The California state legislature has passed a bill that establishes a regulatory oversight and licensing framework for consumer-owned and-operated health care plans, or co-ops.
The bill is S.B. 1846. It was strongly supported by the State Insurance Department. It now goes to Gov. Jerry Brown for signature.
"I am pleased that the Legislature passed this important bill which establishes a licensing framework for CO-OPs," said insurance commissioner Dave Jones.
"These CO-OPs are a help to California consumers by returning surplus revenue to members in the form of lower premiums, lower cost-sharing and expanded benefits."
The bill implements a provision of the Patient Protection and Affordable Care Act.
The bill would also make co-ops in California eligible for federal grants.
Under the health care law, those seeking to form a CO-OP may apply for $3.8 billion in federal funds in the form of low interest loans.
To date, 19 non-profits, offering coverage in 18 states, have been awarded over $1 billion by the Department of Health and Human Services.