AB 1921 Summary

• Establishes a California Transitional Reinsurance Program jointly administered by the Department of Insurance and Department of Managed Health Care, effective January 1, 2013, through January 1, 2018.

• Requires health insurers and health care service plans to make reinsurance contributions beginning October 1, 2013, with reinsurance payments to eligible recipients beginning January 1, 2014, and ceasing December 31, 2016.

• Designates a nonprofit reinsurance entity through competitive bidding to collect contributions from health plans and federal payments on behalf of self-insured groups, then pay claims for covered individuals in the individual market.

• Exempts plans consisting solely of excepted benefits, Medi-Cal coverage, Medicare coverage, and grandfathered health plans from participation requirements.

• Allows the Director of the Department of Managed Health Care to opt out of program administration and defer to the Department of Insurance.