On August 15, 2014, Governor Jerry Brown signed into law legislation to better align the state’s health coverage waiting period requirements with federal law – a conflict resulting from Obamacare waiting periods.
Senate Bill (SB) 1034, authored by Senator Bill Monning (D-Carmel), would prohibit healthcare benefit plans from imposing any waiting or affiliation period before issuing health coverage in California. The intent of the bill is to resolve confusion between state and federal law and to better conform to provisions of the Affordable Care Act (ACA). While the ACA had established a 90 day waiting period that applies broadly to employers, California had established a 60-day waiting period – resulting in a conflict between the two policies.
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.