The Affordable Care Act instated new requirements that all health insurance policies had to meet. As a consequence, many people were forced to cancel their policy at the end of this year in order to find more appropriate policies that comply with the new requirements. A few of the group health plans were allowed to keep their coverage; these plans were considered “grandfathered”.
Have you heard about “The Grandmothering Act”, also known as SB 1446? It is a bill that allows small business health plans to be renewed until the first of January 2015, regardless of whether it does not meet the qualifications of a grandfathered health plan. The bill also allows these plans to continue to be used until the end of 2015.
This is great news for the small business owners of California! They can continue to use their existing coverage that was purchased before the end of 2013. The only restriction to this bill is that those preexisting health plans cannot be a part of a grandfathered health plan. This buys small business owners some time before having to purchase new coverage. The law will go into place instantly!
Transitioning to the Affordable Care Act can cost small business owners precious time. The Grandmothering Act offers some relief from the transition.
If you would like further explanation of the SB 1446, or would like any other assistance with employee benefits, please contact the Pacific Group in Laguna Hills! We are the top privately held, full-service employee benefits brokerage firm in California, and will work with you until you are completely satisfied! Whether you need assistance with consulting, cost management, employee benefit design, or administration, we have the tools and experience necessary to fulfill all of your needs!