California Insurance Code 12696.7-12697.15

12696.7. (a) The board may contract with a variety of health plans and types of health care service delivery systems in order to offer subscribers a choice of plans, providers, and types of service delivery. (b) Participating health plans contracting with the board pursuant to this part shall provide benefits or coverage to subscribers only as determined by the board pursuant to subdivision (b) of Section 12696.05. 12697. The board may negotiate or arrange for stop-loss insurance coverage that limits the program's fiscal responsibility for the total costs of health services provided to program subscribers, or arrange for participating health plans to share or assume the financial risk for a portion of the total cost of health care services to program subscribers, or both. 12697.10. (a) The board shall include, within contracts negotiated pursuant to this part, terms regarding the cancellation of the contracts, and may cancel any contract negotiated pursuant to this part with any participating health plan as provided for in the contract. (b) The board shall provide for the transfer of coverage of any subscriber to another participating health plan if a contract with any participating health plan under which the subscriber receives coverage is canceled or not renewed. 12697.15. (a) Each participating health plan contracting with the board pursuant to this part shall provide health education services related to tobacco use to all program participants. (b) The education activities required by subdivision (a) shall include all of the following: (1) Dissuading persons from beginning to smoke. (2) Encouraging smoking cessation. (3) Providing information on the health effects of tobacco use on the user, children, and nonsmokers.