CA SB641

Changes eligibility for Mexican prepaid health plans in California from exclusively serving Mexican nationals to serving any persons legally employed in San Diego or Imperial counties and their dependents.

Eliminates the specific $1 million tangible net equity requirement for Mexican prepaid health plans and instead requires them to maintain net equity as determined by the director under general health care service plan regulations.

Authorizes the director to exempt Mexican prepaid health plans from certain state requirements for up to 5 years (for policies issued on or after January 1, 2019), provided the director determines the exemption is in enrollees' best interest after 60-day public notice, with formal decisions posted online.

Prohibits exemptions from requirements governing grievances, independent medical review, guaranteed issue and renewal, and prohibitions on preexisting conditions or health status discrimination.

Requires group subscribers offering these plans to provide enrollees with coverage consistent with state law or federal Patient Protection and Affordable Care Act and Employee Retirement Income Security Act requirements for large group self-insured coverage.