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ASSEMBLY BILL 1768 (MARGOLIN – 1993)

CHAPTER 1052, STATUTES OF 1993 - AB 1768

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Health and Safety Code sections 1357.50 and 1357.51 and Insurance Code sections 10198.6 and 10198.7 were amended in 1993 with the enactment of Assembly Bill 1768.  (See Exhibit #1d)  Assembly member Burt M. Margolin introduced this measure relating to health care coverage on March 4, 1993.  (See Exhibit #1a)

Assembly Bill 1768 was assigned to the Assembly Committee on Health and the Senate Committee on Insurance, Claims and Corporations where policy issues raised by the bill were considered.  (See Exhibits, #3 and #8)  The fiscal ramifications of the bill were considered by the Assembly Committee on Ways and Means and the Senate Committee on Appropriations.  (See Exhibit #2)  Two amendments were made to Assembly Bill 1768.  (See Exhibits #1b, #1c and #2)  Subsequent to legislative approval, Governor Pete Wilson signed the bill on October 10, 1993, and it was recorded by the Secretary of State on October 11th as Chapter 1052 of the Statutes of 1993.  (See Exhibits #1d and #2)

The Third Reading analysis of Assembly Bill 1768 as last amended described this bill as follows:

DIGEST:  This bill amends AB 1672 (Margolin) of last year which provided that health insurers and and [sic] health care service plans may not exclude coverage for any person on the basis of a pre-existing condition for more than six months.

This bill prohibits these plans that cover one or two individuals from excluding coverage based on a pre-existing condition for a period greater than 12 months.  If the carrier does not use a pre-existing condition provision in health plans that cover one or two individuals, the bill allows the carrier to impose a contract provision excluding coverage for waivered conditions.
(See Exhibit #9, page 1)