SECTIONS 10800-10803 - California Statutes

INSURANCE CODE

SECTION 10800-10803

10800. This chapter shall be known as the Private Health Care
Voluntary Purchasing Alliance Act.

10801. The purpose of this chapter is to improve the competition in
the pricing and delivering of health care coverage for employers and
small employers. It does so by allowing for the establishment of
private competing purchasing alliances through which eligible
employers or small employers can purchase health coverage. Another
goal is to avoid jurisdictional confusion by clarifying the
respective roles and jurisdiction of existing regulatory agencies and
a purchasing alliance. This chapter provides a mechanism for
employers or small employers to join together solely for the purpose
of procuring health coverage and operates as an exception to existing
false group or fictitious group laws.

10802. This chapter is also intended to provide a meaningful choice
of high quality, fairly priced health care providers, and health
care coverage for participating employers and employees of a
purchasing alliance through a system that is fair, efficient, and
accountable to its members and includes procedural and substantive
protections.

10803. It is envisioned that a purchasing alliance will contract
with qualified group carriers to provide a meaningful choice of
carriers providing health benefit plans or ancillary benefit plans to
purchasing alliance participants.