Amended in Assembly April 6, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1254

Introduced by Assembly Member Grove

February 27, 2015

An act to add Section 1367.255 to the Health and Safety Code, relating to health care service plans.


AB 1254, as amended, Grove. Health care service plans: abortion coverage.

Existing federal law, the federal Patient Protection and Affordable Care Act (PPACA), enacts various health care coverage market reforms that took effect January 1, 2014. Among other things, PPACA requires a health insurance issuer offering coverage in the individual or small group market to ensure that the coverage includes the essential health benefits package, as defined. PPACA does not require that a qualified health plan provide coverage for abortion, as specified.

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the regulation of health care service plans by the Department of Managed Health Care. Under existing law, the Director of Managed Health Care may, after appropriate notice and opportunity for a hearing, by order suspend or revoke a license issued under the act, or assess administrative penalties if the director determines that the licensee has committed an act or omission constituting grounds for disciplinary action.

This bill would provide that a health care service plan is not required to include abortion as a covered benefit. The bill would prohibit the director from denying a license, or disciplining a licensee, on the basis that the plan excludes coverage for abortions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


Section 1367.255 is added to thebegin delete end deletebegin deleteWelfare andend delete
2begin delete Institutionsend deletebegin insert Health and Safetyend insert Code
, immediately following Section
31367.25, to read:



(a) Notwithstanding any other law, a health care
5service plan is not required to include abortion as a covered benefit.
6The director shall not deny, suspend, or revoke the license of, or
7otherwise sanction or discriminate against, a licensee on the basis
8that the licensee excludes coverage for abortions pursuant to this

10(b) This section does not require a health care service plan to
11exclude or restrict coverage for abortions.