2006 California Legislative Update
November 15, 2006
Below is a summary of some of the California
legislative bills signed into law in 2006 that
impact Blue Shield of California health plans and
Blue Shield of California Life & Health Insurance
Company health policies.
AB 2012 Orthotic and Prosthetic Coverage
Before AB 2012, health plans and insurers were
required to offer group coverage for orthotic and
prosthetic devices under terms agreed upon between
the employer and the health plan or insurer. AB 2012
revised the existing “mandate to offer” to stipulate
that this coverage may be subject only to maximums
and limitations on coverage that apply to the plan’s
basic health care services. The new provision is
effective July 1, 2007.
AB 2884 Military Service and Benefits
Legislation enacted in 2005 created the
California Military Families Financial Relief Act
to protect members of the US Military Reserve and
National Guard living in California who are called
to active duty in Iraq or Afghanistan. The authors
of this legislation omitted making direct reference
to HMOs. AB 2884 clarifies that any entity,
including HMOs, that provide coverage to a reservist
at the time the reservist is ordered to active duty
to reinstate this coverage without waiting periods
or exclusions for pre-existing conditions.
AB 2889 Individual Family Plans
AB 2889 strengthens protections for consumers in the
individual health market because it requires health
plans and insurers to permit, at least once each
year, an individual who has been covered for
eighteen months under an individual plan contract
issued by the health plan or insurer to transfer
without medical underwriting to another individual
plan having equal or lesser benefits. These “free”
transfers are only mandated within a health plan or
insurance carrier. This requirement applies to
individual plan contracts and policies issued or
renewed after January 1, 2007.
SB 1245 Human Papillomavirus (HPV) Testing
In 2003, the FDA approved a screening test for HPV.
Upon FDA approval, Blue Shield started to cover this
test because our plans cover all FDA approved
cervical cancer screening tests. The author of this
bill wanted to ensure that California law
specifically required HPV screening tests
