HomeMy WebLinkAboutMINUTES - 04012003 - D1 TO: BOARD OF SUPERVISORS Contra
FROM: WILLIAM B. WALKER, M.D.
Health Services Director
Costa
DATE: March 25, 2003 °r`-- County
SUBJECT: Senate Bill 2 (Burton)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Accept report on analysis of SB 2. Author letter to county lobbyists and state delegations in
support of key provisions of the bill, with special attention paid to the protection of the safety
net plans and providers.
BACKGROUND:
SB 2, sponsored by Burton and referred to as the Pay or Play bill, would authorize the creation
of the State Health Purchasing Pool. All employers, regardless of size, would be required to
either provide proof of insurance for all employees and their dependents, or pay into the Pool
that would provide the insurance. The Pool would work in conjunction with the Medi-Cal and
Healthy Families programs. Employers would be mandated to pay 80% of the total employee
plus dependent premium. Unemployed people and their dependents who do not qualify for
existing federal or state programs would not be covered by this bill, many of whom will
continue to rely on safety net systems of care. A key aspect of this bill is the protection of
existing funding for these safety net providers.
SB 2 addresses the concerns of safety net providers by stating that the Managed Risk Medical
Insurance Board (M'RMIB) shall administer the program and "ensure the continued viability of
[...j safety net providers", a primary source of care for those who remain uninsured. Contra
Costa Health Services, its clinics and its public health programs would be protected under this
provision. The Contra Costa Health Plan, currently Knox-Keene licensed and a participating
MRMIB health plan, would continue to serve Medi-Cal and Healthy Families participants, as
well as applying to be a part of the newly-formed State Health Purchasing Pool.
This bill is sponsored by the California Labor Federation, AFL-CICS, and supported by the
California Medical Association and the California Association of Public Hospitals. Proponents
say that this bill will help to reduce the number of uninsured in California, while cautioning that
health insurance alone is not enough to ensure sufficient quality access to care, especially for
special and vulnerable populations. Organizations in opposition of SB 2 include the California
Chamber of Commerce and the California Association of Health Plans. These opponents point
to the financial burden this bill would place on employers, large and small, which is of special
concern in these times of economic uncertainty.
FISCAL IMPACT: Unknown.
CONTINUED ON ATTACHMENT. YES SIGNATURE:'` `V
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
-_ ____--------_---------_--------------------------------------------------------------------------------------__--__-----_--------_--_-__-----.-----_------_-_
ACTION OF BOARD ON April 1, 2003 APPROVE AS RECOMMENDED X OTHER X
SEE ATLAMED ADDR01M FM BOARD AMON
V VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
- UNANIMOUS AND CORRECT COPY OF AN ACTION TAKEN
_ (ABSENT ) ) AND ENTERED ON THE MINUTES OF THE
AYES: I,t I�"- NOES: BOARD OF SUPERVISORS ON THE DATE
ABSENT: ABSTAIN: Tr- SHOWN.
DISTRICT III SEAT VACANT
ATTESTED April 1, 2003
CONTACT: JOHN SWEETEN,CLERK OF THE
BOARD OF SUPERVISORS AND
COUNTY ADMINISTRATOR
CC:
BY Grt "' EPUTY
-ADDENDUM TO ITEM D.1
April 1, 2003
The Board of Supervisors considered the report on analysis of Senate Bill 2 (Burton),referred to
as the Pay or Play Bill.
Dr. William B. Walker,Health Services Department,presented the staff report and
recommendations.
The Board discussed the matter and Supervisor Uilkema requested information on the following
issues:
The possibility of the bill becoming a state mandate, and the possibility of not receiving
reimbursement from the state should this occur.
More specific identification in the proposed State Health Purchasing Pool of any liabilities to the
counties.
From a county perspective, what would be the impacts on independent contractors? What are
the possible impacts to the county upon enactment, and if any, what specific impacts to the
County Small Business Enterprise Program?
Supervisors Gioia and Glover requested information regarding the number of employees within a
business that would quay for this program.
In addition, Supervisor DeSaulnier noted his concerns of possible impacts to Workman's
Compensation Program and having enough administrative oversight to administer it effectively?
The Chair then invited those who wished to address the Board on this issue. The following
person presented testimony:
Rollie Katz, Local One,P.O. Box 222, Martinez
Supervisor Uilkema recommended the Board accept the report analysis and requested Dr.
Walker to address the concerns raised today and return for fin-ther discussion. She advised she
would abstain until the issues discussed today are addressed.
