"Grandmothering" Bill now in effect - What it means for “early renewal” clients
/In California, many small employers opted for “early renewal” of their coverage at the end of 2013. This action allowed these small employers to keep their current, non ACA-compliant plans or policies until late 2014.
On July 7, 2014, Governor Brown signed into law SB 1446, sometimes called the 'Grandmothering' Bill. This legislation allows some small groups to keep their current health insurance coverage when they renew in 2014 even if their current coverage does not meet certain requirements of the Affordable Care Act. To simplify: they get to keep their 2013 plans for another year.
SB 1446 permits, but does not require, carriers to further extend the coverage for 2013 “early renewal” small groups.
To save you time, we’ve created a comparison chart showing how California carriers have indicated they will be handling “grandmothered” plans, including renewal dates for which this option is available. Click here to access this chart.
Health plan contracts and insurance policies renewed under SB 1446 are exempt from some ACA provisions. Click here to read more.
A small employer health plan or insurer that offers renewals under this bill must provide notice to the group contract holder regarding the option to renew coverage using a specified federal notice with wording outlined in SB 1446. For easy reference, link to SB 1446 here.
If you have any questions about how this might effect you, please don't hesitate to get in touch by email or by phone 714-969-6032.
Information obtained from Word & Brown General Agency