Introduction to AB 1672
Guaranteed Small Group Health Insurance
ALL Small Business Employer Groups from 2 - 49 employees have the right to GUARANTEED availability of Health & Medical Insurance coverage from ANY Insurance Company or HMO.
(Insurance Code §10702 et seq.,
AB 1672 1992)
What this means to your company is that as long as your firm meets the requirements all of our companies MUST write your coverage.
§10705 (g)
The specific details on how to qualify for the GUARANTEED issue coverage that this law provides is on our "Rules" page
Features
Guaranteed renewable under CA Insurance Code
§10713.
An §(f) Eligible employee that can/must be covered, is basically one who works 30 hours/week for full time and 20 hours/part time. Including husband and wife.
An employee or dependent cannot be excluded for medical reasons
§10707.
Pretty much there are no Pre - X limitations.
(Insurance Code §10708)
HMO's don't have a Pre - X clause and the clause in PPO's can be waived if the employee has credible coverage.
(§(r) id)
The rates or premiums for Employers are "leveled," that is they and can't vary more that 20% from the Healthiest to the sickest group that might have the most claims. This factor is known as the "Risk adjustment factor" or RAF and is basically determined by the claims experience or expected losses and how many employees are in the group.
Employee's Portion of the Premium can be deductible for Employer and Employee under a Section 125 POP Plan
Employer Resources
Technical & Research Links
Health & Safety Code §1357-1357.18 Small Employer Group Access to Contracts for Health Care Services
Similarly Situated Employees
                
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