CA Group Health Insurance The Rules

In 1992, AB1672 was passed. This legislation is not important to everyone, only to those people that are concerned with small group health insurance. CA group health insurance has been in legislation many times, but AB1672 is thought to be the defining regulation.

The rules dictate to health insurance carriers how they must offer health insurance to small groups. There are many guidelines, but two of the most important that will affect you whether you are an employee or the employer discuss the requirements of each.

Employer Requirements According to AB1672

Small business owners that employ up to 50 people and want to provide group benefits must cover a minimum 50% of the plan cost. That is all that is actually required of the employer. The employee rules are a bit more in-depth.

Employee Rules

In any small group plan at least 75% of the employees have to opt in for the plan. The regulation also moves forward by discussing who is considered an employee and defines other requirements that an employee has to meet to be eligible to participate in a small group health insurance plan.

According to AB1672, an employee must be a full time permanent employee and:

  • (A) The employee otherwise meets the definition of an eligible employee except for the number of hours worked.
  • (B) The employer offers the employee health coverage under a health benefit plan.
  • (C) All similarly situated individuals are offered coverage under the health benefit plan.
  • (D) The employee must have worked at least 20 hours per normal work week for at least 50% of the weeks in the previous calendar quarter.

The rules are pretty in-depth, and having someone to help you understand them will make life a lot easier. Get the assistance you need from the experienced agents at Abrams Health Insurance. We will help you make sense of the rules and regulations and provide you with free quotes so you can see what you are eligible for!

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