California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 2 - Policy Forms and Other Documents
Article 1.3 - Mandated Benefits Analysis Regulations
Section 2218.61 - Assessment of Fee
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Each health insurer shall be assessed, and shall pay, a fee in an amount determined by the formula set forth in Section 2218.62 for each policy written in California for insurance or group disability insurance that provides coverage for hospital, medical, or surgical benefits; however, health insurance described in Health & Safety Code Section 127662(c)(4) shall not be subject to any assessment by the Commissioner.
(b) The dollar amount of total need shall be determined by the Department of Insurance and the Department of Managed Care in consultation with the University of California and shall be limited to the amount necessary to fund the actual and necessary expenses of the university and its work in implementing Health and Safety Code Section 127660. The total amount of assessment on health insurers and health care service plans when combined together shall not exceed two million dollars ($2,000,000.00) annually. The total annual assessment of health insurers shall not exceed 12.4% of the total annual assessment of health insurers and health care services plans combined.
(c) The Commissioner shall calculate and levy an assessment of all health insurers equal to the appropriation contained in the State Budget for the administrative and operational costs arising from the provisions of Chapter 7 (commencing with Section 127660), Part 2 of Division 107 of the Health and Safety Code plus or minus such amounts as the Commissioner deems necessary as a contingency against unanticipated fluctuations in expenditures and revenues and plus or minus such amounts as the Commissioner deems necessary to correct for over-collections or under-collections in prior years.
(d) The Commissioner may adjust the amount set forth in (b) above as necessary to minimize costs by excluding assessment amounts that are too small to justify the cost of such assessment and collection or if such assessment or collection is impractical.
1. New section filed 4-1-2005; operative 5-1-2005 (Register 2005, No. 13).
Note: Authority cited: Sections 127662 and 127664, Health and Safety Code; and Sections 12921 and 12926, Insurance Code. Reference: Section 106, Insurance Code; and Sections 127660, 127661, 127662, 127663 and 127664, Health and Safety Code.
