SB 1446, the latest revision to ObamaCare, comes as both the insurance industry and the government struggle to minimize the disruptions caused by healthcare reform. We’ll leave the debate about whether this is good or bad for the country to someone else. Our job is to make sure that you understand what this new law means for you.

What is SB 1446?

“This bill allows a small employer health care service plan contract or a small employer health insurance policy that was in effect on December 31, 2013, that is still in effect as of the effective date of this act, and that does not qualify as a grandfathered health plan under PPACA, to be renewed until January 1, 2015, and to continue to be in force until December 31, 2015.

The bill exempts those health care service plan contracts and health insurance policies from various provisions of state law that implement the PPACA reforms described above, and would require that the contracts and policies be amended to comply with those provisions by January 1, 2016, in order to remain in force on and after that date”. In plain English, it means that small businesses can re-enroll with their current health coverage until 2016, in order to allow the government time to carry out the extended transitional policy under the federal Patient Protection and Affordable Care Act (Public Law 111-148) announced by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services on March 5, 2014.

What does Grandmothering mean for you?

The transition period this bill offers as part of health care reform will provide small employers a choice between renewing their existing coverage, or moving to the new health insurance products that comply with all of the January 1, 2014 Affordable Care Act (ACA) rules. Those who renew their existing coverage under the transition policy would need to find new coverage by December 31, 2015. The small employer policies that could be renewed under this bill already are required to comply with many ACA and state-based reforms such as preventative healthcare coverage without co-pays or deductibles, a ban on lifetime caps, the inclusion of maternity care, coverage for autism and the elimination of gender discrimination in setting premiums.

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