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Introduction to AB 1672 - Small Group Health Insurance
ALL Small Business Employer Groups from 2 - 49 employees now have GUARANTEED availability of Health & Medical Insurance coverage from ANY Insurance Company or HMO that writes business in California under Insurance Code §10702, which was enacted after passage of AB 1672 in 1992. As long as the requirements of Insurance Code §10705 (g) are met, the carrier must accept the Employer's application.
We have listed the specific details on how to qualify for the GUARANTEED issue coverage that this law provides on this page
To view the rates and benefits, for Small Group Health Insurance, just complete the online form and they will be provided to you immediately 24/7 if you get stuck, call us at (310) 519 1335, fax us the paper census or email us .
Features
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Guaranteed renewable under CA Insurance Code§10713. |
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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.
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An employee or dependent can not be excluded for medical reasons§10707. |
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Pretty much there are no Pre - X limitations per Insurance Code §10708 |
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HMO's don't have a Pre - X clause and the clause in PPO's can be waived if the employee has §(r) credible coverage. |
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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. |
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There are Penalties for non-compliance |
Requirements
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Participation requirements and employer contribution requirements §10706 Generally 75% of employees must be on the plan and the employer must contribute at least 50% of the employee premium. |
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Employees should be added on promptly, as soon as the waiting period allows them, so that they are not considered Late Enrollees |
If you have any further questions or would like to obtain coverage for your group, please call or email us.
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Consumer Links
SIMPLE six page explanation of AB 1672 from CHCF site.
Benefits of a Group Health Plan Video
Disability Benefits 101.org FAQ's
Click here to view discussion on Can an employer offer an Individual Plan to a couple of employees and everyone else take the Group Plan?
SB 578 Amendments - Allows 1 employee to be on plan - if others have spousal group coverage
Definition of Employer CA Insurance Code §10700 (w)
Technical & Research Links
Health & Safety Code §1357-1357.18 Small Employer Group Access to Contracts for Health Care Services
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Is Medical Coverage tax deductible if you only cover a few employees? Or offer some their own choice of an individual plan and other the group plan?
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How do Management Carve Outs work?
More Q & A on Health Insurance
    
 
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