Bill > AB1907

This bill modifies the operations of the California Health Benefit Exchange—officially known as Covered California, which is the state’s health insurance marketplace established under the federal Patient Protection and Affordable Care Act to help individuals and small businesses enroll in health plans. Starting July 1, 2027, the legislation expands the Exchange's authority to automatically enroll individuals who qualify for financial assistance through insurance affordability programs using applications submitted via the Statewide Automated Welfare System (a computer system used by California counties to manage welfare and public benefits). Specifically, rather than solely enrolling these individuals in the lowest-cost silver-tier plan, the Exchange will also be permitted to place them into plans where other household members are already enrolled, the lowest-cost plan suited for eligible American Indians with reduced cost-sharing, or a plan associated with their previous managed care provider. Additionally, the bill updates pre-enrollment notice requirements by mandating that the Exchange send instructions on how to activate coverage or opt into a plan before coverage officially begins, rather than including warnings about non-payment during the first month. Finally, to ensure alignment with federal guidelines, the bill specifies that the annual open enrollment periods and coverage effective dates for individual health benefit plans—regulated by state bodies such as the Department of Managed Health Care under the Knox-Keene Health Care Service Plan Act of 1975 and the Department of Insurance—will defer to federal rules if any state-level inconsistencies arise starting in 2027.