CA SB858

Increases base civil penalty for violations of the Knox-Keene Health Care Service Plan Act from $2,500 to $25,000 per violation, with lower proportionate penalties available for specialized dental and vision plans.

Doubles minimum and maximum civil and administrative penalties for specific violations, including penalties for Section 1374.7 violations ($5,000-$200,000) and independent review process violations ($10,000 per day).

Establishes automatic penalty adjustments commencing January 1, 2028 and every 5 years thereafter, based on average rate of change in premium rates for individual and small group markets weighted by enrollment.

Authorizes the director to impose corrective action plans requiring future compliance and establishes that failure to timely comply constitutes grounds for disciplinary action and requires department monitoring through medical surveys and financial examinations.

Requires the director to determine appropriate penalty amounts based on specified factors including violation nature and scope, plan's good faith, history of violations, willfulness, cooperation with investigation, and financial impact on enrollees.