New California Law Affects Small-firm, Group Health Insurance.
SB 1375, signed by Gov. Brown in late September, changes the Health Insurance Code to reclassify certain small-employer groups as individuals. The affected firms will have to obtain individual health insurance in 2019, rather than the small-employer group plans they currently have, Individual health plans are typically more expensive, with less provider network and benefit plan choices, than small group offerings.
The bill defines groups that consist entirely of owners/partners, and/or W-2 employees that are spouses of owner/partners, as not eligible for group health coverage, Although these entities may be classified as employer/employees by other regulations, (e.g. workers' comp, payroll tax etc.), SB 1375 specifically states they do not qualify for group health coverage and may only purchase individual plans.
For CalCPA members and their firms, CalCPA Health received certain exemptions from SB 1375, which typically allows it to treat these...
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