(a) Notwithstanding the rate specified by Section 12202, the gross premiums tax rate for premiums received for the provision of health insurance, as defined in subdivision (b) of Section 106 of the Insurance Code, paid by an insurer described in this subdivision shall be 0 percent for any of those premiums received on or after July 1, 2016, and on or before June 30, 2019. Only an insurer that provides health insurance that has a corporate affiliate that is a “health care service plan” or “health plan,” defined as a health care service plan that meets all of the following requirements, shall be subject to the rate change provided in this section:
(1) Is licensed by the Department of Managed Health Care or is a managed care plan contracted with the State Department of Health Care Services to provide Medi-Cal services.
(2) Had at least one enrollee enrolled in the health plan in the base year, as defined in subdivision (e) of Section 14199.51 of the Welfare and Institutions Code, not including individuals who are enrolled in a Medicare plan, who receive health care services through a health plan pursuant to a subcontract from another health plan, or who are enrollees through the Federal Employees Health Benefits Act of 1959 (Public Law 86-382).
(3) Is subject to the tax imposed by Section 14199.54 of the Welfare and Institutions Code.
(b) For purposes of this section, an “insurer that has a corporate affiliate that is a health care service plan or health plan” means an insurer that is, directly or indirectly, controlled by, under common control with, or controls a health care service plan.
(c) This section shall remain in effect only until June 30, 2019, and as of June 30, 2020, is repealed.
(Added by Stats. 2016, 2nd Ex. Sess., Ch. 2, Sec. 3. (SB 2 2x) Effective June 9, 2016. Operative on July 1, 2016, or later date, as prescribed by Sec. 6 of Ch. 2. Conditionally inoperative as prescribed by Secs. 7 and 8 of Ch. 2. Inoperative June 30, 2019, by its own provisions, if not made inoperative sooner. Repealed as of June 30, 2020, by its own provisions.)
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