Supervisor Gioia then added as part of the motion for Dr. Walker to draft a letter to Senator
Burton for the Chair's signature stating the Contra Costa County's position of Senate Bill 2.
The Board then took the following action:
• ACCEPTED the report on analysis of the Senate Bill 2 (SB 2 Burton)Pay or Play
System-which the Board had supported in concept;
• DIRECTED the Health Services Director to address the questions raised today of fiscal
impacts on the State and Contra Costa County; draft letter to Senator Burton stating
Contra Costa County's position on this bill, and return to the Board of Supervisors for
further discussion.
BILL NUMBER: SB 2 AMENDED
BILL TEXT
AMENDED IN SENATE MARC: 16, 2003
INTRODUCED BY sena--_ * ___- Senators
Burton and Speier
DECEMBER 2, 2002
An act to add Section 12693. 705 to the Insurance Code, to add
part 8.5 (commencing- with Section 2020) to Division 2 of the Labor
Code, to amend Section 131 of, and to add Section 976. 7 to, the
Unemployment insurance Code, and to add Section 14005. 42 to the
Welfare and Institutions Code, relating to health care coverage, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 2, as amended, Gpeiev Burton
Health care coverage.
Existing law does not provide a system of health care coverage for
all California residents and does not require employers to provide
health care coverage for employees and dependents, other than
coverage provided as part of the worker's compensation system for
work-related employee injuries. Existing law provides for the
creation of various programs to provide health care services to
persons who have limited incomes and meet various eligibility
requirements. These programs include the Healthy Families Program
administered by the Managed Risk Medical Insurance Board, and the
Medi-Cal program administered by the State Department of Health
Services. Existing law provides for the regulation of health care
service plans by the Department of Managed Health Care and health
insurers by the Department of Insurance.
This bill would require employers to provide health care coverage
for eligible employees and dependents that is equivalent to coverage
required to be provided by health care service plans, but that
.includes coverage for basic prescription drugs. As an alternative,
the bill would authorize an employer to comply with this requirement
by paying a fee to the state for similar coverage. The bill would
authorize an employer to require an eligible employee to pay up to
20t of the cost of the coverage. The bill would not require an
employer to provide coverage for the dependent spouse or domestic
partner of an eligible employee who is eligible for coverage from
another employer.
This bill would create the State Health Purchasing Program, which
would be administered by the Managed Risk Medical Insurance Board.
The bill would require the board to arrange health plan coverage
through a purchasing pool .for employers who have paid a fee for
employee health coverage rather than arranging their own coverage.
The bill would require the board to determine annually the fee to be
paid by these employers. The fee and employee contributions would be
collected by the Employment Development Department and would be
deposited in the newly created State Health Purchasing Fund. The
money in the .fund would be continuously appropriated to the board for
the purposes of the program. The bill would require specified
health benefits to be provided through the program and would require
the board to establish copayments and deductibles for enrollees. The
bill would authorise the board to coordinate coverage ander the
program with coverage available under the Medi-Cal program and the
Healthy Families Program. The bill would require enrollees obtaining
coverage arranged through the State Health Purchasing Program to
brovide certain information to the board relative to income and
eligibility under penalty of perjury, thereby creating a new crime
and imposing a state-mandated local program. The bill would enact
other related provisions.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act: for a specified reason.
_�. .
t. empin G.of=tea
Vote: majority. Appropriation: -tie - yes
Fiscal committee: -ne yes .
State-mandated local program: ne- yes
THE PEOPLE OF THE STATE OF CALIFORNTA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The Legislature finds and declares that working Californians
and their families should have health insurance coverage.
(b) The Legislature .further finds and declares that most working
Californians obtain their health insurance coverage through their
employment.
(c) The Legislature finds and declares that in 2001, more than
6,000,000 Californians lacked health insurance coverage at some time
and .3,000,000 Californians had no health insurance coverage at any
time.
(d) The Legislature finds and declares that more than 80 percent
of Californians without health insurance coverage are working people
or their families. Most of these working Californians without health
insurance coverage work for employers who do not offer health
benefits.
(e) The Legislature finds and declares that people who are covered
by health insurance have better health outcomes than those who lack
coverage. Persons without, health insurance are more likely to be in
poor health, more likely to have missed needed medications and
treatment, and more likely to have chronic conditions that are not
properly managed.
(f) The Legislature finds and declares that employers who do not
provide health benefits to their workers have an unfair competitive
advantage over those employers who provide health benefits.
