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HomeGovernment CodeDiv. 5Pt. 5Ch. 1Art. 6§ 22850 Health Plan Contract Authority

§ 22850 Health Plan Contract Authority

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 22850 Health Plan Contract Authority

Key Takeaways

  • •The board can make deals with health insurance companies without needing to follow normal bidding rules.
  • •Health plans can include different types of benefits like hospital stays, surgeries, and even special plans for groups that rely on prayer for healing.
  • •The board can create special health plans just for certain groups of workers, like police officers, and these plans can have different prices in different parts of the state.
  • •If a health plan was approved before 1988 and still meets the rules, it can keep running.

Example

A group of police officers wants their own health plan with special benefits just for them.

The board can approve this special plan even if it’s only for police officers and not for other state workers. The plan can also have different prices depending on where the officers live in California.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 22850 Health Plan Contract Authority

(a) The board may, without compliance with any provision of law relating to competitive bidding, enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans. (b) The board may contract with carriers for health benefit plans or approve health benefit plans offered by employee organizations, provided that the carriers have operated successfully in the hospital and medical care fields prior to the contracting for or approval thereof. The plans may include hospital benefits, surgical benefits, inpatient medical benefits, outpatient benefits, obstetrical benefits, and benefits offered by a bona fide church, sect, denomination, or organization whose principles include healing entirely by prayer or spiritual means. (c) Notwithstanding any other provision of this part, the board may contract with health benefit plans offering unique or specialized health services. (d) The board may administer self-funded, partially self-funded, or minimum premium health benefit plans. (e) The board may contract for or implement employee cost containment and cost reduction incentive programs that involve the employee, the annuitant, and family members as active participants, along with the carrier and the provider, in a joint effort toward containing and reducing the cost of providing medical and hospital health care services to public employees. In developing these plans, the board, in cooperation with the Department of Human Resources, may request proposals from carriers and certified public employee representatives. (f) Notwithstanding any other provision of this part, the board may do any of the following: (1) Contract for, or approve, health benefit plans that charge a contracting agency and its employees and annuitants rates based on regional variations in the costs of health care services. (2) Contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. State employees and annuitants may not enroll in these plans. The board may provide health benefit plans exclusively for employees and annuitants of contracting agencies in addition to or in lieu of other health benefit plans offered under this part pursuant to Section 22922. (3) Implement and administer risk adjustment procedures consistent with Section 22864 that require health benefit plans to adjust premiums and authorize the system to redistribute premiums based on rules and regulations established by the board for this purpose. (g) (1) The board shall approve any employee association health benefit plan that was approved by the board in the 1987–88 contract year or prior, provided the plan continues to meet the minimum standards prescribed by the board. The trustees of an employee association health benefit plan are responsible for providing health benefit plan administration and services to its enrollees. (2) Notwithstanding any other provision of this part, the California Correctional Peace Officer Association Health Benefits Trust and the Peace Officers Research Association of California Insurance and Benefits Trust may offer different health benefit plan designs with varying premiums in different areas of the state. The trustees of these health benefit plan trusts shall not use geographic regions that are different from the geographic regions established by the board for the regional premiums of contracting agencies, as authorized in paragraph (1) of subdivision (f), except that these trusts may use a north or south geographic region of the state that is different from the regions established by the board. (h) Irrespective of any other provision of law, the sponsors of a health benefit plan approved under this section may reinsure the operation of the plan with an admitted insurer authorized to write disability insurance, if the premium includes the entire prepayment fee. (Amended by Stats. 2019, Ch. 330, Sec. 18. (SB 782) Effective January 1, 2020.)

Last verified: January 22, 2026

Key Terms

compliancehealthbenefitsmedicalcontracthospitalpremiumoffer

Related Statutes

  • § 1156 Employee Flexible Benefits Election
  • § 22853 Health Plan Enrollment Rights
  • § 22854.5 Health Plan Cost Disclosure
  • § 22953 State Employee Dental Plans
  • § 22825 Highway Patrol Health Eligibility

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 22850.
View Official Source