April 22, 2005
Honorable Jerome Horton, Chair
Assembly Committee on Governmental Organization
Legislative Office Building, Room 156
Sacramento, CA 95814
RE: AB 794 (Chu) - Support
Dear Assembly Member Horton,
On behalf of the Asian and Pacific Islander American Health Forum, I respectfully request your Yes vote on AB 794 (Chu).
As you may know, existing law exempts from disclosure records relating to the negotiation of contracts for health coverage entered into by the state with health plans under specified programs. For example, contracts with health plans entered into by the Managed Risk Medical Insurance Board (MRMIB) for the Healthy Families Program, the Major Risk Medical Insurance Program (MRMIP) and the Access for Infants and Mothers Program (AIM) are not open to public inspection until one year after the contract has been executed, and the portion of the contract containing the rates of payment are not open until three years after the contract has been open to inspection.
AB 794 would allow the Legislative Analyst's Office to inspect contract rates of health plans entered into with the Managed Risk Medical Insurance Board. MRMIB currently enters into contracts with 41 health , dental and vision plans in the Healthy Families Program, four contracts with h ealth p lans in the MRMIP and seven contracts with health plans in the AIM program. Records include rates o f payment from the state to health plans, MRMIB's discussions, communications, or any other portion of the negotiations with health plans. AB 794 builds upon the provisions of SB 1103 by furthering legislative oversight of MRMIB 's programs.
In 200 4, the Legislature passed and the Governor signed into law Senate Bill 1103 (Chapter 228, Statutes of 2004), the health budget trailer bill to implement the health-related statutory changes for the 2004 Budget Act. SB 1103 requires the Legislative Analyst's Office be given access to hospital and certain managed care contracts negotiated by the California Medical Assistance Commission for the Medi-Cal program. SB 1103 requires the LAO to maintain the confidentiality of the contracts and contract amendments until such time the contract or amendment is fully open to inspection by the public.
The LAO serves as the “eyes and ears” of the Legislature to ensure that the executive branch is implementing legislative policy in a cost efficient and effective manner, by reviewing and analyzing the operations of finances of state government. AB 794 builds on this concept through providing the Legislature with fiscal oversight of vital health insurance programs at a time when California is facing yet another massive financial crisis.
Very Truly Yours,
Ho Luong Tran, M.D., M.P.H.
President and CEO
Asian and Pacific Islander American Health Forum
cc: Assembly Member Chu
Members, Assembly Government Organization Committee