Employers who provide health benefits often pay directly for the
failure of other employers to provide health benefits by providing
health benefits to spouses and other dependents who should be covered
by the spouse's or dependent's employer. Employers who provide
.health benefits also pay directly when a previously uninsured person
becomes an employee and the accumulated health costs due to lack of
insurance burden the employer providing health benefits.
(g) The Legislature further finds and declares that health benefit
costs in California generally are .tower than costs in other states
but employers generally are less likely to offer coverage.
(h) The Legislature further finds and declares that controlling
health care costs can be more readily achieved if all working people
and their families have health benefits so that cost shifting is
minimized.
(i) It is therefore the intent of the Legislature to assure that
working Californians and their families have health benefits and that
their employers shall either provide those benefits or pay a user
fee to the State of California so that the state may serve as a
purchasing agent to pool those fees to purchase coverage that would
otherwise have been purchased directly by employers.
(j) The Legislature further finds and declares that, while
covering all working people and their families will substantially
reduce the number of Californians without health insurance, several
million Californians will still lack health coverage.
(k) It is therefore not the intent of the Legislature to reduce or
eliminate funding for safety net programs that provide access to
care for those who remain uninsured.
SEC, 2. Section 12693. 70.5 is added to the Insurance Code, to read:
12693. 705. To further the purposes of the State Health Purchasing
Fund created pursuant to Chapter 2 (commencing with Section 2040) of
Part 8.5 of Division 2 of the Labor Code, the board shall reduce or
eliminate documentation and verification requirements for enrollees
in that program. Nothing in this section small affect the board's
authority to verify eligibility as permitted by federal law.
SEC. 3. Part 8.5 (commencing with Section 2020) is added to
Division 2 of the Labor Code, to read:
PART 6.5. E.UPLOYEE HEALTH INSURANCE
CHAPTER 1. GENERAL PROVISIONS
Article I. Title and Purpose
2020. This part shall be known and may be cited as the Health
.insurance Act of 2003.
2020.5. It is the purpose of this part to ensure that all working
Californians and their families are provided health care coverage.
2021. This part shall not be construed to diminish any protection
already provided pursuant to collective bargaining agreements or
employer-sponsored plans that are more favorable to the employees
than the health care coverage required by this part.
Article 2. Definitions
2022. Unless the context requires otherwise, the definitions set
.forth in this article shall govern the construction and meaning of
the terms and phrases used in this chapter.
2022,1, "Health plan" means an insurer, health care service plan,
self-funded employer-sponsored plan, multiple employer trust, or
Taft-Hartley Trust as defined by federal law, authorized to pay for
health care services in this state.
2022.2. "Dependent" means the spouse, minor child, permanently
disabled child, or legally dependent parent of a covered employee.
2022.3. "Employee" means a person as defined in Article 1.5
(commencing with Section 621) of Chapter 3 of Part 1 of Division 1 of
the Unemployment insurance Code.
2022. 4. "Employer" means an employer, as defined in Article 3
(commencing with Section 675) of Chapter 3 of Part 1 of Division 1 of
the Unemployment .Insurance Code, employing for wages or salary
or more persons to work in this state.
20.22.5. "Employment" is defined in .Article 1 (commencing with
Section 601) of Chapter 3 of Part 1 of .Division 1 of the Unemployment
Insurance Code.
2022. 6. "Principal employer" means the employer for whom an
employee works the largest Lumber of hours in any month.
2022. 7. "Wages" means all remuneration for services from whatever
source, including commissions, bonuses, and tips and .gratuities,
paid directly to an individual by a customer or his or her employer.
Article 3. Coverage
2023. An employer shall provide health care coverage to each
employee pursuant to this chapter. An employer shall also provide
health care coverage to any dependent of an employee who is not
receiving coverage from a different employer. An employer is not
required to provide health care coverage to the dependent spouse or
domestic partner of an employee who is eligible for coverage from
another employer.
2023.1. An employer required to provide health care coverage
pursuant to this chapter may do any of the following:
(a) :select and purchase that coverage from any health plan.
(b) Provide coverage through self-funded, employer-sponsored
r,lans.
(c) Pay a fee to the Employment Development Department in the
amount set forth in Section 2050.
2023.2. (a) An employer shall be responsible for the cost of
health care coverage. However, where coverage exceeds the minimum
benefits required by this chapter, the payment for that coverage
shall be consistent with established practices. To the extent that
the employee is responsible for paying all or a part of these costs,
an employer shall withhold those amounts from the employee 's salary
and wages.
