CalChamber Backs Easing Employer Transition to Implementing Federal Health Care Law

 

California Chamber of Commerce-supported bills that ease employers’ transition to complying with the federal health care law passed the Assembly Health Committee last week with unanimous support.

• SB 1034 (Monning; D-Carmel) eliminates confusion for employers by deleting certain provisions of California law related to waiting period limitations for health care benefits and clarifying that employees must be covered no later than their 91st day of employment.
  
  
• SB 1446 (DeSaulnier; D-Concord) helps small employers control their health care costs by allowing them to extend their pre-Affordable Care Act (ACA) health care policies through December 31, 2015.

SB 1034 eliminates confusion between the state and federal rules governing health care enrollment waiting periods. Inconsistencies between state and federal laws have created confusion about whether health care can be treated like other benefits, which often are instated after 90 days of employment.

Health Care ReformSB 1034 will allow employers to continue treating all employee benefits as a group, easing administration and compliance with the law, while ensuring that employees receive coverage no later than the 91st day of employment.

Clarifying the law also will help multi-state employers by ensuring they have just one date to keep in mind when determining when a new hire or otherwise qualified employee must be enrolled in a health care plan.

SB 1446 allows small employers who renewed their health coverage in 2013 to continue to renew their pre-ACA plans until January 1, 2015 and allows those plans to remain in effect until December 31, 2015.

In March 2014, President Barack Obama announced that, with state authorization, small businesses would be allowed to continue renewing pre-ACA health coverage through 2016 and for those plans to remain in force until fall 2017.

The change to California law allows small employers in California to take advantage of the first year of the extension announced by the President.

The extended transitional period will give small employers more time to prepare to bear the increased costs associated with plans that fully comply with ACA, minimizing the potentially negative impacts of this new employer mandate on the continuing economic recovery.