On Friday August 14, Governor Jerry Brown signed SB 1034 into law changing California’s waiting period requirements to coincide with Federal law.

Prior to SB 1034, all groups renewing onto the new ACA complaint plans were prohibited from imposing waiting periods that exceeded 60 days. Unfortunately, California carriers are unable to prorate monthly premiums to maximize the 60 day rule. Without the ability to prorate monthly premiums, employers were effectively required to implement “first of the month, following 30 days” as their new group waiting period. The passage of SB 1034 brings California in line with the rest of county, and sets the maximum waiting period as 90 days.

Although the bill technically takes effect 1/1/15, many carriers are hinting 4th quarter renewals may also be eligible for the longer waiting periods. We will make sure to keep you updated as the carriers release new information regarding SB 1034.

Blake Maxwell

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