California Health Benefit Exchange: automatic health care coverage enrollment.

Assembly Member Addis's legislation to modify Covered California's automatic enrollment procedures introduces new options for health plan placement while maintaining core consumer protections. The bill expands the Exchange's authority to enroll individuals in plans beyond the current lowest-cost silver option, allowing placement in plans where other household members have coverage or in specialized plans for eligible Indian enrollees with reduced cost-sharing.

The measure revises how the Exchange processes enrollments when receiving electronic accounts from insurance affordability programs or applications through the Statewide Automated Welfare System. Under the new provisions, taking effect July 1, 2026, the Exchange must evaluate available information to determine appropriate plan placement, including the option to maintain continuity with previous managed care coverage when possible. The legislation preserves existing timing requirements, mandating that enrollment occurs before any coverage gap and that initial premium due dates fall no earlier than the last day of the first enrollment month.

The bill updates notification requirements, directing the Exchange to inform enrollees before coverage begins about their assigned plan, rights to select alternative coverage, and steps to either pay premiums or opt into plans without premiums. These notices must also include information about appeal rights and available enrollment assistance. The measure maintains current protections allowing individuals to decline coverage while adding specific instructions for effectuating or modifying their enrollment.