(a)With respect to individual health benefit plans issued, amended, or renewed on or after January 1, 2014, a health insurer may use only the following characteristics of an individual, and any dependent thereof, for purposes of establishing the rate of the individual health benefit plan covering the individual and the eligible dependents thereof, along with the health benefit plan selected by the individual:
(1)Age, pursuant to the age bands established by the United States Secretary of Health and Human Services and the age rating curve established by the federal Centers for Medicare and Medicaid Services pursuant to Section 2701(a)(3) of the federal Public Health Service Act
(42 U.S.C. Sec. 300gg(a)(3)). Rates based on age shall be determined using the individual’s age as of the
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(a)
With respect to individual health benefit plans issued, amended, or renewed on or after January 1, 2014, a health insurer may use only the following characteristics of an individual, and any dependent thereof, for purposes of establishing the rate of the individual health benefit plan covering the individual and the eligible dependents thereof, along with the health benefit plan selected by the individual:
(1)
Age, pursuant to the age bands established by the United States Secretary of Health and Human Services and the age rating curve established by the federal Centers for Medicare and Medicaid Services pursuant to Section 2701(a)(3) of the federal Public Health Service Act
(42 U.S.C. Sec. 300gg(a)(3)). Rates based on age shall be determined using the individual’s age as of the date of the plan issuance or renewal, as applicable, and shall not vary by more than three to one for like individuals of different ages who are 21 years of age or older as described in federal regulations adopted pursuant to Section 2701(a)(3) of the federal Public Health Service Act (42 U.S.C. Sec. 300gg(a)(3)).
(2)
(A)
Geographic region. The geographic regions for purposes of rating shall be the following:
(i)
Region 1 shall consist of the Counties of Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, and Yuba.
(ii)
Region 2 shall consist of the Counties of Marin, Napa, Solano, and Sonoma.
(iii)
Region 3 shall consist of the Counties of El Dorado, Placer, Sacramento, and Yolo.
(iv)
Region 4 shall consist of the City and County of San Francisco.
(v)
Region 5 shall consist of the County of Contra Costa.
(vi)
Region 6 shall consist of the County of Alameda.
(vii)
Region 7 shall consist of the County of Santa Clara.
(viii)
Region 8 shall consist of the County of San Mateo.
(ix)
Region 9 shall consist of the Counties of Monterey, San Benito, and Santa Cruz.
(x)
Region 10 shall consist of the Counties of Mariposa, Merced, San Joaquin, Stanislaus, and Tulare.
(xi)
Region 11 shall consist of the Counties of Fresno, Kings, and Madera.
(xii)
Region 12 shall consist of the Counties of San Luis Obispo, Santa Barbara, and Ventura.
(xiii)
Region 13 shall consist of the Counties of Imperial, Inyo, and Mono.
(xiv)
Region 14 shall consist of the County of Kern.
(xv)
Region 15 shall consist of the ZIP Codes in the County of Los Angeles starting with 906 to 912, inclusive, 915, 917, 918, and 935.
(xvi)
Region 16 shall consist of the ZIP Codes in the County of Los Angeles other than those identified in clause (xv).
(xvii)
Region 17 shall consist of the Counties of Riverside and San Bernardino.
(xviii)
Region 18 shall consist of the County of Orange.
(xix)
Region 19 shall consist of the County of San Diego.
(B)
No later than June 1, 2017, the department, in collaboration with the Exchange and the Department of Managed Health Care, shall review the
geographic rating regions specified in this paragraph and the impacts of those regions on the health care coverage market in California, and make a report to the appropriate policy committees of the Legislature.
(3)
Whether the plan covers an individual or family, as described in PPACA.
(b)
The rate for a health benefit plan subject to this section shall not vary by any factor not described in this section.
(c)
With respect to family coverage under an individual health benefit plan, the rating variation permitted under paragraph (1) of subdivision (a) shall be applied based on the portion of the premium attributable to each family member covered under the plan. The total premium for family coverage shall be determined by
summing the premiums for each individual family member. In determining the total premium for family members, premiums for no more than the three oldest family members who are under 21 years of age shall be taken into account.
(d)
The rating period for rates subject to this section shall be from January 1 to December 31, inclusive.
(e)
This section shall not apply to an individual health benefit plan that is a grandfathered health plan.
(f)
The requirement for submitting a report imposed under subparagraph (B) of paragraph (2) of subdivision (a) is inoperative on June 1, 2021, pursuant to Section 10231.5 of the Government Code.