(b) An employer may require an employee to pay up to 20 percent of
the cost of the coverage required by this chapter.
(c) An employer providing coverage exceeding the minimum benefits
required by this chapter may charge a share of the cost of coverage
provided, but that charge may not exceed the cost of the additional
coverage.
(d) An employer may purchase health care coverage that includes
additional out of pocket expenses, such as copayments or deductibles,
but the out of pocket expenses for the employees shall not exceed
the amounts specified in Section .204.5. 4.
2023.3. An employer shall provide health care coverage to every
employee who has qualifying wages under the Unemployment Insurance
Code. An employer shall continue payments for health care coverage
for an employee who is hospitalized or otherwise prevented by
sickness or injury from working and earning wages, and for whom sick
leave benefits are exhausted. This obligation shall continue for
three months following the month during which the employee became
hospitalized or disabled from working, or the month the employee
becomes eligible for other public or private coverage, whichever
occurs first. An employer shall not be required to provide health
care coverage pursuant to this chapter with respect to an employee if
any of the .following occur:
(a) The employer is not the principal employer of the employee in
terms of monthly hours worked.
(b) The employee is provided other health care coverage
established under any law of the United States or this state.
(c) The employee is covered as a dependent under a health care
service plan, health insurance policy, or self-funded
employer--sponsored plan that has health care coverage benefits
meeting the requirements of this chapter.
2023. 4. The Employment Development Department shall adopt
regulations to ensure that employers abide by the provisions of this
chapter. Those regulations shall include provisions ensuring that
employers do not circumvent the intent of this chapter by designating
employees as independent contractors.
2023.5. Health care coverage provided in accordance with this
chapter shall be equivalent to coverage required to be provided by
health care service plans pursuant to Chapter 2.2 (commencing with
Section 1340) of Division 2 of the Health and .Safety Code, but shall
also include coverage of basic prescription drugs.
2023. 6. An employer providing coverage pursuant to this chapter
shall not be required to pay for benefits in any of the following
circumstances:
(a) When the beneficiary is entitled to receive disability
benefits or compensation under any workers ' compensation or employers '
liability law for the injury or illness.
(b) When health care services for an injury or illness are
provided to the beneficiary by any federal, state, local, or other
agency without charge.
2023. 7. An employer shall not request or otherwise seek to obtain
information concerning income or other eligibility requirements for
public health benefit programs regarding an employee, dependent, or
other family member of an employee, other than that information about
the employee's employment status otherwise known to the employer
consistent with existing state and federal law and regulation. For
these purposes, public health benefit programs include, but are not
limited to, the Medi-Cal program, Healthy Families Program, Managed
Risk Medical Insurance Program, and Access for Infants and Mothers
program.
CHAPTER 2. STATE HEALTH PURCHASING PROGRAM
Article 1. Creation of Program and Powers of the Board
2040. The State Health Purchasing Program is hereby created. The
program shall be managed by the Managed Risk Medical Insurance
Board, which shall have equivalent powers to those granted to the
board with respect to the Healthy Families Program under Section
12593.21 of the Insurance Code.
2040.2. The board shall arrange coverage for employers who pay a
fee pursuant to subdivision (c) of Section 2023.1 by establishing and
maintaining a purchasing pool for coverage of program enrollees to
enable applicants without access to affordable and comprehensive
employer-sponsored coverage to receive health benefits. The board
shall negotiate separate contracts with participating health plans
for the benefit package described in this chapter.
Article 2. Definitions
2041. unless the context requires otherwise, the definitions set
forth in this article shall govern the construction and meaning of
the terms and phrases used in this chapter.
.2041 . 1. "Fund" means the State Health Purchasing Fund created
pursuant to Section 2110.
2041.2. "Program" means the State Health Purchasing Program,
which includes a purchasing pool providing health care coverage for
employees and their dependents for which the employer pays a fee
rather than purchasing health care coverage that meets the standards
of this part.
Article .3. Benefits and Enrollee Contribution
2045. The health care benefits coverage provided to enrollees
shall be equivalent to the coverage required to be provided by health
care service plans pursuant to Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code, but shall also
include coverage of basic prescription drugs.
2045.3. The applicable employee contribution, not to exceed 20
percent, shall be established by the board and shall be collected by
the employer and paid concurrently with the employer fee, pursuant to
subdivision (c) of Section 202.1. The employer may agree to pay
any applicable employee contribution.
