AB 718 Summary

• Defines "average premium paid" for federally eligible individuals as a weighted average calculated annually by the Managed Risk Medical Insurance Board based on Major Risk Medical Insurance Program (MRMIP) enrollment data from January 1 to June 30 of the preceding year, to be provided by October 15 each year.

• Requires health care service plans and health insurers to include a statement in solicitation and sales materials for preferred provider products disclosing the maximum premium rates and directing individuals to department websites to verify rates comply with legal limits.

• Specifies that certifications of compliance filed by plans and insurers bind them to their representations and subject them to all remedies available to the Department of Managed Health Care Director or Insurance Commissioner if the certification is found to be a misrepresentation or falsification.

• Applies to health care service plan contracts and health insurance policies offered, delivered, amended, or renewed on or after January 1, 2010, with compliance required for the 2010 calendar year and thereafter.

• Establishes an urgency statute effective immediately to ensure premium rate clarity for the 2011 calendar year and timely information flow to regulatory departments.