Release: Senator Hernandez’ Bill to Ban Junk Insurance in CA Goes to the Governor

August 20, 2018

SB 910 was approved by the Legislature and now awaits action by Governor Brown

SACRAMENTO – Today, Senate Bill 910, authored by Senator Ed Hernandez (D-West Covina), passed the Senate Floor with bipartisan support and now heads to Governor Jerry Brown’s desk. SB 910 will ban junk insurance, also known as “short-term” plans, in California.

“With the overall approval of SB 910 by the California State Legislature, we are one step closer to keeping junk insurance out of our state. Make no mistake, junk policies are NOT alternatives to comprehensive health plans. These short-term policies are dangerous because they subject people to huge health care bills, barely cover any services and give people a false sense of security,” said Senator Hernandez. “I look forward to Governor Brown’s action on the measure. As someone who has dedicated his life to advocating for proper health care, I will not stop fighting against the federal government’s continuous assault on California’s insurance market and the health care of millions. California cannot go back to the days before the ACA when you could be denied care completely or go into financial ruin because of these junk plans.”

SB 910 was approved today by a vote of 26-9. It now heads to the Governor’s desk.

Earlier this month, the Trump Administration’s Center for Medicare and Medicaid Services issued final regulations to extend "short-term" plans from three months to up to three years. These short-term plans do not have to cover essential health benefits, like cancer treatment, substance use treatment, or maternity care. Additionally, these plans can deny coverage altogether for those with pre-existing conditions. See Senator Hernandez’ response to this announcement, here.

SB 910 was originally introduced in response to the Trump Administration’s proposed regulations in February to expand short term limited duration coverage to less than 12 months. An issue brief released by the Urban Institute in March of 2018 indicates that in 2019 average individual market premiums would increase approximately 18% in the states that do not prohibit or limit these plans and because of the lack of enforcement of the individual mandate.

Last week, SB 910 was approved by the entire Assembly by a bipartisan vote of 51-21.

SB 910 Fact Sheet

SB 910 Bill Language