Californians to Be Covered | Not yet estimated. Emphasis on access to affordable care through regulatory reform, additional choices in coverage options, and tax credits. |
Requirements Imposed on
Consumers/ Individuals | None. |
Treatment of Self-Employed | Tax-free deposits in Health Savings Accounts (HSAs) and deductions for medical expenses. |
Requirements Imposed on
Employers | - No requirements.
- Tax credit for certain categories of employers for offering high deductible health plans and HSAs to employees.
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Treatment of Small Employers | None stated. |
Requirements Imposed on
Providers | None stated.
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Changes in Provider Payments/Funding | - Medi-Cal rate increase for physicians.
- Tax credits for physicians who provide charity care.
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Changes in Health Care Workforce/Care Delivery
| Physician Assistant scholarship and loan repayment program (for those who agree to practice in designated medically underserved areas). |
Public Program Expansions and
Support for Low-Income Individuals | - No expansion of public programs.
- Envisions a program to allow low-income Medi-Cal beneficiaries to enroll in state-financed Health Opportunity Accounts (similar to Health Savings Accounts) to purchase health insurance available in the private sector.
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Role of Counties | Counties’ obligation to serve medically indigent unchanged. |
Role of Federal Government | Medi-Cal rate increase would generate matching federal funds. |
Changes in State Tax Code and State Tax Revenue | - Tax free deposits in Health Savings Accounts.
- Provides individuals with a tax deduction for purchasing coverage.
- Additional tax benefits for employers and employees who use new Health insurance Exchange.
- Tax credit for certain categories of employers for offering high-deductible health plans and Health Savings Accounts to employees.
- Establishes a provider tax credit of 50% for cost of “Charity Care” for the uninsured.
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Insurance Market Requirements/ Reforms: Guaranteed Issue, Rating Reforms, and Other Requirements Imposed on Health Plans | - Encourage greater availability of benefit designs (that conform to federal requirements for HSAs and high deductible health plans).
- Allows plans sold in other states to be available in CA without approval from DMHC or DOI.
- Allows coverage products that do not include state mandated benefits.
- Require Cal-PERS to offer Health Savings Accounts as an option to state employees.
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Insurance Market Requirements/ Reforms: Connector/Purchasing Pool | Establishes a California Health Insurance Exchange to support employers and employees with cafeteria plans. |
Insurance Market
Requirements/Reforms: Participant Contribution to Obtain
Coverage Through Purchasing Pool | Not applicable. |
Financing Sources and Cost Estimates | Requires large conversion foundations to spend 90 percent of their annual expenditures on health services for citizens who reside in the state (but who are not eligible to receive health care services through a local, state, or federal program). |
Cost Containment: Prevention and Wellness | Envisions increased use of consumer-driven health plans will encourage healthy lifestyles. |
Cost Containment: Additional Provisions | Provides a broader range of benefit design options to facilitate consumer choice. - Allows plans sold in other states to be sold in CA without approval from DOI or DMHC;
- Allows coverage products that do not include state-mandated benefits;
- Requires CalPERS to offer 401K-style plans to state employees;
- Health Opportunity Accounts (like HSAs) for Medi-Cal beneficiaries;
- State tax conformity on HSAs.
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Enforcement | Not applicable. |
Implementation Timeline | Changes to existing law would take effect immediately. |
