This is because the Companies are REQUIRED to write your company, under AB 1672 regardless of the health status of the owner or employees, the law and Principles of Insurance require that the Insurance Companies write the healthy ones too, so as to spread the risk. Not just those that "need" or are going to use the coverage. This is also knows as "adverse selection." If an employer is not covering the employees... the health plan might not qualify as tax deductible business expense.
Insurance Companies specifically enforce participation when you 1st apply. Renewal enforcement
The best way to view the Participation & Underwriting Requirements for each company, is to get a FREE quotation for your company, then view the requirements for the companies whose plans & rates that you like. Then Scroll down and click on this icon
You might consider paying 99% of the least expensive plan, so that ALL employees can afford it and then let those that want better plans pay the difference.
Our Quote Engine - on the "Agents End" can give you Employee Worksheets - showing the contribution for each employee for each plan that they might pick.
Some Insurance companies might consider the non union employees as guaranteed issue, if the employer is mandated under a collective bargaining agreement to contribute to Union Labor Fund. Blue Shield Quick Underwriting Guidelins Page 5
