ABX1 8 (Villines) Amended 11/8/07 Abstracted by Len Doberne, MD
Establishes the California Physician Assistant Scholarship and Loan Repayment Program to provide scholarships and repay loans to physician assistants who practice in medically underserved areas and in specified clinics.
Requires PERS to establish a high deductable health plan and a health savings account option for public employees, partly funded by the employer with premiums saved by using a high deductable health plan. The health savings fund shall be invested by PERS to benefit the health savings account.
Allows health insurers from other states to offer health insurance plans in California without complying with specific coverage required by the State of California, if they comply with the issuing state's requirements, as long as waivers listing deficiencies compared to insurance offered by California insurers are signed by California policyholders.
Requires 90% of funds derived from conversions of non-profit to for profit health care service plans be spent on healthcare for persons not receiving health care services from a government program.
Allows employers who offer a cafeteria plan of healthcare for their employees to submit the funds to the California Health Insurance Exchange to be forwarded to the issuing plan.
Allows for individuals to deduct from gross income the costs of health insurance and health savings accounts.
Allows physicians to receive a state tax credit of 50% of the Medicare rate of uncompensated care provided to Californians whose income is less than the poverty level.
Increases Medi-Cal payments to physicians and hospitals to 80% of Medicare reimbursement rate.
Allows a tax credit of 15% of money spent on employee health insurance or health savings accounts by employers employing 2-199 persons, from 1/1/08 to 1/1/13, if the employer did not provide health insurance to their employees for the previous 5 years, instead of a business deduction for the expense. This tax credit shall be available to an employer for up to 3 years.
Establishes a $50 penalty for not reporting required information on IRA's, health savings accounts, qualified tuition programs, Coverdell education savings accounts, or required forms to the Franchise Tax Board ($100 for overstating deductions).
Directs the State Department of Health Care Services to submit a proposal to the federal government to participate in the Medicaid Demonstration Project for Health Opportunity Accounts to allow $2,500 per adult and $1,000 per child to pay for out of pocket medical expenses to meet the deductable of an insurance product of the patient's choice, to be implemented in 10 counties. The insurance plan offered to enrollees shall have a deductable equal to or up to 1.1x the account balance. Unused funds can be used after one year for job training or tuition expenses.
-Len Doberne, MD