Learn Everything You Need to Know About Changes to California’s Small Group Benefits

Changes to California's Small Group Benefits in 2016

Find out what you need to know about changes to California’s small group benefits.

Attention all small business owners! Recent California legislation has changed how small group benefits are allocated. As of the start of the new year, the definition of a small group when it comes to employee benefits has changed. California now defines a small group as companies with less than 101 full-time or full-time equivalent employees. As a business owner, you may have questions as to how this change in group benefits affects you. Make the change as smooth as possible, and check out what you need to know about the changes.

What caused the change?

Last year Congress, along with President Obama passed the Protecting Affordable Coverage for Employees (PACE) Act, which gave states the power to decide how to define small groups. California chose to redefine the definition of small groups to 1-100 employees beginning in 2016.

How does this affect health care coverage?

The changes are most pertinent to employers that previously were categorized in the 51-100 employee range. The most drastic way in which your coverage will change lies in your premiums. Currently, your premium is based on a combined policy, meaning the employee is the main policyholder and has added on their spouse and children. Under the new legislation, this type of coverage changes to meet requirements set by insurance carriers and the state of California. Under the changes, each family member will have a different insurance rate: one for the employee, one for the spouse, and one for each child. This new type of coverage will not be eligible for customizations.

Renewing in 2016:

When it comes time to renew your group health benefits later this year, keep in mind that these legislative changes will affect your policy. Think about what you want in a policy and shop around if necessary. Consult your agent for help picking the best option for your business.

For assistance navigating through the changes in small group benefits, contact the professionals at Brown & Brown Insurance. Located in Anaheim, California, we serve all your personal and commercial insurance needs.