Report 2013-602 Recommendation 1 Responses

Report 2013-602: New High Risk Entity: Covered California Appears Ready to Operate California's First Statewide Health Insurance Exchange, but Critical Work and Some Concerns Remain (Release Date: July 2013)

Recommendation #1 To: Covered California

To provide as much public transparency as possible, Covered California's board should formally adopt a policy to retain confidentiality only for contracts, contract amendments, and payment rates that are necessary to protect Covered California's interests in future contract negotiations.

6-Month Agency Response

Senate Bill 332 was approved by the Governor and filed with the Secretary of State on October 1, 2013. That bill amended Government Code section 100508 and requires Covered California to release, among other documents: (1) contracts upon request, except for those with participating carriers, which must be released upon request one year after execution; and (2) the portions of contracts with participating carriers that contain rates of payment three years after the contract was opened to inspection. Because SB 332 reflects Covered California's current informal policy and addresses the concerns raised in the BSA audit, a recommendation to the Board to adopt a formal contract confidentiality policy is not necessary.

  • Completion Date: October 2013
  • Response Date: January 2014

California State Auditor's Assessment of 6-Month Status: Fully Implemented


60-Day Agency Response

Currently, introduced by Senators Bill Emmerson and Mark DeSaulnier, Senate Bill 332 is enrolled before the California Legislature. If passed, that bill would require Covered California to release, among other documents,: (1) contracts upon request, except for those with participating carriers, which must be released upon request one year after execution; and (2) the portions of contracts with participating carriers that contain rates of payment three years after the contract was opened to inspection. Because SB 332 reflects Covered California's current informal policy and would address the concerns raised in the BSA audit, Covered California has not yet brought a recommendation to the Board to adopt a formal contract confidentiality policy. Covered California is closely monitoring this legislation and will bring a formal policy recommendation to the Board should the legislation fail to move forward this session.

  • Estimated Completion Date: December 18, 2013
  • Response Date: September 2013

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2013-602

Agency responses received are posted verbatim.


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