charge very high premiums for some individuals
because of their medical condition. Many of these individuals
are able and willing to pay a reasonable premium for health
insurance if it were available. In the absence of such
insurance, many individuals must exhaust their resources and then
become eligible for Medi-Cal, at great cost to the taxpayer.
AB 600 would establish a Health Coverage Association with a board
of directors appointed by the Governor, the Speaker of the
Assembly, and the Senate Rules Committee. The Board of Directors
would administer the Association, fix the premiums, and the
conditions under which specified medical care is paid for. AB
600 details broadly what medical services are eligible and
specifies circumstances under which benefits willnotbe paid.
The policies issued by the Association must include a $1000
deductible per person per year and a 20% co-payment on all paid
services. Maximum individual liability is limited to $3000 per
year, or $5000 per family per year.
A person is not eligible for an Association policy if he has
insurance which covers pre-existing conditions or is entitled to
benefits under Medicare or Medi-Cal. In addition, an individual
must have been turned down by two insurance carriers for coverage
on a policy substantially similar to the Association' s coverage
which covers pre-existing conditions.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S) (ICE , �& OGa�
ACTION OF BOARD ON August 13, 1985 APPROVED AS RECOMMENDED _ OTHER
VOTE OF SUPERVISORS
XUNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
County Administrator OF SUPERVISORS ON THE DATE SHOWN.
CC: Health Services Director ATTESTED 1 ��
Assemblyman McAlister
Senator Alan Robbins, Chairman -
PHIL BATC LOR, CLERK OF THE BOARD OF
Insurance, Claims, & Corporations SUPERVISORS AND COUNTY ADMINISTRATOR
M. D. Ta rshes , Mgt. Consultant --
M892/7-e3 BY ` DEPUTY
Page 2
The Association would be funded, in addition to individual' s
premiums, deductibles, and co-insurance, by a 2/10 of to
disability tax assessed against the gross wages of all employees
who must currently pay into the State disability insurance fund.
Since AB 600 has the potential to provide coverage for many of
the County' s Medically Indigent Adults, as well as reduce the
Medi-Cal caseload and improve the access of the general public to
health care, AB 600 deserves the support of the Board of
Supervisors .
AB 600 has passed the Assembly by a vote of 59 : 9 and will be
heard in the Senate Committee on Insurance, Claims and
Corporations on August 21.