On August 15th California Governor Jerry Brown signed into law legislation to better align the state’s health coverage waiting period requirements with federal law. While the Affordable Care Act (ACA) had established a 90-day waiting period that applies broadly to employers nationwide, California had established a 60-day waiting period. The intent of Senate Bill (SB) 1034, authored by Senator Bill Monning (D-Carmel), is to resolve confusion between the state and federal laws and to better conform to provisions of the ACA. “We thank the governor for signing this bill, as it will help eliminate the confusion caused by conflicting state and federal waiting periods. Now it will be easier for employer groups to comply with the law,” stated Neil Crosby, Vice President of Public Affairs for the California Association of Health Underwriters (CAHU) and Director of Sales for Warner Pacific Insurance Services.
SB 1034 is a product of numerous discussions among state regulators, small business groups, health insurance organizations, consumer organizations and CAHU to provide clarity on the allowable waiting periods. More information will be coming soon as to when existing businesses will be able to take advantage of the new waiting period regulations and what waiting period options will be made available by the carriers.
