CAHU supported 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. 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. “CAHU was the organization that spotted the problem with California’s non-conformity with the employer waiting period requirements. CAHU stayed the course and followed through until it was corrected in state law with Governor Brown signing SB 1034,” said CAHU President Patrick Burns.
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.
Stay tuned for updates to this important announcement.