2045. 4. (a) The board shall establish the required enrollee
deductibles or copayment levels for specific benefits, including
total annual copayments.
(b) No out-of--pocket costs other than copayments and deductibles
in accordance with this section shall be charged to enrollees for
health benefits.
(c) Coverage provided to enrollees shall not contain any
preexisting condition exclusion requirements.
(d) No participating health plan shall exclude an enrollee on the
basis of any actual or expected health condition or claims experience
of that enrollee or a member of that enrollee's family.
(e) There shall be no variations in rates charged to enrollees,
including premiums and copayments, on the basis of any actual or
expected health condition or claims experience of an enrollee or
enrollee's family member.
2045.5. (a) An enrollee who would qualify for Medi-Cal pursuant
to Chapter 7 (commencing with Section 14000) of Part 3 of Division 6
of the Welfare and Institutions Code shall receive expanded benefits
and shall not be charged copays or deductibles that exceed those
charged by the Medi-Cal no-share-of-cost program.
(b) The board shall adopt regulations necessary to define and
implement these expanded benefits.
2045. 6. (a) ,An enrollee who would qualify for the Healthy
Families Program pursuant to Part 6.2 (commencing with Section 12693)
of the Insurance Code shall receive expanded benefits and shall not
be charged copays or deductibles that exceed those charged by that
program.
(b) The board shall adopt regulations necessary to define and
implement these expanded benefits.
Article 4. Employer Fee
2050. The board shall annually determine the level of the fee to
be paid by an employer who chooses to participate in the program. In
determining the level of the fee, the board shall take into account
the wages of the employees for whom coverage will be purchased, as
well as other relevant factors.
2051. The board shall provide notice to the Employment
Development Department of the amount of the fee in a time and manner
that permits the Employment Development Department to provide notice
to all employers of the estimated fee for the budget year pursuant to
Section 976. 7 of the Unemployment Insurance Code.
2052. Revenue from the employer fee and from associated employee
contributions shall be deposited .into the State Health Care Fund,
which is created pursuant to Section,2110.
Article 5. Participating Health Plans
2060.3. (a) Notwithstanding any other provision of law, the board
shall not be subject to licensure or regulation by the Department of
Insurance or the Department of Managed Health Care.
(b) Participating health plans that contract with the program
shall meet standards equivalent to those established for the Healthy
Families Program pursuant to Section 12693.37 of the Insurance Code.
(c) For purposes of this chapter, the board shall have powers
equivalent to the powers described in Sections 12693.48 and 12693.5.2
of the Insurance Code with respect to the Healthy Families Program.
(d) in adopting regulations to administer this chapter, the board
shall ensure the continued viability of public hospitals and clinics,
community clinics, and other safety net providers.
Article 6. Cost Containment
2070. (a) The board shall develop and utilize appropriate cost
containment measures to maximize the cost-effectiveness of health
care coverage offered under the program. Those measures may include
the following:
(1) Limiting the expenditure of .funds for this purpose to the
price to the program for the lowest cost plan contracting with the
program.
(2) Creating program rules that restrict the ability of an
employer or applicant to drop existing coverage in order to qualify
for the program.
(3) Other measures that the board deems necessary to ensure the
affordability of coverage for employers, employees, and their
dependents.
(b) The board may obtain information sufficient to assist it in
determining whether- the price paid for coverage is appropriate to
ensure access to quality care, and whether a different price may be
appropriate.
Article 7. Other Public Programs
2090. (a) The employer who has chosen to pay a fee to the fund
shall provide information to the board regarding potential enrollees
as prescribed by the board. In no case shall the board require or
permit the employer to obtain from the potential enrollee information
about the family income or other eligibility requirements for
Medi-Cal, Healthy Families, or other public programs other than that
information about the employee's employment status otherwise known to
the employer consistent with existing state and federal law and
regulation.
(b) The board shall obtain enrollment information from potential
enrollees to be covered by the program. The enrollment information
shall include information sufficient to determine whether the
enrollee may be eligible for coverage under Medi-Cal, Healthy
Families, or other public programs.
(c) An enrollee shall be covered by the program from the date that
the board receives enrollment information from the enrollee.
(d) The board shall seek to assure continuity of coverage for
those enrollees continuing to be covered by the program. An enrollee
shall not cease to be covered unless the board can document that the
enrollee received notice 30 days prior to the termination of
coverage.
2791. (a) Subject to subdivisions (b) and (c) , the board shall
require enrollees who may be applicants and recipients for Medi--Cal
or Healthy Families to provide independent documentation that they
meet the qualifications for eligibility only to the extent required
by federal law.
(b) The board shall require every potential and continuing
enrollee under this part to file an affirmation, signed under penalty
of perjury, setting forth any facts about his or her annual income,
applicable income deductions, and other qualifications for
eligibility as may be required by the board. The statements shall be
on forms prescribed by the board and developed jointly with the
State Department of Health Services.
(c) Nothing in this section shall affect the authority of the
State Department of Health Services or the board to verify
eligibility as required by federal law.
2092. (a) The board shall provide to the State Department of
Health Services information concerning the potential or continuing
eligibility of enrollees in the program for Medi-Cal or Healthy
Families.
(b) For those enrollees of the program who are determined to be
eligible for Medi-Cal or Healthy Families, the board shall provide
the state share of financial participation through the program.
2093. (a) Upon the effective date of coverage of a child eligible
for the program, the board shall arrange for payment of providers
who participate in the Child Health and Disability Prevention Program
pursuant to Article 6 (commencing with Section 124025) of Chapter 3
of Part 2 of Division 106 of the Health and Safety Code, consistent
with the equivalent requirements in Section 12693. 41 of the Insurance
Code.
2095. Care for enrollees who have been identified by the
participating health plan as potentially seriously emotionally
disturbed shall be provided and paid for consistent with the
equivalent requirements in Section 12693. 61 of the Insurance Code.
2096. Care for an enrollee who is determined by the California
Children 's Services Program to be eligible for benefits under that
;,grogram pursuant to Article 5 (commencing with .Section 123500) of
Chapter 3 of Part 2 of the Division 106 of the Health and Safety Code
shall be provided and paid for consistent with equivalent
requirements in Sections 22693. 62 and 12693. 69 of the Insurance Code.
2097. The board shall encourage all health plans that provide
services under the program to have protocols consistent with
equivalent requirements in Section 12693. 98 of the Insurance Code.
Article 8. Administration
2100. A contract entered pursuant to this part shall be exempt
from any provision of law relating to competitive bidding, and shall
be exempt from the review or approval of any division of the
Department of General Services. The board shall not be required to
specify the amounts encumbered for each contract, but may allocate
funds to each contract based on the projected or actual enrollee
enrollments to a total amount not to exceed the amount appropriate
.for the program including applicable contributions.
2110. (a) The State Health Purchasing Fund is hereby created in
the State Treasury and, notwithstanding Section 13340 of the
Government Code, is continuously appropriated to the board for the
purposes specified in this part.
(b) The board shall authorize the expenditure from the fund of
state funds or federal funds that are appropriated to and deposited
into the fund, and applicable employer fees and employee
contributions that are deposited into the fund. This shall include
the authority for the board to authorize the State Department of
Health Services to transfer .funds appropriated to the department for
the program to the State Health Purchasing Fund, and to also deposit
those funds in, and to disburse those funds from, the State Health
Purchasing Fund.
SEC. 4. Section 131 of the Unemployment Insurance Code is amended
to read:
131. "Contributions" means the money payments to the Unemployment
Fund, Employment Training Fund, State Health Purchasing Fund,
or Unemployment Compensation Disability Fund
that are rectu.ired by this division.
SEC. 5. Section 976. 7 is added to the Unemployment Insurance Code,
to read:
976. 7. In addition to other contributions required by this
division, an employer, except an employer who provides proof of
health care coverage consistent with the provisions of subdivision
(a) or (b) of Section 2072:3. 1 of the Labor Code, shall pay to the
department for deposit into the State Health Purchasing Fund a fee in
the amount set by the State Health Purchasing Board in accordance
with Chapter 2 (commencing with Section 2040) of Part 8.5 of Division
2 of the Labor Code. The fees shall be collected in the same manner
and at the same time as any contributions required under Sections
977 and 977.5.
SEC. 6. Section 14005. 42 is added to the Welfare and Institutions
Code, to read:
14005. 42. (a) For persons enrolled in the State Health Purchasing
Program created pursuant to Chapter 2 (commencing with Section 204O)
of Part 8.5 of Division 2 of the Labor Code, the department
shall exercise all options
available under ..federal law to simplify eligibility for Medi-Cal
benefits by exempting all resources in the determination of
eligibility. Those individuals shall not be subject to subdivision
(b) of Section 14005.30.
(b) The department shall seek a federal waiver for any group
described in subdivision (a) for which an option is not available to
apply the procedures required by subdivision (a) .
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XI.ZI B of the California
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